1884

NEW ZEALAND GAZETTE, No. 73

29 JUNE 2006

Notes to the Financial Statements for the Year Ended 31 March 2006

1. Statement of Accounting Policies

Reporting Entity
The financial statements presented here are for the entity The Community Trust of Wellington (\“the trust\”). The trust is an incorporated charitable trust under the Charitable Trusts Act 1957. The trust prepares its financial statements in accordance with the Act and the financial reporting standards issued by the Institute of Chartered Accountants of New Zealand.

Measurement Base
The measurement base adopted is historical cost with the exception of certain items for which specified accounting policies are identified.

Accounts Receivable
Accounts receivable are stated at expected realisable value.

Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a diminishing value basis to allocate the cost over its useful life:

Furniture and office equipment 9.0%DV – 48.0%DV

Investment Income (Net)
Investment income (net) includes gross investment income less management fees payable to the fund managers.

Donations
Donations made from current year’s income are recorded in the statement of financial performance when paid. Donations from prior years’ income are recorded in the donations reserve account when paid.

Shares and Investments
Shares and other investments are stated at the market value. Changes in the market value of investments are taken to the statement of financial performance.

Goods and Services Tax
The financial statements have been prepared using a GST exclusive figures to the extent that GST is claimable.

Financial Instruments
All financial instruments held by the trust are recorded in the statement of financial position. The financial instruments comprise equity securities, discounted securities, secured investments, borrowings, deposits and cash. Concentrations of credit risk arise as a result of holding equity securities as investments. These are subject to the normal market risk associated with investments of this nature. There are no significant differences between the fair value and book value of financial instruments. Where possible, financial assets and liabilities are supported by collateral or other security. These arrangements are described in the individual policy statements associated with each item.

Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash comprises cash balances (net of bank overdrafts) and demand deposits. Cash excludes treasury bills that are not used as part of the group’s day-to-day cash management.

Taxation
The Community Trust of Wellington is exempt from income tax under section CB4 (1) (m) of the Income Tax Act 1994.

Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.

2. Nature of Business
The Community Trust of Wellington was incorporated as a charitable trust in accordance with the provisions of the Trustee Banks Restructuring Act 1988 and now superseded by the Community Trusts Act 1999. The purpose of the community trust is to provide charitable, cultural, philanthropic and recreational benefits to the community, principally in the trust region.

3. Property, Plant and Equipment

4. Investments (Current)