5 SEPTEMBER

NEW ZEALAND GAZETTE

3531

Non current assets:

Fixed assets

| | | 10 | 1,095,448 | 1,111,331 |

Investment assets:

WestpacTrust call account

| | 4 | | – |

Trading bank deposits

| | | 745,000 | – |

Managed funds:

– ING (NZ) Ltd

| 11 | 23,797,583 | 47,966,701 |

– Tower Asset Management

| 11 | 46,211,894 | – |

– AMP Asset Management

| 11 | 38,619,139 | 83,611,564 |

– State Street Global Advisors

| 11 | 62,565,123 | 52,200,850 |

Loans

| 12 | 1,768,771 | 713,508 |

Invest South Limited

| 8 | 2,431,369 | 2,503,695 |

Total non current assets

| | 177,234,331 | 188,107,649 |

Total assets

| | 177,296,352 | 188,168,125 |

Consolidated Statement of Cash Flows as at 31 March 2002

| Note | 2002 $ | 2001 $ |

Cash flows from operating activities—
Cash was provided from/(applied to):

Interest and dividends

| | 5,439,695 | 14,067,442 |

Revaluation of investments

| | (3,635,361) | (8,886,368) |

Administration expenses

| | (1,261,979) | (1,560,369) |

Grants to the community

| | (11,284,459) | (10,950,501) |

Net cash inflow/(outflow) from operating activities

| 13 | (10,742,104) | (7,308,796) |

Cash flows from investing activities—
Cash was provided from/(applied to):

Investments

| | 11,840,372 | 7,290,611 |

Fixed assets

| | (61,890) | (61,434) |

Loans

| | (1,055,263) | 42,024 |

Net cash inflow/(outflow) from investing activities

| | 10,723,219 | 7,271,201 |

Net increase/(decrease) in cash held

| | (18,885) | (37,595) |

Add cash at beginning of the year

| | 3,603 | 41,198 |

Total cash balance at end of year

| | (15,282) | 3,603 |

Statement of Significant Accounting Policies for the Year Ended 31 March 2002

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 Group (“the group”). The group consists of 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 Limited 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.

F. Grants Maintenance Reserve

While the trustees have adopted a long-term investment strategy, they accept that annual returns from investments are likely to fluctuate from year to year. In recognition of this, a grants maintenance reserve is maintained. In years when net income from investments is higher than the grant levels, surplus income will be transferred to this reserve. In years when there is insufficient income to sustain the level of grants, an appropriate amount will be transferred from the grants maintenance reserve to income.