TSB Community Trust Statement of Financial Performance for the Year Ended 31 March
2000 1999
$ $
Revenue
Dividend from TSB Bank Ltd (note 2) 1,700,000 1,395,000
Interest received 38,743 49,321
Donations 2,004 50,000
1,740,747 1,494,321
Less expenses
Audit fees 1,601 1,603
Solicitors fees - -
Professional services 608 1,671
Insurance 4,308 -
Trustees' honoraria 54,783 48,672
Trustees' expenses 6,588 4,708
Administrator fees 29,133 22,693
Administrator mileage 905 666
Conference expenses 9,119 5,101
Stationery & postage 1,389 3,122
Advertising 4,345 2,645
Promotional expenses 7,305 -
Sundry expenses 653 500
Telephone & P.O. Box 1,312 942
Depreciation 427 72
122,476 92,395
Funds available for distribution 1,618,271 1,401,926
Donations during the year 1,711,400 1,332,550
Net surplus/(deficit) for year (93,129) 69,376
TSB Community Trust Statement of Financial Position as at 31 March 2000
2000 1999
$ $
Accumulated funds
Capital 100 100
Initial gift (note 1) 10,000,000 10,000,000
10,000,100 10,000,100
Retained funds 571,908 665,037
Total funds 10,572,008 10,665,137
Represented by:
Current assets-
Petty cash 63 36
TSB Bank Limited 84,569 72,954
Accrued interest 4,721 5,092
89,353 78,082
Less current liabilities
Accrued charges 18,569 14,596
Working capital 70,784 63,486
Fixed assets (note 5) 1,224 1,651
Investments
Shares in TSB Bank Limited (note 1) 10,000,000 10,000,000
TSB Bank Ltd investments 500,000 600,000
10,572,008 10,665,137
For and on behalf of the trustees:
D. E. Walter, Chairperson.
TSB Community Trust Statement of Cashflows for the Year Ended 31 March 2000
2000 1999
$ $
Cashflow from operating activities-
Cash was provided from:
Donations 2,004 50,000
Dividends from TSB Bank 1,700,000 1,395,000
Interest received 39,114 52,706
1,741,118 1,497,706
Cash was applied to:
Donations 1,711,400 1,332,550
Payments to suppliers and trustees 118,076 88,025
1,829,476 1,420,575
Net cashflows from operating activities (note 7) (88,358) 77,131
Cashflows from investing activities-
Cash was provided from:
Principal from investments 2,140,000 1,345,000
Cash was applied to:
Investments 2,040,000 1,395,000
Purchase of fixed assets - 1,723
2,040,000 1,396,723
Net cashflows from investing activities 100,000 (51,723)
Net increase/(decrease) in cash held 11,642 25,408
Plus opening cash 1 April 1999 72,990 47,582
Closing balance 31 March 2000 (note 8) 84,632 72,990
TSB Community Trust Statement of Movements in Equity for the Year Ended 31 March 2000
2000 1999
$ $
Equity at 1 April 1999 10,665,137 10,595,761
Retained surplus/(deficit) for the year (93,129) 69,376
Total recognised revenues and expenses (93,129) 69,376
Equity at 31 March 2000 10,572,008 10,665,137
Notes to Financial Statements
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 have been prepared in accordance with the Community Trusts Act 1999.
Measurement base
The measurement base is that of historical cost.
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 the value when gifted:
20,000,000 fully paid shares at 50 cents each, representing $10,000,000
The net asset backing at 31 March 2000 was $4.25 per share.
Fixed assets
Fixed assets are recorded at cost, office equipment will be depreciated on a straight line basis over four 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 those in respect of FRS.10: statement of cashflows.
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 $1,200,000 relating to the final instalment received from the bank for year ended 31 March 1999 and $500,000 interim dividend for the year ended 31 March 2000.
3. Commitments and contingent liabilities
At balance date $405,400 has been approved for donations in the 2000/2001 financial year (1999: $55,000).
4. Publishing requirements
A comprehensive list, itemising all recipients was published in the Taranaki Daily News on the following dates:
1st round 14/08/99
2nd round 11/02/00
3rd round 5/05/00
A copy of the list of grants is available to anyone upon request (P.O. Box 31, Oakura, Taranaki).
5. Fixed assets
2000 1999
$ $
Office equipment at cost 14,112 14,112
Accumulated depreciation 12,888 12,461
1,224 1,651
6. Income tax
There are taxation losses amounting to $213,100 (1999: $132,294) available to carry forward and set off against future assessable income.
7. Reconciliation of net surplus with net cashflows from operating activities
2000 1999
$ $
Net surplus- (93,129) 69,376
Add/(less):
Depreciation 427 72
Movements in working capital items:
(Increase)/decrease in receivables 371 3,385
Increase/(decrease) in payables 3,973 4,298
Net cashflows from operating activities (88,358) 77,131
8. Cash balances in the statement of financial position
2000 1999
$ $
Petty cash 63 36
TSB Bank Ltd 84,569 72,954
84,632 72,990
Auditor's 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 2000. This information is stated in accordance with the accounting policies set out under "1" in "notes to financial statements".
Trustee's responsibilities
As trustees you are responsible for the preparation of financial statements which comply with generally accepted accounting practice and present a true and fair view of the financial position of the Trust as at 31 March 2000 and its financial performance 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 judgements made by the trustees in the preparation of the financial statements; 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 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:
· comply with generally accepted accounting practice; and
· present a true and fair view of the financial position of the trust as at 31 March 2000 and its financial performance and cash flows for the year ended on that date.
Our audit was completed on 24 May 2000 and our unqualified opinion is expressed as at that date.
STAPLES RODWAY, Chartered Accountants, New Plymouth.