✨ Financial Statements Continuation
19 AUGUST 2004 NEW ZEALAND GAZETTE, No. 101 2523
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 2004, The Community Trust of Wellington has the following commitments:
| 2004 | 2003 | |
|---|---|---|
| $ | $ | |
| Less than one year | 296,785 | 382,921 |
| Between one and two years | 400,000 | 177,500 |
| Between two and five years | – | – |
| 696,785 | 560,421 |
(b) Lease Commitments
Commitments existed for non-cancellable operating leases as follows:
| 2004 | 2003 | |
|---|---|---|
| $ | $ | |
| Less than one year | 129,956 | 126,000 |
| Between one and two years | 127,518 | 126,000 |
| Between two and four years | 42,000 | 168,000 |
| Greater than five years | – | – |
| 299,474 | 420,000 |
Total rental expense for 2004 is $126,000.00 (2003 – $126,000.00).
Commitments existed for non-cancellable finance leases as follows:
| 2004 | 2003 | |
|---|---|---|
| $ | $ | |
| Less than one year | 2,562 | – |
| Between one and two years | 2,562 | – |
| Between two and four years | 3,416 | – |
| Greater than five years | – | – |
| 8,540 | – |
(c) Capital Commitments
The group has no capital commitments as at 31 March 2004 (2003 – $Nil).
7. Contingent Liabilities
The trust has no contingent liabilities as at 31 March 2004 (2003 – $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 AMP Capital Investors, Tower Asset Management,
Guardian Trust Funds Management and Walker Capital Management Limited. 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:
| 2004 | 2003 | |
|---|---|---|
| $ | $ | |
| Bank accounts | 123,061 | 28,649 |
| Accounts receivable | 10,370 | 35,603 |
| Investments (current) | 1,671,469 | 27,117,912 |
| Investments (non current) | 34,544,041 | 6,682,287 |
Currency Risk
The Community Trust of Wellington incurs currency risk as a result of investment transactions managed by AMP Capital
Investors, Tower Asset Management, Guardian Trust Funds Management and Walker Capital Management Limited.
Interest Rate Risk
The investments of the Community Trust of Wellington, which are sensitive to changes in interest rates, are managed by AMP
Capital Investors, Tower Asset Management, Guardian Trust Funds Management and Walker Capital Management Limited.
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)
| 2004 | 2003 | |
|---|---|---|
| $ | $ | |
| Portfolio income-realised and unrealised revenue | 2,391,948 | (7,027,465) |
| Less fund management fees and expenses | (100,739) | (244,152) |
| Total investment income (net) | 2,291,209 | (7,271,617) |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 101
Gazette.govt.nz —
NZ Gazette 2004, No 101
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Consolidated Notes to the Financial Statements for the Year Ended 31 March 2004
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Accounting Policies, Consolidation, Depreciation, Investments