10 JULY NEW ZEALAND GAZETTE 1717

Consolidated Statement of Cash Flows for the Year Ended 31 March 1997

| Cash was applied to: | | |
| Community payments | (3,694,637) | (1,709,966) |
| Trustees and employees | (155,804) | (100,974) |
| Suppliers of other goods and services | (240,369) | (81,655) |

| Net operating cash flows | 8 | 5,817,697 | 2,079,026 |

| Cash flows from investing activities— | | |
| Cash was provided from: | | |
| Sale of Government securities | 92,419,979 | 231,638 |
| Sale of Trust Bank New Zealand Limited shares | 99,218,581 | — |

| Cash was applied to: | | |
| Investments in Government securities | (93,083,925) | (1,025,747) |
| Investments in managed funds | (80,000,000) | — |
| Investments in shares | (14,999,984) | — |
| Purchase of fixed assets | (31,941) | (38,144) |

| Net investing cash flows | 3,522,710 | (832,253) |
| Net increase (decrease) in cash held | 9,340,407 | 1,246,773 |
| Add cash at 1 April | 1,833,350 | 586,577 |

| Cash at 31 March | 4 | $11,173,757 | $1,833,350 |

(The notes to the financial statements form part of and are to be read in conjunction with the above accounts.)

Notes to the Consolidated Financial Statements for the Year Ended 31 March 1997

1. Statement of Accounting Policies

Reporting Entity

Trust Bank Eastern and Central Community Trust Incorporated is a charitable trust incorporated in accordance with the provisions of the Trustee Banks Restructuring Act 1988.

The financial statements have been prepared in accordance with applicable financial reporting standards and other generally accepted accounting practices in New Zealand.

Measurement Base

Unless otherwise stated the measurement base applied is that of historical cost.

Specific Accounting Policies

The following are the particular accounting policies which have a material effect on the measurement of results and financial position:

• Investment income is accounted for on an accruals basis recognising both realised and unrealised gains or losses in value. Income from managed funds are recorded net of fund manager’s expenses.

• Donations made are included in the statement of financial performance when approved by the trustees.

• Depreciation is charged to write off the cost of fixed assets over their expected economic lives using the straight line method:

  • Computer equipment: 3 years
  • Fixtures and fittings: 9 years
  • Furniture: 10 years
  • Office equipment: 5 years

• Investments are valued at market value.

• Foreign currency balances are converted to NZD at the year end rate of exchange. Transactions completed during the year are converted at the rate applying at the date of the transaction. Foreign exchange gains and losses are included within the statement of financial performance.

• Income tax is not provided as the trust has charitable status for tax purposes therefore its income is not subject to taxation.

• G.S.T. inclusive accounting has been adopted as the trust is not registered for G.S.T. purposes.

• Consolidation of Eastern and Central Community Trust Charities Limited, a wholly owned subsidiary, has been achieved using the purchase method of consolidation.

• Cash comprises cash at bank, call deposits and short term deposits but does not include cash held by fund managers.