19 AUGUST 2004

NEW ZEALAND GAZETTE, No. 101

2521

Consolidated Notes to the Financial Statements for the Year Ended 31 March 2004

1. Statement of Accounting Policies

Reporting Entity
The entity qualifies for differential reporting under the Institute of Chartered Accountants of New Zealand’s Differential Reporting Framework due to size. The entity has taken advantage of all available differential reporting exemptions, except that a statement of cash flows has been prepared in accordance with Financial Reporting Standard No. 10.

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.

Property, Plant and Equipment
Property, plant and equipment 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.

2. Nature of Business
The Community Trust of Wellington was incorporated as a charitable trust in accordance with the provisions of the Trustee Banks Restructuring Act 1988 and now superseded by the Community Trust Act 1999. The purpose of the community trust is to provide charitable, cultural, philanthropic and recreational benefits to the community, principally in the trust region.

The nature of business of the wholly owned company, Wellington Community Trust Charities Limited, is restricted by its constitution to providing charitable benefits to the community, principally in the region of The Community Trust of Wellington.

The Community Trust of Wellington and its subsidiary company operate under the trading name of “The Community Trust of Wellington”.

3. Fixed Assets