2104

NEW ZEALAND GAZETTE

No. 86

Movements in net current assets
Accrued income
(57,064)
(52,296)
Donations and sundry payables
1,097,967
11,341
Net operating cash flows
(2,881,597)
559,836

8. Contingent liabilities and commitments

Commitments
The trust is committed to $7,230,000 for the “Shooting Star Community Project” and future funding of $560,000 for the four sports trusts in the region.

Lease commitments (including G.S.T.)

A six-year renewal option exists

Contingencies
The Inland Revenue Department is currently reviewing the charitable status of the trust. The trustees have subsequent to balance date resolved to proceed with a judicial review to resolve the matter.

9. Segmental reporting
   The trust operates as a charitable trust distributing funds to the community in the Central North Island region

10. Financial instruments
    Financial instruments include short-term deposits, New Zealand bonds, international bonds, derivatives and investments in managed funds both within New Zealand and overseas.

10.1 Credit risk
The trustees regularly review their investment strategy. The investment strategy ensures an appropriate diversification of investments so that the trust has no significant concentration of counterparty or credit risk.

10.2 Fair values
The trust has recorded its financial assets and liabilities at current market values, which represent estimated fair values and credit risk exposure.

10.3 Currency risk
The trust has exposure to currency risk through its investments in offshore equities and bonds. This is managed by fund managers.

10.4 Credit facilities
The trust has no credit facilities.

10.5 Interest rate risk
The trust investments in fixed rate securities are subject to interest rate risk.

11. Net current assets
    Cash, bank deposits and accrued income are expected to be realised within 12 months. All liabilities are due within 12 months.

Audit Report

To the Trustees of Eastern & Central Community Trust Inc.
We have audited the consolidated financial report. The consolidated financial report provides information about the past financial performance of Eastern & Central Community Trust Inc. group (the trust) and its financial position as at 31 March 2000. This information is stated in accordance with the accounting policies set out in note 1.

Trustees’ Responsibilities
The trustees are responsible for the preparation of a consolidated financial report, in accordance with New Zealand law and generally accepted accounting practice, which fairly reflects the financial position of the trust as at 31 March 2000 and of the results of operations and cash flows for the year ended 31 March 2000.

Auditors’ Responsibilities
It is our responsibility to express an independent opinion on the consolidated financial report presented by the 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 consolidated financial report. It also includes assessing:

• the significant estimates and judgements made by the trustees in the preparation of the consolidated financial report; and
• whether the accounting policies are appropriate to the trust’s 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. We obtained sufficient evidence to give reasonable assurance that the consolidated financial report is free from material misstatements, whether caused by fraud