Statement of Income & Expenditure for the Year Ended 31 March 1994 Note 1994 1993 $000 $000 Income From dividends 2 1,007 5,951 From other investments 2 256 218 1,263 6,169 Expenditure Audit 7 8 Facilities rental 15 22 Legal 3 Occupancy 9 23 Other operating 112 60 Public & statutory reporting 50 55 Staff 95 161 Trustees' fees 37 58 Trustees' expenses 12 17 337 407 Surplus before taxation 926 5,762 Taxation 3 359 2,006 567 3,756 Unrealised investment fluctuations 2 30 39 Unrealised investment revaluations 4 9,731 5,898 Donation from ASB Charitable Trust 6 3,750 Surplus before allocations 14,078 9,693 Allocations Committed donations 5 1,261 3,542 General Reserve 6 (500) 200 Investment Fluctuation Reserve 6 30 39 Investment Revaluation Reserve 6 9,731 5,898 Charitable Purposes Reserve Fund 6 3,751 14,273 9,679 Uncommitted surplus/(deficit) this year (195) 14 Uncommitted surplus brought forward 364 350 Uncommitted surplus carried $169 $364 forward [li-3] [li3] [li-3] [li3] The notes to these financial statements form part of and should be read in conjunction with this Statement of Income and Expenditure. Balance Sheet as at 31 March 1994 Note 1994 1993 $000 $000 Source of Funds Trust Funds Capital 7 44,320 44,320 Investment Revaluation Reserve 6 29,821 20,090 Investment Fluctuation Reserve 6 69 39 Charitable Purposes Reserve Fund 6 3,751 General Reserve 6 1,000 1,500 Uncommitted surplus 169 364 79,130 66,313 Liabilities Creditors 65 55 Committed donations 5 419 1,791 484 1,846 $79,614 $68,159 Employment of Funds Investments Shares 4 77,892 64,411 Other investments 4 1,570 3,579 79,462 67,990 Current Assets Cash 19 103 Cash Charitable Purposes [ql]Reserve Fund 1 Debtors 2 3 Taxation 30 ASB Charitable Trust 100 63 152 169 $79,614 $68,159 Approved on behalf of the Board: JUDITH BASSETT, Chairperson. WAARI WARD-HOLMES, Deputy Chairman. The notes to these financial statements form part of and should be read in conjunction with this Balance Sheet. Statement of Cash Flows for the Year Ended 31 March 1994 1994 1993 $000 $000 Cash flows from operating activities Cash was provided from: Refund of expenses by ASB Charitable Trust 728 654 Dividends received 1,007 5,951 Decrease in term deposits 2,550 Decrease in bonds 2,180 Interest received on investments 265 230 Donation from ASB Charitable Trust 3,750 Net G.S.T. 1 7,931 9,385 Cash was disbursed on: Bonds purchased (3,443) Payment to suppliers, trustees & staff (1,093) (972) Net G.S.T. (5) Taxes paid (388) (2,010) Charitable Purposes Reserve Fund (1) Donations to voluntary organisations (2,633) (2,812) (4,115) (9,242) Net cash inflow from operating activities 3,816 143 Cash flows from investing activities Cash was disbursed on: ASB Bank Ltd capital (3,750) call Net cash outflow from investing activities (3,750) Net cash inflow from $66 $143 activities [li-3] [li3] [li-3] [li3] Net increase in cash held 66 143 [cfi]Add[cfn] opening cash brought 203 60 forward Ending cash carried forward 269 203 The notes to these financial statements form part of and should be read in conjunction with this Statement of Cash Flows. Reconciliation of Reported Surplus to Net Cash Flow From Operating Activities 1994 1993 $000 $000 Reported surplus/(deficit) (195) 14 [cfi]Add[cfn] non-cash items: Allocation to/(from) General Reserve (500) 200 Unrealised interest on 6 (11) bonds (494) 189 [cfi]Add[cfn] premium paid on bond purchases 2 13 Movements in working capital items: Increase in creditors 11 1 Increase/(decrease) in committed donations (1,373) 730 Increase in taxation receivable (29) (3) Decrease in debtors 1 15 (Increase)/decrease in (37) 77 ASB Charitable Trust (1,427) 820 Movements in investments: Decrease in term deposits 2,550 (Increase)/decrease in bonds 2,180 (3,443) 2,180 (893) Net cash inflow from $66 $143 operating activities [li-3] [li3] [li-3] [li3] ASB Bank Community Trust Notes to the Financial Statements for the Year Ended 31 March 1994 1. Statement of Accounting Policies The ASB Bank Community Trust (``the Trust'') was formed on 30 May 1988 through the creation of a trust deed in compliance with the Trustee Banks Restructuring Act 1988. Under the terms of the trust deed the Trust was settled with 60 million $1 fully paid ordinary shares in ASB Bank Limited representing 100% of the issued capital. As at 31 March 1988 the net tangible asset backing of those 60 million shares was $147,655,000. In 1989 45 million shares were sold to the Commonwealth Bank of Australia for $252,000,000 which was then donated to the ASB Charitable Trust. General Accounting Policies The measurement basis adopted is that of historical cost adjusted for the revaluation of certain assets. Reliance is placed on the fact that the Trust is a going concern. Accrual accounting is used to match income and expenditure. Particular Accounting Policies Bank Bank is stated as the balance in the bank account rather than the balance as per the cash book. Statement of Cash Flows Cash comprises cash at bank and call deposits. Dividends Dividends are recognised as income when they are received by the Trust, and include imputation tax credits if any. Donations Donations are accounted for as they are distributed or committed to be distributed to eligible organisations as approved by the Trustees. Expenses Some expenses are shared jointly with the ASB Charitable Trust. Whilst each Trust bears its own specific costs, the joint expenses are allocated between each Trust on the basis of the number of applications processed by each. Joint expense allocations were: 1994 1993 This Trust 23% 40% ASB Charitable Trust 77% 60% Investments Investments in shares are valued at the net tangible asset backing as disclosed in the latest published accounts. Any revaluation difference is transferred to an Investment Revaluation Reserve. Other investments are stated at market value. Any gains or losses are recognised in income and expenditure for the period. Reserves The Investment Revaluation Reserve reflects the increase in the net tangible asset value of the shareholding in ASB Bank Limited. The Investment Fluctuation Reserve consists of unrealised gains or losses. The Charitable Purposes Reserve Fund represents funds appropriated by ASB Charitable Trust to enable the Trust to participate in the issue of new equity by ASB Bank Limited. In order to maintain the non taxable status of this Reserve, the Trust is required to segregate these funds appropriated from ASB Charitable Trust and the income attributable thereto. There are also certain restrictions on the distribution of income from this fund. Transfers to other Reserves from the Unallocated Surplus are made at the discretion of the Trustees. Taxation Taxation includes both current and deferred tax. Deferred tax is calculated using the liability method. Changes in Accounting Policies There have not been any material changes in accounting policies during this accounting period. 1994 1993 $000 $000 2. Income Dividends Cash received 675 3,987 Imputation tax credit received 332 1,964 $1,007 $5,951 Other Investments Interest received 177 226 Investment profit realised 81 5 Investment loss unrealised (2) (13) 256 218 Investment profit unrealised 30 39 $286 $257 3. Taxation Surplus before taxation 926 5,762 [cfi]Add:[cfn] non-deductible expenditure 166 360 1,092 6,122 Taxation charge @ 33% 360 2,020 Over provision (1) (14) $359 $2,006 Taxation Charge Comprises Tax charge on other activities 27 42 Imputation tax credit 332 1,964 $359 $2,006 4. Investments Shares in ASB Bank Limited Balance as at 1 April 64,411 58,513 Call on capital 3,750 Increase in net tangible assets for the year 9,731 5,898 Balance as at 31 March $77,892 $64,411 [tn1,3]Total number of shares held in ASB Bank Limited as at 31 March 1994 was 18,750,000 (1993 15,000,000) of which 902,692 (1993 nil) are attributable to the Charitable Purposes Reserve Fund. The increase in Net Tangible Assets is based on unaudited accounts as at 31 December 1993.[qp] Other Investments These consist of securities & deposits managed in-house. Investments Comprise: Call deposits 250 100 Bonds 1,320 3,479 $1,570 $3,579 Held in New Zealand 100% 100% [tn1,3]Certain of the Trust's deposits are subject to a right of set off under the terms of the Trust's banking agreement. There has been no set off applied in the presentation of these accounts.[qp] 5. Donations For this year: Committed and disbursed 1,128 1,982 Committed but not yet disbursed 133 1,560 $1,261 $3,542 Committed but not yet disbursed: Committed in previous years 286 231 Committed this year 133 1,560 $419 $1,791 6. Reserves Investment Revaluation Reserve Balance as at 1 April 20,090 14,192 Increase in value of ASB Bank Ltd shares during the year 9,731 5,898 Balance as at 31 March 29,821 20,090 Investment Fluctuation Reserve Balance as at 1 April 39 Unrealised gains 30 39 Balance as at 31 March 69 39 Charitable Purposes Reserve Fund Balance as at 1 April Transfer from surplus 1 Transfer from ASB Charitable Trust 3,750 Balance as at 31 March $3,751 General Reserve Balance as at 1 April 1,500 1,300 Allocation (to)/from surplus for the year (500) 200 Balance as at 31 March $1,000 $1,500 7. Trust Capital Balance as at 1 April 44,320 44,320 Balance as at 31 March $44,320 $44,320 8. Financial Instruments [tn1,3]The financial instruments are subject to an interest rate risk and credit risk.[qp] [tn1,3]No comparison is provided between the carrying value and estimated fair value of financial instruments due to the carrying value reflecting market value.[qp] [tn1,3]All financial instruments are held in New Zealand.[qp] Report of the Auditors to the Trustees of ASB Bank Community Trust We have examined the accompanying balance sheet, statement of income and expenditure and statement of cashflows and have obtained all the information and explanations we have required. We are of the opinion that proper accounting records have been kept by the Trust, that the balance sheet, statement of income and expenditure and statement of cashflows are properly drawn up and give, on an historical cost basis, adjusted by the revaluation of certain assets, a true and fair view of the financial position of the Trust as at 31 March 1994 and its results and cashflows for the year ended on that date. Dated at Auckland this 30th day of May 1994. KPMG PEAT MARWICK, Chartered Accountants. ASB Charitable Trust Statement of Income & Expenditure for the Year Ended 31 March 1994 Note 1994 1993 $000 $000 Income From managed funds 30,505 40,905 From other investments 696 1,281 Rent 100 61 31,301 42,247 Expenditure Audit 29 33 Depreciation 74 33 Legal 3 7 Occupancy 78 40 Other operating 124 81 Public & statutory reporting 84 83 Staff 369 252 Trustees' fees 119 86 Trustees' expenses 30 25 910 640 30,391 41,607 Unrealised investment fluctuations 2 (2,722) 3,032 Investment property revaluation 2 (23) Surplus before allocations 27,646 44,639 Allocations Capital Maintenance Reserve 3 3,712 2,827 Committed donations 4 20,565 18,831 General Reserve 3 23,000 Social Emergencies Reserve 3 3,500 Investment Fluctuation Reserve 3 (3,757) 173 ASB Bank Community Trust Charitable Purposes Reserve Fund 3,750 27,770 44,831 Uncommitted deficit this year (124) (192) Uncommitted surplus brought forward 186 378 Uncommitted surplus carried $62 $186 forward [li-3] [li3] [li-3] [li3] The notes to these financial statements form part of and should be read in conjunction with this Statement of Income and Expenditure. ASB Charitable Trust Balance Sheet as at 31 March 1994 Note 1994 1993 $000 $000 Source of Funds Trust Funds Capital 5 251,786 251,786 Capital Maintenance Reserve 3 36,372 32,660 Investment Fluctuation Reserve 3 6,887 10,644 General Reserve 3 40,000 40,000 Social Emergencies Reserve 3 3,500 Retained surplus 62 186 338,607 335,276 Liabilities Creditors 277 284 Committed donations 4 20,973 15,580 ASB Bank Community Trust 100 63 21,350 15,927 $359,957 $351,203 Employment of Funds Investments Managed funds 2 352,584 339,106 Other investments 2 4,054 9,265 Investment properties 2 850 836 357,488 349,207 Current Assets Cash 14 179 Debtors 3 13 Other assets 26 43 192 Fixed assets 6 2,426 1,804 $359,957 $351,203 Approved on behalf of the Board: JUDITH BASSETT, Chairperson. WAARI WARD-HOLMES, Deputy Chairman. The notes to these financial statements form part of and should be read in conjunction with this Balance Sheet. ASB Charitable Trust Statement of Cash Flows for the Year Ended 31 March 1994 1994 1993 $000 $000 Cash flows from operating activities Cash was provided from: Receipts from fund managers 16,030 10,920 Decrease in term deposits 250 1,300 Decrease in bonds 4,526 655 Interest received on investments 673 1,275 Receipts from rentals 108 71 21,587 14,221 Cash was disbursed on: Payment to suppliers (57) (30) Refunds to ASB Bank Community Trust for the services of suppliers, trustees & staff (728) (654) Fund management & advisory fees (1,538) (1,593) Donations to voluntary organisations (15,171) (11,220) Appropriation to ASB Bank Community Trust Charitable Purposes Reserve Fund (3,750) (21,244) (13,497) Net cash inflow from operating activities 343 724 Cash flows from investing activities Cash was provided from: Sale of vehicle, office equipment & furniture 16 1 Bills receivable matured 717 444 733 445 Cash was disbursed on: Purchase of vehicle, office equipment & furniture (279) (37) Purchase of land & buildings (566) (1,019) (845) (1,056) Net cash outflow from investing activities (112) (611) Net cash inflow from activities 231 113 Net increase in cash held 231 113 [cfi]Add [cfn]opening cash brought forward 532 419 Ending cash carried $763 $532 forward [li-3] [li3] [li-3] [li3] The notes to these financial statements form part of and should be read in conjunction with this Statement of Cash Flows. ASB Charitable Trust Reconciliation of Reported Surplus to Net Cash Flow From Operating Activities Note 1994 1993 $000 $000 Reported deficit (124) (192) [cfi]Add[cfn] non-cash items: Unrealised investment fluctuations 2,722 (3,032) Unrealised property revaluation 23 Unrealised interest on bonds (27) (11) Depreciation 7 89 56 Allocation to Capital Maintenance Reserve 3,712 2,827 Allocation to Investment Fluctuation Reserve (3,757) 173 Allocation to General Reserve 23,000 Allocation to Social Emergencies Reserve 3,500 6,262 23,013 Movements in working capital items: Increase/(decrease) in operating activity creditors 47 (38) Increase in committed donations 5,394 7,611 Increase/(decrease) in ASB Bank Community Trust 37 (77) (Increase)/decrease in debtors 11 (1) 5,489 7,495 Movements in investments: Decrease in term deposits 250 1,300 Decrease in bonds 4,526 655 4,776 1,955 [cfi]Less [cfn]fund managers' income reinvested by fund managers (16,060) (31,547) Net cash inflow from operating $343 $724 activities ASB Charitable Trust Notes to the Financial Statements for the Year Ended 31 March 1994 1. Statement of Accounting Policies The ASB Charitable Trust (``the Trust'') was formed on 31 May 1989 through the creation of a trust deed by the ASB Bank Community Trust and a donation of $252,000,000. General Accounting Policies The measurement basis adopted is that of historical cost adjusted for the revaluation of certain assets. Reliance is placed on the fact that the Trust is a going concern. Accrual accounting is used to match income and expenditure. Particular Accounting Policies Bank Bank is stated as the balance in the bank account rather than the balance as per the cash book. Statement of Cash Flows Cash comprises cash at bank and call deposits but does not include cash or deposits held by the Fund Managers. Hedging Instruments The Trust through its investment managers enters into hedging instruments such as futures, options and forward exchange contracts. These are converted to the New Zealand Dollar rate at balance date with all realised and unrealised gains and losses being recognised in income and expenditure as net income from managed funds. Depreciation Depreciation is provided over the useful life of the assets. The rates used are those recommended by the Inland Revenue Department. Dividends Dividends are recognised as income when they are received by the Trust and exclude imputation tax credits. Income from Fund Managers Income from Fund Managers is recorded net of fund management expenses. Donations Donations are accounted for as they are distributed or committed to be distributed to eligible organisations as approved by the Trustees. Expenses Some expenses are shared jointly with the ASB Bank Community Trust. Whilst each Trust bears its own specific costs, the joint expenses are allocated between the Trusts on the basis of the number of applications processed by each. Joint expense allocations were: 1994 1993 This Trust 77% 60% ASB Bank Community Trust 23% 40% Fixed Assets Fixed Assets are valued at cost less accumulated depreciation. Investment Properties These are valued at market value. Movements in the valuation of investment properties are recorded in the Statement of Income and Expenditure. No provision for depreciation is made on these properties. Foreign Currencies All amounts denominated in foreign currencies are converted to New Zealand Dollars at balance date and all realised and unrealised gains and losses are recognised in income and expenditure for the period. Investments Investments are stated at market value. Any gains or losses are recognised in income and expenditure for the period. Investment transactions are recorded by the Fund Managers on a settlement date basis. Unsettled transactions are disclosed in the Notes as commitments. Reserves Transfers to the Capital Maintenance Reserve are based on the annual movement in the Consumer Price Index. The Investment Fluctuation Reserve consists of unrealised gains or losses. Losses are allocated to this Reserve to the extent that they offset previous gains. Transfers to all other Reserves from the Unallocated Surplus are made at the discretion of the Trustees. Taxation The Trust has been accorded tax exempt status in New Zealand and Australia but is liable to taxation on investment income in some other overseas countries. Tax on overseas income is accounted for as a reduction of that income. Changes in Accounting Policies There have not been any material changes in accounting policies in this accounting period. 1994 1993 $000 $000 2. Investments Managed by external managers Gross income Realised 32,090 42,467 Unrealised fluctuations (2,582) 3,104 29,508 45,571 Withdrawals (16,030) (10,920) Balance as at 1 April 339,106 304,455 Balance as at 31 March 352,584 339,106 Investments comprise Cash, deposits & miscellaneous 52,793 5,156 Bonds 257,887 269,286 Equities 41,904 64,664 Portfolio total 352,584 339,106 Held in: New Zealand 49% 47% [sp'Held in: ']Offshore 51% 53% Other investments Gross income Interest 442 968 Realised gains 254 313 696 1,281 Unrealised loss (140) (72) $556 $1,209 Investments comprise Call deposits 750 353 Term deposits 250 Bonds 3,159 7,800 Other 145 862 $4,054 $9,265 Held in New Zealand 100% 100% These are managed in-house. Included in these are deposits, certain of which are subject to a right of set-off under the terms of the Trust's banking agreement. There has been no set-off applied in the presentation of these accounts. Investment Properties Balance as at 1 April 836 Expenditure capitalised 37 836 Investment property revaluation (23) Balance as at 31 March $850 $836 [xt] The valuation of the sole investment property was performed by Jensen & Co Ltd on 13 April 1994. [rt] 3. Reserves Capital Maintenance Reserve Balance as at 1 April 32,660 29,833 Transfers during the period 3,712 2,827 Balance as at 31 March 36,372 32,660 Investment Fluctuation Reserve Balance as at 1 April 10,644 10,471 Net gain/(loss) during the period (3,757) 173 Balance as at 31 March $6,887 $10,644 General Reserve Balance as at 1 April 40,000 17,000 Allocation from surplus for the year 23,000 Balance as at 31 March $40,000 $40,000 Social Emergencies Reserve Balance as at 1 April Allocation from surplus for the year 3,500 Balance as at 31 March 3,500 4. Donations For this year Committed and disbursed 7,120 5,115 Committed but not yet disbursed 13,445 13,716 20,565 18,831 For future years Committed but not yet disbursed 205 45 (These are not shown on the Balance Sheet) $20,770 $18,876 Committed but not yet disbursed Committed in previous years 7,528 1,864 Committed this year 13,445 13,716 $20,973 $15,580 5. Trust Capital Balance as at 1 April 251,786 251,786 Balance as at 31 March $251,786 $251,786 6. Fixed Assets[cfn][qs] Accumu- Accumu- lated lated Depreci- Book Depreci- Book Cost ation Value Cost ation Value Land & buildings 2,059 29 2,030 1,585 14 1,571 Vehicle, office equipment & furniture 579 183 396 369 136 233 [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,5d,5][qp] 2,638 212 2,426 1,954 150 1,804 [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,5d,5][qp] [lr w,1,.3][qp] [lr w,1,.3][qp] [lr w,1,.3][qp] [lr w,1,.3][qp] [lr w,1,.3][qp] [lr w,1,.3][qp] 7. Statement of Cash Flows The depreciation charged to the cash flow statement includes a sum of $15,394 (1993 $22,361) on charged to the ASB Bank Community Trust as facilities rental. 8. Commitments Investments Net investment transactions entered into by the Fund Managers but unsettled prior to year end total ($1,023,341) (1993 $11,947,037) 9. Financial Instruments The financial instruments are subject to an interest rate risk. There is no credit risk relating to the Fund Managers or the Custodian. Because of the diversification of investments there are no significant concentrations of credit risk within the investment portfolios. Foreign currency hedges are taken out by the Fund Managers to minimise the exposure to foreign exchange fluctuations. No comparison is provided between the carrying value and estimated fair value of financial instruments, due to the carrying value reflecting market price. 1994 1993 $000 $000 New Zealand Bonds & deposits 145,797 134,198 Equities 26,582 24,894 172,379 159,092 Australia Bonds & deposits 8,090 11 Equities 137 1,915 8,227 1,926 North America Bonds & deposits 72,272 60,459 Equities 5,144 14,705 77,416 75,164 Europe Bonds & deposits 72,514 62,154 Equities 5,138 14,286 77,652 76,440 Japan & Far East Bonds & deposits 12,007 17,620 Equities 4,903 8,864 16,910 26,484 TOTAL Bonds & deposits 310,680 274,442 Equities 41,904 64,664 $352,584 $339,106 Report of the Auditors to the Trustees of ASB Charitable Trust We have examined the accompanying balance sheet, statement of income and expenditure and statement of cashflows and have obtained all the information and explanations we have required. We are of the opinion that proper accounting records have been kept by the Trust, that the balance sheet, statement of income and expenditure and statement of cashflows are properly drawn up and give, on an historical cost basis, adjusted by the revaluation of certain assets, a true and fair view of the financial position of the Trust as at 31 March 1994 and its results and cashflows for the year ended on that date. Dated at Auckland this 30th day of May 1994. KPMG PEAT MARWICK, Chartered Accountants. A copy of the list of organisations to whom donations have been made by ASB Bank Community Trust and ASB Charitable Trust is available on request from ASB Trusts, P.O. Box 68-048, Newton, Auckland.