TSB Community Trust Statement of Financial Performance for the Year Ended 31 March 2001
Notes 2001 2000
$ $
Revenue
Dividend from TSB Bank Ltd 2 2,050,000 1,700,000
Interest received 63,332 38,743
Donations 1,250 2,004
Operating revenue 2,114,582 1,740,747
Expenses
Audit fees 1,596 1,601
Solicitors fees - -
Professional services 602 608
Insurance 4,364 4,308
Trustees' honoraria 47,834 54,783
Trustees' expenses 5,955 6,588
Administrator fees 28,968 29,133
Administrator mileage 942 905
Conference expenses 3,440 9,119
Stationery and postage 4,515 1,389
Advertising 6,395 4,345
Promotional expenses 1,369 7,305
Sundry expenses 572 653
Telephone and P.O. Box 1,322 1,312
Depreciation 789 427
Operating expenses 108,663 122,476
Funds Available for Distribution 2,005,919 1,618,271
Donations during the year 1,829,050 1,711,400
Net surplus/(deficit) before taxation 176,869 (93,129)
Taxation expense 4 - -
Net surplus/(deficit) after taxation 176,869 (93,129)
TSB Community Trust Statement of Financial Position as at 31 March 2001
Notes 2001 2000
$ $
Accumulated funds
Capital 100 100
Initial gift 1 10,000,000 10,000,000
10,000,100 10,000,100
Retained funds 748,777 571,908
Total funds 10,748,777 10,572,008
Represented by:
Current assets-
Petty cash 36 63
TSB Bank Limited 55,591 84,569
Accrued interest 7,602 4,721
63,229 89,353
Less current liabilities-
Accrued charges 18,223 18,569
Working capital 45,006 70,784
Fixed assets 7 3,871 1,224
Investments
Shares in TSB Bank Limited 1 10,000,000 10,000,000
TSB Bank Ltd investments 700,000 500,000
10,748,877 10,572,008
For and on behalf of the trustees:
D. E. WALTER, Chairperson.
TSB Community Trust Statement of Cashflows for the Year Ended 31 March 2001
Notes 2001 2000
$ $
Cashflow from operating activities-
Cash was provided from:
Donations 1,250 2,004
Dividends from TSB Bank 2,050,000 1,700,000
Interest received 60,451 39,114
2,111,701 1,741,118
Cash was applied to:
Donations 1,829,050 1,711,400
Payments to suppliers and trustees 108,220 118,076
1,937,270 1,829,476
Net cashflows from operating activities 9 174,431 (88,358)
Cashflows from investing activities-
Cash was provided from:
Principal from investments 1,895,000 2,140,000
Cash was applied to:
Investments 2,095,000 2,040,000
Purchase of fixed assets 3,436 -
2,098,436 2,040,000
Net cashflows from investing activities (203,436) 100,000
Cashflow from investing activities - -
Net increase/(decrease) in cash held (29,005) 11,642
Plus opening cash 1 April 2000 84,632 72,990
Closing balance 31 March 2001 10 55,627 84,632
TSB Community Trust Statement of Movements in Equity for the Year Ended 31 March 2001
2001 2000
$ $
Equity at 1 April 2000 10,572,008 10,665,137
Retained surplus/(deficit) for the year 176,869 (93,129)
Total recognised revenues and expenses 176,869 (93,129)
Equity at 31 March 2001 10,748,877 10,572,008
Statement of Notes to the Accounts
1. Statement of Accounting Policies
Reporting Entity
TSB Community Trust is a charitable trust formed by a trust deed dated 30 May 1988. A new trust deed was adopted by the trust on 8 February 2001. The financial statements have been prepared in accordance with this deed and 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.
Specific Accounting Policies
Receivables are stated at their estimated realisable value.
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 2001 was $4.91 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
The income tax expense charged to the statement of income includes both the current year's provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
Financial Instruments
The financial instruments are recorded at their carrying value which is also the fair value of each of the classes of financial instruments consisting of cash, accounts payable, and accounts.
Cashflows
For the purpose of the statement of cashflow, cash includes cash on hand and deposits held on call with banks.
Goods and Services Tax
The financial statements have been prepared on a G.S.T. inclusive basis.
Changes in Accounting Policies
The new trust deed adopted requires that the Trust is to be treated as a reporting entity and an issuer as defined in the Financal Reporting Act. This has resulted in additional disclosures in the trust's financial statements relating to financial instruments and related party transactions.
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 $1,400,000 relating to the final instalment received from the bank for year ended 31 March 2000 and $650,000 interim dividend for the year ended 31 March 2001.
3. Financial Instruments
Financial instruments that potentially have credit risk are cash, accrued interest, and accrued charges.
The maximum credit risk exposure at balance date is the carrying value of bank, accrued interest and accrued charges. This is also the fair value.
4. Income Tax
The company has income tax losses of $263,880 (2000 - $213,100) available to be carried forward and set off against future assessable income.
5. Commitments and Contingent Liabilities
At balance date $764,800 has been approved for donations in the 2001/2002 financial year (2000 - $405,400).
6. Publishing Requirements
A comprehensive list itemising all recipients was published in Taranaki's The Daily News on the following dates:
1st round 7 September 2000
2nd round 24 April 2001
A copy of the list of grants is available to anyone upon request (P.O. Box 31, Oakura, Taranaki).
7. Fixed Assets
2001 2000
$ $
Office equipment at cost 17,548 14,112
Accumulated depreciation 13,677 12,888
3,871 1,224
8. Segment Information
The company operates predominately in one industry - investment. All operations are carried out within New Zealand.
9. Reconciliation of Net Surplus With Net Cashflows From Operating Activities
2001 2000
$ $
Net surplus- 176,869 (93,129)
Add/(less):
Depreciation 789 427
Movements in working capital items:
(Increase)/decrease in receivables (2,881) 371
Increase/(decrease) in payables (346) 3,973
Net cashflows from operating activities 174,431 (88,358)
10. Cash Balances in the Statement of Financial Position
2001 2000
$ $
Petty cash 36 64
TSB Bank Ltd 55,591 84,569
55,627 84,632
11. Related Party Transactions
The trust paid donations throughout the year to community organisations of which the trustees may be members. These donations were made on normal terms and conditions. There were no amounts outstanding at 31 March 2001 relating to these transactions.
12. Transactions at Nil or Nominal Value
Professional services have been provided to the trust during the year at no cost.
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 2001. This information is stated in accordance with the accounting policies set out.
Trustees' 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 2001 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 judgments 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 2001 and its financial performance and cash flows for the year ended on that date.
Our audit was completed on 7 May 2001 and our unqualified opinion is expressed as at that date.
STAPLES RODWAY, Chartered Accountants, New Plymouth.