1852 NEW ZEALAND GAZETTE No. 73

Revaluation of securities ...................................................................................................
1996 1995
(14,740) (92,752)

Revaluation of shares .......................................................................................................
69,600,000 (49,200,000)

Transfer of debit balance .................................................................................................
14,740 7,899

                                                                                 $244,490,769                $174,890,769

The revaluation reserve measures the difference between the cost of Government and local authorities securities and Trust Bank New Zealand Limited shares and the market value as at 31 March 1996. The transfer of debit balance is in respect of Government and local authorities securities and is taken to the statement of financial performance.

5. Reconciliation of Net Surplus to Net Operating Cash Flow

Net surplus .......................................................................................................................
605,488 1,757,879

Adjustments for non cash items in net surplus
Armstrong Jones investment income ............................................................................... (2,492,827) (819,559)
Depreciation ................................................................................................................... 16,311 13,570
Loss on realisation of local authorities securities ............................................... 6,882 10,142
Write off of debit balance in revaluation reserve ................................................. 14,740 7,899

                                                                                 (2,454,894)                  (787,948)

Adjustments for changes in working capital
Decrease (increase) in accrued interest ............................................................... (19,920) (45,756)
Increase (decrease) in accrued charges .............................................................. 4,310 24,000
Increase (decrease) in accounts payable ............................................................. 53,377 (10,542)
Increase (donations) in donations payable .......................................................... 3,361,046 (376,697)
Increase (decrease) in taxation payable ............................................................ (40,056) –
Increase (decrease) in goods and services tax ....................................................... (5,776) –

                                                                                 3,352,981                    (408,995)

Add back
Loss on sale ............................................................................................................. 6,373 4,519
Future donation reserve transfer ........................................................................ 927,932 386,265
Capital base reserve transfer .............................................................................. 500,000 372,935
Deduct
Gain on sale ......................................................................................................... – (2,886)
Capital items included in working capital adjustments ....................................... (49,000) –

Cash flow from operations ........................................................................................ $2,888,380 $1,321,769

6. Capital Commitments

Payments made on the investment property as at 31 March 1996 consist of the deposit on the purchase of land at 262 Oxford Terrace, architectural and legal fees. Upon the signing of the purchase contract, the following represents the future estimated capital commitments relating to this project (G.S.T. inclusive):

                                                                                 Cost

Balance of purchase cost of land ............................................................... 539,663
Stamp duty ......................................................................................................... 9,910
Architects fees ................................................................................................ 73,935
Leasing commissions and promotions ........................................................... 70,875
Progress payments on development:
April 1996–March 1997 ............................................................................ 3,150,000
$3,844,383

There are no other capital commitments (1995 nil).

7. Fixed Assets

                                                                                Cost      Accumulated Depreciation       1996 Book Value    1995 Book Value

   Plant and equipment ............................................................................................. 53,038 15,810 37,228 44,548
   Motor vehicles ...................................................................................................... 72,654 9,017 63,637 52,643
   $125,692 $24,827 $100,865 $97,191

8. Contingent Liabilities

There are no contingent liabilities (1995 nil) apart from donation commitments as per note 3.

9. Segmental Reporting

The trust operates as a charitable trust in the Canterbury, Marlborough and Nelson areas.
As all operations occur within New Zealand, segmental reporting is not required.