New Zealand Gazette – 1996 – No. 122

Page 3094

✨ Trust Bank Otago Community Trust Financial Statements



3094 NEW ZEALAND GAZETTE No. 122

Donations

Donations are accounted for as they are distributed or committed to be distributed to eligible organisations as approved by the trustees.

Foreign Currencies

All amounts denominated in foreign currencies are converted to New Zealand dollars at balance date. All realised and unrealised gains and losses are recognised in income and expenditure for the period.

Taxation

The trust has been registered as exempt in New Zealand from interest and dividend PAYE and holds a current certificate of exemption, but may be liable to taxation on investment income in some overseas countries. Tax on overseas income is accounted for as a reduction of that income.

The trust is not registered for goods and services tax purposes. Accordingly, these financial statements are stated on a G.S.T. inclusive basis.

Reserves

For a 5 year period commencing in 1995 a reserve building programme has been implemented.

The capital maintenance reserve represents the additional amount necessary to preserve the real value of the capital allowing for inflation as measured by the consumers' price index (C.P.I.).

The investment fluctuation reserve allows donations at a stable level from year to year even though investment income may fluctuate. If investment income, after necessary transfers to the capital maintenance reserve is more than the target donations level, the excess will be added to the investment fluctuation reserve. If it is less, the deficit will be transferred out of the investment fluctuation reserve.

Investments

The shares in Trust Bank New Zealand which are held as a long term investment are valued at year end market value. Any revaluation difference is transferred to an investment revaluation reserve.

Hedging Instruments

The trust through its investment managers enters into hedging instruments such as futures, options and forward exchange contracts. These are converted to the New Zealand dollar rate at balance date with all realised and unrealised gains and losses being recognised in income and expenditure as net income from managed funds.

Statement of Cash Flows

Cash comprises cash at bank and call deposits but does not include cash or deposits held by the fund managers.

Changes in Accounting Policies

There have been no material changes in accounting policies during this accounting period.

1996 1995
$000 $000
1. Income
Dividends—trust bank 2,520 2,175
Interest 357 30
Other — 2,833
Total 2,907 5,008
  1. Professional Fees

| Auditors: | | |
| Audit fees | 1 | 1 |
| Other professional services | 6 | 1 |
| Community Trust Investments Limited | 6 | 4 |
| Legal advisors | 12 | 8 |
| Professional investment advisors | — | 59 |
| Total | 25 | 73 |

  1. Donations

For this year:

| Committed and disbursed | 1,699 | 2,034 |
| Committed but not yet disbursed | 1,402 | 638 |
| Total | 3,101 | 2,672 |

  1. Trust Funds

The trust funds balance comprises the following:
The trust capital is the original value of the shares in Trust Bank New Zealand at the time they were settled on the trust in 1988.

| Balance as at 31 March | 1996 | 1995 |
| | $000 | $000 |
| | 21,202 | 21,202 |



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💰 Trust Bank Otago Community Trust Financial Statements (continued from previous page)

💰 Finance & Revenue
5 June 1996
Financial Statements, Cash Flows, Accounting Policies, Trust Bank Otago, Otago Community Charities