11 OCTOBER 2007

NEW ZEALAND GAZETTE, No. 110

Cashflow from investing activities—

Cash was provided from:
Receipts from fund managers

Cash was disbursed on:
Purchase of fixed assets
Net cash inflow from investing activities

Cashflow from funding activities—

Cash was disbursed on:
Donations paid
Net cash (outflow) from funding activities
Net cash inflow/(outflow) from activities
Add opening cash brought forward
Ending cash carried forward

Cash comprises:
Cash at bank
Term deposits

2927

Notes to the Consolidated Financial Statements for the Year Ended 31 March 2007

Basis of Preparation

The Community Trust of Otago was incorporated as a charitable trust in accordance with the provisions of the Community Trusts Act 1999.

These are the consolidated financial statements of The Community Trust of Otago and its wholly owned subsidiaries: The Community Trust Amateur Sports Company Limited, The Community Trust District Improvement Company Limited and Fillmor House Limited.

The Community Trust Amateur Sports Company Limited and The Community Trust District Improvement Company Limited were liquidated during the year.

The financial statements have been prepared to comply with the Financial Reporting Act 1993 and comprise consolidated statements of the following: Financial performance, movement in trust funds, financial position, cashflows, as well as notes to these financial statements.

The financial statements are prepared on the basis of historical cost, except for the revaluation of managed funds.

Specific Accounting Policies

Income

Income from managed funds includes both realised and unrealised income and is recorded gross of fund management expenses.

Interest is recognised on an accrual basis.

Foreign Currencies

All amounts denominated in foreign currencies are converted to New Zealand dollars at balance date. All realised and unrealised gains and losses are recognised in the statement of financial performance.

Taxation

Pursuant to section CW of the Income Tax Act 2004, The Community Trust of Otago is exempt from income tax.

Fillmor House Limited is the only subsidiary liable for income tax. Income tax is recognised on the surplus available for distribution before taxation, adjusting for differences between taxable and accounting income. Future tax benefits are not recognised unless realisation of the asset is virtually certain.

Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation.

Depreciation

Depreciation has been charged to the financial statement using rates which will write off the cost of assets less their estimated residual value over their estimated economic lives. The depreciation rates used are:

• Buildings: 4% diminishing value
• Office furniture and equipment: 12–48% diminishing value

Donations Payable

Donations payable represents donations approved by the trustees but unpaid as at balance date.

Receivables

Receivables are stated at estimated realisable value after providing against debts where collection is doubtful. Bad debts are written off during the period in which they are identified.

GST

The trust became registered for GST on 10 August 2006. Accordingly, items (as relevant) in the consolidated statement of financial performance are stated on a GST inclusive basis prior to and exclusive subsequent to this date. Fillmor House Limited, a subsidiary of The Community Trust of Otago, was registered for GST for the full year.