Financial Report




2658

NEW ZEALAND GAZETTE

No. 107

Group Trust
1998 $ 1997 $ 1998 $ 1997 $
Add(less) movement in non-cash items—
Revaluation of investments (4,153,595) 1,069,921 (4,153,595)
Depreciation 43,285 17,407 43,285
(4,110,310) 1,087,328 (4,110,310)
Net cash provided by operating activities $(7,413,962) $(4,038,081) $(4,063,688)
  1. Financial Instruments

General

The group 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 financial position.

Concentration of Credit Risk

The group has significant funds in trading bank deposits, and in TeNZ Fund units. The group limits 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 group has not required collateral or other security to support its financial statements. The group further limits risk through its policy of placing investment funds with 3 separate fund managers, with each fund manager having an investment mandate which requires that they in turn diversify their investments on the group's behalf. The group has sought and obtained the advice of a professional financial adviser prior to making its investment allocation and placement decisions.

Interest Rate Risk

The bank deposits are sensitive to changes in interest rates, as are a proportion of the funds managed by the fund managers.

  1. Trustee’s Fees

Meeting fees and honorariums were paid to trustees as follows:

1998 $ 1997 $
C. S. Ballantyne 26,121 16,450
W. A. Cambridge 10,059 4,970
F. G. Cardno 7,513 4,650
P. Duffy 7,402 4,390
G. A. Farry 5,323 2,810
J. J. Grant 5,273 2,610
C. A. McCulloch 9,152 4,910
B. J. MacKay 6,023 3,390
G. M. Neave 8,382 4,060
D. J. Stronach 8,832 5,510
Total $94,080 $53,750
  1. Taxation

(a) Income tax expense—

Group
1998 $ 1997 $
Gross income per statement of financial performance 15,368,904 16,671,063
Add imputation credits attached to dividends 530,505 1,996,286
15,899,409 18,667,349
Less expenditure (1,048,623) (627,950)
14,850,786 18,039,399
Income subject to taxation 4,770,278 4,750,979
Prima facie income tax expense calculated at 33 percent 1,574,192 1,567,823
Less tax effect of permanent differences (968,298) 353,074
605,894 1,920,897
Less imputation credits (605,894) (1,920,897)
Total income tax expense Nil Nil

(b) Imputation credits—

Balance at beginning of year 75,389 Nil
Imputation credits attached to dividends received 530,505 1,996,286
Taxation expense (605,894) (1,920,897)


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✨ LLM interpretation of page content

💰 Financial Report of The Community Trust of Southland (continued from previous page)

💰 Finance & Revenue
Financial Report, The Community Trust of Southland, Fixed Assets, Investments, Income Tax, Operating Surplus
10 names identified
  • C. S. Ballantyne, Trustee
  • W. A. Cambridge, Trustee
  • F. G. Cardno, Trustee
  • P. Duffy, Trustee
  • G. A. Farry, Trustee
  • J. J. Grant, Trustee
  • C. A. McCulloch, Trustee
  • B. J. MacKay, Trustee
  • G. M. Neave, Trustee
  • D. J. Stronach, Trustee