NEW ZEALAND GAZETTE

No. 94

Credit Risk

The trust, in the normal course of business, enters into arrangements with other parties. These arrangements give rise to credit risk for the trust and hence policies and procedures are maintained so that this risk is minimised. No collateral is required in respect of financial assets.

For all classes of financial assets held by the trust, the maximum credit risk exposure to the trust is the carrying value as disclosed in the financial statements at balance date.

Due to the diversification of the investment portfolio and the policies and procedures in place, there is no significant concentrations of credit risk.

Fair Values

All financial instruments are carried at market value.

10. Foreign Currency Monetary Assets

As at 31 March, the trust had the following foreign currency monetary assets that were not hedged.

Foreign currency exposure—

Receivables stated in NZ$ equivalents:

11. Reconciliation of Reported (Loss)/Surplus to Net Cash Flow From Operating Activities

Audit Report

To the Trustees of the ASB Bank Community Trust:

We have audited the financial statements comprising the statement of income and expenditure, the statement of movements in trust funds, the balance sheet, the statement of cash flows and the notes to these financial statements. The financial statements provide information about the past financial performance of the trust and its financial position as at 31 March 2003. This information is stated in accordance with the accounting policies in the notes to these financial statements.

Trustees' Responsibilities

The trustees are responsible for the preparation of financial statements which give a true and fair view of the financial position of the trust as at 31 March 2003 and the results of its operations and cash flows for the year ended on that date.

Auditors' Responsibilities

It is our responsibility to express an independent opinion on the financial statements presented by the trustees and report our opinion.

Basis of Opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing:

• the significant estimates and judgements made by the trustees in the preparation of the financial statements;
• whether the accounting policies are appropriate to the trust’s circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with New Zealand Auditing Standards issued by the Institute of Chartered Accountants of 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 obtain reasonable assurance that the financial statements are 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 statements.

Our firm carries out other assignments for the company in the area of taxation advice. The firm has no other interests in the trust.

Unqualified Opinion

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

In our opinion, the financial statements:

• comply with New Zealand generally accepted accounting practice;
• give a true and fair view of the financial position of the trust as at 31 March 2003 and the results of its operations and cash flows for the year ended on that date.

Our audit was completed on 26 May 2003 and our unqualified opinion is expressed as at that date.

KPMG, Auckland.