Statement of Financial Position as at 31 March 2008
2008 2007
$ $
Current assets:
Bank – ASB cheque account – 1,023
Bank – ASB call account 100,137 19,197
Taxation refund due 473 946
Accrued interest 576 27,748
Accounts receivable 29,759 2,335
130,945 51,249
Investments:
AMP tracker fund 146,980 226,459
AMP WINZ fund 391,550 438,002
AMP other funds 4,435,874 4,403,180
TCNZ Finance Limited – 50,000
4,974,404 5,117,641
Fixed assets:
Office equipment 108 161
5,105,457 5,169,051
Represented by—
Current liabilities:
Bank – ASB cheque account 6,288
Accounts payable 60,196 7,179
66,484 7,179
Trust funds:
Trust corpus 2,000,000 2,000,000
Capital profits 1,000,000 1,000,000
Retained earnings 2,038,973 2,161,872
5,038,973 5,161,872
Total accumulated funds 5,105,457 5,169,051
P. E. KERRIDGE, Chairperson. A. T. SULLIVAN, Trustee.
Dated: 5 August 2008.
This statement is to be read in conjunction with the accompanying notes.
Statement of Financial Performance for the Year Ended 31 March 2008
2008 2007
$ $
Gross revenues:
Net conference surplus 4,840 –
Interest received 3,515 6,795
AMP managed funds 57,462 268,380
Total revenue received 65,817 275,175
Less expenditure—
Administration/operating costs:
Accountancy/auditors’ fees 8,618 8,068
Advertising 4,642 4,395
Catering/hall hire 1,395 932
Conference expenses – 4,986
Continuing education 682 235
General expenses 1,527 1,294
Legal fees – 1,780
Membership fees 563 450
Printing, postage and stationery 2,087 2,399
Review – investment portfolio 5,625 –
Remuneration – trustees 26,160 24,800
Secretarial 12,242 12,272
Travel 4,053 3,512
67,594 65,122
Financial and standing charges:
Bank fees 24 59
Insurance 3,119 2,841
Interest paid – 17
AMP management fees 22,911 22,711
26,054 25,628
Total cash expenses 93,648 90,750
Depreciation 53 121
Total expenditure 93,701 90,871
Net surplus/(deficit) for the year prior to distributions (27,884) 184,304
Less distributions:
Grants approved for year 95,015 108,426
Net surplus/(deficit) after distributions (122,899) 75,878
This statement is to be read in conjunction with the accompanying notes.
Statement of Movements in Equity for the Year Ended 31 March 2008
2008 2007
$ $
Trust funds at start of period 5,161,872 5,085,994
Net surplus/(deficit) before tax (122,899) 75,878
Trust taxes paid or provided – –
Net surplus/(deficit) after tax (122,899) 75,878
Trust funds at end of period 5,038,973 5,161,872
This statement is to be read in conjunction with the accompanying notes.
Statement of Accounting Policies and Notes for the Year Ended 31 March 2008
1. Formation
The West Coast Community Trust was formed on 30 May 1988 through the creation of a trust deed in compliance with the Trustee Banks Restructuring Act 1988. The trust’s original capital of $3 million came from the proceeds of the sale of Westland Bank Limited. These accounts have been prepared in accordance with the Financial Reporting Act 1993. The trust has not adopted International Financial Reporting Standards and qualifies for Differential Reporting as it is not an issuer, does not have the power to tax, levy or rate and is not large as defined in the Framework for Differential Reporting.
The trust has applied all the differential reporting exemptions allowed with the exception of SSAP3 – Accounting for Depreciation.
2. Measurement System
The measurement system adopted is that of historical cost.
3. Particular Accounting Policies
The particular accounting policies adopted in the statements, which have a significant effect on the results and financial position disclosed, are:
(a) Income Determination
Interest income has been accrued to balance date on a daily basis.
(b) Valuation of Assets
(i) Investments
Investments are stated at net realisable value.
(ii) Fixed Assets
All fixed assets are recorded at cost less accumulated depreciation to date.
(c) Depreciation
Depreciation has been charged on a straight line basis allocated over an estimated economic life of the assets. Depreciation has been calculated as follows:
Asset Cost Depnto date EstimatedLife Opening Value Additions Depn AccumDepn ClosingBook Value
$ $ $ $ $ $ $
Typewriter 2,019 2,019 5 years – – – 2,019 –
Photocopier 2,756 2,756 5 years – – – 2,756 –
Fax machine 349 349 5 years – – – 349 –
Filing cabinet 325 155 10 years 139 – 31 186 108
Computer software 300 188 3.3 years 22 – 22 278 –
5,749 5,588 161 – 53 5,641 108
(d) Goods and Services Tax
The trust is exempt from registration for goods and services tax under section 14(b) of the Goods and Services Tax Act 1985.
These financial statements have therefore been prepared on a GST inclusive basis.
4. Taxation
From 1 April 2004, the trust is exempt from income tax under section CB4(1)(m) of the Income Tax Act 1994. As a result, the only taxation the trust pays is in relation to imputation credits and withholding payments deducted from dividends and overseas earnings, which are not eligible to be refunded.
5. Changes in Accounting Policies
There have been no changes in accounting policies.
6. Trust Governance
The board of the trust comprises nine trustees appointed by the Minister of Finance for terms of four years. It is possible to serve for more than one term.
The board establishes the trust’s objectives, strategies and the overall investment and donation policy framework. The secretary has delegated authority for the day-to-day management of the trust.
Trust Purpose
The trust’s purpose is for the trustees to be responsible for the investment of the trust fund and apply it for charitable, cultural, philanthropic, recreational and other purposes being beneficial to the community principally in the West Coast region.
Conflicts of Interest
It is recognised that trustees may have a wide range of involvement with the community and the potential of conflicts of interest will arise from time to time. A trustee who has any direct or indirect association with any organisation is required to disclose that interest to the board and have it recorded in the minutes of the meeting. The trustees have adopted a code of conduct. There were no breaches of this code during the financial year ended 31 March 2008. A Register of Interest is available for public inspection.
Trustee Attendance—Meetings
Name of Trustee Board Meetings Honorarium and
Held Attended Meeting Fees
$
Peter Kerridge 4 4 6,670
Dennis Straker 4 4 3,165
John Sturgeon 4 4 2,700
Rowan Sullivan 4 4 2,700
Anthony Sullivan 4 4 2,525
Carol Keoghan 4 4 2,350
Elizabeth Rock 4 4 2,350
Eunice Brown 4 2 1,850
Maurice Roberts 0 0 1,000
Mark Lockington 3 2 850
Total remuneration paid in the financial year ended 31 March 2008 26,160
Rates of remuneration, including honoraria and meeting fees, are set by the Minister of Finance. The group has also insured all trustees against liability to other parties that may arise from their position as trustees, excluding liability for gross negligence or criminal actions.
7. Trust Funds
Although the trust does not maintain an inflation reserve, it does seek to maintain the trust capital in real terms. The trust calculates that an amount of $1,553,805 is required to be retained to stabilise the original $3 million fund from inflation.
Our current retained earnings is $2,038,973 which leaves $485,168 as the growth of the trust in real terms.
8. Investments
The value of investments which are held in equities and fixed interest are subject to market fluctuations. The total investment portfolio is diversified in such a way that over time, reductions in value in particular asset classes should be more than offset by increases in other classes. Investments are disclosed at market value at balance date and any gains (losses) arising from that treatment are shown under revenue in the statement of financial performance. No provision has been made for potential gains or losses that could occur due to future market fluctuations. The investment portfolio as at 31 March 2008 is diversified as follows:
AMPFunds Actual
$000 %
New Zealand equities (passive) 147 3.0
New Zealand fixed interest 2,465 49.6
New Zealand cash fund 1,414 28.4
Global equities 557 11.1
Global equities (passive) 391 7.9
4,974 100.0
9. Distributions
$
Distributions made during the year 95,149
Less distributions returned during year 134
Net distributions made 95,015
Audit Report
To the Readers of the Financial Report of West Coast Community Trust
We have audited the financial report of the trust. The financial report provides information about the past financial performance of the West Coast Community Trust and its financial position as at 31 March 2008. This information is stated in accordance with the accounting policies set out in the financial report.
Trustees’ Responsibilities
The trustees are responsible for the preparation of a financial report which gives a true and fair view of the financial position
of the West Coast Community Trust as at 31 March 2008 and the results of operations for the year ended on that date.
Auditors’ Responsibilities
It is our responsibility to express an independent opinion on the financial report 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 report. It also includes assessing:
? the significant estimates and judgements made by the trustees in the preparation of the financial report; and
? whether the accounting policies are appropriate to the West Coast Community Trust and group 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 report is 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 report.
Wilding Smith & Co has no interest in the West Coast Community Trust other than as auditor.
Unqualified Opinion
We have obtained all the information and explanations we have required.
In our opinion:
? proper accounting records have been kept by the West Coast Community Trust and as far as appears from our examination of those records; and
? the financial report:
– complies with generally accepted accounting practice; and
– gives a true and fair view of the financial position of the West Coast Community Trust as at 31 March 2008 and the results of operations for the year ended on that date.
Our audit was completed on 5 August 2008 and our unqualified opinion is expressed as at that date.
WILDING SMITH & CO, Chartered Accountants, Hokitika.
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The West Coast Community Trust gives notice that the Minister of Finance has directed that they need not publish the
full list of grants in the New Zealand Gazette but will provide a copy of its list of grants to anyone upon request from
The Secretary, West Coast Community Trust, PO Box 190, Hokitika.