✨ Community Trust Financial Report
2672 NEW ZEALAND GAZETTE, No. 110 21 JULY 2005
3. Donations
The names of organisations to whom distributions have been made by the trust under section 13 of the Community Trusts Act 1999 during the financial year and the amounts distributed are shown in the annual report.
| 2005 | 2004 | |
|---|---|---|
| Donations paid from income | 10,838,176 | 9,350,307 |
| Donations paid from capital | 2,442,054 | 2,132,967 |
| (Includes prior year adjustments for cancellation, refunds, etc.) | 13,280,230 | 11,483,274 |
| Future commitments | 835,000 | 340,000 |
| Donations approved from income | 11,329,961 | 9,555,183 |
| Donations approved from capital | 2,541,607 | 2,037,678 |
| Donations approved for year | 13,871,568 | 11,592,861 |
Funds carried forward as accumulated income are available for the payment of donations in future years. Budgeted donations unspent in the current year are to be distributed in the following year.
Future donation commitments represent donations approved in the current or previous years which are to be distributed from either capital or future income sources.
The trustees recognise that there is a need to ensure a fairness and equity between the regions as far as payments of donations are concerned in relation to budgetary allocations. The allocation of donations between regions is based on population statistics for each region.
4. Trust Funds
| 2005 | 2004 | |
|---|---|---|
| Core real capital base reserve: | ||
| Balance brought forward | 371,422,000 | 358,000,000 |
| Donations paid from capital | (2,442,054) | (2,132,967) |
| Transfer from accumulated income reserve | 2,442,054 | 2,132,967 |
| Adjustment – increase in core capital | – | 13,422,000 |
| 371,422,000 | 371,422,000 |
| Accumulated income reserve: | | |
| Balance brought forward | 33,739,400 | 22,753,691 |
| Net surplus for year | 13,558,249 | 28,058,676 |
| Transfer to core real capital base reserve | (2,442,054) | (2,132,967) |
| Adjustment – Increase in Core Capital | – | (14,940,000) |
| | 44,855,595 | 33,739,400 |
| Capital base reserve: | | |
| Balance brought forward | 48,163,269 | 40,665,315 |
| Retention as per statement of financial performance | 11,538,595 | 5,979,954 |
| Core capital increase – inflation adjustment | – | 1,518,000 |
| | 59,701,864 | 48,163,269 |
| Total trust funds | 475,979,459 | 453,324,669 |
| Available for tax free distribution | 458,482,166 | 453,324,669 |
| Available for taxable distribution | 17,497,293 | – |
| Total trust funds | 475,979,459 | 453,324,669 |
The capital base reserve is an allowance for the erosion of the value of the core real capital base reserve, due to inflation. For 2005, this was calculated based on inflation at 2.75% on a core real capital base reserve of $419,585,269, being the original core real capital base reserve of $371,422,000 plus the adjusted capital base reserve of $48,163,269.
The prior year, core real capital adjustment recognised an amendment to the trust’s capital position to capitalise previously set aside income reserves following the 1996 sale of the Trust Bank NZ Limited shareholding, and also included an inflationary movement for that adjustment.
Even though The Canterbury Community Trust is exempt from income tax with effect from 1 April 2004, all taxable distributions after that date will still be subject to tax in the donee’s hands, if the donee does not have tax exempt status.
Included in amounts available for tax-free distribution is $77,068,296 which will be available for tax-free distribution if Community Trust Charities Limited is liquidated by 31 March 2006. Trustees expect this to be the case.
5. Reconciliation of Net Surplus to Net Operating Cashflow
| 2005 | 2004 | |
|---|---|---|
| Net surplus from statement of financial performance | 13,558,249 | 28,058,676 |
| Adjustments for non cash items in net surplus: | ||
| Depreciation | 100,939 | 295,180 |
| Gain on revaluation of investment properties | (453,597) | (401,630) |
| Managed funds income unrealised | (257,076) | (11,713,371) |
| 12,948,515 | 16,238,855 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 110
Gazette.govt.nz —
NZ Gazette 2005, No 110
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Canterbury Community Trust Financial Statements
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🏢 State Enterprises & Insurance30 May 2005
Financial Statements, Community Trust, Canterbury, Donations, Trust Funds, Financial Performance, Reconciliation