10 JULY NEW ZEALAND GAZETTE 2083

Cash was applied to:
Purchase of fixed assets (6,650) (2,115)
Term investments (26,989,803) –
(26,996,453) (2,115)

Net inflow (outflow) from investing activities 1,895,758 3,377,085

Cash flows from financing activities—
Cash was provided to:
BNZ loan principal repayments – (664,519)
Interest expense – (11,796)
Net cash flows from financing activities – (676,315)

Net increase (decrease) in cash held 11,394 (42,586)
Opening cash brought forward 15,755 58,341
Closing cash carried forward 27,149 15,755

Shown in statement of financial position as:
Cash at bank 27,149 15,755
Closing cash carried forward 27,149 15,755

Consolidated Notes to the Financial Statements for the Year Ended 31 March 2003

1. Statement of Accounting Policies

Reporting Entity
The financial statements presented here are for the reporting entity The Community Trust of Wellington and its wholly owned company, Wellington Community Trust Charities Limited. The Community Trust of Wellington is an incorporated charitable trust under the Charitable Trusts Act 1957.

Reporting Basis
The trustees have chosen to prepare general purpose financial reports which comply with generally accepted accounting practice.

Measurement Base
The measurement base adopted is historical cost with the exception of certain items for which specified accounting policies are identified.

Investment Income (Net)
Investment income (net) includes gross investment income less management fees payable to the fund managers.

Basis of Consolidation
The consolidated financial statements have been prepared using the purchase method of consolidation and include the financial statements of the parent and subsidiary company.
All significant inter-entity profits and transactions have been eliminated in preparing the consolidated financial statements.

Accounts Receivable
Accounts receivable are stated at expected realisable value.

Donations
Donations made from current year’s income are recorded in the statement of financial performance when paid. Donations from prior years’ income are recorded in the statement of movements in trust funds when paid.

Fixed Assets
Fixed assets are stated at cost less accumulated depreciation.

Depreciation
Depreciation is charged at the maximum rates allowable by the Inland Revenue Department. The tax rates are as follows:
Furniture and office equipment 13.2 – 48.0 %DV

Goods and Services Tax
The Community Trust of Wellington financial statements are prepared on a G.S.T. inclusive basis.

Shares and Investments
Shares and other investments are stated at the market value. Changes in the market value of investments are taken to the statement of financial performance.

Financial Instruments
All financial instruments held by the trust are recorded in the statement of financial position. The financial instruments comprise equity securities, discounted securities, secured investments, borrowings, deposits and cash. Concentrations of credit risk arise as a result of holding equity securities as investments. These are subject to the normal market risk associated with investments of this nature. There are no significant differences between the fair value and book value of financial instruments. Where possible, financial assets and liabilities are supported by collateral or other security. These arrangements are described in the individual policy statements associated with each item.

Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.