26 JULY 2007

NEW ZEALAND GAZETTE, No. 84

2201

The trustees recognise that there is a need to ensure a fairness and equity between the regions as far as payments of donations are concerned in relation to budgetary allocations. The allocation of donations between regions is based on population statistics for each region.

4. Trust Funds

| Accumulated income reserve: | | |
| Balance brought forward | 81,042,811 | 44,855,595 |
| Net surplus for year | 15,555,500 | 39,051,960 |
| Transfer to core real capital base reserve | (2,907,347) | (2,864,744) |
| | 93,690,964 | 81,042,811 |

| Capital base reserve: | | |
| Balance brought forward | 74,360,064 | 59,701,864 |
| Retention as per statement of financial performance | 13,399,200 | 14,658,200 |
| | 87,759,264 | 74,360,064 |

| Total trust funds | 552,872,228 | 526,824,875 |
| Available for tax free distribution | 453,982,517 | 455,804,222 |
| Available for taxable distribution | 98,889,711 | 71,020,857 |
| Total trust funds | 552,872,228 | 526,825,079 |

The capital base reserve is an allowance for the erosion of the value of the core real capital base reserve, due to inflation. For 2007, this was calculated based on inflation at 3.0% on a core real capital base reserve of $445,782,064, being the original core real capital base reserve of $371,422,000 plus the adjusted capital base reserve of $74,360,064.

Even though The Canterbury Community Trust is exempt from income tax with effect from 1 April 2004, all taxable distributions after that date will still be subject to tax in the donee’s hands, if the donee does not have tax exempt status.

5. Reconciliation of Net Surplus to Net Operating Cashflow

| Adjustments for changes in working capital: | | |
| Decrease/(increase) in accounts receivable | (313,059) | (378,000) |
| Decrease/(increase) in Colliers operating account | (3,069) | 1,146 |
| Increase/(decrease) in accounts payable, rents received in advance, and goods and services tax | 172,212 | 10,479 |
| | 26,691,881 | 3,477,088 |

| Add capital base reserve transfer | 13,399,200 | 14,658,200 |
| Deduct donations paid from capital | (2,907,347) | (2,864,744) |
| Net operating cash flow | 37,183,734 | 15,270,544 |

6. Capital Commitments

At balance date, the trust had capital commitments of $8.422 million (2006 – $9.44 million).

7. Investment Properties

The investment properties held at 31 March 2007 are valued at market value as follows:

Christchurch investment properties were valued at 31 March 2007 by an independent valuer, G. R. Sellars of Fright Aubrey, who is a Fellow of the New Zealand Institute of Valuers.

Canterbury Trust House Limited purchased a 50% participating interest in an investment property in Porirua on 30 March 2007. Under the joint arrangement, rental revenue and all expenses are shared equally between each party. At balance date, there were no revenue or expense items to be accounted for – the property has been recognised in the accounts at the purchase price.