28 AUGUST NEW ZEALAND GAZETTE 3221

Currency Risk

The trust is party, through its managed funds, to financial instruments with off balance sheet risk to reduce exposure to fluctuations in foreign currency exchange rates. Forward exchange contracts are entered into to hedge foreign currency transactions.

The trust is also party, through its managed funds, to financial instruments with off balance sheet risk to reduce exposure to fluctuations in foreign currency interest rates. Futures contracts are entered into to hedge foreign currency fixed interest transactions.

Interest Rate Risk

The following investments of the trust are sensitive to changes in interest rate: Bank call accounts and term deposits, and various managed fund investments.

Audit Report

To the Readers of the Financial Report of The Community Trust of Mid & South Canterbury Inc.

We have audited the financial report. The financial report provides information about the past financial performance of the trust and its financial position as at 31 March 2003. The information is stated in accordance with the accounting policies.

Trustees' Responsibilities

The trustees are responsible for the preparation of a financial report which gives a true and fair view of the financial position of the trust as at 31 March 2003 and of the results of operations for the year ended 31 March 2003.

Auditors' Responsibilities

It is our responsibility to express an independent opinion on the 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 financial report. It also includes assessing:

• the significant estimates and judgements made by the trustees in the preparation of the financial report; and
• whether the accounting policies are appropriate to the trust 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 in order to provide us with sufficient evidence to give reasonable assurance that the financial report is free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial report.

Other than in the normal course of business and in our capacity as auditors, we have no relationship with or interest in the trust.

In forming our unqualified audit opinion, we have placed reliance upon values supplied by the New Zealand Guardian Trust Company Limited, State Street Global Advisors Australia Limited, Forsyth Barr Limited and Michael Chamberlain & Associates, in respect of The Community Trust of Mid & South Canterbury's investment portfolio.

Unqualified Opinion

We have obtained all the information and explanations we have required.

In our opinion:

• proper accounting records have been kept by the trust as far as appears from our examination of those records; and
• the financial report
  • complies with generally accepted accounting practice; and
  • gives a true and fair view of the financial position of trust as at 31 March 2003 and the results of its operations for the year ended on that date.\n
    Our audit was completed on 6 August 2003 and our unqualified opinion is expressed as at that date.

MARTIN WAKEFIELD, Auditor, Timaru.

(A full list of all distributions of income by way of donations for the year ended 31 March 2003 is available from the trust's office on request.)

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The Community Trust of Southland

Community Trusts Act 1999

The Community Trust of Southland

Consolidated Statement of Financial Performance for the Year Ended 31 March 2003