NEW ZEALAND GAZETTE, No. 143

25 SEPTEMBER 2008

| | Sensitivity Range
(–1 to +1 standard deviation) | Sensitivity Impact
$000 |
|--------------------------|-----------------------------------------------|---------------------------------------|
| NZ equities | –8.1% to +25.9% | –9,254 to +29,591 |
| Global equities | –6.5% to +23.3% | –23,897 to +85,665 |
| NZ bonds | +2.7% to +9.3% | +6,546 to +22,240 |
| Global bonds | +2.7% to +9.3% | +6,882 to +23,704 |
| NZ cash | +3.9% to +6.9 | +3,135 to +5,546 |
| CCF’s | –10.5% to +25.5% | –6,092 to +14, 796 |
| Total portfolio | 1.0% to 13.3% | +11,143 to +148,207 |

There is a 68% probability that the return in any one year will be within the range of 1.0% to 13.3%.

These sensitivity analyses are based on the volatility of each asset class and the portfolio as a whole, as measured by plus or minus one standard deviation.

The overall effect of the trust’s diversified portfolio of uncorrelated financial assets is to reduce volatility and stabilise investment returns over time.

10. Reconciliation of Reported Surplus to Net Cash Flow From Operating Activities

11. Capital Commitments and Contingent Liabilities

Other than committed grants, the trust has no other capital commitments or contingent liabilities.

12. Conflicts of Interest

During the year, trustees and staff were required to declare either a direct or indirect conflict of interest in a matter being considered by the trust. A register of interests is maintained by the trust.

At the commencement of a meeting, trustees are asked to disclose any interest in the upcoming business. A trustee who has an interest in any matter before the meeting must not be counted in the quorum present at the meeting, not vote in respect of the matter, and absent him/herself from discussion or consideration of the matter. If, because of the number of trustees who have an interest in the matter, the meeting would fail for want of a quorum and it is a meeting of a committee of trustees, the matter is referred to a meeting of the board of trustees. If a meeting of the board of trustees would fail for want of a quorum because of the number of trustees with an interest in the matter under consideration, then those trustees who have the interest must sign a certificate for entry in the minutes certifying that the matter is in the best interest of the trust and cause details of the matter and the nature of the trustee’s interest to be included in the next financial statements of the trust.

At their meeting on 27 August 2007, the trustees resolved to effect trustee liability insurance for the sum of $2 million at a premium cost of $12,738.00. Trustees individually contributed 10% of the premium cost. All of the trustees signed the resolution approving the purchase of the trustee liability insurance along with a certificate certifying that transaction was in the best interests of the trust as the terms of the insurance and the cost were recommended by the trust’s brokers as being appropriate and reasonable.

13. Material Events After Balance Date

There were no material events after balance date which required adjustment to the financial statements for the year ended 31 March 2008.

Audit Report

To the Trustees of ASB Community Trust:

We have audited the financial statements. The financial statements provide information about the past financial performance of the trust and its financial position as at 31 March 2008. This information is stated in accordance with the accounting policies.

Trustees’ Responsibilities

The trustees are responsible for the preparation of financial statements which give a true and fair view of the financial position of the trust as at 31 March 2008 and 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 statements presented by the trustees and report our opinion to you.