Notice Type
General Notices
Trustee Banks Restructuring Act 1988 Statement of Financial Performance for the Year Ended 31 March 1997 [tn,2]Trust and Group Note 1997$ 1996$ Income Dividend Trust Bank New Zealand 3,992,000 5,988,000 Other dividends 60,564 0 Other income 0 1,629 Interest 13,688,420 422,284 Revaluation of investments (1,069,921[teh]) 0 Total income $16,671,063 $6,411,913 Less expenditure Salaries and staff costs 153,171 33,141 Levies and subscriptions 118,519 33,763 Occupancy costs 6,700 0 Communications 16,723 0 Office expenses 26,385 0 Legal and advisory fees 132,940 1,627 Audit fees 6,558 2,644 General expenses 45,674 24,104 Vehicle expenses 4,923 0 Grants advertising and promotion 17,744 6,856 Trustees' fees 50,682 36,133 Reporting and compliance expenses 30,524 0 Depreciation 17,407 3,298 Total expenditure 627,950 141,566 Net operating income $16,043,113 $6,270,347 Add: profit on sale of shares in Trust Bank New Zealand ($162,603,993 less cost of shares $24,281,000) 2 138,322,993 0 Net income $154,366,106 $6,270,347 Statement of Movements in Equity for the Year Ended 31 March 1997 [tn,2]Trust and Group Note 1997$ 1996$ Trust capital Beginning of year 29,580,133 26,323,671 Add this year's net income 154,366,106 6,270,347 Less grants approved 6,899,161 3,013,885 Trust capital End of year $177,047,078 $29,580,133 Statement of Financial Position for the Year Ended 31 March 1997 [tn,2]Trust and Group Note 1997$ 1996$ Funds employed Trust capital 177,047,078 29,580,133 Liabilities Creditors 42,064 11,064 Grants committed but not paid 5,039,340 1,540,780 Total liabilities 5,081,404 1,551,844 Total capital and liabilities $182,128,482 $31,131,977 Assets Current assets: WestpacTrust Bank cheque account 609,377 207,255 Sundry debtors and interest accrued 2,109,236 28,633 Total current assets 2,718,613 235,888 Fixed assets (cost less depreciation) 3 108,869 15,089 Investment assets: WestpacTrust Bank account 4 151,000 6,600,000 Trading bank deposits 4 168,150,000 0 Shares in Trust Bank New Zealand 0 24,281,000 TeNZ Fund 10 million units 11,000,000 0 Total investment assets 179,301,000 30,881,000 Total assets $182,128,482 $31,131,977 Signed on behalf of the board of trustees: C. S. BALLANTYNE, Chairperson. C. A. McCULLOCH, Trustee. Dated this 9th day of June 1997. Statement of Cash Flows for the Year Ended 31 March 1997 [tn,2]Trust and Group Note 1997$ 1996$ Cash flows from operating activities Cash was derived from: Sundries 0 1,629 Cash was disbursed to: Administration expenses (637,480[teh]) (141,659[teh]) Grants to the community (3,400,601[teh]) (2,267,355[teh]) (4,038,081[teh]) (2,409,014[teh]) Net (outwards) cash flows from operating activities7 (4,038,081[teh]) (2,407,385[teh]) Cash flows from investing activities Cash was received from: Sale of investment in Trust Bank New Zealand2 162,603,993 0 Other investments 0 2,500,000 Interest and dividends 15,718,318 6,403,863 178,322,311 8,903,863 Cash was disbursed to: Investments 180,219,921 0 Fixed assets 111,187 16,317 180,331,108 16,317 Net inwards (outwards) cash flows from investing activities (2,008,797[teh]) 8,887,546 Net increase (decrease) in cash held ($6,046,878[teh]) $6,480,161 Cash reconciliation: Cash held at beginning of year 6,807,255 327,094 Cash held at end of year 760,377 6,807,255 Net increase (decrease) in cash held ($6,046,878[teh]) $6,480,161 Notes to the Financial Statements for the Year Ended 31 March 1997 1. Statement of accounting policies General The financial statements presented here are for the reporting entity the Trust Bank Southland Community Trust Inc. The trust prepares the financial statements on the basis of historical cost and in accordance with generally accepted accounting principles. Consolidation The trust and its wholly owned company Southland Community Trust Charities Limited form a group. The trust uses the purchase method of consolidation. Investments The trust states its equity investments at market value, and report unrealised gains or losses on holding these investments in the statement of financial performance. The trust intends to hold bank deposits until maturity and states these investments at cost. Fixed Assets The trust states motor vehicles and office equipment at cost less depreciation, calculated on a straight line basis so as to allocate the cost of the assets over their useful lives. The trust allocates costs over the following periods: Motor vehicles5 years Computers and software3 years Other office equipment7 years Accounts Receivable The trust states these at expected realisable value. Grants The trust brings these to account when approved by trustees. Income Tax The trust provides for income tax on its net income after adjusting for tax accounting differences and any beneficiaries income determinations made pursuant to section OB1 (226) of the Income Tax Act. Goods and Services Tax The trust is not registered for the goods and services tax. The statement of financial performance and the statement of cash flows are prepared so that all components are stated inclusive of G.S.T. Changes The trust has changed its accounting policy for income tax. There is no monetary effect from the change. There have been no other changes in accounting policies. 2. Sale of Shares in Trust Bank New Zealand In May 1996 the trust sold its shares in Trust Bank New Zealand to Westpac Banking Corporation. The effective offer price, including a bonus issue and special fully imputed dividend amounted to $2.92 per share held before the offer. 3. Fixed Assets Accumulated 1997 1996 Cost Depreciation Value Value Office equipment 43,934 12,057 31,877 15,089 Motor vehicles 85,640 8,648 76,992 0 Totals $129,574 $20,705 $108,869 $15,089 4. Investments The trust is holding bank deposits pending investment through selected institutional investment managers. All the deposits mature within 5 months. 5. Income Tax On 9 June 1997 the trustees determined to pay $13,288,420 income as beneficiaries income to Southland Community Trust Charities Limited, the income of which is exempt from income tax. Consequently the trust has made no provision for income tax. 6. Consolidation Southland Community Trust Charities Limited has no assets or liabilities and conducted no activity during the year. The trust has not presented financial statements for the trust and consolidated financial statements for the group separately, as the statements would not be materially different. 7. Reconciliation With Operating Surplus [tn,2]Trust and Group 1997$ 1996$ Operating surplus net income for the year 154,366,106 6,270,347 Grants (6,899,161[teh]) (3,013,885[teh]) Increase (decrease) in liabilities 3,529,560 748,547 Decrease (increase) in assets (148,967,221[teh]) 2,475,152 Net movement in investing activities 2,008,797 (8,887,546[teh]) Net cash flows from operating activities ($4,038,081[teh]) ($2,407,385[teh]) 8. Financial Instruments General The trust states its investments at balance date at estimated market value, calculating accued interest on bank deposits by reference to the contract rates. The trustees consider that the fair value of the financial assets is identical to the carrying value in the statement of position. Concentration of Credit Risk The trust has placed most of its funds in trading bank deposits, and in TeNZ Fund units. These investments potentially subject the trust to concentrations of credit risk. The trust limits the risk by spreading the deposits over several trading banks, and the TeNZ Fund's policy of selecting 10 investments in its portfolio also limits the risk. The trust has not required collateral or other security to support its financial instruments. Interest Rate Risk The bank deposits are sensitive to changes in interest rates. Audit Report to the Members of Trust Bank Southland Community Trust Incorporated We have audited the attached financial statements. The financial statement provide information about the past financial performance and financial position of the trust and group as at 31 March 1997. This information is stated in accordance with the accounting policies as outlined. Trust Responsibilities The trustees are responsible for the preparation of financial statements which gives a true and fair view of the financial position of the trust and group as at 31 March 1997 and of the results of their 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 trust's and group'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 statements 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 or its subsidiary. 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 statements as attached: comply with generally accepted accounting practice; give a true and fair view of the financial position of the trust and group as at 31 March 1997 and the results of their operations and cash flows for the year ended on that date. Our audit was completed on 14 June 1997 and our unqualified opinion is expressed as at that date. Dated this 14th day of June 1997. WARD WILSON. Invercargill. Distribution A list of the names of persons or organisations to whom the Community Trust has made distribution and the amounts distributed in the financial year ended 31 March 1997 is available on request by writing to the trust's Executive Director, P.O. Box 1604, Invercargill.
Publication Date
17 Jul 1997

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