Notice Type
General Notices
Income and Expenditure Account and Retained Funds Statement for the Year Ended 31 March 1997 Notes 1997$ 1996$ Income Dividend from TSB Bank Limited2 1,100,000 925,000 Interest received 57,072 48,290 1,157,072 973,290 Less expenses Audit fees 1,536 1,511 Solicitors fees 2,794 Professional services 1,700 3,163 Trustees' honoraria 27,738 25,087 Trustees' expenses 3,355 3,495 Secretary/treasurer fees 15,015 14,320 Secretary/treasurer mileage 673 503 Stationery and postage 1,203 1,805 Advertising 2,183 2,108 Promotional expenses 5,175 458 Sundry expenses 193 315 Telephone and P.O. Box 665 672 Depreciation 3,097 3,097 65,327 56,534 Funds available for distribution 1,091,745 916,756 Donations during the year 1,026,350 871,300 Excess income over expenditure 65,395 45,456 Plus retained funds at beginning of year 521,499 476,043 $586,894 $521,499 Balance Sheet as at 31 March 1997 Notes 1997$ 1996$ Accumulated funds Capital 100 100 Initial gift1 10,000,000 10,000,000 10,000,100 10,000,100 Retained funds 586,894 521,499 Total funds $10,586,994 $10,521,599 Represented by: Current assets Petty cash 18 10 TSB Bank Limited 7,911 67,166 Accrued interest 12,195 5,182 20,124 72,358 Less current liabilities Accrued charges 10,397 6,123 9,727 66,235 Fixed assets5 2,267 5,364 Investments Shares in TSB Bank Limited1 10,000,000 10,000,000 TSB Bank Limited Investments 575,000 450,000 $10,586,994 $10,521,599 For and on behalf of the trustees: D. E. WALTER, Chairperson. Statement of Cash Flows for the Year Ended 31 March 1997 Notes 1997$ 1996$ Cash flows from operating activities Cash was provided from: Dividends from TSB Bank 1,100,000 925,000 Interest received 50,059 46,934 1,150,059 971,934 Cash was applied to: Donations 1,026,350 871,300 Payments to suppliers and trustees 57,956 54,498 1,084,306 925,798 Net cash flows from operating activities8 65,753 46,136 Cash flows from investing activities Cash was provided from: Principal from investments 225,000 300,000 Cash was applied to: Investments 350,000 350,000 Net cash flows from investing activities (125,000[teh]) (50,000[teh]) Net increase/(decrease) in cash held (59,247[teh]) (3,864[teh]) Plus opening cash 1 April 1996 67,176 71,040 Closing cash balance 31 March 19979 $7,929 $67,176 Notes to the Financial Statements for the Year Ended 31 March 1997 1. Statement of Accounting Policies Reporting Entity TSB Community Trust is a charitable trust formed by a trust deed dated 30 May 1988. The financial statements are a general purpose report which has been prepared in accordance with generally accepted accounting practice as required by clause 17 of the trust deed. Measurement Base The measurement base is that of historical cost. Accrual accounting is used to match expenses and revenues. Reliance is placed on the fact that the trust is a going concern. Specific Accounting Policies The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied. Investments The TSB Bank Limited shares are stated at par value when gifted: 20 000 000 fully paid shares at 50 cents $10,000,000 The net asset backing at 31 March 1997 was $2.83 per share. Fixed Assets Fixed assets are recorded at cost, office equipment will be depreciated on a straight-line basis over 4 years. Income Tax Income tax will include the current years provision and the tax effect of timing differences using the liability method. Timing differences will be accounted for applying the comprehensive basis. Differential Reporting The trust qualifies for differential reporting as it is not large as defined in the framework for differential reporting. The trust has taken advantage of all differential reporting exemptions except that a cash flow statement has been prepared. Goods and Services Tax The financial statements have been prepared on a G.S.T. inclusive basis. Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the previous years. 2. Dividend The dividend includes $750,000 relating to the final instalment received from the bank for the year ended 31 March 1996 and $350,000 interim dividend for the year ended 31 March 1997. 3. Commitments and Contingent Liabilities At balance date $26,000.00 has been approved for donations in the 199798 financial year (1996: $106,250). In addition the trust has pledged a further $100,000 contingent upon the applicant completing certain requirements set by the trust. 4. Publishing Requirements A comprehensive list, itemising all recipients, was published in the Taranaki Daily News on the following dates: First round14 September 1996 Second round18 February 1997 Third round 8 April 1997 A copy of the list of grants is available to anyone upon request (P.O. Box 31, Oakura, Taranaki). 5. Fixed Assets 1997$ 1996$ Office equipment at cost12,389.00 12,389.00 Accumulated depreciation10,122.00 7,025.00 $2,267.00 $5,364.00 6. Statement of Movements in Equity 1997 1996 $ $ Equity at 1 April 199610,521,599 10,476,143 Retained surplus for the year63,395 45,456 Equity at 31 March 1997$10,586,994 $10,521,559 7. Income Tax There are taxation losses amounting to $119,918 (1996: $41,376) available to carry forward and set off against future assessable income. 8. Reconciliation of Net Surplus With Net Cash Flows From Operation Activities 1997$ 1996$ Net surplus65,395 45,456 Add/(less) depreciation3,097 3,097 Movements in working capital items (Increase)/decrease in receivables(7,013[teh]) (1,356[teh]) Increase/(decrease) in payables4,274 (1,061[teh]) Net cash flows from operating activities$65,753 $46,136 9. Cash Balances in the Statement of Financial Position 1997$ 1996$ Petty cash18 10 TSB Bank Limited7,911 67,166 $7,929 $67,176 Auditors' Report to the Trustees of TSB Community Trust We have audited the financial statements. The financial statements provide information about the past financial performance of the trust and its financial position as at 31 March 1997. This information is stated in accordance with the accounting policies set out. Trustees' Responsibilities The trustees are responsible for the preparation of financial statements which fairly reflect the financial position of the trust as at 31 March 1997 and the results of operations and cash flows for the year ended on that date. Auditor's Responsibilities It is our responsibility to express an independent opinion on the financial statements 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 statements. It also includes assessing: the significant estimates and judgments made by the trustees in the preparation of the financial statements; and whether the accounting policies are appropriate to the trusts 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 statements are 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 auditor we have no relationship with, or interest in, the trust. Unqualified Opinion We have obtained all the information and explanations we have required. In our opinion, the financial statements present a true and fair view of the financial position of the trust as at 31 March 1997 and the results of its operations and cash flows for the year ended on that date. Our audit was completed on 24 April 1997 and our unqualified opinion is expressed as at that date. ERNST & YOUNG, New Plymouth.
Publication Date
12 Jun 1997

Notice Number

1997-gn3892

Page Number

1406