Notice Type
General Notices
Trustee Banks Restructuring Act 1988 Trust Bank Waikato Community Trust Consolidated Financial Statements for the Year Ended 31 March 1997 Audit Report to the Members of Trust Bank Waikato Community Trust We have audited the financial report. The financial report provides 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 set out. 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 and group as at 31 March 1997 and of the results of the operations and cash flows for the year ended 31 March 1997. Auditors' Responsibilities It is our responsibility to express an independent opinion of 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 judgments made by the trustees in the preparation of the financial report, and whether the accounting policies are appropriate to the trust and group 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 or its subsidiary. Unqualified Opinion We have obtained all the information and explanations that we have required. In our opinion the financial statements fairly reflect 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 29 May 1997 and our unqualified opinion is expressed as at that date. DELOITTE TOUCHE TOHMATSU, Chartered Accountants. Hamilton. Trust Bank Waikato Community Trust Directory as at 31 March 1997 Trustees D. Bay, D. J. Braithwaite (Chairman), M. M. Brooker, N. J. Clarke, R. A. Feisst, I. R. Gear, J. A. Grace, L. E. Holder, M. M. Lamb, M. M. Leggat, F. J. H. Parker, R. N. Stanich, A. G. Steel and L. M. Storey. Executive Manager K. M. Gordon. Secretary and Accountants Beattie Rickman, P.O. Box 191, Hamilton. Telephone: (07) 838 3838. G. F. Balme. Auditors Deloitte Touche Tohmatsu, P.O. Box 17, Hamilton. Telephone: (07) 839 2527. B. Taylor. Bankers WestpacTrust Limited, P.O. Box 230, Hamilton. Telephone: (07) 834 9777. Trust Particulars The Trust Bank Waikato Community Trust was incorporated 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 people in the area formerly served by Trust Bank Waikato Limited. Trustees Report for the Year Ended 31 March 1997 General During the year the trust sold its remaining shareholding in Trust Bank New Zealand Limited. At the end of the year the group had investments of $182,115,158 (1966 $149,413,345). Income Income for the 1997 year totalled $16,352,670 (1996 $6,283,379), comprising dividends received from Trust Bank New Zealand Limited of $3,409,101 (1996 $5,104,970) and other dividend and interest income of $12,943,569 (1996 $1,178,409). Donations Donations for the 1997 year totalled $2,050,750 (1996 $1,706,125). This represents a 20 percent increase over the previous year. These donations were made to 1167 recipients. Trust Funds Net income after donations for the year amounted to $14,656,074 (1996 $4,116,812). The realised gain on the sale of Trust Bank New Zealand Limited shares, the increase in the market value of investments and foreign exchange gain of $19,017,472 (1996 $1,366,656) produced a net surplus of $33,673,546 (1996 $5,483,468) which was transferred to trust funds. This gave an accumulated balance of $181,963,046 (1996 $149,200,850) at the end of the year. General The trust remains in a sound position to continue to provide charitable, cultural, philanthropic and recreational benefits within its area of operation. Signed on behalf of the trustees: M. M. BROOKER, Trustee. Consolidated Statement of Financial Performance for the Year Ended 31 March 1997 [tn2,2]Group[tn4,2]Parent 1997$ 1996$ 1997$ 1996$ Income Dividends received TBNZ Limited 3,409,101 5,104,970 3,409,101 5,104,970 Dividends and interest12,943,569 1,178,409 12,943,569 1,178,409 16,352,670 6,283,379 16,352,670 6,283,379 Expenses Accident compensation levies408 408 Accountancy/secretarial fees16,290 31,893 16,290 31,893 Audit5,625 3,938 5,625 3,938 Bank charges60 8 60 8 Community Trusts Investments Limited share of costs101,045 28,785 101,045 28,785 Conference1,301 1,360 1,301 1,360 Computer84 84 Tax advice10,688 225 10,688 225 General insurance361 361 General1,694 4,573 1,266 3,996 Donation stationery and advertising17,462 15,222 17,462 15,222 Funds management services111,132 209,150 111,132 209,150 Investment advisory services75,706 57,780 75,706 57,780 Memberships338 338 338 338 Office disbursements, photocopying and postage6,687 3,186 6,687 3,186 Office stationery3,617 9,261 3,617 9,261 Publications261 1,311 261 1,311 Office rent9,890 2,608 9,890 2,608 Recruitment 9,735 9,735 Statutory reporting printing and publishing9,807 9,807 Telephone and tolls4,273 1,518 4,273 1,518 Training613 613 Travel59,994 7,965 59,994 7,965 Trustees fees42,450 36,646 42,450 36,646 Vehicle2,654 2,654 Wages63,333 30,050 63,333 30,050 545,773 455,552 545,345 454,975 Depreciation11,423 4,890 11,423 4,890 Total expenses557,196 460,442 556,768 459,865 Net income before distributions15,795,474 5,822,937 15,795,902 5,823,514 Less distributions Beneficiaries income distributed to Waikato Community Trust Charities Limited 11,328,698 Donations1,139,400 1,706,125 1,139,400 1,706,125 1,139,400 1,706,125 12,468,098 1,706,125 Net income after distributions14,656,074 4,116,812 3,327,804 4,117,389 Realised gain on sale of TBNZ Limited shares18,496,942 18,496,942 Foreign exchange gain41,149 41,149 Realised gain on sale of investments479,381 1,366,656 479,381 1,366,656 Net surplus before income tax33,673,546 5,483,468 22,345,276 5,484,045 Less provision for taxation Net surplus retained as trustees income$33,673,546 $5,483,468 $22,345,276 $5,484,045 These financial statements must be read in conjuction with the notes shown. Consolidated Statement of Movements in Equity for the Year Ended 31 March 1997 [tn2,2]Group[tn4,2]Parent 1997$ 1996$ 1997$ 1996$ Equity at start of the year149,200,850 115,517,782 149,202,730 115,519,085 Less donations paid from capital(911,350[teh]) (911,350[teh]) Net surplus for the year33,673,546 5,483,468 22,345,276 5,484,045 Increase in revaluation reserve 28,199,600 28,199,600 Equity at end of the year$181,963,046 $149,200,850 $170,636,656 $149,202,730 These financial statements must be read in conjuction with the notes shown. Consolidated Statement of Financial Position as at 31 March 1997 [tn3,2]Group[tn5,2]Parent Notes 1997$ 1996$ 1997$ 1996$ Trust capital 181,963,046 149,200,850 170,636,656 149,202,730 Current liabilities Accounts payable 112,570 72,382 112,570 72,382 Donations payable 137,000 205,000 137,000 205,000 249,570 277,382 249,570 277,382 $182,212,616 $149,478,232 $170,886,226 $149,480,112 Represented by: Current assets Trust Bank Waikato cheque account 61,094 30,419 61,094 30,419 Term deposits 181,472,644 3,160,537 170,146,252 3,160,537 Accounts receivable3 8,630 8,630 181,542,368 3,190,956 170,215,976 3,190,956 Investment in Waikato Community Trust Charities Limited 2 1,880 Investments4 642,514 146,252,808 642,514 146,252,808 Fixed assets5 27,734 34,468 27,734 34,468 $182,212,616 $149,478,232 $170,886,226 $149,480,112 Signed on behalf of the trustees: M. M. BROOKER, Trustee. J. A. GRACE, Trustee. These financial statements must be read in conjuction with the notes shown. Statement of Cash Flows for the Year Ended 31 March 1997 [tn3,2]Group[tn5,2]Parent Notes 1997$ 1996$ 1997$ 1996$ Cash flow from operating activities Cash was provided from: Dividends 3,409,101 5,104,970 3,409,101 5,104,970 Other investment income 13,455,469 2,545,065 13,455,469 2,545,065 16,864,570 7,650,035 16,864,570 7,650,035 Cash was disbursed to: Donations and distributions (1,207,400[teh]) (1,570,575[teh]) (12,536,098[teh]) (1,570,575[teh]) Payments to suppliers and trustees (505,585[teh]) (397,162[teh]) (505,157[teh]) (396,586[teh]) (1,712,985[teh]) (1,967,737[teh]) (13,041,255[teh]) (1,967,161[teh]) Net cash flow from operating activities9 15,151,585 5,682,298 3,823,315 5,682,874 Cash flow from investing activities Cash was provided from: Waikato Community Trust Charities Limited 1,878 (576[teh]) Sale of TBNZ Limited shares 138,588,342 138,588,342 138,588,342 138,590,220 (576[teh]) Cash was applied to: Net increase in investments (152,793,213[teh]) (5,613,040[teh]) (141,466,821[teh]) (5,613,040[teh]) Purchase of fixed assets (4,689[teh]) (39,358[teh]) (4,689[teh]) (39,358[teh]) (152,797,902[teh]) (5,652,398[teh]) (141,471,510[teh]) (5,652,398[teh]) Net cash flow from investing activities (14,209,560[teh]) (5,652,398[teh]) (2,881,290[teh]) (5,652,974[teh]) Cash flows from financing activities Cash was applied to: Donations from capital (911,350[teh]) (911,350[teh]) Net cash flows from financing activities (911,350[teh]) (911,350[teh]) Net increase in cash held 30,675 29,900 30,675 29,900 Cash at beginning of the year 30,419 519 30,419 519 Cash at end of the year $61,094 $30,419 $61,094 $30,419 These financial statements must be read in conjuction with the notes shown. Notes to the Consolidated Financial Statements for the Year Ended 31 March 1997 1. Statement of Accounting Policies Basis of Reporting The financial statements presented here are for Trust Bank Waikato Community Trust and its wholly-owned subsidiary Waikato Community Trust Charities Limited. They have been prepared in accordance with the requirements of the Institute of Chartered Accountants of New Zealand for the measurement and reporting of profit on an historical cost basis with the exception of certain items for which the specific accounting policies are identified. Fixed assets All fixed assets have been recorded at cost price less depreciation. Donations and Distributions Donations and distributions made are included in the statement of financial performance when approved by the trustees. Taxation Income tax expense recognises the current obligations payable to the Inland Revenue Department. 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. Investments Investments are stated at market value. Adjustments to market value of investments are included in the statement of financial performance. Investment income is included in the statement of financial performance when it is received. Basis of Consolidation The purchase method of consolidation has been used in preparation of the financial statements. 2. Incorporation The Trust Bank Waikato Community Trust was incorporated on 5 August 1988 with trust capital of $21,316,622. 3. Receivables [tn2,2]Group [tn][tn4,2]Parent 1997$ 1996$ 1997$ 1996$ Accounts receivable$8,630 $8,630 4. Investments [tn2,2]Group [tn4,2]Parent 1997$ 1996$ 1997$ 1996$ Trust Bank New Zealand Limited (TBNZ Limited) shares 120,091,400 120,091,400 Forward exchange contracts 43,708 43,708 Cash 1,383,257 1,383,257 Fixed interest90,968 4,275,983 90,968 4,275,983 Shares551,546 17,412,226 551,546 17,412,226 New Zealand Government stock 517,243 517,243 Convertible notes 2,528,991 2,528,991 $642,514 $146,252,808 $642,514 $146,252,808 5. Fixed Assets [tn2,2]Group [tn4,2]Parent 1997$ 1996$ 1997$ 1996$ Office equipment At cost7,917 7,917 7,917 7,917 Additions4,689 4,689 Accumulated depreciation(6,851[teh]) (2,369[teh]) (6,851[teh]) (2,369[teh]) 5,755 5,548 5,755 5,548 Motor vehicles At cost31,440 31,440 31,440 31,440 Accumulated depreciation(9,461[teh]) (2,520[teh]) (9,461[teh]) (2,520[teh]) 21,979 28,920 21,979 28,920 $27,734 $34,468 $27,734 $34,468 6. Waikato Community Trust Charities Limited (WCTC Limited) This is a wholly-owned charitable company established by the trust and will be used to carry out some of the trust's future activities. 7. Taxation Group1997$ Parent1997$ Net income after distributions as per statement of financial performance14,656,074 3,327,804 Less: Non-assessable income(11,328,270[teh]) Add: Non-deductible expenditure42,000 42,000 Imputation credits received1,683,109 1,683,109 Assessable income for tax purposes5,052,913 5,052,913 Taxation @ 33 percent1,667,461 1,667,461 Less: Imputation credits received1,683,109 1,683,109 ($15,648[teh]) ($15,648[teh]) Imputation credits transferred to loss carried forward (at extra emolument rate for 31 March 1997 of 25 percent)$62,592 $62,592 8. Financial Instruments The trust uses the services of an investment advisor to pursue an investment policy considered appropriate for the trust. The current policy is to achieve a long term asset allocation of: New Zealand equities 5.00 percent New Zealand fixed interest 20.00 percent New Zealand cash 30.00 percent Global fixed interest (fully hedged) 20.00 percent Passive global equities (fully hedged) 12.50 percent Active global equities 12.50 percent 100.00 percent The trust's financial instruments comprise the following: [tn2,2]Group [tn4,2]Parent 1997$ 1996$ 1997$ 1996$ Term deposits181,472,644 3,160,537 170,146,252 3,160,537 Investments642,514 146,252,808 642,514 146,252,808 $182,115,158 $149,413,345 $170,788,766 $149,413,345 These are denominated in the following currencies: [tn2,2]Group [tn4,2]Parent 1997$ 1996$ 1997$ 1996$ New Zealand dollars164,778,778 132,883,523 153,452,386 132,883,523 Australian dollar equivalents2,297,796 2,313,626 2,297,796 2,313,626 United States dollar equivalents10,479,791 8,033,871 10,479,791 8,033,871 Great Britain pound equivalents4,558,793 5,649,298 4,558,793 5,649,298 Singapore dollar equivalents 266,096 266,096 Swiss franc equivalents 266,931 266,931 $182,115,158 $149,413,345 $170,788,766 $149,413,345 All financial instruments are disclosed at fair value. No undisclosed credit risk exists. At 31 March 1997 the trust had no forward exchange contracts. 9. Cash Flow Reconciliation [tn2,2]Group [tn4,2]Parent 1997$ 1996$ 1997$ 1996$ Net surplus33,673,546 5,483,469 22,345,276 5,484,045 Adjust for non cash items Depreciation11,423 4,890 11,423 4,890 Items classified as investing activities Realised gain on sale of TBNZ Limited shares(18,496,942[teh]) (18,496,942[teh]) Movements in working capital Increase (decrease) in accounts payable40,188 58,389 40,188 58,389 Increase (decrease) in donations payable(68,000[teh]) 135,550 (68,000[teh]) 135,550 (Increase) decrease in accounts receivable(8,630[teh]) (8,630[teh]) (36,442[teh]) 193,939 (36,442[teh]) 193,939 Net cash flow from operating activities$15,151,585 $5,682,298 $3,823,315 $5,682,874 10. Term Deposits Trust Bank Waikato Community Trust acts as nominee for deposits held by Waikato Community Trust Charities Limited its subsidiary company. 11. Changes in Accounting Policies There have been no 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. A full list of the donations made by the Trust Bank Waikato Community Trust during the year was published in the Waikato Times on Saturday, 5 July 1997. The list is also available on request, by writing to the Executive Manager, Trust Bank Waikato Community Trust (Inc), P.O. Box 391, Hamilton.
Publication Date
17 Jul 1997

Notice Number

1997-gn4917

Page Number

1797