Statement of Financial Performance for the Year Ended 31 March 2002
Notes 2002 2001
$ $
Revenue:
Dividend from TSB Bank Ltd 2 3,585,000 2,050,000
Interest received 93,826 63,332
Other income 550 1,250
Operating revenue 3,679,376 2,114,582
Expenses:
Audit fees 1,716 1,596
Trustees' honoraria 53,460 47,834
Trustees' expenses 9,630 5,955
Other expenses 71,404 52,489
Depreciation 1,640 789
Operating expenses 137,850 108,663
Funds available for distribution 3,541,526 2,005,919
Donations during the year 3,341,400 1,829,050
Net surplus/(deficit) before taxation 200,126 176,869
Taxation expense 4 - -
Net surplus/(deficit) after taxation 200,126 176,869
Statement of Financial Position as at 31 March 2002
Notes 2002 2001
$ $
Accumulated funds:
Capital 100 100
Initial gift 1 10,000,000 10,000,000
10,000,100 10,000,100
Retained funds 948,903 748,777
Total funds 10,949,003 10,748,777
Represented by-
Current assets:
Petty cash 134 36
TSB Bank Limited 10,849 55,591
Accrued interest 14,949 7,602
25,932 63,229
Less current liabilities:
Accrued charges 17,860 18,223
Donations payable 213,400 -
Working capital (205,328) 45,006
Fixed assets 7 4,331 3,871
Investments:
Shares in TSB Bank Limited 1 10,000,000 10,000,000
TSB Bank Ltd investments 1,050,000 700,000
Suspensory loan 13 100,000 -
10,949,003 10,748,877
For and on behalf of the trustees:
D. E. WALTER, Chairperson.
Statement of Cashflows for the Year Ended 31 March 2002
Notes 2002 2001
$ $
Cashflow from operating activities-
Cash was provided from:
Other income 550 1,250
Dividends from TSB Bank 3,585,000 2,050,000
Interest received 86,479 60,451
3,672,029 2,111,701
Cash was applied to:
Donations 3,128,000 1,829,050
Payments to suppliers and trustees 136,575 108,220
3,264,575 1,937,270
Net cashflows from operating activities 9 407,454 174,431
Cashflows from investing activities-
Cash was provided from:
Principal from investments 3,435,000 1,895,000
Cash was applied to:
Investments 3,885,000 2,095,000
Purchase of fixed assets 2,098 3,436
3,887,098 2,098,436
Net cashflows from investing activities (452,098) (203,436)
Cashflow from investing activities - -
Net increase/(decrease) in cash held (44,644) (29,005)
Plus opening cash 1 April 2001 55,627 84,632
Closing balance 31 March 2002 10 10,983 55,627
Statement of Movements in Equity for the Year Ended 31 March 2002
2002 2001
$ $
Equity at 1 April 2001 10,748,877 10,572,008
Retained surplus/(deficit) for the year 200,126 176,869
Total recognised revenues and expenses 200,126 176,869
Equity at 31 March 2002 10,949,003 10,748,877
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 2002 was $5.63 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
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 $2,800,000 relating to the final instalment received from the bank for year ended 31 March 2001 and $785,000 interim dividend for the year ended 31 March 2002.
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 $309,077 (2001 - $263,880) available to be carried forward and set off against future assessable income.
5. Commitments and Contingent Liabilities
At balance date, $523,800 has been approved for donations in the 2002/2003 financial year (2001 - $764,800).
6. Publishing Requirements
A comprehensive list itemising all recipients was published in Taranaki's The Daily News on the following dates:
1st round 13 September 2001
2nd round 7 February 2002
3rd round 10 May 2002
A copy of the list of grants is available to anyone upon request (P.O. Box 31, Oakura, Taranaki).
7. Fixed Assets
2002 2001
$ $
Office equipment at cost 19,646 17,548
Accumulated depreciation 15,315 13,677
4,331 3,871
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
2002 2001
$ $
Net surplus- 200,126 176,869
Add/(less):
Depreciation 1,640 789
Movements in working capital items:
(Increase)/decrease in receivables (7,347) (2,881)
Increase/(decrease) in payables 213,035 (346)
Net cashflows from operating activities 407,454 174,431
10. Cash Balances in the Statement of Financial Position
2002 2001
$ $
Petty cash 134 36
TSB Bank Ltd 10,849 55,591
10,983 55,627
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 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.
13. Suspensory Loan
An interest free suspensory loan of $100,000 was made to the Waitara Railway Preservation Society during the year. The funding is to be used for infrastructure, heritage, tourism and job creation. The loan is secured over the rail with the provision that the mortgage will be suspended after four years if, in the trust's view, the Waitara Railway Preservation Society has fulfilled certain obligations under the loan.
Auditors' 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 2002. 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 2002 and its financial performance and cash flows for the year ended on that date.
Auditors' 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 2002 and its financial performance and cash flows for the year ended on that date.
Our audit was completed on 28 May 2002 and our unqualified opinion is expressed as at that date.
STAPLES RODWAY, Chartered Accountants, New Plymouth.