2034
NEW ZEALAND GAZETTE
No. 83

Increase (decrease) in sundry creditors ........................... $ (996) $ (405)
Increase (decrease) in donations payable ....................... 656,376 (97,000)
Decrease (increase) in prepayments ............................. (1,256) –
Decrease (increase) in sundry debtors .......................... (4,127) –
———— ————
604,336 (96,140)
Plus items classified as investing:
Movement in debtors which relate to investments .............. 4,127 –
Cash flow from operations .................................. ———— ————
$709,683 $496,748

11. Capital Commitments
There were no capital commitments (1996 nil).

12. Contingent Liabilities
There are no contingent liabilities apart from donation commitments as per notes 1 and 9.

13. Endowment Fund
A revision of the community trust deed by the Reserve Bank has been completed during the year. During the course of this process it was found that the purpose for which the fund was set up was at variance with the objects clause of the trust deed. The fund has been wound up and the original capital funds received have been returned to the donors.

                                                       1997     1996
                                                       $        $

Balance brought forward .................................... 27,002 –
Contributions from
– TBSC Community Trust Inc. .............................. – 5,000
– Retiring regional board of directors of TBSC Limited ..... – 19,724
– Mt Cook Marketing Limited shares ....................... – nil value
———— ————
27,002 24,724
Income for year ............................................ 3,247 2,278
———— ————
30,249 27,002
Less repaid to donors
– Ex directors of TBSC Limited ........................... 19,724 –
– TBSC Community Trust ................................. 10,525 –
———— ————
$ – $27,002

14. Financial Instruments
Fair Values
Investments are stated at estimated market value at balance date. Interest accrued, sundry debtors, sundry creditors, term loans and donations approved, not yet paid, are stated at the amounts expected to be received or paid.

Accordingly, the trustees consider that the fair value of each class of financial assets and financial liabilities is the same as the carrying value in the statement of financial position.

Credit Risk
Seventy-nine percent of the assets of the trust were represented by term investments and current account balance with Westpac Trust, National Bank of New Zealand and ANZ Banking Group. The trustees consider the risk of non-recovery of these investments at balance date to be within satisfactory guidelines.

The maximum exposure to credit risk of other financial instruments are:

                                                       1997     1996
                                                       $        $

Sundry debtors ........................................... 5,873 10,000
Interest accrued ......................................... 66,450 20,789
Long-term advances ....................................... – 50,000
New Zealand Government stock ............................... 4,015,616 –
New Zealand shares ....................................... 1,951,380 –
New Zealand property shares .............................. 544,700 –
Australian property shares ............................... 441,560 –

Currency Risk
The trust incurs currency risk as a result of investment in Australian property shares, i.e., gives rise to currency risk in Australian dollars.