2192

NEW ZEALAND GAZETTE, No. 87

15 JULY 2004

R. H. T. AWA, J. KILBRIDE, C. M. CAVE, M. G. LAW, N. J. CLARKE, J. T. MAIPI, B. DOUBE, T. H. MOXON,
B. L. HOSKING, J. S. PEMBERTON, L. E. KARALUS, H. A. RAUMATI, H. KATIPA, G. M. SAUNDERS, Trustees.
Dated this 21st day of June 2004.

Consolidated Statement of Cash Flows for the Year Ended 31 March 2004

Cash was provided from:
Investment income received
| 18,431 | 7,932 |

Cash was applied to:
Payments to suppliers and employees
| (1,641) | (1,715) |
Donations paid from income
| (6,033) | (6,841) |
Tax paid
| – | – |
| (7,674) | (8,556) |

Net cash flow from operating activities
| 13 | 10,757 | (624) |

Cash flow from investing activities—
Cash was provided from:
Net decrease in investments
| – | 1,757 |

Cash was applied to:
Net increase in investments
| (8,697) | – |
Purchase of fixed assets
| (518) | (166) |
| (9,215) | (166) |

Net cash flow from investing activities
| (9,215) | 1,591 |

Cash flow from financing activities—
Cash was applied to:
Donations paid from capital
| (885) | (1,097) |

Net cash flow from financing activities
| (885) | (1,097) |

Net increase (decrease) in cash held
| 657 | (130) |

Cash at beginning of the year
| 116 | 246 |

Ending cash carried forward
| 773 | 116 |

The Waikato Community Trust Incorporated Notes To and Forming Part Of the Consolidated Financial Statements for the Year Ended 31 March 2004

1. Statement of Accounting Policies

Basis of Reporting

The financial statements presented here are for the reporting entity The Waikato Community Trust Incorporated and its wholly-owned subsidiaries Trust Waikato Charities Limited, Trust Waikato Amateur Sport Limited and Trust Waikato District Improvements Limited.

The financial statements have been prepared in accordance with the requirements of the Institute of Chartered Accountants of New Zealand for the measurement and reporting of profit on a historical cost basis with the exception of investments which are recorded at market value.

Specific Accounting Policies

The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:

(a) Reserves Policy

Set out below are the reserving policies. They were adopted by the trust in 1998 and have been amended following reviews in 2000, 2001, 2003 and 2004 to reflect investment performance.

Trust Funds

In order to prudently manage the financial affairs of the trust, the trustees have adopted the following policies for accounting for the trust’s capital and retained earnings.

• Capital

Following the sale of the trust’s shares in Trust Bank New Zealand Limited in April 1996, the trustees agreed that the value of the trust at that time should be maintained for the benefit of current and future generations living in the Waikato region. For this purpose, the trustees agreed that $169,800,000 would be considered as the “initial capital” of the trust.

The “initial capital value” is increased each year to show the “base capital value” which reflects growth due to inflation and regional growth. An amount was transferred from retained earnings in 1997 to increase the capital of the trust from its original amount of $21,316,622 to the “initial capital value” and to provide for growth during the 1997 year. Each year, an appropriate amount is transferred from income to allow for growth due to inflation and regional population growth. Transfers have not been made in the 2003 and 2004 years. An appropriate amount will be transferred when investment performance improves sufficiently.