Financial Statements of The Community Trust




NEW ZEALAND GAZETTE

No. 95

5. Reconciliation of Net Surplus to Net Operating Cash Flow

1998 $ 1997 $
Net surplus 23,350,492 22,292,397
Adjustments for non cash items in net surplus
Armstrong Jones Investment income (2,473,404)
Depreciation 106,929 28,301
Revaluation of Government securities investment 7,276
Managed funds income unrealised (20,488,645)
Prior years donations transferred to long term commitments 51,667
2,976,052 19,898,961

Adjustments for changes in Working Capital

| | | |
| Decrease/(increase) in accounts receivable | (1,024) | – |
| Decrease/(increase) in accrued interest | 1,965,891 | (1,941,425) |
| Decrease/(increase) in prepayments | (2,742) | (15,419) |
| Increase/(decrease) in accrued charges | 1,563 | – |
| Increase/(decrease) in accounts payable | 14,161 | (3,329) |
| Increase/(decrease) in donations payable | 170,889 | (304,915) |
| Increase/(decrease) in taxation payable | 3,278,515 | (4,693,059) |
| Increase/(decrease) in goods and services tax | 39,822 | (26,804) |
| Increase/(decrease) in donations paid in advance | (69,292) | (708) |
| | | |
| Add capital base reserve transfer | 8,372,272 | 12,914,865 |
| Deduct donations paid from capital | 9,168,516 | 8,740,535 |
| | (5,630,438)| (9,452,557) |
| Capital items included in working capital adjustments | – | 44,000 |
| Cash flow from operations | $11,910,350 | $12,246,843 |

6. Capital Commitments:

There are no capital commitments at balance date (1997 $1,740,086).

7. Fixed Assets:

Cost $ Accumulated Depreciation $ 1998 Book Value $ 1997 Book Value $
Buildings 3,907,435 67,230 3,840,205
Plant and equipment 68,721 44,059 24,662 35,357
Computer 37,614 10,440 27,174
Motor vehicles 72,654 38,329 34,325 48,981
4,086,424 160,058 3,926,366 84,338

8. Contingent Liabilities:

There are no contingent liabilities at balance date (1997 nil) apart from donation commitments as per note 3.

9. Segmental Reporting:

The trust operates as a charitable trust in the Canterbury, Marlborough and Nelson areas. As all operations occur within New Zealand, segmental reporting is not required.

10. Related Party:

In the normal course of business the trust has no related parties with any entity. In the previous year the trust had related parties with WestpacTrust (1997 interest received $7,605,270, 1997 balance date bank balance $13,514,076 and deposits $97,227,768)

11. Financial Instruments:

Investments are stated at estimated market value at balance date. Accrued interest, accounts payable, community 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.

Concentration of Investments

Ninety-seven percent of the assets of the trust are represented by investments held with a range of financial institutions. However the trustees consider the risk of non-recovery of these investments to be minimal.

Currency Risk

The trust incurs currency risk as a result of investment transactions entered into by fund managers.



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Financial Statements, Revenue, Donations, Trust Funds, Canterbury, Nelson, Marlborough