✨ Financial Statements and Trust Operations
27 JUNE 2012 NEW ZEALAND GAZETTE, No. 72 2029
EASTERN AND CENTRAL COMMUNITY TRUST INC
Contingencies
There are no contingent liabilities or contingent assets at balance date (2011:nil).
13. RELATED PARTY TRANSACTIONS
There have been no related party transactions during the year.
Trustees update their personal register of interests at each Trust Meeting. A folder containing each Trustee’s register of interests is readily available to members of the public.
In addition, a record of all declarations of interests with any donation application is maintained and is also included in the Trustees’ register of interest folder. Trustees abstain from discussion and decisions regarding donations to entities in which they have an interest.
Key management personnel include the Trustees and Trust Manager. Short term benefits paid to key management personnel were $301,101 (2011: $289,810).
14. FINANCIAL INSTRUMENTS
The Trust has the following financial assets and liabilities which are shown at their fair value:
| 2012 $ | 2011 $ | |
|---|---|---|
| Financial Assets | ||
| Cash and cash equivalents | 7,997,144 | 6,962,577 |
| Short Term Advance | 108,630 | 84,148 |
| Derivatives financial assets/(liabilities) | 72,888 | (1,592,901) |
| Financial Assets held for trading consisting of: | ||
| NZ Equities | 12,768,917 | 9,761,428 |
| NZ Bonds | 40,952,865 | 51,889,769 |
| Off Shore Equities | 64,260,762 | 65,996,649 |
| Off Shore Bonds | 12,595,509 | 13,052,231 |
| 138,556,715 | 146,153,901 |
| Financial Liabilities | | |
| Accounts Payable | 59,273 | 54,029 |
| Donations Payable | 1,477,190 | 1,318,130 |
| | 1,536,463 | 1,372,159 |
Risks arising for the Trust’s financial assets and liabilities are inherent in the nature of the Trust’s activities, and are managed through an ongoing process of identification, measurement and monitoring. The Trust is exposed to credit risk, liquidity risk and market risk (including currency, interest rate and pricing risks).
The Trust’s income is generated from its financial assets. Liabilities which arise from its income operations are met from cash flows provided by these assets.
Information regarding the fair value of assets and liabilities exposed to risk is regularly reported to the Trust’s management, the Trust’s Executive sub-Committee and ultimately the Board of Trustees. The Investment Portfolio is rebalanced, as necessary, to ensure that the asset classes remain within the strategic asset allocation ranges as set out in the Trust’s Statement of Investment Policies and Objectives (SIPO). The Trustees regularly review the Trust’s SIPO.
The SIPO sets out the Trust’s primary investment objectives. These can be summarised as to:
- ensure that the investment fund is invested prudently.
- provide inter-generational equity with regard to distribution levels over time.
- ensure money is available for distribution, as required, to meet the needs and distribution policies of the Trust.
- maintain the value of the investment fund’s capital base in real terms (CPI).
- maximise the funds available for distribution.
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NZ Gazette 2012, No 72
✨ LLM interpretation of page content
🏢 Contingencies and Related Party Transactions
🏢 State Enterprises & InsuranceContingencies, Related Party Transactions, Trustees, Register of Interests
💰 Financial Instruments and Risk Management
💰 Finance & RevenueFinancial Assets, Financial Liabilities, Risk Management, Investment Portfolio