Statement of Financial Performance for the Year Ended 31 March 2007
Notes 2007 2006
$ $
Income
Dividends 7,800,000 7,000,000
Interest 358,350 376,812
8,158,350 7,376,812
Expenses
Audit fees 10,693 9,000
Trustee honoraria 80,307 79,672
Trustee expenses 11,679 12,182
Other expenses 265,319 246,267
Depreciation 31,403 28,679
Total expenses 399,401 375,800
Net surplus 7,758,949 7,001,012
Donations during current year 9,351,006 6,510,987
Net surplus (deficit) transferred to equity (1,592,057) 490,025
Statement of Movements in Equity for the Year Ended 31 March 2007
2007 2006
$ $
Net surplus (deficit) (1,592,057) 490,025
Balance retained as trustees’ income added to equity (1,592,057) 490,025
Equity at start of year 18,044,490 17,554,465
16,452,433 18,044,490
Statement of Financial Position as at 31 March 2007
Notes 2007 2006
$ $
Trust equity 2 16,452,433 18,044,490
Current liabilities:
Accrued charges 55,656 54,025
Donations payable 842,893 1,891,380
898,549 1,945,405
Total equity and liabilities 17,350,982 19,989,895
Current assets:
Petty cash 50 54
TSB Cheque Account 151,459 47,517
Dividend receivable 5,595,000 4,975,000
Accrued interest 14,951 62,875
5,761,460 5,085,446
Non current assets:
Property, plant and equipment as per schedule (at book value) 3 39,522 54,449
Investments 4 11,550,000 14,850,000
Total assets 17,350,982 19,989,895
For and on behalf of the trustees:
COLLEEN TUUTA. 21 June 2007.
KEMP BROUGHTON. 10 July 2007.
Statement of Cash Flows for the Year Ended 31 March 2007
Notes 2007 2006
$ $
Operating activities—
Cash was provided from:
Interest income received 406,273 364,250
Dividend income received 7,180,000 6,540,000
7,586,273 6,904,250

Cash was applied to:
Donations paid 10,399,493 5,165,807
Operating expenditure 365,980 344,566
10,765,473 5,510,373
Net cash inflow/(outflow) from operating activities (3,179,200) 1,393,877
0Investing activities—
Cash was provided from:
Net decrease in investment securities 3,300,000 –
Cash was applied to:
Net increase in investment securities – 1,420,000
Property, plant and equipment purchased 16,862 11,288
16,862 1,431,288
Net cash inflow/(outflow) from investing activities 3,283,138 (1,431,288)
Net increase/(decrease) in cash held 103,938 (37,411)
Add opening cash brought forward 47,571 84,982
Ending cash carried forward 151,509 47,571
Cash balances in balance sheet:
Petty cash 50 54
TSB Cheque Account 151,459 47,517
Ending cash carried forward 151,509 47,571
Notes to the Financial Statements for the Year Ended 31 March 2007
1. Statement of Accounting Policies
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 System
The measurement system adopted is that of historical cost.
Particular Accounting Policies
The following is a summary of the significant accounting policies adopted by the trust in the preparation of these financial statements.
Property, Plant, Equipment and Depreciation
Property, plant and equipment are recorded at cost and will be depreciated on a straight line basis over four years.
Taxation
From 1 April 2004, section CB4(1)(m) of the Income Tax Act (1994) exempts the trust from income tax.
Accounts Receivable
Accounts receivable are stated at their estimated realisable value.
Investments
The TSB Bank Limited shares are stated at the value when gifted on 20,000,000 fully paid shares at 50 cents representing $10,000,000. The net asset backing at 31 March 2007 was $11.01 per share.
Goods and Services Tax
The financial statements have been prepared on a GST inclusive basis.
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, 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.
Cash Flow
For the purpose of the statement of cash flow, cash includes cash on hand and deposits held on call with banks.
Changes in Accounting Policies
There have been no specific changes in accounting policies and they have been applied on a consistent basis with those of the previous period.
2. Analysis of Equity
The trust deed makes distinction between trust capital and accumulated trustees’ income. The equity of the trust consists of the following:
2007 2006
$ $
Capital:
Trust capital 100 100
Initial gift 10,000,000 10,000,000
10,000,100 10,000,100
Balance at beginning of year 8,044,390 7,554,365
Net surplus/(deficit) held by trustee (1,592,057) 490,025
Balance at end of year 6,452,333 8,044,390
$16,452,433 $18,044,490
3. Property, Plant and Equipment Summary
2007 Cost$ AccumulatedDepreciation$ Book Value$
Buildings 2,070 2,070 –
Fixtures and fittings 9,913 5,721 4,192
Other fixed assets 136,232 100,902 35,330
148,215 108,693 39,522
2006
Buildings 2,070 1,554 516
Fixtures and fittings 9,913 3,242 6,671
Other fixed assets 122,311 75,049 47,262
134,294 79,845 54,449
4. Investments
2007 2006
$ $
Other investments:
Shares in TSB Bank Limited 10,000,000 10,000,000
TSB Bank Limited investments – 2,850,000
TSB Bank Limited investments – reserve held 1,550,000 2,000,000
11,550,000 14,850,000
5. Contingent Liabilities
2007 2006
$ $
Donations confirmed but the distribution is subject to the donees’ meeting certain conditions 698,500 –
6. Capital Commitments
There are no capital commitments at year end (31 March 2006 – $Nil).
7. Related Parties
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 2007 relating to
these transactions.
8. Reconciliation of Net Profit with Cash Flows From Operating Activities
2007 2006
$ $
Reported surplus (1,592,057) 490,025
Add non-cash items:
Depreciation and loss on disposal 31,789 29,615
(1,560,268) 519,640
Add/(less) movements in other working capital items:
Increase/(decrease) in sundry creditors (1,046,856) 1,346,800
(Increase)/decrease in sundry debtors (572,076) (472,563)
Net cash inflow/(outflow) from operating activities (3,179,200) 1,393,877
9. 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.
10. Publishing Requirements
A comprehensive list itemising all recipients was published in the Taranaki Daily News on the following dates:
1st Quarter 24 July 2006
2nd Quarter 19 October 2006
3rd Quarter 7 February 2007
4th Quarter 15 May 2007
A copy of the list of grants is available to anyone upon request (PO Box 667, New Plymouth).
11. Segment Information
The trust operates predominantly in one industry – investment. All operations are carried out within New Zealand.
Taxation Reconciliation for the Year Ended 31 March 2007
2007 2006
$ $
Taxation
Net surplus per accounts 7,758,949 7,001,012
Add back:
Gross dividend accrued last year 7,425,373 6,738,806
Interest accrued last year 62,875 50,313
Imputation credits 3,841,791 3,447,761
19,088,988 17,237,892
Less:
Gross dividends not yet received 8,350,746 7,425,373
Interest not yet received 14,951 62,875
Non-profit body exemption 1,000 1,000
Loss carried forward 543,741 531,190
Taxable surplus 10,178,550 9,217,454
Taxation @ 33% 3,358,922 3,041,759
Less:
Imputation credits 3,536,418 3,221,194
(177,496) (179,435)
Plus:
Imputation credits converted to loss 177,496 179,435
Tax payable as per statement of financial position – –
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 its financial position as at 31 March 2007. This information is stated in accordance with the accounting policies set out.
Trustees’ Responsibilities
The trustees are responsible for the preparation, in accordance with New Zealand law and generally accepted accounting practice, of financial statements which fairly reflects the financial position of TSB Community Trust as at 31 March 2007 and the results of its operations and cash flows for the year ended on that date.
Auditors’ Responsibilities
It is our responsibility to express to you an independent opinion on the financial statements presented by the trustees.
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’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.
Unqualified Opinion
We have obtained all the information and explanations we have required.
In our opinion, the financial statements fairly reflect the financial position of TSB Community Trust as at 31 March 2007 and the results of its operations and cash flows for the year ended on that date.
Our audit was completed on 11 July 2007 and our unqualified opinion is expressed as at that date.
DELOITTE, Chartered Accountants, Hamilton, New Zealand.
This audit report relates to the financial statements of TSB Community Trust for the year ended 31 March 2007 included on TSB Community Trust’s website. The trustees are responsible for the maintenance and integrity of TSB Community Trust’s website. We have not been engaged to report on the integrity of TSB Community Trust’s website. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. The audit report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication, they should refer to the published hard copy of the audited financial statements and related audit report dated 11 July 2007 to confirm the information included in the audited summary financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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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.
A list of all distributions approved or paid for the period year ended 31 March 2007 is available, on request, from the office of the TSB Community Trust, 64–66 Vivian Street, New Plymouth, or via the website www.tsbtrust.org.nz