Notice Type
General Notices
Trust Particulars The Trust Bank South Canterbury Community Trust Inc. was incorporated as a charitable trust in accordance with the provisions of the Trustee Banks Restructuring Act 1988. The purpose of the community trust is to provide charitable, cultural, philanthropic and recreational benefits to the community. Trustees: Mr A. F. McLay (Chairperson), Mr A. H. Carlton, Ms R. A. Carruthers, Mr L. K. Cooney, Mr R. B. McCully, Mr A. R. McKay, Mrs J. J. Rayne, Mr C. P. Sparrow, Mr J. R. Sutton, Mr J. E. Thompson, Mr D. B. Timpany, Mr R. J. Underdown. Bankers: Trust Bank South Canterbury Limited, 243 Stafford Street, Timaru. Auditors: Martin Wakefield, Chartered Accountants, 26 Canon Street, Timaru. Secretary: K. A. Churcher, Chartered Accountant, P.O. Box 591, 39 George Street, Timaru. Trustees' Report for the Period Ended 31 March 1994 Objectives of the Trust: The trust's objectives are to provide financial assistance to organisations carrying on charitable, cultural, philanthropic and recreational work which is of benefit to the community, principally in the regions of South Canterbury and Mid Canterbury. Policies and Structure of the Trust: All purposes of the trust are deemed to be charitable, to administer capital and to distribute income for charitable purposes in the Mid and South Canterbury areas. The community trust now comprises 12 trustees who are representative of the Mid and South Canterbury communities. Trustees are appointed by the Minister of Finance and reside in either Mid or South Canterbury. Trustees retire by rotation and during the past year the terms of office expired on 31 May 1993 for Mrs P. P. Cornelius and Mr A. J. Srhoy. Mrs Cornelius and Mr Srhoy were replaced by Ms R. A. Carruthers and Mr A. R. McKay. We are grateful to Mrs Cornelius and Mr Srhoy for their contribution as trustees since the inception of the trust. Activities of the Trust: The past year was indeed a very busy one for the trustees. Apart from the usual pursuit of the objects of the trust which is considering the many applications for financial assistance from community organisations of a very diversified nature, considerable time was spent studying and discussing the propositions with reference to the restructuring of Trust Bank New Zealand Limited. In common with the other 8 community trusts who are shareholders in the bank it has been pleasing to find that the eventual share float itself was very successful. The trust printed a new application form for those requesting donations and also a brochure which explains the procedure required and the general criteria considered by the trustees in dealing with all applications. Review of Results and Financial Position of Trust: The main income of the trust was received by way of dividends from Trust Bank New Zealand Limited, totalling $389,259 and after adding the investment income the total gross income was $414,125. The net income (before donations) was $365,863 and after deducting the donations to community groups the surplus transferred to undistributed funds was $168,933. Restructuring costs have been an abnormal expense for the trust in this financial year relating to events prior to the share float by Trust Bank New Zealand Limited. The total of $6,959 includes the cost of obtaining expert opinion and legal expenses arising from the restructuring process. Prior to the share float the trust received a bonus issue of 2 700 000 shares from Trust Bank New Zealand Limited bringing the total shareholding of the trust to 10 800 000 after conversion from $1 to 50 cent shares. Consequently it is expected that the dividends available in the future will reflect an increase due to our increased shareholding. It is expected that our trust will continue to play a vital part in assisting many community groups in Mid and South Canterbury districts. Income and Expenditure Account for the Year Ended 31 March 1994 Note 1994$ 1993$ Income Interest 24,866 20,958 Dividends 389,259 252,963 Total income 414,125 273,921 Less expenditure Auditors' fees 197 152 Accounting fees 175 Advertising 3,939 1,711 Printing and stationery 4,647 2,696 Restructuring expenses 6,959 Secretarial services 6,750 6,188 Trustees' fees 14,340 14,712 Travelling expenses 4,235 5,018 Typing and computer services 3,274 2,825 General expenses 1,279 908 Depreciation marquees 2,642 1,321 Total expenditure 48,262 35,706 Net income before donations 365,863 238,215 Less donations paid 196,930 143,556 Surplus transferred to the trust fund $168,933 $94,659 (The notes to the financial statement form part of and are to be read in conjunction with the above account.) Balance Sheet as at 31 March 1994 Note 1994$ 1993$ Trust funds Capital2 4,689,000 4,689,000 Bonus issue of shares 2,700,000 7,389,000 4,689,000 Undistributed income3 606,397 437,464 Balance as at 31 March 1994 $7,995,397 $5,126,464 Represented by current assets Bank Current account 19,518 11,099 Prime call account 533,470 371,720 Disaster relief fund 3,054 3,144 Sundry debtors 12,000 2,405 568,042 388,368 Less current liabilities Sundry creditors 22,895 26,796 Total current liabilities 22,895 26,796 Working capital 545,147 361,572 Add long term assets Long term advances4 52,000 64,000 Investments Shares in Trust Bank New Zealand Limited 7,389,000 4,689,000 Fixed assets (after depreciation) marquees7 9,250 11,892 Net assets $7,995,397 5,126,464 Signed on behalf of the board of trustees: J. E. THOMPSON, Chairperson. D. B. TIMPANY, Trustee. Dated this 1st day of June 1994. (The notes to the financial statement form part of and are to be read in conjunction with the above account.) Statement of Cash Flows for the Period Ended 31 March 1994 1994$ 1993$ Cash flows from operating activities Cash was provided from: Interest on deposits25,271 21,854 Dividends389,259 252,963 Cash was applied to: Suppliers of goods and services(49,521) (24,254) Donations(196,930) (143,556) Net cash flows from operating activities168,079 107,007 Cash flows from investing activities Cash was provided from: Loan repayments Timaru High Schools hostel2,000 2,000 St Vianney's Home 10,000 Net cash flows from investing activities2,000 12,000 Cash flows from equipment purchases Cash was applied to: Purchase of marquees (13,213) Net cash flows from equipment purchases (13,213) Net cash flows from financing activities Net increase in cash held170,079 105,794 Add opening cash at 31 March 1993385,963 280,169 Cash as at 31 March 1994$556,042 $385,963 Cash at 31 March 1994 comprises the current account, the prime call account and the disaster relief fund. Notes to the Financial Statements for the Period Ended 31 March 1994 1. Statement of Accounting Policies General Accounting Policies The general accounting policies adopted in the preparation of these financial statements are: The measurement base adopted is the historical cost basis. Reliance has been placed on the fact that the entity is a going concern. The matching of revenues earned and expenses incurred using accrual accounting except that dividend income is accounted for on a receipts basis. Particular Accounting Policies The following are the particular accounting policies which have a material effect on the measurement of results and financial position: (a) Dividend Income: Dividend income from Trust Bank New Zealand Limited is included in the income and expenditure account when it is received. (b) Donations: Donations are included in the income and expenditure account as an expense when paid. (c) Investments: Shares held in Trust Bank New Zealand Limited are stated at cost. (d) Fixed Assets: Fixed assets are recorded at cost and depreciated on the straight line method based on the estimated life of the assets. 2. Shares in Trust Bank New Zealand Limited Ordinary shares of $1 each2 700 000 $4,689,000 Bonus issue January 19942 700 000 $2,700,000 5 400 000 Ordinary shares of $1 each subdivided into ordinary shares of 50 cents each10 800 000 $7,389,000 3. Undistributed Income 1994$ 1993$ Balance brought forward437,464 342,805 Plus current year's profits168,933 94,659 $606,397 $437,464 4. Long Term Advances 1994$ 1993$ Mid Canterbury Basketball Association debenture20,000 20,000 St Vianney's Home of Compassion30,000 40,000 Timaru High Schools hostel2,000 4,000 $52,000 $64,000 5. Taxation For taxation purposes the trust is deemed to be a charitable organisation. Its income is not subject to taxation. 6. Goods and Services Tax The trust is not registered for goods and services tax purposes. Accordingly these financial statements are stated on a G.S.T. inclusive basis. 7. Depreciation Marquees were purchased for use by organisations in the community free of charge for galas, fetes and other fund raising activities. Depreciation has been written off on the straight line basis the life of the asset being estimated at 5 years. Marquees at cost October 199213,213 Less depreciation to 31 March 19931,321 11,892 Less depreciation current year2,642 $9,250 8. Contingent Liabilities The community trust has undertaken commitments to make donations to 4 organisations subject to the completion of fundraising for their projects. Details are as follows: Mid Canterbury Arts Trust Inc (to be paid in 3 annual instalments)150,000 Sacred Heart Parish Basilica renovation project (to be paid in 3 annual instalments)15,000 Temuka & Districts Project Committee (to be made in 1 payment)10,000 Friends of the Aigantighe Art Gallery (to be made in 1 payment)10,000 $185,000 Auditor's Report to the Trustees of the Trust Bank South Canterbury Community Trust Inc. We have audited the financial statements in accordance with accepted auditing standards, and have carried out such procedures as we considered necessary. In our opinion the financial statements give, using the historical cost method, a true and fair view of the financial position of the trust as at 31 March 1994 and the results of its activities for the year ended on that date. MARTIN WAKEFIELD, Chartered Accountants. Timaru, New Zealand. Dated this 22nd day of June 1994. The Hon. Minister of Finance has directed that the Trust Bank South Canterbury Community Trust Inc. need not publish the full list of its donations but a copy of the list is available to anyone upon request to the Chairperson, Trust Bank South Canterbury Community Trust Inc., P.O. Box 591, Timaru, or from the Secretary's Office, 39 George Street, Timaru, or from any branch of Trust Bank South Canterbury Limited.
Publication Date
18 Aug 1994

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