23 AUGUST NEW ZEALAND GAZETTE 2539

Regional facilities reserve:

• Opening balance 1926 0
• Increase/(decrease) in reserve (1,000) 1,926
  926 1,926

Inflation and population reserve:

• Opening balance 10,583 9,947
• Increase in reserve 2,897 636
  13,480 10,583

Total equity 116,554 118,776

2001 2000
$(000) $(000)

3. Fixed Assets

Office furniture and equipment:

• Cost 72 71
• Accumulated depreciation 53 45
• Book value 19 26

4. Financial Instruments

Investments are stated at market value as 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 financial position.

Concentration of Investments

Ninety-nine point seven percent (99.7%) 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. Maximum exposure to
credit risk as at balance date is:

| 2001 2000
| $(000) $(000)
| Bank balances 51 103
| Bank term deposits 192 181
| Accounts receivable 13 0
| Community loans 6 19
| Investments 116,527 118,644

Currency Risk

The trust incurs currency risk as a result of investment transactions entered into by fund managers. The trust has a policy of
fully hedging global bonds and fifty percent hedging of global equities.

Interest Rate Risk

The following investments of the trust are sensitive to changes in interest rates: Bank call accounts and deposits, government
and local authority securities, and securities held by fund managers.

Fair Value

The carrying value is considered to be the fair value for financial instruments.

5. Investments

The value of investments which are held in equities and fixed interest are subject to market fluctuations. The total investment
portfolio has been structured in such a way that any reductions in value in particular asset classes should be offset by increases
in other classes; therefore no provision has been made for potential gains or losses that could occur due to market fluctuations.
The investment portfolio as at 31 March 2001 is diversified as follows:

| ANZ Asset Management State Street Global Advisors Tower Asset Management Total
| New Zealand equities 0 0 6,143 6,143
| New Zealand fixed interest 38,648 0 25,542 64,190
| New Zealand cash 827 0 14,996 15,823
| Global bonds (fully hedged) 0 0 0 0
| Global equities (50% hedged) 0 30,371 0 30,371
| Total 2001 39,475 30,371 46,681 116,527
| Total 2000 36,798 39,259 42,587 118,644

6. Taxation

| 2001 2000
| $(000) $(000)
| Net surplus (before donations) 1,728 10,119
| Less non-assessable income (Bay of Plenty Community Trust Charities Limited) (428) (2,408)
| Less unrealised gains/losses (State Street global advisors) 5,659 (6,111)
| 6,959 1,600