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 J. E. Thompson (Chairperson), Ms R. A. Carruthers, Mr L. K. Cooney, Mr A. R. McKay, Mr P. F. McIlraith, Mrs J. J. Rayne, Mr C. P. Sparrow, Mr J. R. Sutton, m.p., Mr D. B. Timpany and Mr R. J. Underdown. Bankers: Trust Bank South Canterbury, 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 1996 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 10 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 1995 for Messrs R. B. McCully, D. B. Timpany and R. J. Underdown. Messrs D. B. Timpany and R. J. Underdown were reappointed for a further term of 4 years. Mr R. B. McCully was not reappointed reducing the size of the board to 10 trustees. The trustees are grateful to Mr McCully for his valuable contribution to the affairs of the trust during his term of office. He was very much a worthy representative of the Temuka area. Activities of the Trust: The past year was once again a busy one for the trustees. Each year many requests are received from a wide variety of community organisations seeking donations. The amounts sought are well in excess of the funds available and trustees spend a considerable amount of time endeavouring to make a fair distribution. Although it is outside the year under review the fact that the trust did sell its entire shareholding in Trust Bank New Zealand Limited is of current interest and of importance to the area in which we operate. The other 8 community trusts were members of a consortium called Community Trusts Investments Limited and as such held the majority interest in Trust Bank New Zealand Limited. Being the only trust not being a member we attracted much interest from the media at the time when a great deal of speculation was rife both as to the sale and as to who the prospective purchaser was to be. While our trustees had no option but to sell following the majority shareholders' decision to do so we are in no doubt that as prudent trustees it was in the best interest of the community. The fact that as independent sellers we were successful in obtaining the open market price (average $2.98) as opposed to $2.92 offered by Westpac Banking Corporation gave much satisfaction. We intend to administer this greatly increased capital fund, with expert assistance, to maximise the returns which may then be applied for the benefit of a wide spread of the community organisations. 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 $1,134,000 and after adding the investment income the total gross income was $1,227,309. The net income (before donations) was $1,161,019. After deducting the donations paid or committed to community groups and also an initial contribution to an endowment fund being set up the surplus transferred to undistributed funds was $590,246. It is expected that with the increased income which the trust is now receiving that more funds will be available to assist community groups in our area in the future. J. E. THOMPSON, Chairperson. Statement of Financial Performance for the Year Ended 31 March 1996 Note 1996$ 1995$ Income Interest 93,309 53,140 Dividends 1,134,000 675,000 Total income 1,227,309 728,140 Less expenditure Advertising 18,068 8,508 Auditors' fees 481 208 Printing and stationery 2,804 1,702 Secretarial and accountancy fees 25,254 23,057 Sundry expenses 1,863 2,926 Travelling expenses 3,225 6,964 Trustees' fees 11,953 13,480 Depreciation marquees 2,642 2,642 Total expenditure 66,290 59,487 Net income before donations 1,161,019 668,653 Less donations paid and approved8 565,773 521,053 Contribution to endowment fund12 5,000 Surplus transferred to the trust fund $590,246 $147,600 (The notes to the financial statement form part of and are to be read in conjunction with the above account.) Statement of Financial Position as at 31 March 1996 Note 1996$ 1995$ Trust funds Capital2 7,389,000 7,389,000 Undistributed income3 1,344,243 753,997 Balance as at 31 March 1996 8,733,243 $8,142,997 Endowment fund capital12 27,002 $8,760,245 $8,142,997 Represented by: Current assets Trust Bank South Canterbury Current account 2,674 2,666 Prime call account 1,557 46,147 Money market account 1,387,330 842,000 Sundry debtors 10,000 12,000 Interest accrued 19,771 21,036 Interest accrued (endowment fund)12 1,018 1,422,350 923,849 Less current liabilities Sundry creditors 35,935 36,340 Donations approved not yet paid 95,120 192,120 Total current liabilities 131,055 228,460 Working capital 1,291,295 695,389 Add non current assets Long term advances4 50,000 52,000 Investments Shares in Trust Bank New Zealand Limited2 7,389,000 7,389,000 Endowment fund investments12 25,984 Fixed assets (after depreciation) marquees7 3,966 6,608 Net assets $8,760,245 $8,142,997 Signed on behalf of the board of trustees: J. E. THOMPSON, Chairperson. R. A. CARRUTHERS, Trustee. Dated this 12th day of July 1996. (The notes to the financial statement form part of and are to be read in conjunction with the above account.) Statement of Cash Flows for the Period Ended 31 March 1996 1996$ 1995$ Cash flows from operating activities Cash was provided from: Interest on deposits94,574 32,104 Dividends1,134,000 675,000 Cash was applied to: Suppliers of goods and services(64,053[teh]) (43,400[teh]) Donations paid(662,773[teh]) (328,933[teh]) Contribution to endowment fund(5,000[teh]) Net cash flows from operating activities496,748 334,771 Cash flows from investing activities Cash was provided from: Loan repayments Timaru High Schools hostel4,000 St Vianney's Home Cash was applied to: Net cash flows from investing activities4,000 Net cash flows from financing activities Net increase in cash held500,748 334,771 Add opening cash at 1 April 1995890,813 556,042 Cash as at 31 March 1996$1,391,561 $890,813 Cash at 31 March 1996 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 Year Ended 31 March 1996 1. Statement of Accounting Policies Reporting Entity: The Trust Bank South Canterbury Community Trust Inc. is a charitable trust incorporated under the Trustee Banks Restructuring Act 1988. The financial statements have been prepared in accordance with the Financial Reporting Act 1993 and generally accepted 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. 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 $95,120 has been made for donations approved but not yet paid this year. (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 asset. Changes in Accounting Policies There has been no material change in the accounting policies during this accounting year and all 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 1996 at $2.47 per share was $26,676,000 (1995 $1.89 was $20,412,000). 3. Undistributed Income 1996$ 1995$ Balance brought forward753,997 606,397 Plus current year's profits590,246 147,600 $1,344,243 $753,997 4. Long Term Advances Interest Free 1996$ 1995$ Mid Canterbury Basketball Association debenture repayment September 199620,000 20,000 St Vianney's Home of Compassion30,000 30,000 Timaru High Schools hostel 2,000 $50,000 $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 19956,605 6,608 Less depreciation current year2,642 Balance at 31 March 1996 $3,966 8. Donations Approved Not Yet Paid (a) Approved donations not yet paid out include: $ Mackenzie Rugby Football Club Inc.10,000 Methven Anglican Parish2,000 QEII National Trust2,000 Sacred Heart Basilica renovation project5,000 St Stephens Community Care Centre (Ashburton)45,000 S. C. Womens Bowling Centre Inc.10,000 Task Force Green Community Employment Initiative21,120 $95,120 (b) The community trust has undertaken to make a donation of $1,000,000 to the Aorangi Park Trust for their stadium re furbishment. The donation is to be spread over 3 years and is subject to the completion of fundraising. 9. Reconciliation of Net Surplus to Net Operating Cash Flow 1996$ 1995$ Net surplus590,246 147,600 Adjustments for non cash items in net surplus: Depreciation2,642 2,642 Adjustment for changes in working capital: Decrease (increase) in accrued interest1,265 (21,036[teh]) Increase (decrease) in accounts payable(405[teh]) 13,445 Increase (decrease) in donations payable(97,000[teh]) 192,120 (96,140[teh]) 184,529 Cash flow from operations$496,748 $334,771 10. Capital Commitments There were no capital commitments (1995 nil). 11. Contingent Liabilities There are no contingent liabilities apart from donation commitments as per notes 1 and 8. 12. Endowment Fund During the year an endowment fund has been established under the umbrella of the community trust. The fund will eventually be separately administered by the trustees of the community trust. The purpose of the fund is to enable financial assistance to be provided to individuals or persons in the Mid and South Canterbury areas in due course. Details of income and assets of the fund are as follows: $ Income Interest received Trust Bank South Canterbury1,829 Kiwi Bonds449 Transferred to the endowment fund$2,278 Endowment fund account Contribution from: Trust Bank South Canterbury Community Trust Inc.5,000 Retiring regional board of directors of Trust Bank South Canterbury Limited: ex bank account19,724 Mt Cook Marketing Limited shares 6000 at 50c parNil value 24,724 Income for year2,278 $27,002 Represented by Trust Bank South Canterbury money market account20,639 Kiwi Bonds5,345 Interest accrued1,018 Shares Mt Cook Marketing LimitedNil value $27,002 13. Subsequent Events Subsequent to balance date the trust sold its shares in Trust Bank New Zealand Limited on the open market for $2.98 realising $32,087,148 net. Audit Report To the readers of the financial report of Trust Bank South Canterbury Community Trust Inc.: We have audited the financial report. The financial report provides information about the past financial performance of the trust and its financial position as at 31 March 1996. This information is stated in accordance with the accounting policies set out. Board of Trustees Responsibilities: The board of 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 1996 and of the results of operations and cash flows for the year ended 31 March 1996. Auditors' 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 report. It also includes assessing: the significant estimates and judgments made by the board of 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 the normal course of business and 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 the trust as far as appears from our examination of those records; and the financial report: complies with generally accepted accounting practice; gives a true and fair view of the financial position of the 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 12 July 1996 and our unqualified opinion is expressed as at that date. MARTIN WAKEFIELD, Auditors. Timaru. 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 office of the secretary, 39 George Street, Timaru, or from any branch of Trust Bank South Canterbury.
Publication Date
24 Jul 1996

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