3826

NEW ZEALAND GAZETTE, No. 154

Commitments existed for non-cancellable finance leases as follows:

Less than one year
Between one and two years
Between two and four years

8 SEPTEMBER 2005
4,775
3,172
6,345
14,292

2,562
2,562
3,416
8,540

(c) Capital Commitments
The are no capital commitments as at 31 March 2005 (2004 – $Nil).

10. 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.

Fair Value
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 ING New Zealand Limited, Tower Asset Management,
Tyndall Investment Management and Walker Capital Management Limited. Credit risk also exists with the loan agreements
entered into during the year. The 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:

2005
2004
$
$
Bank accounts
115,942
123,061
Accounts receivable and prepayments
98,630
9,092
Investments (current)
1,770,223
1,671,469
Investments (non current)
36,061,079
34,544,041

Currency Risk
The Community Trust of Wellington incurs currency risk as a result of investment transactions managed by ING New Zealand
Limited, Tower Asset Management, Tyndall Investment 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 ING
New Zealand Limited, Tower Asset Management, Tyndall Investment 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.

11. Significant Event
    Liquidation of Wellington Community Trust Charities Limited
    On 31 March 2005, The Wellington Community Trust Charities Limited was placed into voluntary liquidation. Victor Wu and
    Rhys Barlow, of Wellington, were appointed liquidators of the company. All assets, liabilities, commitments and contingencies
    of the company were transferred to The Community Trust of Wellington by way of a $33,000,000 dividend. The Community
    Trust of Wellington will be responsible for any residual payments or receipts resulting from the liquidation.

Audit Report
To the readers of the financial report of The Community Trust of Wellington and its subsidiary company.
We have audited the attached financial report. The financial report provides information about the past financial performance
and financial position of The Community Trust of Wellington and its subsidiary company as at 31 March 2005. This
information is stated in accordance with the accounting policies as attached.

Trustees’ Responsibilities
The trustees are responsible for the preparation of a financial report which gives a true and fair view of the financial position
of The Community Trust of Wellington and its subsidiary company as at 31 March 2005, and of the results of operations and
cash flows for the year ended on that date.

Auditors’ Responsibilities
It is our responsibility to express an independent opinion on the financial report presented by the trustees and report our
opinion to you.

Basis of Opinion
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial report. It also
includes assessing:
● the significant estimates and judgements made by the trustees in the preparation of the financial report; and
● whether the accounting policies are appropriate to The Community Trust of Wellington and its subsidiary company’s
circumstances, consistently applied and adequately disclosed.
We conducted our audit in accordance with New Zealand Auditing Standards. We planned and performed our audit so as to
obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence
to obtain reasonable assurance that the financial report is free from material misstatements, whether caused by fraud or error.
In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial report. Other
than our capacity as auditors, we have no relationship with or interest in The Community Trust of Wellington or its subsidiary
company.