NEW ZEALAND GAZETTE

26 JULY 1853

Ending cash comprises:

The Community Trust of Otago Notes to the Consolidated Financial Statements for the Year Ended 31 March 2001

Basis of Preparation

These are the consolidated financial statements of The Community Trust of Otago, Otago Community Trust Charities Limited, The Community Trust Amateur Sports Co Limited, The Community Trust District Improvement Co Limited and Fillmor House Limited. The Community Trust of Otago was incorporated as a charitable trust in accordance with the provisions of the Community Trusts Act 1999.

The financial statements have been prepared to comply with the Financial Reporting Act 1993 and comprise consolidated statements of the following: financial performance, movement in trust funds, financial position, cashflows, as well as notes to these financial statements.

The financial statements are prepared on the basis of historical cost, except for the revaluation of managed funds.

Specific Accounting Policies

Income

Income from managed funds includes both realised and unrealised income and is recorded gross of fund management expenses.

Interest is recognised on an accrual basis.

Donations

Donations are accounted for as they are distributed.

Foreign Currencies

All amounts denominated in foreign currencies are converted to New Zealand dollars at balance date. All realised and unrealised gains and losses are recognised in the statement of financial performance.

Taxation

Income tax is recognised on the surplus after distribution, adjusting for differences between taxable and accounting income. Future tax benefits are not recognised unless realisation of the asset is virtually certain.

Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation.

Depreciation

Depreciation has been charged to the financial statement using rates, which will write off the cost of assets less their estimated residual value over their estimated economic lives. The depreciation rates used are:

• Buildings: 4%
• Office furniture and equipment: 12-48%

G.S.T.

Subsidiaries of The Community Trust of Otago, Fillmor House Limited and The Community Trust District Improvement Company Limited are registered for G.S.T.

Accordingly, their financial performance and financial position have been consolidated within the accounts on a G.S.T. exclusive basis.

Subject to the above, the Trust is not registered for G.S.T. purposes and, therefore, the financial statements have been prepared on a G.S.T. inclusive basis.

Basis of Consolidation

The Community Trust of Otago, Otago Community Charities Limited, Fillmor House Limited, The District Improvement Company Limited and The Community Trust Amateur Sports Company Limited have been consolidated using the purchase method of consolidation.

Capital Maintenance Reserve

The capital maintenance reserve represents the additional amount necessary to preserve the real value of the capital allowing for inflation as measured by the Consumers’ Price Index (C.P.I.).

Investments

Investments are valued at year end market value. All realised and unrealised gains and losses are recognised in the statement of financial performance.

Hedging Instruments

The Trust through its investment managers enters into hedging instruments such as futures, options and forward exchange contracts. These are converted to the New Zealand dollar rate at balance date with all realised and unrealised gains and losses being recognised in the statement of financial performance as income from managed funds.

Statement of Cashflows

Cash comprises cash at bank and call deposits but does not include cash or deposits held by the fund managers.