2156 NEW ZEALAND GAZETTE, No. 91 16 JUNE 2005

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

| Note | 2005 2004 |
|------|-----------------------------------------------|-----------------------------|-----------------------------|
| | $ $ |

Cash flows from operating activities—
Cash was provided from:
Investment income 8,443,143 7,508,421

Cash was applied to:
Trustees and employees (422,808) (409,742)
Suppliers of other goods and services (524,757) (447,362)
Payment of Tax – (193,770)

Net operating cash flows 10 7,495,578 6,457,547

Cash flows from investing activities—
Cash was applied to:
Investment in managed funds (2,855,989) (1,233,934)
Purchase of fixed assets (65,324) (15,637)

Net cash flows from investing activities (2,921,313) (1,249,571)

Cash flows from financing activities—
Cash was applied to:
Community donation payments (5,383,687) (5,681,282)

Net cash flows from financing activities (5,383,687) (5,681,282)

Net increase (decrease) in cash held (809,422) (473,306)
Add cash at 1 April 8,975,886 9,449,192

Cash at 31 March 8 8,166,464 8,975,886

Notes to the Consolidated Financial Statements for the Year Ended 31 March 2005

1. Statement of Accounting Policies

1.1 Reporting Entity

Eastern and Central Community Trust Inc. is a charitable trust incorporated in accordance with the provisions of the Community Trusts Act 1999.

The trust has a wholly owned company – Eastern & Central Community Trust Charities Limited – which is registered under the Companies Act 1993.

The consolidated financial statements have been prepared in accordance with the Financial Reporting Act 1993.

1.2 Measurement Base

The measurement base applied is that of historical cost adjusted for the market valuation of investments.

1.3 Specific Accounting Policies

The following are the particular accounting policies, which have a material effect on the measurement of results and financial position.

1.3.1 Basis of Consolidation

The consolidated financial statements include the trust and its wholly owned company accounted for using the purchase method. All significant inter-entity transactions are eliminated on consolidation. The entities have a common balance date of 31 March.

1.3.2 Investment Income

Investment Income is accounted for on an accruals basis recognising both realised and unrealised gains or losses in value.

1.3.3 Foreign Currency

Foreign Currency balances are converted to NZD at the year end rate of exchange unless covered by a forward exchange contract. Where such contracts are in place, the contracted rate is adopted. Transactions completed during the year are converted at the rate applying at the approximate date of the transaction. Foreign exchange gains and losses are included within the statement of financial performance.

1.3.4 Investments

Investments are recorded at market value at year-end.

1.3.5 Cash

Cash comprises cash at bank, call deposits and short-term deposits but does not include cash held by fund managers. Cash flows from operations include withdrawals of income from managed funds.

1.3.6 Donations

Donations are recognised as a liability of the trust when they are approved by trustees and notified to applicants notwithstanding that the applicants may still have to fulfil some conditions.

1.3.7 Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation.