Financial Statements




NEW ZEALAND GAZETTE

9 JULY 2099

1998 $'000 1997 $'000
Portugal escudo equivalents ... 99
Singapore dollar equivalents ... 115
Spanish peseta equivalents ... 1,296
Swedish krona equivalents ... 2,066
Swiss franc equivalents ... 2,683
United States dollar equivalents 54,668 10,480
$205,447 $182,116

All financial instruments are disclosed at fair value. No undisclosed credit risk exists. At 31 March 1998 the trust had no Forward Exchange Contracts.

11. Currency Translation

Monetary assets denominated in foreign currency are converted to New Zealand dollars at the exchange rates reported at balance date and any unrealised profit or loss resulting from the conversion is reflected in the Statement of Financial Performance.

Trust policy is to hedge the currency movements on global fixed interest and passive global equity investments to reduce exposure to fluctuation in foreign exchange. Any unrealised losses and gains are recorded at year end through the Statement of Financial Performance.

12. Cash Flow Reconciliation

1998 $'000 1997 $'000
Net surplus 23,346 33,674
Adjust for non-cash items:
Depreciation 9 11
(Increase) decrease in market value of investments (14,307)
(14,298) 11
Items classified as investing activities:
Realised gain on sale of investments (2,020) (18,497)
Foreign exchange gain on sale of investments (111)
(2,131) (18,497)
Movement in working capital:
Increase (decrease) in accounts payable 87 40
Increase (decrease) in donations payable 179 (68)
(Increase) decrease in accounts receivable 8
(Increase) decrease in accrued interest 831 (8)
1,105 (36)
Net cash inflow from operating activities $8,022 $15,152

13. Related Party Information

Waikato Community Trust Charities Limited (WCTC Limited) is a wholly-owned charitable company established by the trust and will be used to carry out some of the trust’s future activities.

The trust acts as nominee for investments held by WCTC Limited.

14. Donations

On 26 September 1997 the Waikato Times published a list, totalling $2,906,700, which showed all of the donations approved by the trust from the period 1 April 1997 to 25 September 1997. In the period from 26 September 1997 to 31 March 1998 the trust has also made the following donations:

1998 $'000
Waikato District Council 1,500
Cambridge Racquets Club 10,000
Hauraki District Council 10,000
Waikato Womens Health Action Centre 25,000
Waikato Scout Association 32,000
Netball Waikato 25,000
Fairfield Amateur Swimming Club 500
Cambridge Community Kitchen 500
$104,500

These donations bring the total donations for the 1997–98 financial year to $3,011,200. Of this amount $2,616,200 has been



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💰 Notes to Consolidated Financial Statements for the Year Ended 31 March 1998 (continued from previous page)

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