13 AUGUST NEW ZEALAND GAZETTE 2787

Credit Risk

Seventy-six percent of the assets of the trust are represented by debt investments and current account balance with WestpacTrust, 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:

Currency Risk

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

Interest Rate Risk

The following investments of the trust are sensitive to changes in interest rate: bank call accounts and term deposits, Government and local authority securities, telenotes, Fletcher Challenge capital notes and various convertible notes.

Audit Report to the Readers of the Consolidated Financial Statements of the Community Trust of Mid and South Canterbury Inc.

We have audited the attached financial statements. The consolidated financial statements provides information about the past financial performance of trust and its financial position as at 31 March 1998. This information is stated in accordance with the accounting policies as outlined.

Board of Trustees Responsibilities

The board of trustees are responsible for the preparation of consolidated financial statements which gives a true and fair view of the financial position of the trust as at 31 March 1998 and of the results of operations and cash flows for the year ended 31 March 1998.

Auditor’s Responsibilities

It is our responsibility to express an independent opinion on the consolidated financial statements presented by the board of 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 financial report. It also includes assessing:

• the significant estimates and judgments made by the board of trustees in the preparation of the consolidated financial statements, 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 considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the consolidated financial statements 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 statements.

Other than in the normal course of business and in our capacity as auditors we have no relationship with or interests in the trust.

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 consolidated financial statements:
  – complies with generally accepted accounting practice;
  – gives a true and fair view of the financial position of the trust as at 31 March 1998 and the results of its operations and cash flows for the year ended on that date.

Our audit was completed on 22 June 1998 and our unqualified opinion is expressed as at that date.

MARTIN WAKEFIELD, Auditors.
Timaru.

The Hon. Minister of Finance has directed that the Community Trust of Mid and South Canterbury Inc. need not publish the full list of its donations, but a copy of the list is available to anyone upon request to the chairperson, the