Consolidated Statement of Financial Performance for the Year Ended 31 March 2000
2000 1999
$ $
Income
Income from investments (note 2) 19,153,909 13,485,302
Less expenditure
Advertising and promotion 246,771 205,695
Auditor fees - Trust audit 8,119 6,300
- Other services 897 -
Depreciation 14,762 19,870
Rent and occupancy 43,563 56,257
Professional fees 60,704 40,281
Trustee expenses 51,827 44,924
Trustee fees 123,345 118,795
Wages and salaries 157,468 132,285
Other expenses 55,352 65,220
Total expenditure 762,808 689,627
Net income before community payments 18,391,101 12,795,675
Less community payments
Standard donations 1,858,751 1,833,710
Special donations 5,573,117 2,982,240
Bursaries 462,500 438,000
Total community payments 7,894,368 5,253,950
Less donations written back 57,715 147,259
Total community donations paid 7,836,653 5,106,691
Net surplus for the period 10,554,448 7,688,984
Consolidated Statement of Movements in Equity for the Year Ended 31 March 2000
2000 1999
$ $
Equity at start of period 138,395,778 130,706,794
Net surplus for the period 10,554,448 7,688,984
Total recognised revenues and expenses 10,554,448 7,688,984
Equity at the end of period 148,950,226 138,395,778
Consolidated Statement of Financial Position as at 31 March 2000
2000 1999
$ $
Assets
Investments (note 3) 142,404,177 132,201,239
Fixed assets (note 4) 40,950 37,519
Accrued income 138,368 81,304
Cash and bank deposits (note 5) 9,230,481 7,841,500
Total assets 151,813,976 140,161,562
Liabilities
Sundry payables 124,047 91,351
Employee entitlements 11,928 17,896
Donations payable (note 6) 2,727,775 1,656,536
Total liabilities 2,863,750 1,765,783
Net assets 148,950,226 138,395,779
Equity
Trustee funds 148,950,226 138,395,779
Total trust funds 148,950,226 138,395,779




Graeme Glass Brian Bourke
Chairperson Trustee
9th June 2000 9th June 2000
Consolidated Statement of Cash Flows for the Year Ended 31 March 2000
2000 1999
$ $
Cash flows from operating activities-
Cash was provided from:
Interest and dividends on investments 4,605,135 6,271,965
4,605,135 6,271,965
Cash was applied to:
Community payments (6,765,414) (4,986,355)
Trustees and employees (337,992) (288,146)
Suppliers of other goods & services (383,326) (437,628)
Net operating cash flows (note 7) (2,881,597) 559,836
Cash flows from investing activities-
Cash was provided from:
Sale of government securities 350,000 856,806
Withdrawals from managed funds 3,938,770 6,000,000
4,288,770 6,856,806
Cash was applied to:
Investment in government securities
Investment in managed funds (8,116,586)
Investment in shares
Purchase of fixed assets (18,192) (7,959)
Net investing cash flows 4,270,578 (1,267,739)
Net increase (decrease) in cash held 1,388,981 (707,903)
Add cash at 1 April 7,841,500 8,549,403
Cash at 31 March (note 5) 9,230,481 7,841,500
Notes to the Consolidated Financial Statements for the Year Ended 31 March 2000
1. Statement of accounting policies
1.1 Reporting entity
Eastern and Central Community Trust is a charitable trust incorporated in accordance with the provisions of the Trustee Banks Restructuring Act 1988.
The Trust has a wholly owned company - Eastern & Central Community Trust Charities Limited - which is registered under the Companies Act 1993.
The consolidated financial statements have been prepared in accordance with generally accepted accounting practice.
1.2 Measurement base
The measurement base applied is that of historical cost adjusted for the market valuation of investments.
1.3 Specific accounting policies
The following are the particular accounting policies, which have a material effect on the measurement of results and financial position.
1.3.1 Basis of consolidation
The consolidated financial statements include the trust and its wholly owned company accounted for using the purchase method. All significant inter-entity transactions are eliminated on consolidation. Both entities have a common balance date of 31 March.
1.3.2 Investment income is accounted for on an accruals basis recognising both realised and unrealised gains or losses in value.
1.3.3 Foreign currency balances are converted to NZD at the year end rate of exchange unless covered by a forward exchange contract. Where such contracts are in place the contracted rate is adopted. Transactions completed during the year are converted at the rate applying at the approximate date of the transaction. Foreign exchange gains and losses are included within the Statement of Financial Performance.
1.3.4 Investments are recorded at market value at year-end.
1.3.5 Cash comprises cash at bank, call deposits and short-term deposits but does not include cash held by fund managers.
1.3.6 Donations are included in the Statement of Financial Performance when approved by the trustees.
1.3.7 Fixed assets
Fixed assets are recorded at cost less accumulated depreciation.
1.3.8 Depreciation is provided on a straight line basis that on all tangible fixed assets at rates calculated to allocate the assets' cost less estimated residual value, over their estimated useful lives.
The depreciation periods are:
Computer equipment three years
Fixtures and Fittings nine years
Furniture ten years
Office equipment five years
1.3.9 Income tax is not provided as the Trust has charitable status for tax purposes.
1.3.10 G.S.T. inclusive accounting has been adopted, as the Trust is not registered for G.S.T.
1.4 Changes in accounting policies
There have been no changes in accounting policies. All policies have been consistently applied.
2. Income from investments
2000 1999
$ $
Realised investment income 4,958,548 6,691,014
Changes in investment values - gain (loss) 8,843,721 4,548,486
Foreign exchange movements - gain (loss) 5,647,989 2,559,579
19,450,258 13,799,079
Less fund managers' expenses 296,349 313,777
19,153,909 13,485,302
3. Investments
Type Manager Appointed 2000 1999
$ $
NZ shares
Active Coronet Asset Management Jan 97 11,080,915
Passive TeNZ Dec 97 12,640,280
Passive BNZ Inv. Management July 99 20,174,282
International shares
Passive State Street Global Advisors May 97 74,093,427 58,338,294
NZ bonds
Active Citibank Global Asset Management Mar 97 46,562,307
Active ANZ Asset Management Sept 99 27,702,438
Passive Self 2,995,751 3,579,443
International bonds
Active ANZ Asset Management Sept 99 17,438,279
142,404,177 132,201,239
4. Fixed assets
Fixtures, fittings & equipment at cost 117,157 98,964
Less accumulated depreciation 76,207 61,445
40,950 37,519
5. Cash and bank deposits
Current accounts 7,760 4,663
Call accounts 1,197,658 1,005,925
Petty cash 63 22
Short term deposits 8,025,000 6,830,890
9,230,481 7,841,500
6. Donations payable
Included in donations payable are $2,340,800 (1999 -- $1,339,125) of donations, which are subject to the applicants fulfilling certain conditions.
7. Reconciliation of net surplus with operating cash flows
2000 1999
$ $
Net surplus for the period 10,554,448 7,688,984
Adjust for non-cash items
Unrealised income on investments (14,491,710) (7,108,065)
Depreciation 14,762 19,870
Movements in net current assets
Accrued income (57,064) (52,296)
Donations and sundry payables 1,097,967 11,341
Net operating cash flows (2,881,597) 559,836
8. Contingent liabilities & commitments
Commitments
The trust is committed to $7,230,000 for the "Shooting Star Community Project" and future funding of $560,000 for the four sports trusts in the region.
Lease commitments (incl. G.S.T.)
2000 1999
$ $
Within 1 year 33,750 33,750
1 - 2 years 33,750 33,750
2 - 5 years 52,151 82,970
Beyond 5 years 0
119,651 150,470
A six-year renewal option exists
Contingencies
The Inland Revenue Department is currently reviewing the charitable status of the trust. The trustees have subsequent to balance date resolved to proceed with a judicial review to resolve the matter.
9. Segmental reporting
The trust operates as a charitable trust distributing funds to the community in the entral North Island region
10. Financial instruments
Financial instruments include short-term deposits, New Zealand bonds, international bonds, derivatives and investments in managed funds both within New Zealand and overseas.
10.1 Credit risk
The trustees regularly review their investment strategy. The investment strategy ensures an appropriate diversification of investments so that the Trust has no significant concentration of counterparty or credit risk.
10.2 Fair values
The trust has recorded its financial assets and liabilities at current market values, which represent estimated fair values and credit risk exposure.
10.3 Currency risk
The trust has exposure to currency risk through its investments in offshore equities and bonds. This is managed by Fund Managers.
10.4 Credit facilities
The trust has no credit facilities.
10.5 Interest rate risk
The trust investments in fixed rate securities are subject to interest rate risk.
11. Net current assets
Cash, bank deposits and accrued income are expected to be realised within 12 months. All liabilities are due within 12 months.
Audit Report
To the Trustees of Eastern & Central Community Trust Inc
We have audited the consolidated financial report. The consolidated financial report provides information about the past financial performance of Eastern & Central Community Trust Inc group (the trust) and its financial position as at 31 March 2000. This information is stated in accordance with the accounting policies set out in note 1.
Trustees' Responsibilities
The Trustees are responsible for the preparation of a consolidated financial report, in accordance with New Zealand law and generally accepted accounting practice, which fairly reflects the financial position of the trust as at 31 March 2000 and of the results of operations and cash flows for the year ended 31 March 2000.
Auditors' Responsibilities
It is our responsibility to express an independent opinion on the consolidated 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 consolidated financial report. It also includes assessing:
? the significant estimates and judgements made by the Trustees in the preparation of the consolidated 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. We obtained sufficient evidence to give reasonable assurance that the consolidated 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 consolidated financial report.
During the year we performed certain internal audit activities. Other than in our capacity as auditors and internal 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 the consolidated financial report fairly reflects the financial position of the trust as at 31 March 2000 and the results of its operations and cash flows for the year ended on that date.
Our audit was completed on 9 June 2000 and our unqualified opinion is expressed as at that date.
Dent Robertson & Partners
Chartered Accountants
Hastings, New Zealand
Schedule of Community Payments for the Year Ended 31 March 2000
Donations By Region
2000 1999
$ $
Poverty Bay 795,832 606,155
Hawke's Bay 2,904,475 1,980,470
Tararua 521,610 245,430
Wairarapa 884,870 755,970
Manawatu 1,898,537 983,880
Horowhenua 543,934 458,295
Regional 345,110 223,750
Total donations 7,894,368 5,253,950
An itemised list of all donations is available, free of charge, from the Trust Manager, P.O. Box 1058, Hastings.