Trust Bank South Canterbury Community Trust Inc. 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) term completed 31 May 1994, Mr J. E. Thompson (Chairperson) appointed 1 June 1994, Mr A. H. Carlton resigned 31 March 1994, Ms R. A. Carruthers, Mr L. K. Cooney, Mr R. B. McCully, Mr A. R. McKay, Mr P. F. McIlraith appointed 1 June 1994, Mrs J. J. Rayne, Mr C. P. Sparrow, Mr J. R. Sutton, 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 1995 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 11 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 1994 for Messrs A. F. McLay, J. R. Sutton MP, and J. E. Thompson. Messrs J. R. Sutton MP, and J. E. Thompson were reappointed for a further term of four years with Mr Thompson being appointed as Chairperson from 1 June 1994. Mr McLay was replaced by mr P. F. McIlraith. The Trustees are grateful to Mr A. F. McLay for his valuable contribution as a Trustee and Chairperson since the inception of the Trust. We are also grateful to Mr A. H. Carlton for his contribution as a Trustee since the inception of the Trust. Mr Carlton resigned as at 31 March 1994 for health reasons and he has not yet been replaced. 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 a wide variety of community organisations considerable time has been spent examining the merits or otherwise of diversifying a part of the trust's investment. Several meetings with esteemed investment managers have been held without any final decision having been reached at this stage. It has been valuable to have rapport with most of the other trusts. All trusts now operate independently from their banks in terms of their administration services. They are also making significant improvements in publicising the work of the trust to enhance its profile and also to ensure that a wider range of applicants are made aware of the activities of the trust. This has resulted in some increase in costs in these areas. 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 $675,000 and after adding the investment income the total gross income was $728,140. The net income (before donations) was $668,653. After deducting the donations paid or committed to community groups the surplus transferred to undistributed funds was $147,600. It is expected that with the increased income which the trust is receiving we will continue to play a vital part in assisting many community groups in Mid and South Canterbury districts. Income and Expenditure Account for the Year Ended 31 March 1995 Note 1995$ 1994$ Income Interest 53,140 24,866 Dividends 675,000 389,259 Total income 728,140 414,125 Less expenditure Advertising 8,508 3,939 Auditors' fees 208 197 Printing and stationery 1,702 4,647 Restructuring expenses 6,959 Secretarial and accountancy fees 23,057 10,024 Sundry expenses 2,926 1,279 Travelling expenses 6,964 4,235 Trustees' fees 13,480 14,340 Depreciation marquees 2,642 2,642 Total expenditure 59,487 48,262 Net income before donations 668,653 365,863 Less donations paid and approved8 521,053 196,930 Surplus transferred to the trust fund $147,600 $168,933 (The notes to the financial statement form part of and are to be read in conjunction with the above account.) Balance Sheet as at 31 March 1995 Note 1995$ 1994$ Trust funds Capital2 7,389,000 4,689,000 Bonus issue of shares 2,700,000 7,389,000 7,389,000 Undistributed income3 753,997 606,397 Balance as at 31 March 1995 $8,142,997 $7,995,397 Represented by current assets Trust Bank South Canterbury Limited Current account 2,666 19,518 Prime call account 46,147 533,470 Money market account 842,000 Disaster relief fund 3,054 Sundry debtors 12,000 12,000 Interest accrued 21,036 923,849 568,042 Less current liabilities Sundry creditors 36,340 22,895 Donations approved not yet paid 192,120 Total current liabilities 228,460 22,895 Working capital 695,389 545,147 Add long term assets Long term advances4 52,000 52,000 Investments Shares in Trust Bank New Zealand Limited2 7,389,000 7,389,000 Fixed assets (after depreciation) marquees7 6,608 9,250 Net assets $8,142,997 $7,995,397 Signed on behalf of the board of trustees: J. E. THOMPSON, Chairperson. R. A. Carruthers, Trustee. Dated this 30th day of June 1995. (The notes to the financial statement form part of and are to be read in conjunction with the above account.) Statement of Cash Flows for the Period Ended 31 March 1995 1995$ 1994$ Cash flows from operating activities Cash was provided from: Interest on deposits32,104 25,271 Dividends675,000 389,259 Cash was applied to: Suppliers of goods and services(43,400) (49,521) Donations paid(328,933) (196,930) Net cash flows from operating activities334,771 168,079 Cash flows from investing activities Cash was provided from: Loan repayments Timaru High Schools hostel 2,000 St Vianney's Home Cash was applied to: Net cash flows from investing activities 2,000 Net cash flows from financing activities Net increase in cash held334,771 170,079 Add opening cash at 31 March 1994556,042 385,963 Cash as at 31 March 1995$890,813 $556,042 Cash at 31 March 1995 comprises the current account, the prime call account and the money market deposit account at Trust Bank South Canterbury. Notes to the Financial Statements for the Period Ended 31 March 1995 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 and special projects are included in the income and expenditure account on an accruals basis as from 1 April 1994. An accrual of $192,120 has been made for donations approved but not yet 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. Changes in Accounting Policies There has been a change in the particular accounting policy relating to donations indicated at (b) above. All other policies have been applied on a basis consistent with those used in the previous year. 2. Shares in Trust Bank New Zealand Limited 10,800,000 ordinary shares of 50 cents each at cost$7,389,000 The market value of the shares held in Trust Bank New Zealand Limited at 31 March 1995 at $1.89 per share was $20,412,000 (1994 $2.30 $24,840,000). 3. Undistributed Income 1995$ 1994$ Balance brought forward606,397 437,464 Plus current year's profits147,997 168,933 $753,997 $606,397 4. Long Term Advances 1995$ 1994$ Mid Canterbury Basketball Association debenture repayment 199620,000 20,000 St Vianney's Home of Compassion30,000 30,000 Timaru High Schools hostel2,000 2,000 $52,000 $52,000 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 19943,963 9,250 Less depreciation current year2,642 Balance at 31 March 1995 $6,608 8. Donations Approved Not Yet Paid Approved donations not yet paid out include: Mid Canterbury Arts Trust Inc150,000 Sacred Heart Basilica renovation project10,000 Task Force Green Community Employment Initiative21,120 South Canterbury Integrated Rural Development Richard Pearse Facility5,000 Timaru Beautifying Society6,000 $192,120 9. Reconciliation of Net Surplus to Net Operating Cash Flow 1995 1994 $ $ Net surplus137,600 168,933 Adjustments for non cash items in net surplus: Depreciation2,642 2,642 Adjustment for changes in working capital: Decrease (increase) in accrued interest(21,036) 405 Increase (decrease) in accounts payable13,445 (3,901) Increase (decrease) in donations payable192,120 184,529 (3,496) Cash flow from operations$334,771 $168,079 10. Capital Commitments There were no capital commitments (1994 nil). 11. Contingent Liabilities There are no contingent liabilities apart from donation commitments as per notes 1 and 8. Audit Report To the readers of the financial report of Trust Bank South Canterbury Community Trust Inc we have audited the financial report on pages 1 to 9. The financial report provides information about the past financial performance of the trust and its financial position as at 31 March 1995. This information is stated in accordance with the accounting policies set out on page 7. The Trustees Responsibilities: The trustees are responsible for the preparation of a financial report which gives a true and fair view of the financial position of the trust as at 31 March 1995 and of the results of operations for the year ended 31 March 1995. Auditors' Responsibilities: It is our responsibility to express an independent opinion on the financial report presented by the trustees and report our opinion to you. Basis of Opinion: An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial report. It also includes assessing: the significant estimates and judgements made by the trustees in the preparation of the financial report, and whether the accounting policies are appropriate to the trust's circumstances, consistently applied and adequately disclosed. We conducted our audit in accordance with generally accepted auditing standards in New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial report is free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial report. Other than in our capacity as auditors, we have no relationship with, or interests in, the trust. Unqualified Opinion: We have obtained all the information and explanations we have required. In our opinion: proper accounting records have been kept by Trust Bank South Canterbury Community Trust Inc as far as appears from our examination of those records; and the financial report on pages 1 to 9: complies with generally accepted accounting practice; gives a true and fair view of the financial position of Trust Bank South Canterbury Community Trust Inc as at 31 March 1995, and the results of its operations and cash flows for the 12 months ended on that date. Our audit was completed on 5 July 1995 and our unqualified opinion is expressed as at that date. MARTIN WAKEFIELD, Chartered Accountants. Timaru, New Zealand. 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.