✨ Financial Statements and Audit Report
NEW ZEALAND GAZETTE
No. 73
Changes
The trust has changed its accounting policy for income tax. There is no monetary effect from the change. There have been no other changes in accounting policies.
2. Sale of Shares in Trust Bank New Zealand
In May 1996 the trust sold its shares in Trust Bank New New Zealand to Westpac Banking Corporation. The effective offer price, including a bonus issue and special fully imputed dividend amounted to $2.92 per share held before the offer.
3. Fixed Assets
| Cost | Accumulated Depreciation | 1997 Value | 1996 Value | |
|---|---|---|---|---|
| Office equipment | 43,934 | 12,057 | 31,877 | 15,089 |
| Motor vehicles | 85,640 | 8,648 | 76,992 | 0 |
| Totals | 129,574 | 20,705 | 108,869 | $15,089 |
4. Investments
The trust is holding bank deposits pending investment through selected institutional investment managers. All the deposits mature within 5 months.
5. Income Tax
On 9 June 1997 the trustees determined to pay $13,288,420 income as beneficiaries income to Southland Community Trust Charities Limited, the income of which is exempt from income tax. Consequently the trust has made no provision for income tax.
6. Consolidation
Southland Community Trust Charities Limited has no assets or liabilities and conducted no activity during the year. The trust has not presented financial statements for the trust and consolidated financial statements for the group separately, as the statements would not be materially different.
7. Reconciliation With Operating Surplus
| Trust and Group 1997 | Trust and Group 1996 | |
|---|---|---|
| Operating surplus—net income | $154,366,106 | $6,270,347 |
| Grants | (6,899,161) | (3,013,885) |
| Increase (decrease) in liabilities | 3,529,560 | 748,547 |
| Decrease (increase) in assets | (148,967,221) | 2,475,152 |
| Net movement in investing activities | 2,008,797 | (8,887,546) |
| Net cash flows from operating activities | ($4,038,081) | ($2,407,385) |
8. Financial Instruments
General
The trust states its investments at balance date at estimated market value, calculating accrued interest on bank deposits by reference to the contract rates. The trustees consider that the fair value of the financial assets is identical to the carrying value in the statement of position.
Concentration of Credit Risk
The trust has placed most of its funds in trading bank deposits, and in TeNZ Fund units. These investments potentially subject the trust to concentrations of credit risk. The trust limits the risk by spreading the deposits over several trading banks, and the TeNZ Fund’s policy of selecting 10 investments in its portfolio also limits the risk. The trust has not required collateral or other security to support its financial instruments.
Interest Rate Risk
The bank deposits are sensitive to changes in interest rates.
Audit Report to the Members of Trust Bank Southland Community Trust Incorporated
We have audited the attached financial statements. The financial statement provide information about the past financial performance and financial position of the trust and group as at 31 March 1997. This information is stated in accordance with the accounting policies as outlined.
Trust Responsibilities
The trustees are responsible for the preparation of financial statements which gives a true and fair view of the financial position of the trust and group as at 31 March 1997 and of the results of their operations and cash flows for the year ended on that date.
Auditor’s Responsibilities
It is our responsibility to express an independent opinion on the financial statements presented by the trustees and report our opinion to you.
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NZ Gazette 1997, No 73
✨ LLM interpretation of page content
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Notes to the Financial Statements for the Year Ended 31 March 1997
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Statements, Trust Bank Southland Community Trust