26 JULY 2007 NEW ZEALAND GAZETTE, No. 84 2193

Cash was dispersed to:
Suppliers of goods and services (1,098) (1,097)
Trustees (157) (204)
Grants to the community (4,731) (2,847)
Dillon Memorial Scholarship (77) (84)
(6,063) (4,232)

Net cash flows from operating activities 544 6,515

Cash was provided from:
Sale of investments 34,000 54,362

Cash was applied to:
Purchase of fixed assets (15) (42)
Purchase of investments (34,506) (60,863)
Net cash flows from investing activities (521) (6,543)

Increase/(decrease) in cash held 23 (28)
Add cash at 1 April 2006 14 42
Cash at 31 March 2007 37 14

Reconciliation of net surplus and net cash flows from operating activities—
Net surplus transferred to equity 8,177 12,879
Less payments out of capital (net) (162) (268)
Accrued income included in investments (6,460) (6,460)

Add/(less) non cash items:
Depreciation of fixed assets 16 7
Loss on disposal of assets 2 —

Movement in working capital:
(Increase)/decrease in accounts receivable 4 8
Increase/(decrease) in accounts payable (1,033) 349

Net cash flows from operating activities 544 6,515

The accompanying notes form part of these financial statements.

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

1. Statement of Accounting Policies

Reporting Entity
The trust is a charitable trust in accordance with the provisions of the Community Trusts Act 1999.
The financial statements have been prepared as required by the Community Trusts Act 1999 and the Trust Deed dated 17 August 2000 and in accordance with the Financial Reporting Act 1993.

Measurement Base
The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed by the trust, with the exception of investments which are stated at market value.

Specific Accounting Policies
The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:

(a) Grants:
Grants made during the year from revenue are included in the statement of financial performance. Those made from trust capital have been included in the statement of movements in equity.

(b) Investments:
All investments are stated at assessed market value (refer Note 5).

(c) Fixed assets:
Fixed assets are stated at cost less accumulated depreciation.

(d) Depreciation:
Depreciation is charged to write off the cost of fixed assets over their expected economic lives using the diminishing value method at rates from 11.4% to 50% per annum.

(e) Accounts receivable:
Accounts receivable are recorded at their estimated realisable value.

(f) Consolidation:
The 2006 comparatives include the Bay of Plenty Community Trust and its subsidiary charitable company. The company was wound up during the financial year ended 31 March 2006 and its assets and liabilities were acquired by the Bay of Plenty Community Trust.

(g) Financial instruments:
The trust includes all financial instrument arrangements in the balance sheet using the concept of accrual accounting. Financial instruments are valued as per Note 1, measurement base. These instruments arise as a result of everyday operations and include bank, accounts receivable, accounts payable and investments. Revenues and expenses in