NEW ZEALAND GAZETTE, No. 127
14 AUGUST 2008

Variable Rate Instruments

Cash Flow Sensitivity

(d) Other Price Risk

Other price risk is the risk that the value of the instrument will fluctuate as a result of changes in market price (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuers or all factors affecting all instruments traded in the market. As the majority of the funds financial instruments are carried at fair value with fair value changes recognised in the income statement, all changes in market conditions will directly affect investment income.

Price risk is managed by the Trust by constructing a diversified portfolio of instruments traded on various markets. The statement of investment policies and objectives sets down the guidelines for this diversification.

15. Explanation of Transition to NZ IFRS

These are the trust’s first financial statements prepared in accordance with NZ IFRS. The accounting policies set out in the notes to the financial statements have been applied in preparing the statements for the year ended 31 March 2008, the comparative information presented for the year ended 31 March 2007 and in the preparation of an opening NZ IFRS balance sheet at 1 April 2006 (the trust’s date of transition).

In preparing the opening NZ IFRS balance sheet and restating the 2007 financial statements, the trust has considered the amounts previously reported in financial statements prepared in accordance with its old basis of accounting (previous GAAP). It was found that there was no dollar value changes required and that the main effect of the transition was in format and disclosure.

As no changes have been required, reconciliation and explanations of the transition to NZ IFRS have not been included with these accounts.

16. Trustees’ Attendance and Remuneration

Trustees’ remuneration for meeting attendance and an annual honorarium is set by the Minister of Finance. Trustees are also reimbursed for travel costs. Details of the trustees’ attendance and remuneration are:

Attendance Record & Fees of Trustees

17. Employees’ Remuneration

During the year, one employee received remuneration in the range of $120,000–$130,000.

18. Trustees’ Indemnity Liability Insurance

Trustees’ indemnity liability insurance of $5,206 ($10,960 – 2007) has been paid by the trust as approved by the trustees under the Community Trusts Act 1999. The reduced cost is due to a collective approach from several of the community trusts with a common insurer.

Audit Report

To the Trustees of Eastern & Central Community Trust Incorporated

We have audited the financial statements. The financial statements provide information about the past financial performance of the Eastern & Central Community Trust Incorporated and its financial position as at 31 March 2008. This information is stated in accordance with the accounting policies set out in Notes 1, 2 and 3.

The Trustees’ Responsibilities

The trustees are responsible for the preparation of financial statements that give a true and fair view of the financial position of the trust and the results of its operations and cash flows for the year ended 31 March 2008.