2502

NEW ZEALAND GAZETTE, No. 105

7 JULY 2005

Non-current assets:
Investments 9 216,144 206,062
Property, plant and equipment 10 2,275 2,176
——————— ——————— ———————
Total assets 218,419 208,238
——————— ——————— ———————
218,471 209,011

Consolidated Statement of Cash Flows for the Year Ended 31 March 2005

Cash flow from operating activities—
Cash was provided from:
Investment income received 17,775 18,431
——————— ———————
17,775 18,431
Cash was applied to:
Payments to suppliers and employees (1,896) (1,641)
Donations paid from income (5,812) (6,033)
——————— ———————
Net cash flow from operating activities (7,708) (7,674)
——————— ———————
10,067 10,757

Cash flow from investing activities—
Cash was provided from:
Net decrease in investments — —
——————— ———————
— —
Cash was applied to:
Net increase in investments (9,729) (8,697)
Purchase of fixed assets (184) (518)
——————— ———————
Net cash flow from investing activities (9,913) (9,215)
——————— ———————
(9,913) (9,215)

Cash flow from financing activities—
Cash was applied to:
Donations paid from capital (874) (885)
——————— ———————
Net cash flow from financing activities (874) (885)

Net increase (decrease) in cash held (721) 657
Cash at beginning of the year 773 116
Ending cash carried forward 52 773

Total assets 218,471 209,011

The Waikato Community Trust Incorporated Notes To and Forming Part Of the Consolidated Financial Statements for the Year Ended 31 March 2005

1. Statement of Accounting Policies

Basis of Reporting
The financial statements presented here are for the reporting entity The Waikato Community Trust Incorporated and for 2004 its wholly-owned subsidiary Trust Waikato Charities 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