1586

NEW ZEALAND GAZETTE

No. 66

Write off debit balance ................................................... - 14,740

• $244,490,769

The revaluation reserve measured the difference between the cost of Government and local authorities securities and Trust Bank New Zealand Limited shares and the market value as at balance date.

The write off of debit balance is in respect of Government and local authorities securities and is taken to the statement of financial performance. The transfer to core real capital base reserve represents the realised gain on sale of the Trust Bank New Zealand Limited shares.

Transfers have been made between reserves to reflect the new structure for trust funds.

5. Reconciliation of Net Surplus to Net Operating Cash Flow

Net surplus ........................................................... 22,292,397 8,480,343
Adjustments for non cash items in net surplus
Armstrong Jones investment income ............................... (2,473,404) (2,492,827)
Depreciation .................................................... 28,301 16,311
Loss on realisation of local authorities securities .............. - 6,882
Write off debit balance in revaluation reserve .................. - 14,740
Prior years donations transferred to long term commitments ...... 51,667 -
19,898,961 6,025,449

Adjustments for changes in working capital
Decrease (increase) in accrued interest ......................... (1,941,425) (19,920)
Decrease (increase) in prepayments .............................. (15,419) -
Increase (decrease) in accrued charges .......................... 1,563 4,310
Increase (decrease) in accounts payable ......................... (3,329) 53,377
Increase (decrease) in donations payable ........................ (304,915) 3,293,480
Increase (decrease) in taxation payable ......................... (4,693,059) (40,056)
Increase (decrease) in donations paid in advance ................ (708) -
12,914,865 9,310,864

Add back
Loss on sale .................................................. - 6,373
Future donation reserve transfer .............................. - 927,932
Capital base reserve transfer ................................. 8,740,535 500,000

Deduct
Donations paid from capital ................................... (9,452,557) (7,807,289)
Capital items included in working capital adjustments ........... 44,000 (49,500)

Cash flow from operations ....................................... $12,246,843 $2,888,380

6. Capital Commitments

Costs to complete the construction of the investment property are estimated at $1,740,086 (1996: $3,844,383).

7. Fixed Assets

                                  Cost      Accumulated     1997        1996
                                  $       Depreciation  Book        Book
                                          $           Value $     Value $

   Plant and equipment ................... 64,813 29,456 35,357 37,228
   Motor vehicles ........................ 72,654 23,673 48,981 63,637
   $137,467 $53,129 $84,338 $100,865

8. Contingent Liabilities

There are no contingent liabilities at balance date (1996 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.

10. Related Party

In the normal course of business the trust has received $7,605,270 (1996 $262,125) of interest from WestpacTrust. At balance date the bank balances held at WestpacTrust are $13,514,076 (1996 $3,147,006) and deposits of $97,227,768 (1996 $2,668,593).