10 JULY NEW ZEALAND GAZETTE 2085

On 19 February 1999, the Karori Wildlife Sanctuary Trust entered into a loan agreement with Wellington Community Trust Charities Limited. The loan is guaranteed by the Wellington City Council. The loan is to be repaid over 15 years with repayments commencing from 1 July 2004.

It is the intention of the directors to hold the investments long term and accordingly they have been classified as non current assets.

5. Taxation

The Community Trust of Wellington is not exempt from income tax as a charitable trust. No taxation liability arises for the year ended 31 March 2003.

For taxation purposes, Wellington Community Trust Charities Limited is deemed to be a charitable organisation and on this basis the income is not subject to taxation. The company’s charitable status was confirmed on 27 August 1997 by the Inland Revenue Department.

6. Commitments

(a) Donations

As at 31 March 2003, The Community Trust of Wellington has the following commitments:

Less than one year
Between one and two years
Between two and five years

2003
$
382,921
177,500
–
560,421

2002
$
657,500
657,500
150,000
1,456,000

(b) Lease Commitments

Commitments existed for non-cancellable operating leases as follows:

Less than one year
Between one and two years
Between two and five years

126,000
126,000
168,000
420,000

132,036
132,036
289,107
553,179

(c) Capital Commitments

The group has no capital commitments as at 31 March 2003 (2002 $Nil).

7. Contingent Liabilities

The trust has no contingent liabilities as at 31 March 2003 (2002 $Nil).

8. Financial Instruments

Investments are stated at estimated market value at balance date. Accounts payable, secured investments and accounts receivable are stated at the amount expected to be received or paid.

Accordingly, the trustees consider that the fair value of each class of financial asset and financial liabilities is the same as the carrying value in the statement of financial position.

Concentration of Credit Risk

The concentrations of credit risk incurred by the trust are managed by Tower Asset Management, BT Funds Management (NZ) Limited and Guardian Trust Funds Management. Credit risk also exists with the loan agreements entered into during the year. Trustees consider the risk of non-recovery of these investments to be within satisfactory guidelines.

Maximum exposures to credit risk as at balance date are:

2003
$
Bank accounts
28,649
Accounts receivable
35,603
Investments (current)
27,117,912
Investments (non current)
6,682,287

2002
$
15,755
97,083
50,000
43,065,606

Currency Risk

The Community Trust of Wellington incurs currency risk as a result of investment transactions managed by Tower Asset Management, BT Funds Management (NZ) Limited and Guardian Trust Funds Management.

Interest Rate Risk

The investments of the Community Trust of Wellington which are sensitive to changes in interest rates are managed by Tower Asset Management, BT Funds Management (NZ) Limited and Guardian Trust Funds Management. The Community Trust of Wellington is also exposed to interest rate fluctuation on loans, as the debt is on a floating rate.

9. Investment Income (Net)

Portfolio income-realised and unrealised revenue
Less fund management fees and expenses
Total investment income (net)

2003
$
(7,027,465)
(244,152)
(7,271,617)

2002
$
198,400
(355,480)
(157,080)