2654 NEW ZEALAND GAZETTE No. 107

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 considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are 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 financial statements.

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

Unqualified Opinion

We have obtained all the information and explanations we have required.

In our opinion:

• proper accounting records have been kept by the trust as far as appears from our examination of those records; and

• the financial statements audited:

  – comply with generally accepted accounting practice;

  – give a true and fair view of the financial position of the trust and group as at 31 March 1998 and the results of their operations and cash flows for the year ended on that date.

Our audit was completed on 30 June 1998 and our unqualified opinion is expressed as at that date.

Dated this 30th day of June 1998.

WARD WILSON.
Invercargill.

Statement of Financial Performance for the Year Ended 31 March 1998

Income:
Dividend—Trust Bank New Zealand (final) | 2 | 0 | 3,992,000 | 0 | 3,992,000 |
Other dividends | | 1,202,896 | 60,564 | 1,202,896 | 60,564 |
Interest | | 9,992,332 | 13,688,420 | 9,251,174 | 13,688,420 |
Revaluation of investments | 1 | -1,473,676 | -1,069,921 | -1,069,675 | -1,069,921 |
Total income | | 15,368,904 | 16,671,063 | 14,627,745 | 16,671,063 |

Less expenditure:
Salaries and staff costs | | 273,894 | 153,171 | 273,894 | 153,171 |
Levies and subscriptions | | 0 | 118,519 | 0 | 118,519 |
Fund manager fees | | 374,596 | 0 | 374,596 | 0 |
Professional fees | | 103,167 | 132,940 | 101,358 | 132,940 |
Occupancy costs | | 17,658 | 6,700 | 17,658 | 6,700 |
Communications | | 14,621 | 16,723 | 14,621 | 16,723 |
Office expenses | | 12,967 | 26,385 | 12,967 | 26,385 |
Audit fees | | 5,400 | 6,558 | 5,400 | 6,558 |
General expenses | | 36,293 | 42,606 | 36,195 | 42,606 |
Vehicle expenses | | 14,054 | 4,923 | 14,054 | 4,923 |
Grants advertising and promotion | | 13,260 | 17,744 | 13,260 | 17,744 |
Trustees’ fees | 10 | 94,080 | 53,750 | 94,080 | 53,750 |
Reporting and compliance expenses | | 45,348 | 30,524 | 45,348 | 30,524 |
Depreciation | 1 | 43,285 | 17,407 | 43,285 | 17,407 |
Total expenditure | | 1,048,623 | 627,950 | 1,046,716 | 627,950 |

Net surplus before taxation | | 14,320,281 | 16,043,113 | 13,581,029 | 16,043,113 |
Taxation | 11 | 0 | 0 | 0 | 0 |
Net surplus after taxation | | 14,320,281 | 16,043,113 | 13,581,029 | 16,043,113 |

Extraordinary items:
Profit on sale of shares in Trust Bank New Zealand | | 0 | 138,322,993 | 0 | 138,322,993 |
| | $14,320,281 | $154,366,106 | $13,581,029 | $154,366,106 |
Share of loss of Invest South Limited | 5 | -20,080 | 0 | -20,080 | 0 |
Net surplus for the year | | $14,300,201 | $154,366,106 | $13,560,949 | $154,366,106 |

Statement of Movements in Equity for the Year Ended 31 March 1998

Trust capital—beginning of year | | 177,047,078 | 29,580,133 | 177,047,078 | 29,580,133 |
Add this year’s surplus | | 14,300,201 | 154,366,106 | 13,560,949 | 154,366,106 |
Less—
Grants approved | | 10,030,234 | 6,899,161 | 1,369,353 | 6,899,161 |