15 SEPTEMBER 2005 NEW ZEALAND GAZETTE, No. 158 3985

Interest Rate Risk

The trust, through its fund managers, invests in securities that are subject to interest rate risk. The trust actively monitors this
risk and changes asset allocations and maturity profiles accordingly.

Credit Risk

The trust, in the normal course of business, enters into arrangements with other parties. These arrangements give rise to credit
risk for the trust and hence policies and procedures are maintained so that this risk is minimised.

For all classes of financial assets held by the trust, the maximum credit risk exposure to the trust is the carrying value.
Due to the diversification of the investment portfolio and the policies and procedures in place, there is no significant
concentrations of credit risk. No collateral is required in respect of financial assets.

Fair Values

All financial instruments are carried at market value which equates to fair value.

10. Foreign Currency Monetary Assets

As at 31 March, the trust had the following foreign currency monetary assets that were not hedged.

| 2005 2004 |
|---------------------------------------------|---------------|---------------|
| $000 $000 |
| Foreign currency exposure— |
| Receivables stated in NZ$ equivalents: |
| U.S.A. and Canada 54,169 58,881 |
| U.K. and Continental Europe 29,691 29,005 |
| Japan and Far East 9,214 8,798 |
| 93,074 96,684 |

11. Reconciliation of Reported Surplus to Net Cash Flow From Operating Activities

| 2005 2004 |
|-----------------------------------------------------------|---------------|---------------|
| Reported surplus 35,447 70,437 |
| Add non cash items: |
| Depreciation 68 75 |
| Loss on disposal of fixed assets – – |
| 68 75 |
| Movements in working capital items: |
| Increase in creditors 28 124 |
| Increase in ASB Bank Community Trust (25) (3) |
| (Increase)/decrease in debtors (52) 21 |
| (49) 142 |
| Fund managers’ income reinvested (37,513) (72,311) |
| Net cash outflow from operating activities (2,047) (1,657) |

12. Capital Commitments and Contingent Liabilities

Other than committed donations, the trust has no other capital commitments or contingent liabilities.

13. Related Party Information

Fixed assets are held and joint expenses are paid by this trust. Expenses are on-charged to ASB Bank Community Trust.

14. Conflicts of Interest

During the year, trustees and staff were required to declare either a direct or indirect conflict of interest in a matter being
considered by the trust. Nineteen such interests were recorded during the year and a register is available for inspection at the
trust.

Audit Report

To the Trustees of ASB Charitable Trust:

We have audited the financial statements comprising the statement of income and expenditure, the statement of movements in
trust funds, the balance sheet, the statement of cash flows and the notes to these financial statements. The financial statements
provide information about the past financial performance of the trust and its financial position as at 31 March 2005. This
information is stated in accordance with the accounting policies in the notes to these financial statements.

Trustees’ Responsibilities

The trustees are responsible for the preparation of financial statements which give a true and fair view of the financial position
of the trust as at 31 March 2005 and the results of its 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 statements 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 statements.
It also includes assessing:

• the significant estimates and judgements made by the trustees in the preparation of the financial statements;
• whether the accounting policies are appropriate to the trust’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 statements are free from material misstatements, whether caused by fraud or