7 SEPTEMBER NEW ZEALAND GAZETTE 3135

Non current assets—
Fixed assets 9 1,117,374 1,180,131

Investment assets:
WestpacTrust call account 31,553 1,111,072
ASB call account — 335,000
Trading bank deposits 8,000,000 19,500,000
TeNZ fund 10 million units — 9,900,000

Managed funds:
ANZ Funds Management 10 — 44,234,658
Armstrong Jones 10 46,919,884 44,801,626
Bankers Trust 10 — 24,597,746
Morgan Stanley 10 36,788,589 43,396,184
AMP Asset Management 10 78,200,627 —
State Street Global Advisors 10 21,164,934 —

Loans 11 755,532 415,540
Invest South Limited 7 2,531,930 1,246,122

Total non current assets 195,510,423 190,718,079
Total assets 195,539,840 190,788,582

Consolidated Statement of Cash Flows as at 31 March 2000

Cash flows from operating activities—
Cash was provided by (applied to):
Interest and dividends 15,207,198 9,050,591
Administration expenses (1,774,640) (1,332,611)
Grants to community (8,592,245) (9,261,051)

Net cash flow from operating activities 12 4,840,313 (1,543,071)

Cash flows from investing activities—
Cash was provided by (applied to):
Investments (5,893,820) 1,047,184
Fixed assets (21,599) (186,193)
Loans (339,992) (415,540)

Net cash used in investing activities (6,255,411) 445,451
Net increase (decrease) in cash held (1,415,098) (1,097,620)
Add cash at beginning of the year 1,456,296 2,553,916
Total cash balance at end of year 41,198 1,456,296

Statement of Significant Accounting Policies for the Year Ended 31 March 2000

A. Basis of preparation
The Community Trust of Southland was formed under the Trustee Banks Restructuring Act 1988 and is incorporated under the Charitable Trusts Act 1957. The financial statements presented are those for The Community Trust of Southland (the Trust), its wholly owned subsidiary company Southland Community Trust Charities Limited and the Trust’s interests in associates.

The financial statements comply with the Financial Reporting Act 1993 and the Community Trusts Act 1999. They comprise statements of the following: significant accounting policies, financial performance, movements in trust funds, financial position, cash flows, as well as notes to these statements.

The financial statements are prepared on the basis of historical cost except that investment assets are stated at valuation.

B. Consolidation method
The financial statements of the Trust’s wholly owned company Southland Community Trust Charities Ltd are included in the financial statements using the purchase method of consolidation.

C. Associates
Associates are entities in which the Group has significant influence, but not control over the operating and financial policies. The financial statements include the Group’s share of the net surplus of associates on an equity accounted basis.

D. Trust capital
Following the sale of the Group’s shares in Trust Bank New Zealand Limited in April 1996 for $158,460,000, the trustees agreed that the value of the Trust at that time should be maintained for the benefit of current and future generations living in the region. For this purpose, the trustees agreed that $158,460,000 would be considered as the “Trust Capital” value of the Group and that this value would be maintained.

E. Capital maintenance reserve
The capital maintenance reserve represents the additional amount necessary to preserve the real value of the trust capital allowing for inflation as measured by the Consumers Price Index (all groups) and payments of grants out of capital.