1968 NEW ZEALAND GAZETTE No. 76

7. Statement of Cash Flows

The depreciation charged to the cash flow statement includes a sum of $34,882 (1995 $42,098) on charged to the ASB Bank Community Trust as facilities rental.

8. Commitments

Investments

Net investment transactions receivable by the fund managers but unsettled prior to year end total $2,616,056 (1995 $559,634).

9. Financial Instruments

Currency Risk

The trust invests in securities that are denominated in foreign currencies and therefore result in a currency risk. In order to minimise the currency risk, foreign currency assets are hedged.

Interest Rate Risk

The trust, through its fund managers, invests in securities that are subject to interest rate risk. The trust actively monitors this risk and changes asset allocations and maturity profiles accordingly.

Credit Risk

The trust in the normal course of business enters into arrangements with other parties. These arrangements give rise to credit risk for the trust and hence policies and procedures are maintained so that this risk is minimised.

For all classes of financial assets held by the trust the maximum credit risk exposure to the trust is the carrying value as disclosed in the financial statements at balance date.

Due to the diversification of the investment portfolio and the policies and procedures in place, there is no significant concentrations of credit risk.

Fair Values

All financial instruments are carried at market value.

KPMG Audit Report to the Trustees of ASB Charitable Trust

We have audited the financial statements (comprising the statement of income and expenditure, the balance sheet, the statement of cash flows and the notes to these financial statements). The financial statements provide information about the past financial performance of the trust and its financial position as at 31 March 1996. This information is stated in accordance with the accounting policies included in the notes to these financial statements.

Trustees' Responsibilities

The trustees are responsible for the preparation of financial statements which give a true and fair view of the financial position of the trust as at 31 March 1996 and of the results of operations and cash flows for the year ended 31 March 1996.

Auditors' Responsibilities

It is our responsibility to express an independent opinion on the financial statements presented by the trustees and report our opinion.

Basis of opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing:

• the significant estimates and judgments made by the trustees in preparation of the financial statements, and

• whether the accounting policies are appropriate to the trust's circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with generally accepted auditing standards in New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Other than in our capacity as auditors we have no relationship with or interest in the trust.

Unqualified opinion

We have obtained all the information and explanations we have required.

In our opinion the financial statements:

• comply with generally accepted accounting practice;
• give a true and fair view of the financial position of the trust as at 31 March 1996 and the results of its operations and cash flows for the year ended on that date.

Our audit was completed on 31 May 1996 and our unqualified opinion is expressed as at that date.