19 SEPTEMBER NEW ZEALAND GAZETTE 3093

Purchase of investment.......................................................................................
Purchase of managed funds............................................................................
Purchase of fixed assets...................................................................................

Net cash outflow from investing activities............................................................
Net (decrease)/increase in cash held.................................................................
Add opening cash brought forward.................................................................
Ending cash carried forward............................................................................

Ending cash comprises:
Trust Bank Otago cheque accounts................................................................

The notes to these financial statements form part of and should be read in conjunction with this Consolidated Statement of Cash Flows.

Reconciliation of Reported Surplus to Net Cash Flow from Operating Activities

Surplus for the period........................................................................................
Add:
Non-cash items:
Depreciation............................................................................................
Less:
Non-cash items:
Investment revaluation............................................................................
Managed funds reinvested.......................................................................
Committed donations...................................................................................

Movements in working capital items:
Increase in creditors...................................................................................
Increase in committed donations............................................................
Decrease in grant provision.........................................................................
Decrease/(increase) in debtors....................................................................
Decrease in other assets............................................................................

Net cash flow from operating activities............................................................

Notes to the Consolidated Financial Statements for the Year Ended 31 March 1996

Statement of Accounting Policies

These are the consolidated financial statements of Trust Bank Otago Community Trust and Otago Community Charities Limited. The accounts have been prepared to comply with the Companies Act 1955 and the Financial Reporting Act 1993. The Trust Bank Otago Community Trust (the trust) was formed on 30 May 1988 through the creation of a trust deed in compliance with the Trustee Banks Restructuring Act 1988. Under the terms of the trust deed the trust was settled with 13 500 000 $1 fully paid ordinary shares in Trust Bank New Zealand Limited. With the restructuring of Trust Bank New Zealand Limited, bonus shares and a share split resulted in a final shareholding of 54 000 000 50 cent fully paid ordinary shares.

In March 1994 30 000 000 shares were sold as part of the public flotation of Trust Bank New Zealand for $50,452,000. This formed part of the settlement in December 1994 of $63,000,000 to Otago Community Charities Limited, a charitable company owned by the trust.

General Accounting Policies

The measurement basis adopted is that of historical cost adjusted for the revaluation of certain assets. Reliance is placed on the fact that the trust is a going concern. Accrual accounting is used to match income and expenditure.

Particular Accounting Policies

Income

Income from managed funds includes both realised and unrealised income and is recorded net of fund management expenses. Dividends from Trust Bank New Zealand are recognised as income when they are received by the trust and exclude imputation tax credits.

Interest is recognised on an accrual basis.