1886

NEW ZEALAND GAZETTE, No. 73

29 JUNE 2006

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 by 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:

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 short term deposits.

10. Related Party Transactions

The Community Trust of Wellington has a code of conduct and a register of interests in regard to related party transactions. The code of conduct requires trustees and management to declare any interests in transactions that the trust may undertake. In the 31 March 2006 year, Frances Russell, the Chief Executive Officer of The Community Trust of Wellington, was also a trustee of the New Zealand Affordable Arts Trust. During the 31 March 2006 year, The Community Trust of Wellington donated $25,000 (2005 – $20,000) to the New Zealand Affordable Arts Trust. No related party debt was owing or written off in the 31 March 2006 year.

Audit Report

To the readers of the financial report of The Community Trust of Wellington.

We have audited the attached financial report. The financial report provides information about the past financial performance of The Community Trust of Wellington and its financial position as at 31 March 2006. This information is stated in accordance with the accounting policies as attached.

Trustees’ Responsibilities

The trustees of The Community Trust of Wellington 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 as at 31 March 2006, and of 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 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’s circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with generally accepted auditing standards in New Zealand. 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 give reasonable assurance that the financial statements are 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.

Unqualified Opinion

We have obtained all the information and explanations we have required.

In our opinion:

• proper accounting records have been kept by The Community Trust of Wellington as far as appears from our examination of those records; and
• the attached financial report:
  • complies with generally accepted accounting practice in New Zealand;
  • gives a true and fair view of the financial position of The Community Trust of Wellington as at 31 March 2006 and the results of its operations for the year ended on that date.