7 SEPTEMBER 2006 NEW ZEALAND GAZETTE, No. 105 3117

SC Cricket Association – 5,000
SC Football Association 8,000 8,000
SC Neighbourhood Support 360 –
SC Pottery Group Inc 500 –
SC Womens Wellness Inc 328 –
SC Womens’ Wellness Centre – 500
Sport Mid Canterbury 5,400 –
Sport South Canterbury – 4,500
Sport South Canterbury 5,400 –
St Andrews Hockey Club 457 –
St Andrews Playcentre 500 –
St Mary’s Restoration Trust 55,000 –
Temuka & Districts Project Trust 10,000 10,000
Temuka Seido Karate Club Inc 800 –
The Geraldine Players Inc 15,000 15,000
Timaru Civic Trust Inc – 6,000
Timaru Gymnastics Club 510 –
Timaru Mental Health Support Trust – 60,000
Timaru Senior Citizens Assn Inc 500 –
Timaru Tai Kwan Do Club 750 –
Waimate Care & Recreation Centre 750 –
Waimate Croquet Club 324 –
Waimate District Resource Trust 400 –
Waimate Historical Society – 1,000
658,448 232,000

6. Taxation

The trust is exempt from tax with effect from 1 April 2004 in accordance with section CB 4 (1) (m) of the Income Tax Act 1994.

7. Goods and Services Tax

These financial statements are stated on a GST exclusive basis except for debtors and creditors which are stated on a GST inclusive basis.

8. Capital Commitments

There were no capital commitments (2005 – $Nil).

9. Contingent Liabilities

There were no contingent liabilities at 31 March 2006 (2005 – $Nil).

10. Advances

There were no advances outstanding at balance date.

11. Reserves

(i) Capital fund – the initial capital fund (being the realised value of trust bank shares) was $32,087,148.

(ii) Inflation reserve – it is intended to increase the inflation reserve each year by applying the consumer price index to the sum of the initial capital fund and opening inflation reserve. This nominal inflation reserve required under this policy at 31 March 2006 is $6,974,389.

(iii) General reserves – the trustees intend to compile a minimum general reserve equivalent to 5% of the initial capital fund and inflation reserve. The general reserve is intended to enable the trustees to continue with distributions should the trust incur a deficit in a particular income year.

12. Financial Instruments

Fair Values

Investments are stated at estimated market value at balance date. Interest accrued, sundry debtors, sundry creditors, term loans and donations approved, not yet paid, are stated at the amounts expected to be received or paid.
Accordingly, the trustees consider that the fair value of each class of financial assets and financial liabilities is the same as the carrying value in the statement of financial position.

Credit Risk

Sixty per cent of the assets of the trust are represented by debt investments and current account balances with Westpac and through managed funds. The trustees consider the risk of non-recovery of these investments at balance date to be within satisfactory guidelines.

The maximum exposure to credit risk of other financial instruments are: