✨ Financial Statements
8 JULY 2004 NEW ZEALAND GAZETTE, No. 85 2141
Included in donations payable is $1,661,281 ($2,944,902 – 2003) of donations, which are subject to the applicants fulfilling certain conditions.
10. Reconciliation of Net Surplus With Operating Cash Flows
| 2004 | 2003 | |
|---|---|---|
| Net surplus/(deficit) for the period | $14,606,268 | $(12,182,808) |
| Adjust for non-cash items: | ||
| Income on investments | $(7,937,426) | $12,427,360 |
| Depreciation | $20,877 | $22,186 |
| Movements in net current assets: | ||
| Accrued income | $(37,554) | $2,328 |
| Sundry payables | $(848) | $(39,589) |
| Provision for taxation | $(193,770) | – |
| Net operating cash flows | $6,457,547 | $229,477 |
11. Contingent Liabilities and Commitments
Commitments
The trust has no further commitments ($498,536 – 2003) for the “Shooting Star Community Project”.
Lease Commitments
| 2004 | 2003 | |
|---|---|---|
| Within 1 year | $41,741 | $24,704 |
| 1-2 years | $48,155 | – |
| 2-5 years | $144,465 | – |
| $234,361 | $24,704 |
The lease on the present temporary premises expires on 31 July 2004. The trustees have signed an agreement to enter into a 12-year lease for new premises commencing on 1 July 2004. The rent payable is dependent on the fit-out cost but will not exceed $48,155 per annum initially. At the conclusion of the second and fourth years, the rental will be adjusted, if necessary, in accordance to any increase in the consumer price index.
Contingencies
There are no contingent liabilities or contingent assets at balance date.
12. Related Part Transactions
The trust’s new premises will be leased from a company in which K. Atkinson, trustee, has a financial interest (refer note 11).
13. Segmental Reporting
The trust operates as a tax-exempt philanthropic trust distributing funds to the community in the central North Island region.
14. Financial Instruments
Financial instruments include short-term deposits, New Zealand bonds, international bonds, derivatives and investments in managed funds both within New Zealand and overseas.
14.1 Credit Risk
The trustees regularly review their investment strategy. The investment strategy ensures an appropriate diversification of investments so that the trust has no significant concentration of counterparty or credit risk.
14.2 Fair Values
The trust has recorded its financial assets and liabilities at current market values, which represent estimated fair values and credit risk exposure.
14.3 Currency Risk
The trust has exposure to currency risk through its investments in offshore equities managed funds. The current investment policy requires full hedging of currency risk for overseas bonds when held and 50% hedging of currency risk for overseas equities. Since October 2002, the trust has held a tactical hedging position with 100% cover on overseas equities. Since March 2003, the Australian equities have been unhedged. In March 2004, the hedging position on the remaining overseas equities was returned to the strategic 50% cover. Currency risk is managed by fund managers with a range of tolerance.
Offshore investments are denominated into the following foreign currency groupings:
| 2004 | 2003 | |
|---|---|---|
| USA/Canada | $7,314,439 | $6,760,883 |
| UK/Europe | $7,819,186 | $6,439,769 |
| Japan/Asia | $5,613,856 | $3,285,778 |
| Australia | $5,838,944 | $4,690,624 |
| Total | $26,586,425 | $21,177,054 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 85
Gazette.govt.nz —
NZ Gazette 2004, No 85
✨ LLM interpretation of page content
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Eastern & Central Community Trust Incorporated Financial Statements
(continued from previous page)
💰 Finance & Revenue24 June 2004
Financial Performance, Community Trusts, Income, Expenditure, Equity
- K. Atkinson, Trustee with financial interest in leased premises