Income Statement for the Year Ended 31 March 2008
Notes 2008 2007
NZ$’000 NZ$’000
Revenue from operations 3 17,159 12,426
Realised and unrealised gains/(losses) 4 (14,516) (8,970)
Donations 16 (8,612) (8,540)
Audit fees (20) (13)
Depreciation 12 (81) (88)
Employee remuneration (402) (331)
Fund management services (662) (603)
Investment advisory services (130) (159)
Other expenses (596) (455)
Sponsorship (162) (181)
Trustee fees 17 (210) (209)
Profit (loss) from operations (8,232) 10,817

The (deficit)/surplus has been supplied to:
Trust funds (8,232) 10,817
(8,232) 10,817
Statement of Changes in Equity for the Year Ended 31 March 2008
Notes 2008 2007
NZ$’000 NZ$’000
Trust funds as at 1 April 248,302 237,485
(Deficit)/surplus for the period (8,232) 10,817
Total recognised income and expense (8,232) 10,817
Trust funds as at 31 March 240,070 248,302
Balance Sheet as at 31 March 2008
Notes 2008 2007
NZ$’000 NZ$’000
Equity:
Trust funds 240,070 248,302
Total equity 240,070 248,302
Current liabilities:
Trade and other payables 5 182 163
Donations payable 6 1,414 1,892
Employee entitlements 7 17 12
Derivative financial instrument 15 620 –
2,233 2,067
Non-current liabilities:
Donations payable future years 8 1,080 –
Total equity and liabilities 243,383 250,369
Current assets:
Cash and cash equivalents 9 313 71
Trade and other receivables 10 37 39
Derivative financial instrument 15 – 2,067
350 2,117
Non-current assets:
Financial assets at fair value through profit or loss 11 240,538 245,827
Property, plant and equipment 12 2,495 2,365
243,033 248,192
Total assets 243,383 250,369


For and behalf of the trustees, who authorised the issue of these financial statements on the date shown below:
Trustee: TUREITI MOXON Trustee: JOHN KILBRIDE
Date: 16 June 2008 Date: 16 June 2008
Cash Flows Statement for the Year Ended 31 March
Notes 2008 2007
NZ$’000 NZ$’000
Cash flow from operating activities—
Cash was provided from:
Dividends 6,628 2,348
Interest 10,496 10,049
Other investment income received 6,066 3,288
GST (net) 5 39
23,195 15,724
Cash was applied to:
Payments to suppliers and employees (2,159) (1,934)
Donations paid (8,009) (8,122)
(10,168) (10,056)
Net cash (used in)/provided by operating activities 14 13,027 5,668
Cash flow from investing activities—
Cash was provided from:
Sale of investments 10,000 –
10,000 –
Cash was applied to:
Purchase of investments (22,574) (6,075)
Purchase of property, plant and equipment (211) (154)
(22,785) (6,229)
Net cash (used in)/provided by investing activities (12,785) (6,229)
Net increase in cash and cash equivalents 242 (561)
Cash and cash equivalents at beginning of the financial year 71 632
Cash and cash equivalents at the end of the financial year 313 71
The Waikato Community Trust Incorporated Cash Flow Statement for the Year Ended 31 March 2008
The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.
The Waikato Community Trust Incorporated Notes To and Forming Part Of the Financial Statements for the Year Ended 31 March 2008
1. Statement of Accounting Policies
Reporting Entity
The trust is a not for profit charitable trust incorporated and domiciled in New Zealand. Its principal service is the provision of funds in the form of donations and sponsorship to community groups in the wider Waikato area. Accordingly, the Waikato Community Trust has designated itself as a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS).
The financial statements were authorised for issue by the trustees on 16 June 2008.
Statement of Compliance
The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (“NZ GAAP”) and the Incorporated Societies Act 1908. They comply with the New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards as appropriate for public benefit entities.
These are the first financial statements of the trust to be prepared in accordance with NZ IFRS.
The transition to NZ IFRS is accounted for in accordance with NZ IFRS-1 “First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards”, with 1 April 2006 as the date of transition. An explanation of the transition to NZ IFRS is discussed in note 20.
Basis of Preparation
The financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets, as identified in the specific accounting policies below, which are stated at their fair value.
The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 March 2008, the comparative information presented in these financial statements for the year ended 31 March 2007 and in the preparation of the opening NZ IFRS balance sheet at 1 April 2006, the trust’s date of transition.
In preparing these financial statements in accordance with NZ IFRS 1, the trust has applied certain applicable optional exemptions and certain applicable mandatory exceptions.
Critical Accounting Estimates and Judgements
The preparation of financial statements in conformity with NZ IFRS requires management of the use of certain critical accounting estimates, judgements and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates.
The estimates and judgements are reviewed by management on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised. In the process of applying the trust’s accounting policies, management have made judgements regarding whether or not discretionary donations are payable at year end or if discretionary donations are commitments at year end. This potentially has a significant effect on the amounts recognised in the financial statements. Donations payable are discretionary donations where there are no significant conditions attached to the donation at balance date or where the significant conditions attached to the donation have been met at balance date. Donations that are classified as commitments at year end are discretionary donation obligations at balance date that are reliant on additional funding or have other significant conditions attached to them to go ahead with a specified project. Management has also used market rates to determine the fair value of investments.
Standards, interpretations and amendments to published standards that are not yet effective
Standard Effective for annual reporting periods beginning on or after Expected to be initially appliedin the financial year ending
NZ IFRS 8 “Operating Segments” 9 January 2009 31 March 2010
NZ IAS-1 Presentation of Financial Statements –Revised Standard 9 January 2009 31 March 2010
Amendments to NZ IFRS-4 “Insurance Contracts” – The scope of insurance activities and differential reporting concessions 9 January 2009 31 March 2010
NZ IAS 1
The revised NZ IAS 1 requires the presentation of all recognised income and expenses in one statement (a statement of comprehensive income) or in two statements (an income statement and a statement of comprehensive income), separately from owner changes in equity. The revised standard also includes other minor changes to presentation and disclosure requirements.
Initial application of the following standards and interpretations is not expected to have any material impact to the financial report of the trust:
Standard/Interpretation Effective for annual reporting periods beginning on or after Expected to be initially appliedin the financial year ending
NZ IFRIC-12 “Service Concession Arrangements” 1 January 2008 31 March 2009
NZ IFRIC-13 “Customer Loyalty Programmes” 1 July 2008 31 March 2010
NZ IFRIC-14 “NZ IAS-19 The Limit on a defined Benefit Asset, Minimum Funding Requirements and their Interaction” 1 January 2008 31 March 2009
NZ IAS-23 “Borrowing Costs” – revised standard 1 January 2009 31 March 2010
NZ IFRS-2 “Share based Payment” – revised standard 1 January 2009 31 March 2010
NZ IFRS-3 “Business Combinations” – revised standard 1 July 2009 31 March 2011
NZ IAS-27 “Consolidated and Separate Financial Statements” –revised standard 1 July 2009 31 March 2011
Specific Accounting Policies
The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:
(a) Revenue Recognition
Dividend and interest revenue
Dividend revenue from investments is recognised when the shareholders’ rights to receive payment have been established. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
Rental revenue
Rents (net of any incentives) are recognised on a straight line basis over the lease term.
(b) Trade and Other Payables
Trade payables and other accounts payable are recognised at fair value when the trust becomes obliged to make future payments resulting from the purchase of goods and services. Subsequent to initial recognition, trade payables and other accounts payable are recorded at amortised cost. Given the nature of these liabilities, amortised cost equals their notional principal.
Donations payable are discretionary donations where there are no significant conditions attached or where the significant conditions attached to the donations have been met at balance date.
(c) Employee Entitlements
Provision is made for wages and salaries, including non monetary benefits, annual leave and accumulating sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions in respect of employee entitlements expected to be settled within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Provisions made in respect of employee entitlements not expected to be settled within 12 months are measured at the present value of the estimated cash outflows to be made in respect of services provided up to the reporting date.
Liabilities for non accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
(d) Donations
Discretionary donations made are included in the income statement when the donation is approved by the trustees, when the donatee has been notified and when all significant conditions attached to the donation have been met.
(e) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and investments in money market instruments, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
(f) Financial Assets and Liabilities
Investments
Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through profit or loss which are initially measured at fair value.
Financial Assets
Financial assets are classified into the following specified categories: Financial assets “at fair value through profit or loss”, “held to maturity” investments, “available for sale”’ financial assets, and “loans and receivables”. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Financial assets at fair value through profit or loss
The trust classifies its investments as financial assets at fair value through profit or loss. These financial assets are designated by management at fair value through profit or loss at inception. Derivatives are also classified as financial assets at fair value through profit or loss.
Financial assets designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with the trust’s documented investment strategy and for which information is provided internally to key management personnel on that basis.
Regular-way purchases and sales of investments are recognised on the trade date – the date on which the trust commits to purchase or sell the investment. Investments are derecognised when the rights to receive cash flows from the investments have expired or the trust has transferred substantially all risks and rewards of ownership.
Financial assets at fair value through profit or loss are initially recognised at fair value. Transaction costs are expensed in the income statement. Subsequent to initial recognition, all financial assets at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value are presented in the income statement in the period in which they arise. Interest income from financial assets at fair value through profit or loss is recognised in the income statement within interest income using the effective interest method. Dividend income from financial assets at fair value through profit or loss is recognised in the income statement within dividend income when the trust’s right to receive payments is established.
Derivatives that do not qualify for hedge accounting and are accounted for at fair value through profit or loss are recognised initially at fair value subsequent to initial recognition, derivative financial instruments are stated at fair value. Changes in the fair value are recognised immediately in the income statement within other income.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. The trust’s loans and receivables comprise “trade and other receivables”.
Loans and receivables are carried at amortised cost using the effective interest method less impairment.
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period, to the net carrying amount of the financial asset.
The trust assesses at each balance sheet date whether there is objective evidence that a financial asset is impaired.
Impairment of financial assets
Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that as a result of one or more events that occurred after the initial recognition of the financial asset the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.
If in a subsequent period the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
Other financial liabilities
Other financial liabilities are initially measured at fair value, net of transaction costs and are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability or, where appropriate, a shorter period, to the net carrying amount of the financial liability.
(g) Property, Plant and Equipment
Land is valued at cost. Buildings, office equipment, art and artefacts, and motor vehicles are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition. Art and artefacts are recognised at cost except for donated items acquired at nil or below market value which are recognised at fair value with the corresponding value recognised in the income statement.
Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land.
Depreciation on buildings, office equipment and motor vehicles is calculated on a diminishing value basis so as to write off
the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the diminishing value method. Art and artefacts are depreciated using the straight line method. The estimated useful lives, residual values and depreciation method is reviewed at the end of each annual reporting period.
Rental property is included in property, plant and equipment in accordance with NZ IFRS as the rental property is held to provide a social service rather than for rental income or capital appreciation or both.
The following estimated useful lives are used in the calculation of depreciation:
Office equipment 5–15 years
Motor vehicles 7 years
Buildings 0–30 years
Art and artefacts 100 years
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the trust and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
The asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Refer to the accounting policy below on impairment of tangible assets.
Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised within other income or other expenses.
(h) Cash Flows
Cash flows from operating activities are presented using the direct method.
Definition of terms used in the cash flow statement:
– Cash means cash on deposit with banks net of outstanding bank overdrafts.
– Investing activities comprise the purchase and sale of property plant and equipment, and investments.
– Financing activities comprise the change in equity of the trust.
– Operating activities include all transactions and events that are not investing or financing activities.
(i) Impairment of Other Tangible Assets
At each reporting date, the trust reviews the carrying amounts of its tangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the trust estimates the recoverable amount of the cash generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, assets are also allocated to individual cash generating units, or otherwise they are allocated to the smallest group of cash generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as revaluation decrease.
Where an impairment subsequently reverses, the carrying amount of the asset (cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.
(j) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from or payable to the Inland Revenue Department (IRD) is included as part of receivables or payables. The GST component of cash flows arising from investing and financing activities which is recoverable from or payable to the IRD is classified as operating cash flows.
(k) Taxation
The trust is exempt from income tax under section CB4(1)(m) of the Income Tax Act 2004.
(l) Currency Translation
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements are presented in New Zealand dollars, which is the trust’s functional and presentation currency, rounded to the nearest dollar.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.
Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Translation differences on non-monetary financial assets and liabilities carried at fair value are included in the income statement for the period. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity.
(m) Derivative Financial Instruments
The trust has a 100% passive currency hedging program over units invested in the State Street Global Index Plus Trust. The base currency of the international equity portfolio is New Zealand dollars and all currency exposures are 100% hedged back to the New Zealand dollar.
The trust via fund managers enters into foreign currency forward exchange contracts to manage its exposure to foreign exchange rate risk. Further details of derivative financial instruments are disclosed in note 15 to the financial statements.
Derivatives are initially recognised at fair value on the date a derivative contract is entered in to and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately. Derivatives are classified as a current asset or a current liability.
Embedded derivatives
Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not measured at fair value with changes in fair value recognised in profit or loss.
Trust Waikato does not apply hedge accounting.
(n) Leased Assets
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Payments under operating leases are recognised in the income statement on a straight line basis over the term of the lease.
Entity as lessor
Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recognised at amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance lease payments are allocated between interest revenue and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.
When assets are leased out under an operating lease, the asset is included in property, plant and equipment in the balance sheet based on the nature of the asset. They are depreciated over their expected useful lives on a basis consistent with similar owned property, plant and equipment.
2. Incorporation
The Trust Bank Waikato Community Trust was incorporated on 5 August 1988 with trust capital of $21,316,622. The name of the trust was changed to The Waikato Community Trust Incorporated in December 1997.
2008 2007
NZ$’000 NZ$’000
3. Revenue
Comprises:
Dividends 6,628 2,348
Interest 10,496 10,049
Rent 35 29
Total revenue 17,159 12,426
4. Realised and Unrealised Gains/(Losses)
2008 2007
NZ$’000 NZ$’000
Realised gains/(losses) 1,204 (490)
Unrealised gains/(losses) (19,930) 3,644
Realised gain on derivative financial instrument 4,830 3,749
Unrealised gain/(loss) on derivative financial instrument (620) 2,067
(14,516) 8,970

2008 2007
5. Trade and Other Payables
Accounts payable 182 163
182 163
Accounts payable are non-interest bearing and are normally settled on 30-day terms. Therefore, the carrying value of accounts payable approximates their fair value.
2008 2007
NZ$’000 NZ$’000
6. Donations Payable
Donations 1,414 1,892
1,414 1,892
Donations payable are non-interest bearing and are normally settled within 12 months. Therefore, the carrying value of donations payable approximates their fair value.
2008 2007
NZ$’000 NZ$’000
7. Employee Entitlements
Holiday pay 17 12
17 12
All employee benefits are payable within 12 months.
2008 2007
NZ$’000 NZ$’000
8. Non-Current Liabilities
Donations payable future years 1,080 –
1,080 –
Donations payable in future years represent donations where there is an irrevocable commitment beyond the immediate
12-month period.
9. Cash and Cash Equivalents
2008 2007
NZ$’000 NZ$’000
Cash at bank and on hand 313 71
313 71
The carrying value of cash at bank and on hand approximates their fair value.
10. Trade and Other Receivables
2008 2007
NZ$’000 NZ$’000
Accounts receivable 3 –
GST 34 39
37 39
The class within receivables does not contain impaired assets and are not past due. Based on the credit history, it is expected that these amounts will be received when due. The average credit period on GST is 60 days – no interest is charged on outstanding balances. The trust does not hold any collateral over these balances. The average age of these receivables is
60 days (2007 – 60 days).
The carrying value less impairment provision of trade receivables and payables, and cash and cash equivalents is a reasonable approximation of their fair values due to the short-term nature of trade items.

Notes 2008 2007
NZ$’000 NZ$’000
11. Financial Assets at Fair Value Through Profit or Loss
Enhanced passive global equities 15 66,775 69,724
NZ fixed interest and cash 15 85,004 90,186
NZ equities and cash 15 17,540 20,820
Global fixed interest 15 71,219 65,097
240,538 245,827
The fair value of financial instruments traded in active markets (such as publicly traded securities) is based on quoted market prices at the balance sheet date. The quoted market price use for financial assets held by the trust is the current bid price.
12. Property, Plant and Equipment
Office equipment—
Gross carrying amount:
Balance at 1 April 235 198
Add additions 31 48
Less disposals – (11)
Balance at 31 March 266 235
Accumulated depreciation:
Balance at 1 April 165 139
Less disposals – (11)
Depreciation expense 26 37
Balance at 31 March 191 165
Net book value at 31 March 75 70
Motor vehicles—
Gross carrying amount:
Balance at 1 April 96 74
Add additions – 22
Less disposals – –
Balance at 31 March 96 96
Accumulated depreciation:
Balance at 1 April 57 39
Depreciation expense 13 18
Balance at 31 March 70 57
Net book value at 31 March 26 39
Art and artefacts—
Gross carrying amount:
Balance at 1 April 714 629
Add additions 125 85
Less disposals – –
Balance at 31 March 839 714
Accumulated depreciation:
Balance at 1 April – –
Depreciation expense 8 –
Balance at 31 March 8 –
Net book value at 31 March 831 714
Buildings—
Gross carrying amount:
Balance at 1 April 973 973
Add additions 52 –
Less disposals – –
Balance at 31 March 1,025 973
Accumulated depreciation:
Balance at 1 April 272 239
Depreciation expense 34 33
Balance at 31 March 306 272
Net book value at 31 March 719 701
Land—
Gross carrying amount:
Balance at 1 April 841 841
Add additions 3 –
Less disposals – –
Net book value at 31 March 844 841
Total property plant and equipment—
Gross carrying amount:
Balance at 1 April 2,859 2,715
Add additions 211 155
Less disposals – (11)
Balance at 31 March 3,070 2,859
Accumulated depreciation:
Balance at 1 April 494 417
Less disposals – (11)
Depreciation expense 81 88
Balance at 31 March 575 494
Net book value at 31 March 2,495 2,365
(i) There are no items of property, plant, and equipment which are not in current use.
(ii) There have been no impairment losses recognised or reversed in the current period.
(iii) There are no restrictions in title relating to property, plant, and equipment or items pledged as security for liabilities.
The carrying value of rental properties has been disclosed in note 19.
13. Capital Commitments and Contingent Liabilities
The following commitments exist for donations that have been approved in the current or previous years subject to the fulfilment of certain conditions in future years.
2008 2007
NZ$’000 NZ$’000
Total commitments 2,865 3,874
Subject to fulfilment of the conditions, the commitments are payable as follows:
Not later than 1 year 2,715 1,309
Later than 1 year and not later than 5 years 150 2,565
2,865 3,874
There are no other capital commitments or contingent liabilities at balance date (2007 – Nil).
2008 2007
NZ$’000 NZ$’000
14. Reconciliation of Profit for the Period to Net Cash Cash Flows FromOperating Activities
Profit for the period— (8,232) 10,817
Adjust for non-cash items:
Depreciation and loss on sale 81 88
Investment income 20,550 (5,711)
20,631 (5,623)
Impact of changes in net assets and liabilities:
(Increase)/decrease in trade and other receivables 2 24
Increase/(decrease) in trade and other payables 19 32
Increase/(decrease) in donations payable 602 418
Increase/(decrease) in employee entitlements 5 –
628 474
Net cash inflow from operating activities 13,027 5,668
15. Financial Instruments
Financial Risk Management
The trust’s activities expose it to a variety of financial risks: Market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and equity price risk), credit risk and liquidity risk.
The trust has policies to manage the risks associated with financial instruments. The trust is risk averse and seeks to minimise exposure from its treasury activities. The trust has established investment policies. These policies do not allow any transactions that are speculative in nature to be entered into.
Market Risk
The trust’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates and equity prices.
There has been no change to the trust’s exposure to market risks or in the manner it manages and measures the risk.
Fair value interest rate risk
Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The trust’s exposure to fair value interest rate risk is limited to its cash at bank and cash deposits with fund managers.
A 100 basis point increase or decrease is used when reporting interest rate risk, as it represents a reasonable assessment of the possible change in interest rates.
Cash flow interest rate risk
Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Investments issued at variable interest rates expose the trust to cash flow interest rate risk.
A 100 basis point increase or decrease is used when reporting interest rate risk, as it represents a reasonable assessment of the possible change in interest rates.
The trust’s exposure to interest rate risk for fair value and cash flow interest rate risk on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.
Currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
Foreign exchange risk arises from transactions and recognised assets that are denominated in a currency that is not the trust’s functional currency. The table below details the trust’s sensitivity to a 10% increase and decrease in the New Zealand dollar against the relevant foreign currencies. 10% is the sensitivity rate used as it represents a reasonable assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates.
Equity Price Risk
The trust is exposed to equity price risk. This arises from investments held by the trust and classified as financial assets at fair value through profit and loss.
Credit Risk Management
Credit risk is the risk that a third party will default on its obligation to the trust, causing the trust to incur a loss.
Due to the timing of its cash inflows and outflows, the trust invests surplus cash with registered banks. The trust’s investment policy limits the amount of credit exposure to any one institution.
The trust has processes in place to review the credit exposure and credit quality of funds prior to the funds being deposited with financial institutions.
The trust’s maximum credit exposure for each class of financial instrument is represented by the total carrying amount of cash equivalents (note 9), other financial assets at fair value through profit or loss (note 11) and trade and other receivables (note 10).
Liquidity Risk Management
Liquidity risk is the risk that the trust will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The trust aims to maintain flexibility in funding by keeping committed credit lines available.
In meeting its liquidity requirements, the trust maintains a target level of investments that must mature within specified timeframes.
Capital Risk Management
The trust’s objectives when managing trust capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns for the community. The capital structure of the trust consists of cash and cash equivalents and trust funds. The trust’s investment committee reviews the trust funds and risks associated with the trust funds.
Following the sale of the trust’s shares in Trust Bank New Zealand Limited in April 1996, the trustees agreed that the value of the trust at that time should be maintained for the benefit of current and future generations living in the Waikato region. For this purpose, the trustees agreed that $169,800,000 would be considered as the initial capital of the trust and increased each year to reflect growth due to inflation and regional growth.
The trustees have adopted an investment strategy with a targeted long term annual rate of return of 6.8% (2007 – 6.8%, 2008 – 7.14%) of the trust’s capital value. Recognising that actual returns are likely to fluctuate from year to year, the trust retains the variation from the target in trust funds so that in years when investment returns are less than the target, sufficient funds are available to meet expenditure and make distributions. If the trust fund falls below the value that needs to be maintained for the benefit of current and future generations, the level of expenditure and distributions are reviewed by the trust.
The trust’s present donation policy is to distribute annually as donations between 3.5% and 4.5% of the trust fund value that should be maintained for the benefit of current and future generations. The trustees recognise that for a number of reasons this might not always be achievable and that there will inevitably be fluctuations between the donations distributed and the actual target.
The trust uses the services of an investment adviser to pursue an investment policy considered appropriate for the trust. The policy at 1 April 2007 was to achieve a long-term asset allocation of:
New Zealand equities 7.50%
New Zealand fixed interest 25.00%
New Zealand cash 12.50%
Global fixed interest 27.50%
Global equities 27.50%
100.00%
During the year, the trust reviewed its investment strategy and at 31 March 2008, the policy is to achieve a long term asset allocation of:
New Zealand equities 10.00%
New Zealand fixed interest 10.00%
New Zealand cash 0.00%
Global equities 27.50%
Global fixed interest 40.00%
Global listed property 7.50%
Collateralised commodities futures 5.00%
100.00%
The trust’s actual asset allocation during the year has reflected the gradual transition from the old policy to the new.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument, are disclosed in note 1 to the financial statements.
The following table summarises the sensitivity of the trust’s financial assets and liabilities to interest rate risk, foreign exchange risk and equity price risk.
Interest rate risk Foreign exchange risk Equity price risk
–1% +1% –10% +10% –10% +10%
31 March 2008 Carrying amount$’000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000
Financial assets
Derivative financial instrument (620) – – – – (7,413) (7,413) 6,065 6,065 – – – –
Assets recorded at fair value through the profit or loss (FVTPL) 240,538 (1,562) (1,562) 1,562 1,562 15,327 15,327 (12,541) (12,541) 20,745 20,745 (20,745) (20,745)
Total increase/ (decrease) (1,562) (1,562) 1,562 1,562 7,914 7,914 (6,476) (6,476) 20,745 20,745 (20,745) (20,745)

Interest rate risk Foreign exchange risk Equity price risk
–1% +1% –10% +10% –10% +10%
31 March 2007 Carrying amount$’000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000 Surplus$'000 Equity$'000
Financial assets
Derivative Financial Instrument 2,067 – – – – (7,739) (7,739) 6,332 6,332 – – – –
Assets recorded at fair value through the profit or loss (FVTPL) 245,827 (1,553) (1,553) 1,553 1,553 14,966 14,966 (12,245) (12,245) 21,246 21,246 (21,246) (21,246)
Total increase/ (decrease) (1,553) (1,553) 1,553 1,553 7,227 7,227 (5,913) (5,913) 21,246 21,246 (21,246) (21,246)
The following financial assets have been recognised in the financial statements of the trust.
Notes 2008 2007
NZ$’000 NZ$’000
Enhanced passive global equities 11 66,775 69,724
Denominated in the following currencies:
Canadian dollar equivalents 2,965 2,675
Danish krona equivalents 401 380
Euro equivalents 12,427 11,916
Great Britain pound equivalents 7,192 8,252
Hong Kong dollar equivalents 694 582
Japanese yen equivalents 6,824 7,683
New Zealand dollars 47 129
Norwegian kroner equivalents 381 380
Singapore dollar equivalents 427 438
Swedish krona equivalents 795 869
Swiss franc equivalents 2,384 2,279
United States dollar equivalents 32,239 34,141
66,775 69,724
New Zealand fixed interest and cash 11 85,004 90,186
Denominated in the following currency:
New Zealand dollars 85,004 90,186
85,004 90,186
New Zealand equities and cash 11 17,540 20,820
Denominated in the following currency:
New Zealand dollars 17,540 20,820
17,540 20,820
Global fixed interest 11 71,219 65,097
Denominated in the following currencies:
Australian dollar equivalents 3,084 1,881
Canadian dollar equivalents 1,802 1,549
Danish krona equivalents 256 221
Euro equivalents 23,908 19,152
Great Britain pound equivalents 9,130 4,095
Japanese yen equivalents 12,727 12,290
Poland zloty equivalents 128 111
South Korean dollar equivalents – 553
United States dollar equivalents 20,183 25,245
71,219 65,097
Forward Foreign Exchange Contracts
The trust manages its foreign exchange risk by using forward exchange contracts to cover 100% of its foreign currency exposures. Such forward exchange contracts have the economic effect of converting foreign currency denominated balances into New Zealand dollars. These forward exchange contracts are not treated as hedges for accounting purposes.
The following table details the forward foreign currency contracts outstanding at reporting date.
Average Exchange Rate Foreign Currency Contract Value Fair Value
Outstanding Contracts 2008 2007 2008 $’000 2007 $’000 2008NZ$’000 2007NZ$’000 2007NZ$’000 2007NZ$’000
Buy Canadian Dollars
Less than 3 months 0.7710 0.8135 2,391 2,085 3,101 2,580 102 32
Buy Swiss Franc
Less than 3 months 0.7905 0.8474 1,962 2,034 2,482 2,441 (75) 83
Buy Euro
Less than 3 months 0.5114 0.5257 7,059 7,187 13,803 13,836 (564) 339
Buy Great British Pounds
Less than 3 months 0.3897 0.3591 2,954 2,945 7,581 8,275 59 155
Buy Japanese Yen
Less than 3 months 78.5158 80.8792 578,924 690,767 7,373 8,656 (156) 343
Buy US Dollars
Less than 3 months 0.7759 0.7020 26,512 25,103 34,157 36,413 (13) 1,115
Sell Japanese Yen
Less than 3 months 76.8503 83.1233 44,685 39,676 581 477 – –
Sell Euro
Less than 3 months 0.4968 – 216 – 433 – 7 –
Sell US Dollars
Less than 3 months 0.7929 – 714 – 900 – 20 –
Sell Canadian Dollars
Less than 3 months 0.7971 – 66 – 83 – – –
Sell Swiss Franc
Less than 3 months 0.7670 – 90 – 117 – – –
Sell Great British Pounds
Less than 3 months 0.3926 – 111 – 283 – – –
70,894 72,678 (620) 2,067
The trust has entered contracts to hedge their investments denominated in foreign currency.

Liquidity and Interest Risk Tables – Financial Liabilities
The following tables detail the trust’s remaining contractual maturity for its non derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the trust can be required to pay. The table includes both principal and interest cash flows.
Less than1 yearNZ$’000 1–2 yearsNZ$’000 2–3 yearsNZ$’000 More than3 yearsNZ$’000 TotalNZ$’000
2008
Non interest bearing payables
– Trade and other payables 182 – – – 182
– Employee entitlements 17 – – – 17
– Donations payable 1,414 1,080 – – 2,494
1,613 1,080 – – 2,693
2007
Non interest bearing payables
– Trade and other payables 163 – – – 163
– Employee entitlements 12 – – – 12
– Donations payable 1,892 – – – 1,892
2,067 – – – 2,067
16. Donations
On 29 September 2007, the Waikato Times published a list totalling $8,725,216 which showed all of the donations approved by the trust from the period 1 April 2007 to 29 September 2007.
A copy of the list can be viewed at
www.trustwaikato.co.nz
or requested from the Trust Waikato office, telephone 0800 436 628.
During the year, the trust has reviewed how it accounts for donations with significant conditions attached. Where there are significant conditions attached which have not been met at balance date, these commitments have been disclosed as contingent liabilities in note 13. Where the conditions have been met, the donation has been included in the donations payable figure in the balance sheet. The impact of this change has resulted in a change in how some donations approved in previous years have been treated in the 2008 financial statements.
The donation expense in the income statement can be reconciled to the list published in the Waikato Times as follows:
$
Total donations published in the Waikato Times on 29 September 2007 8,725,216
Less Future conditional commitments included in above:
Alcohol and Drug Community Support Trust (60,000)
Eastlink – Lugton Park Combined Sports Association (100,000)
Frankton Dinsdale Rauawaawa Charitable Trust (35,000)
Glen Murray Community Association Inc (15,000)
Hamilton Hydrotherapy Pool Charitable Trust (130,000)
Hora Hora Marae (70,000)
Huntly Mining & Cultural Museum Society Inc (75,000)
Matahuru Papakainga Committee (100,000)
Order of St John – Otorohanga (50,000)
Otorohanga Domain Sports Association (10,000)
Pikitu Marae (25,000)
Poukura Marae (18,000)
Purekireki Marae Committee (60,000)
Tauwhare Marae Committee (30,000)
Te Ihingarangi Marae (50,000)
Te Ohaaki Marae – Huntly (30,000)
Vision Waihi Trust (100,000)
Waikato Community Hospice Trust (100,000)
Waikato Technology Support and Resource Centre (25,000)
Waipa District Council (250,000)
(1,333,000)
Less Past year’s conditional commitments previously classified as payable:
Cambridge High School (10,000)
Hamilton Boys’ High School (70,000)
Hinerangi Tawhaki Marae (15,000)
Maniapoto Rugby Sub Union Inc (30,000)

Morrinsville Art Gallery Charitable Trust (160,000)
Morrinsville Wheelers Society Inc (40,000)
Motiti Marae (20,000)
Ngatira Marae Committee Society Inc (7,500)
Otorohanga Netball Centre (10,000)
Pirongia Sports & Recreation Centre (75,000)
Raglan & District Museum Society (60,000)
Raglan & District Museum Society (60,000)
Rengarenga Marae (90,000)
South Waikato Stroke Support Group (15,000)
St John Ambulance – Te Awamutu (8,000)
Surfside Christian Life Centre (20,000)
Tauhei Marae Charitable Trust (65,000)
Te Awamutu Gracelands Trust (75,000)
Te Awamutu Gracelands Trust (25,000)
Te Awamutu Light Operatic Society Inc (13,000)
Te Karaka Marae (50,000)
Te Kauae Marae (20,000)
Te Kohao Health Limited (300,000)
Te Kuiti High School Board of Trustees (10,000)
Te Kura Kaupapa Maori o Whakawatea (20,000)
Tokoroa Mountain Bike Club (18,000)
Waahi Marae Committee (45,000)
(1,331,500)
Additional donations paid or unconditionally committed:
Dyslexia Foundation of NZ 5,000
Frankton Dinsdale Rauawaawa Trust 2,100
Hamilton Multicultural Services 3,500
Hauraki Maori Trust Board 3,500
K’Aute Pasifika 3,500
Kirikiriroa Family Services Trust 3,000
Maniapoto Marae Pact Trust 3,500
Music and Arts Waikato 593,000
Nga Rangatahi o Mana Motuhake Inc 2,000
Okarea Marae 100,000
Raglan Maori Wardens Charitable Trust 5,000
Raukawa Trust Board 3,500
Social Services Waikato 741,000
Sport Waikato 1,160,000
Te Runanga o Kirikiriroa 3,500
Te Rununga o Kirikiriroa 3,500
Thames Early Childhood Education Centre 750
Tokoroa Council of Social Services 3,500
Waikato Raupatu Lands Trust 3,500
Whiti Te Ra Hou Trust 10,000
2,653,350
Donations withdrawn, reduced or refunded:
Ace Swimming Club (65)
Crawshaw School (5,000)
Hamilton Golf Club (228)
Headland Seat Initiative (920)
IHC – Regional (3,000)
Indigo Festival (7,000)
Lairdvale Te Kohanga Reo (5,000)
Narrows Park Ministry Trust (6,000)
Social Services Waikato (43,000)
Taupo Sexual Assault Counselling Service (3,500)
Totara Springs Christian Centre (25,000)
Waikato District Council (3,500)
(102,213)
Total donations for the year 8,611,853
Of this amount, $7,449,352 has actually been paid to community groups during the year. The remainder is made up of $2,494,000, representing donations which will be paid when it is clear to the trust that the project in question will proceed and/or any other conditions have been met, less $1,331,500, representing donations that have previously been classified as payables but have now been reclassified as contingent commitments.
Donations payable at balance date are: $
For the 2008/09 year 1,414,000
For the 2009/10 year 1,080,000
2,494,000
A full list of donations is available on request.
17. Meeting Attendance
The trust held 25 formal meetings during the year. The following table records each trustee’s attendance at these formal meetings:
Trustee MeetingAttendance Remuneration$
Anderson, Josie 12 5,940
Astle, Dennis 21 10,805
Baddeley, Clint 21 13,910
Cave, Christine 19 11,085
Doube, Bernadette 12 8,145
Hosking, Bruce (deputy chair to June 2007, investment committee chair from June 2007) 23 22,206
Karalus, Peta 14 11,085
Kilbride, John (chair from June 2007) 21 36,352
Law, Michael 22 15,215
McConnell, Angus (from June 2007) 17 9,838
Moxon, Tureiti (deputy chair from June 2007) 19 18,193
Muru, Judith (from June 2007) 15 11,483
Purnell, Max 20 11,855
Saunders, Glenda (to May 2007 as investment committee chair) 1 1,273
Tan, Fee-Ching 22 16,195
Te Awa, Ratapu Hori (to May 2007 as chair) 2 6,345
Total remuneration 209,926
In addition during the year, trustees took part in three Trust Waikato subcommittees, various training and development forums and community sector forums.
Trustees and trust staff were invited to 205 separate formal and informal meetings and functions. The trust was able to achieve representation at approximately 140 of these meetings and functions.
18. Conflicts of Interest
During the year, trustees and staff were required to declare when they had either a direct or indirect conflict of interest in a matter being considered by the trust. 119 such interests were recorded during the course of the year (2007 – 115) and a register of those interests is available for inspection at the trust.
2008 2007
NZ$’000 NZ$’000
19. Operating Lease
Non–cancellable operating leases:
Not longer than 1 year 11 29
Longer than 1 year and not longer than 5 years – 11
Longer than 5 years – –
11 40
Operating leases relate to buildings at 87 Boundary Road and 4 Little London Street. The lease term for 87 Boundary Road is 5 years with no right of renewal. The final expiry date of the lease is 19 September 2008. The lease term for 4 Little London Street is 3 years with no right of renewal. The final expiry date of the lease was 30 September 2007. A casual lease arrangement has been in place until Trust Waikato took over the building at 4 Little London Street after 31 March 2008.
The carrying value of the leased asset is $798,857 (land – $180,453, buildings – $618,404), the accumulated depreciation is $126,716 and the depreciation charge for the year is $17,455.
20. Impacts of the Adoption of New Zealand Equivalents to International Financial Reporting Standards
The trust changed its accounting policies on 1 April 2007 to comply with NZ IFRS. The transition to NZ IFRS is accounted for in accordance with NZ IFRS-1 “‘First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards”, with 1 April 2006 as the date of transition.
Reconciliation of Equity
Transition Balance Sheet1 April 2006 Comparative Balance Sheet31 March 2007
Note Previous NZ GAAP Effect of transitionto NZ IFRS NZ IFRS Previous NZ GAAP Effect oftransition toNZ IFRS NZ IFRS
NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000
Equity:
Trust funds (a) 214,015 23,470 237,485 219,365 28,937 248,302
Investment fluctuation reserve (a) 23,470 (23,470) – 28,937 (28,937) –

Donation reserve – – – – –
Total equity 237,485 – 237,485 248,302 – 248,302
Current liabilities:
Trade and other payables (b) 143 (13) 130 175 (12) 163
Donations payable 1,474 – 1,474 1,892 – 1,892
Employee entitlements (b) – 13 13 – 12 12
Total current liabilities 1,617 – 1,617 2,067 – 2,067
Current assets
Cash and cash equivalents 632 – 632 71 – 71
Trade and other receivables 63 – 63 39 – 39
Derivative financial instruments (c) – (4,277) (4,277) – 2,067 2,067
Total current assets 695 (4,277) (3,582) 110 2,067 2,177
Non-current assets:
Other financial assets at fair value through profit and loss (c) 236,108 4,277 240,385 247,894 (2,067) 245,827
Property, plant and equipment 2,299 – 2,299 2,365 – 2,365
Total non-current assets 238,407 4,277 242,684 250,259 (2,067) 248,192
Net assets 237,485 – 237,485 248,302 – 248,302
(a) Investment Fluctuation Reserve
Under previous NZ GAAP, the trust maintained three reserves (capital, investment fluctuation and donation reserve). The purpose of these reserves was to prudently manage its financial affairs. Transfers were made between the reserves based on the trust’s reserve policy. Under NZ IFRS, the trust does not disclose these reserves separately.
(b) Employee Entitlements
Under previous NZ GAAP, employee entitlements were classified as trade and other payables. Under NZ IFRS, employee entitlements have been classified separately.
(c) Derivative Financial Instruments
Under previous NZ GAAP, foreign exchange forward contracts were not accounted for on the balance sheet. Investments in foreign currencies were however translated using the exchange rate of the foreign exchange forward contracts, held at balance date, as the trust was hedge accounting under previous GAAP. Under NZ IFRS, the trust has decided not to hedge account. As a result, the investments in foreign currencies have been translated using the market rate at balance date and the fair value of the derivatives at balance date has been recognised separately in the balance sheet. As the foreign currency denominated investments were 100% hedged, there is no impact on the Income statement.
Effect of NZ IFRS on the Cash Flow Statement for the Year Ended 31 March 2007
Donations paid from capital were included in investing activities under previous NZ GAAP. This balance has been reclassified to operating activities under NZ IFRS. The impact was a decrease in cash flows from operating activities of $294,000 and an increase in cash flows from financing activities of $294,000.
Effect of NZ IFRS on the Income Statement for the Financial Year Ended 31 March 2007
There are no material differences between the income statement presented under NZ IFRS and the income statement presented under superseded policies.
21. Subsequent Events
There are no matters or events that have arisen, or been discovered, subsequent to balance date that would require adjustment to, or disclosure in, these financial statements.
22. Related Party Transactions
Key Management Personnel
The compensation of the trustees and executives, being the key management personnel of the trust, is set out below:
2008 2007
NZ$’000 NZ$’000
Short term trustee and employee benefits 357 340
357 340
Transactions With Key Management Personnel
Key management were related to organisations that received donations totalling $70,000 (2007 – $10,000) during the year. Interests were declared when these donations were considered and key management took no part in deliberations relating to organisations they had an interest in.
There are no outstanding balances at balance date.
Transactions With Trustees
Trustees were related to organisations that received donations totalling $242,700 (2007 – $342,300) during the year. Interests were declared when these donations were considered and trustees took no part in deliberations relating to organisations they had an interest in.
There are no outstanding balances at balance date.
Audit Report to the Trustees of The Waikato Community Trust Incorporated
We have audited the financial statements. The financial statements provide information about the past financial performance of
The Waikato Community Trust Incorporated and its financial position as at 31 March 2008. This information is stated in accordance with the accounting policies.
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 reflect the financial position of The Waikato Community Trust Incorporated as at 31 March 2008 and the results of 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 The Waikato Community Trust Incorporated’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 The Waikato Community Trust Incorporated.
Unqualified Opinion
We have obtained all the information and explanations that we have required.
In our opinion, the financial statements fairly reflect the financial position of The Waikato Community Trust Incorporated as at
31 March 2008 and the results of its operations and cash flows for the year ended on that date.
Our audit was completed on 19 June 2008 and our unqualified opinion is expressed as at that date.
DELOITTE, Chartered Accountants, Hamilton, New Zealand.
–––––––––––––––
A copy of these financial statements and a full list of 2007–2008 donations is available on request.