Notice Type
General Section
Notice Title

TSB Community Trust

Statement of Financial Position as at 31 March 2005
Notes 2005 2004
$ $
Current assets:
Petty cash 195 113
Bank 84,787 112,546
Accrued interest 50,313 39,744
Dividend receivable 4,515,000 3,540,000
4,650,295 3,692,403
Non current assets:
Property, plant and equipment 2 72,775 37,706
Investments 3 13,430,000 12,750,000
13,502,775 12,787,706
Total assets 18,153,070 16,480,109

Current liabilities:
Accrued charges 52,406 48,813
Donations payable 546,200 413,800
598,606 462,613
Trust equity:
Trust capital 100 100
Initial gift 10,000,000 10,000,000
Retained funds 7,554,364 6,017,396
17,554,464 16,017,496
Total funds employed 18,153,070 16,480,109
The accompanying notes form part of these financial statements.
For and on behalf of the trustees:
C. B. TUUTA, Trustee.
Date: 23 June 2005.
Statement of Financial Performance and Statement of Movements in Equity for the Year Ended 31 March 2005
Notes 2005 2004
$ $
Dividends 6,265,000 5,200,000
Interest 259,576 185,585
Other income 4 – 2,807
Operating revenue 6,524,576 5,388,392
Audit fees 9,096 17,513
Trustee honoraria 74,747 73,720
Trustee expenses 13,842 9,348
Other expenses 188,497 164,523
Depreciation 24,711 10,257
Operating expenses 310,893 275,361
Funds available for distribution 6,213,683 5,113,031
Donations during the year 4,576,714 3,948,546
Suspension of loan 3 100,000 –
Net surplus before taxation 1,536,969 1,164,485
Net surplus after taxation 1,536,969 1,164,485
Statement of Movements in Equity
2005 2004
$ $
Equity at beginning of the year 16,017,495 14,853,011
Net surplus for the year 1,536,969 1,164,485
17,554,464 16,017,496
Equity at end of the year 17,554,464 16,017,496
The accompanying notes form part of these financial statements.
Statement of Cash Flows for the Year Ended 31 March 2005
Notes 2005 2004
$ $
Cash flows from operating activities—
Cash was provided from:
Interest income received 249,005 172,283
Dividend income received 5,290,000 5,175,000
Other income received – 22,763
5,539,005 5,370,046
Cash was applied to:
Donations paid 4,444,314 4,452,700
Operating expenditure 282,588 237,280
4,726,902 4,689,980
Net cash flow from operating activities 812,103 680,066

Cash flows from investing activities
Cash was applied to:
Net increase in investment securities 780,000 600,000
Property, plant and equipment purchased 59,780 44,072
839,780 644,072
Net cash flow from investing activities (839,780) (644,072)
Net increase/(decrease) in cash and cash equivalents (27,677) 34,994
Add cash and cash equivalents at beginning of the year 112,659 77,665
Cash and cash equivalents at year end 84,982 112,659
Reconciliation of Net Surplus After Tax to Net Cash Flows from Operating Activities for the Year Ended 31 March 2005
Notes 2005 2004
$ $
Net surplus after taxation 1,536,969 1,164,485
Add non-cash items:
Depreciation 24,710 10,257
Suspension of loan 100,000 –
Add/(deduct) movements in working capital:
Increase (decrease) in sundry creditors 135,993 (456,377)
(Increase) decrease in sundry debtors (985,569) (38,299)
Net cash flow from operating activities 812,103 680,066
Notes to the Financial Statements for the Year Ended 31 March 2005
1. Statement of Accounting Policies
Reporting Entity
TSB Community Trust is a trust established by trust deed dated 30 May 1988, and has adopted a revised deed on
8 February 2001.
These 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.
Accounts receivables are stated at their estimated net realisable value.
The TSB Bank Limited shares are stated at the value when gifted of 20,000,000 fully paid shares at 50 cents each, representing $10,000,000. The net asset backing at 31 March 2005 was $8.43 per share.
Property, plant and equipment are recorded at cost and will be depreciated on a straight line basis over four years.
The income tax expense charged to the statement of income includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
The financial instruments are recorded at their carrying value which is also the fair value of each of the classes of financial instruments consisting of cash, accrued interest, dividends receivable, investments other than shares in TSB Bank Limited, accrued charges and donations payable. As stated above, the shares in TSB Bank Limited are carried at their value when gifted.
For the purpose of the statement of cashflow, cash includes cash on hand and deposits held on call with banks.
The financial statements have been prepared on a G.S.T. inclusive basis.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the previous years.
2. Property, Plant and Equipment
Cost$ AccumulatedDepreciation$ 2005 BookValue$
Buildings 2,070 1,036 1,034
Fixtures and fittings 8,818 832 7,986
Office equipment 114,253 50,498 63,755
125,141 52,366 72,775

Cost$ AccumulatedDepreciation$ 2004 BookValue$
Buildings 2,070 518 1,552
Office equipment 63,291 27,137 36,154
65,361 27,655 37,706
3. Investments (at cost)
2005 2004
$ $
TSB Bank Limited investments 3,430,000 2,650,000
Shares in TSB Bank Limited 10,000,000 10,000,000
Suspensory loan – 100,000
13,430,000 12,750,000
An interest free suspensory loan of $100,000 was made to the Waitara Railway Preservation Society in 2001. The funding was to be used for infrastructure, heritage, tourism and job creation. The loan was 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 fulfilled certain obligations under the loan. The loan was suspended on 7 December 2004.
4. Other Income
2005 2004
$ $
Other income – 2,807
Total other income – 2,807
5. Commitments and Contingent Liabilities
At balance date, $NIL has been approved for donations in the 2005/2006 financial year (2004 – $NIL).
6. 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 the bank, accrued interest, and accrued charges. This is also the fair value.
7. Income Tax
The trust has income tax losses of $531,191 (2004 – $468,303) available to be carried forward and set off against future assessable income.
8. Publishing Requirements
A comprehensive list itemising all recipients was published in the Taranaki Daily News on the following dates:
1st Quarter 28 August 2004
2nd Quarter 20 October 2004
3rd Quarter 7 March 2005
4th Quarter 28 April 2005
A copy of the list of grants is available to anyone upon request (P.O. Box 667, New Plymouth).
9. Segment Information
The trust operates predominantly in one industry – investment. All operations are carried out within New Zealand.
10. 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.
11. Transactions at Nil or Nominal Value
Professional services have been provided to the trust during the year at no cost.
Auditors’ Report
To the Trustees of the TSB Community Trust
We have audited the financial statements. The financial statements provide information about the past financial performance of TSB Community Trust and Group and its financial position as at 31 March 2005. This information is stated in accordance with the accounting policies set out.
Trustees’ Responsibilities
The trustees are responsible for the preparation of financial statements, in accordance with New Zealand law and generally accepted accounting practice, which fairly reflects the financial position of TSB Community Trust and Group as at 31 March 2005 and the results of its operations and cash flows for the year ended 31 March 2005.
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 TSB Community Trust and Group’s circumstances, consistently applied and adequately disclosed.
We conducted our audit in accordance with New Zealand auditing standards. 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 obtain 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 interests in TSB Community Trust and Group.
Unqualified Opinion
We have obtained all the information and explanations we have required.
In our opinion, the financial statements fairly reflects the financial position of TSB Community Trust and Group as at 31 March 2005 and the results of its operations and cash flows for the year ended on that date.
Our audit was completed on 23 June 2005 and our unqualified opinion is expressed as at that date.
DELOITTE, Chartered Accountants, Hamilton, New Zealand.
The above financial statements are for the parent entity TSB Community Trust and do not include the TSB Community Trust Group information. A full set of consolidated financial statements, which includes the parent entity and group information, is available for inspection at the trust offices at 64-66 Vivian Street, New Plymouth.