10 JULY NEW ZEALAND GAZETTE 1719

Fair Values

The trust has recorded its financial assets and liabilities at current market values which represent estimated fair values and credit risk exposure.

Currency Risk

The trust has exposure to currency risk through its investments in off-shore equities and bonds.

Credit Facilities

The trust has no credit facilities.

Interest Rate Risk

The trust investments in fixed rate securities are subject to interest rate risk.

8. Reconciliation of Net Surplus with Operating Cash Flows

9. Segmental Reporting

The trust operates as a charitable trust distributing funds to the community in the Central North Island region.

10. Contingent Liabilities and Commitments

There are no contingent liabilities at 31 March 1997. Lease commitments total $12,111 (1996: $23,291).

11. Shares in Trust Bank New Zealand Limited

During the year the shareholding in Trust Bank New Zealand Limited was sold to Westpac Holdings New Zealand Limited. The sale price for the shares was $2.85 cps. The gain on sale represents the surplus over carrying value and is stated after deduction of costs attributable to the sale process. The revaluation reserve (note 3) has been transferred to accumulated funds.

Audit Report

To the trustees of Trust Bank Eastern and Central Community Trust Inc.

We have audited the consolidated financial report. The consolidated financial report provides information about the past financial performance of the Trust Bank Eastern and Central Community Trust Inc. group (the trust) and its financial position as at 31 March 1997. This information is stated in accordance with the accounting policies set out.

Trustees Responsibilities

The trustees are responsible for the preparation of a consolidated financial report which gives a true and fair view of the financial position of the trust as at 31 March 1997 and of the results of its operations and cash flows for the year ended 31 March 1997.

Auditors’ Responsibilities

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

Basis of Opinion

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

• the significant estimates and judgments made by the trustees in the preparation of the consolidated financial report, and
• whether the accounting policies are appropriate to the trust 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 consider necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial report is 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 consolidated financial report.

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