✨ Financial Statements
28 AUGUST
NEW ZEALAND GAZETTE
3227
14. Financial Instruments
General
The group states its investments at balance date at estimated market value. The trustees consider that the fair value of the financial assets is identical to the value in the statement of financial position.
Concentration of Credit Risk
The group, from time to time, has significant funds in trading bank deposits. The group limits risk by spreading the deposits over several trading banks. The group has not required collateral or other security to support its financial statements.
The group further limits risk through its policy of placing investment funds with five separate fund managers, with each fund manager having an investment mandate which requires that they diversify their investments on the group’s behalf. The group has sought and obtained the advice of professional financial advisers prior to making its investment allocation and placement decisions.
Interest Rate Risk
The bank deposits are sensitive to changes in interest rates, as are a proportion of the funds managed by the fund managers, and the loans to Topoclimate South Trust and Nga Hau Wha Society.
15. Capital Commitments
Commitments of $4,202,448 exist for grants which will be distributed from either capital or future income sources in future years. These grants have not been recorded in either the statements of financial performance or financial position. Specific commitments are as follows:
| 2003 | 2002 | |
|---|---|---|
| $ | $ | |
| Southern Institute of Technology | 839,128 | 1,678,259 |
| Southland Outdoor Stadium Trust | – | 1,000,000 |
| Gore Multi Sport Complex | – | 1,065,465 |
| Eastern Southland Art Gallery | – | 400,000 |
| Southland Hospice | – | 375,000 |
| Tuatapere Hump Ridge Track | 160,000 | 200,000 |
| Fiordland Community Events Centre | – | 400,000 |
| Fiordland Medical Trust | – | 325,000 |
| Venture Southland – Broadband | 423,320 | – |
| Invercargill City Council – Civic Theatre | 2,500,000 | – |
| Croydon Aviation Museum | 280,000 | – |
| Total | 4,202,448 | 5,443,724 |
The years in which these commitments fall due are as follows:
| Year ending 31 March | 2003 | 2002 |
|---|---|---|
| $ | $ | |
| 2003 | – | 5,283,724 |
| 2004 | 1,359,128 | 40,000 |
| 2005 | 1,263,320 | 40,000 |
| 2006 | 1,040,000 | 40,000 |
| 2007 | 540,000 | 40,000 |
| Total | 4,202,448 | 5,443,724 |
Commitments of up to $473,850 exist for loans which trustees have approved, but which had not been drawn down as at balance date. The approved loans are as follows:
| $ | |
|---|---|
| Borland Lodge | 293,850 |
| Northern Southland Medical Trust | 50,000 |
| Wyndham & Districts Community Rest Home | 80,000 |
| Southland Heritage Building Preservation Trust | 50,000 |
| Total | 473,850 |
16. Related Party Transactions
There were no related party transactions during the year.
17. Tax Calculation
| 2003 | 2002 | |
|---|---|---|
| $ | $ | |
| Net surplus/(deficit) before taxation as per statement of financial performance | (12,695,226) | 470,785 |
| Less: Charitable business exemption | 2,218,891 | 1,866,081 |
| Dividend income on black-list country equities | – | – |
| Tax refund included in income | – | – |
| Realised gains on black-list country equities | – | – |
| Unrealised gains on NZ equities | 5,673,306 | 569,423 |
| Unrealised gain on grey-list equities | 7,892,197 | 2,435,504 |
| (20,587,423) | (1,964,719) |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 118
Gazette.govt.nz —
NZ Gazette 2003, No 118
✨ LLM interpretation of page content
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Financial Performance Statement of The Community Trust of Southland
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💰 Finance & RevenueFinancial Performance, Income, Expenditure, Community Trust, Southland, Investment Income, Fixed Assets, Investments, Loans, Reconciliation