Notice Type
General Notices
Trust Particulars The Trust Bank Wellington Community Trust 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, principally in the region of the trust. Trustees are appointed by the Minister of Finance. Trustees: Mr W. A. Brien, e.d., Chairperson, Mr B. M. Alleway, Ms D. Chin, Mr M. F. Dunphy, Mr D. Gibbons, Dr M. B. Jameson, Mr G. L. Reeves, Mr P. Richardson, Ms E. Tennet, m.p., Mr P. J. Willis, j.p. Bankers: Trust Bank Wellington. Investment Advisors: Jacques Martin Hewitt. Fund Manager: Tower Corporation Holdings Limited. Solicitors: Morrison Morpeth. Auditors: Spicer and Oppenheim. Executive: Frances Russell, j.p. Address: Level 9, BDO House, 99105 Customhouse Quay, P.O. Box 11-679, Wellington. Telephone: (04) 499 7966. Facsimile: (04) 499 5960. Annual Report On behalf of the trustees it is my pleasure to present the eighth annual report of the Trust Bank Wellington Community Trust. The trust remains committed to providing support to cultural, charitable, philanthropic and recreational organisations and groups in the area served by Trust Bank Wellington. The public float of Trust Bank New Zealand in 1994 saw a marked increase in the asset of the trust. During the year under review $942,859 was distributed to 602 community groups and organisation in the wider Wellington region, making this trust one of the largest philanthropic trusts in the area. Last year the trust evaluated its investment position and employed Tower Portfolio Management as fund manager. We are now in a position to enhance our investment and ensure that the local community continues to benefit from the considerable asset of the trust. The trust operates under predetermined guidelines for the distribution of grants to community organisations and groups. In 1995 applications were received seeking over $3.6 million. The amount sought by applicants varies considerably from year to year but has always been well beyond the trust's resources on each occasion. It is always very difficult to give away money prudently, and 1995 was no exception. Each application is evaluated individually, some are declined because they fall outside the trust's criteria, because of a commercial content, or because of insufficient information. However, at the end of the process the trustees believe that all possible steps have been taken to be fair and equitable to all applicants. The trustees of Trust Bank Wellington Community Trust have continued to act in a diligent and prudent manner. With the restructuring of Trust Bank New Zealand, the proposed amendments to the trust deed, and the pending sale of the bank to Westpac, the trustees are moving the trust into a challenging and exciting phase. The trust continues to play an important role in the philanthropic, cultural and recreational development of our region and now, with the increased income, a greater number of worth-while charitable organisations will benefit. Administering the trust is the responsibility of Frances Russell, and I take this opportunity to thank her for the work that she does on our behalf throughout the year. The work of the trust could never happen if it were not for the dedication of my fellow trustees. To them I offer my sincere thanks, especially those who gave the extra commitment and time to sub- committee work. W. A. (Bill) BRIEN, Chairman, on behalf of Trust Bank Wellington Community Trust. Statement of Financial Performance for the Year Ended 31 March 1996 1995$ 1996$ Income 787,500 Dividends, Trust Bank New Zealand Limited1,181,250 506,666 Interest60,953 157,471 Interest Tower Corporation Holdings Limited741,274 Grant returned800 Other income573 1,451,637 Total income1,984,850 Expenditure 141 Accident compensation252 4,140 Accounting fee11,430 6,859 Advertising6,307 1,783 Auditors' fee1,698 720 Computer expenses2,487 387 Depreciation1,160 4,972 Functions3,941 454 General expenses901 1,213 Grants related expenses4,732 721 Insurance1,244 373 Photocopying/faxing1,875 894 Printing and stationery2,534 455 Postage963 23,158 Professional fees other9,494 5,865 Professional fees Tower38,094 5,462 Rent17,835 10,000 Salaries31,667 11,217 Secretarial services 487 Telephone and tolls1,609 Travelling expenses947 12,910 Trustees' fees14,690 92,211 Total expenditure153,860 1,359,426 Net income before grants1,830,990 (627,076) Less grants(942,859) $732,350 Net Profit transferred to trust fund$888,131 Statement of Financial Position as at 31 March 1996 1995$ 1996$ Trust funds Trust fund as per $30,065,829 Statement of movements in equity$37,478,960 Represented by: Current assets 3,012 Debtors and prepayments2,072 622,283 Deposits Trust Bank Wellington Limited787,725 5,896 Interest receivable6,082 28,996 Cash at bank Trust Bank Wellington Limited4,716 660,18 Total current assets800,595 Less current liabilities 20,386 Sundry creditors13,511 639,801 Working capital787,084 29,422,248 Investments (Note 3)36,689,257 3,780 Fixed assets (Note 1)2,619 $30,065,829 Net assets37,478,960 Signed on behalf of the board of trustees: W. A. BRIEN, Chairperson. P. J. WILLIS, Trustee. Dated this 21st day of June 1996. (The notes to the financial statement form part of and are to be read in conjunction with the above accounts.) Statement of Cash Flows for the Year Ended 31 March 1996 1995$ 1996$ Cash flows from operating activities Cash was provided from: 787,500 Dividends from Trust Bank New Zealand Limited1,181,250 515,202 Interest on investments60,766 Grant returned and other income1,373 Cash was disbursed to: (70,335) Suppliers of goods and services(144,468) (12,700) Trustees(14,900) (627,076) Grants to community(942,859) 592,591 Net cash flows from operating activities (Note 6)141,162 Cash flows from investing activities Cash was distributed to (4,167) Purchase of fixed assets (8,003,924) Purchase of investments (8,008,091) Net cash flow from investing activities (7,415,500) Net movement in cash over the year141,162 8,066,779 Add opening cash balance as at 1 April651,279 $651,279 Cash at 31 March 1996792,441 Shown in statement of financial position as: 622,283 Deposits Trust Bank Wellington787,725 28,996 Cash at bank Trust Bank Wellington4,716 $651,279 792,441 Statement of Movements in Equity as at 31 March 1996 1995$ 1996$ Trust funds 31,695,979 Opening balance30,065,829 732,350 Net income for the year888,131 (2,362,500) Movements in revaluation reserve 6,525,000 $30,065,829 Closing trust funds$37,478,960 Represented by: 17,531,842 Revaluation reserve24,056,842 12,533,987 Trust fund13,422,118 $30,065,829 $37,478,960 Notes to the Financial Statements for the Year Ended 31 March 1996 1. Statement of Accounting Policies Reporting Entity Trust Bank Wellington Community Trust is an incorporated charitable trust under the Charitable Trusts Act 1957. The financial statements have been prepared using generally accepted accounting practice. Measurement Base The financial statements have been prepared on the basis of historical cost with the exception of certain items for which specified accounting policies are identified. Specific Accounting Policies Specific accounting policies which materially affect the measurement of surplus and financial position have been applied as follows: (a) Dividend Income: Dividend income from Trust Bank New Zealand Limited is included in the income and expenditure account when it is received. (b) Grants: Grants made are included in the income and expenditure account when paid. (c) Shares and Investments: Shares held in Trust Bank New Zealand Limited and other investments are stated at the market value. The investment in Trust Bank New Zealand Limited is currently held as a core holding. Changes in this investment's market value are taken to the revaluation reserve. Changes in the market value of other investments are taken to the statement of financial performance. (d) Depreciation of Fixed Assets: Depreciation is provided on a straight line basis at rates that will write off the cost of assets over their estimated lives. 1995 1995 1995 1996 1996 1996 Cost Depreciation Book Cost Depreciation Book Price to Date Value Price to Date Value $ $ $ % $ $ $ 2,671 267 2,404 Computer equipment30 2,671 1,068 1,603 1,496 120 1,376 Printer24 1,495 479 1,016 $4,167 $387 $3,780 $4,166 $1,547 $2,619 Changes in Accounting Policies There have been no material changes in accounting policies since the previous annual financial statements. All policies have been applied on a basis consistent with those used in the previous years annual financial statements. 2. Revaluation Reserve 1995$ 1996$ 19,894,342 Opening balance17,531,842 (2,362,500) Movements in the year6,525,000 $17,531,842 Closing balance24,056,842 3. Investments 3.1 The trust's investment in Trust Bank New Zealand Limited is valued at $2.47 per share as at 31 March 1996, this being the market price of the shares. The shares as at 31 March 1996 in Trust Bank New Zealand Limited comprised 11 250 000 ordinary shares of 50 cents each fully paid. 1995$ 1996$ $23,625,000 Shares at market value as at 31 March 199521,262,500 ($2,362,500) Revaluation reserve6,525,000 $21,262,500 Shares at market value as at 31 March 1996$27,787,500 3.2 Other investments held by Tower Corporation Holdings Limited comprise 3,702,554 Money market deposits5,033,132 4,457,194 Discounted securities1,491,854 8,159,748 NZD fixed interest bonds2,376,771 8,901,757 $29,422,248 $36,689,257 4. Taxation For taxation purposes the trust is deemed to be a charitable organisation and on this basis its income is not subject to taxation. The charitable status is under review which may affect the future tax status of the trust. 5. Goods and Services Tax The trust is not registered for goods and services tax purposes. Accordingly these financial statements are stated on a G.S.T. inclusive basis. 6. Reconciliation of Net Profit with Cash Inflow from Operating Activities 1995$ 1996$ 732,350 Net profit888,131 Add (deduct) non cash items 387 Depreciation1,160 Add (less) movement in current assets/liabilities 10,155 Increase/decrease in creditors(6,875) 8,535 Increase/decrease interest receivable(186) (2,278) Increase/decrease in debtors940 734,326 Less items classified as investing activities (157,471) Income Tower(742,008) 913 Tower accrued interest $592,591 Net cash flows from operating activities$141,162 7. Off Balance Sheet Item Additional grants totalling $80,000 have been approved but not uplifted as at 31 March 1996. These are $15,000 for the Karori Reservoir Wildlife Sanctuary Trust; $15,000 for the Future Focus Trust (now know as the International Festival for the Future); and $50,000 for the Kapiti Community Centre Establishment Trust. A commitment of $3 million has been made to the Wellington Regional Stadium Trust subject to the commitment of that trust to construct. 8. Events Subsequent to Balance Date On the 27 May 1996 the trust sold its share holding in Trust Bank New Zealand Limited to Westpac Holdings NZ Limited and invested it with Tower Portfolio Management as per our investment policy. 9. Financial Instruments All financial instruments held by the trust are recorded in the statement of financial position. The financial instruments comprise equity securities, discounted securities, deposits and cash. Concentrations of credit risk arise as a result of holding equity securities as investments. These are subject to the normal market risk associated with investments of this nature. There are no significant differences between the fair value and book value of financial instruments. Nominees of the trust hold 100% of the shares in Wellington Community Trust Charities Limited on behalf of the trust. This shareholding comprises 2 shares on which the capital is uncalled. The company has not traded and no accounts have been prepared for it. Audit Report To the readers of the financial report of Trust Bank Wellington Community Trust. We have audited the financial report. The financial report provides information about the past financial performance of Trust Bank Wellington Community Trust and its financial position as at 31 March 1996. This information is stated in accordance with the accounting policies set out in the notes to the financial statements. Board of Trustees' Responsibilities The board of trustees is responsible for the preparation of a financial report which fairly reflects the financial position of the Trust Bank Wellington Community Trust as at 31 March 1996 and of the results of operations for the year ended 31 March 1996. Auditor's Responsibilities It is our responsibility to express an independent opinion on the financial report presented by the board of 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 statements. It also includes assessing: the significant estimates and judgements made by the board of trustees in the preparation of the financial report, and whether the accounting policies are appropriate to the Trust Bank Wellington Community 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. We obtained 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 statements. Other than in our capacity as auditors we have no relationship with or interests in the Trust Bank Wellington Community Trust. Unqualified Opinion We have obtained all the information and explanations we have required. In our opinion the financial report give a true and fair view of the financial position of the Trust Bank Wellington Community Trust as at 31 March 1996 and the results of its operations and cash flows for the year ended on that date. Our audit was completed on 21 June 1996 and our unqualified opinion is expressed as at that date. SPICER & OPPENHEIM, Chartered Accountants. Wellington, New Zealand. A schedule of Distribution of Income by way of grants is available on request at the office of the trust, Level Nine, BDO House, 99105 Customhouse Quay, or by Telephone (04) 499 7966.
Publication Date
11 Jul 1996

Notice Number


Page Number