Revenue Statement for the Year Ended 31 March 1994 Note 1994$ 1993$ Revenue Dividends2 2,003,963 1,302,291 Interest 188,501 127,330 Other income 23,000 23,000 Total revenue 2,215,464 1,452,621 Less expenditure Administration fees 10,000 10,000 Auditor's fees 2,320 1,165 Donation10 1,390 0 Other expenses 19,688 16,348 Travelling expenses 3,404 5,167 Trustees' remuneration 24,752 23,585 Total expenditure 61,554 56,265 Net surplus before grants 2,153,910 1,396,356 Less grants 800,960 812,960 Net surplus for the year $1,352,950 $583,396 Distributed to: Investment reserve 486,517 321,793 Undistributed surplus 866,433 261,603 $1,352,950 $583,396 (The notes to the financial statements form part of and are to be read in conjunction with the above account.) Balance Sheet for the Year Ended 31 March 1994 Note 1994$ 1993$ Trust funds Funds introduced 21,281,000 21,281,000 Investment reserve6 3,000,000 973,562 Undistributed surplus7 203,159 470,329 $24,077,841 $22,724,891 Represented by: Current assets Trust Bank Southland Limited Current account 628 6,010 Money market account 470,000 1,117,876 Accounts receivable 250 15,355 Total current assets 470,878 1,139,241 Less current liabilities Accounts payable 19,009 10,900 Grants yet to be disbursed8 670,750 669,500 Total current liabilities 689,759 680,400 Net current assets 218,881 458,841 Investments Shares in Trust Bank New Zealand Limited5 21,281,000 21,281,000 Shares in Trust Bank New Zealand Limited5 3,000,000 0 Trust Bank Southland Limited money market 0 968,866 Trust Bank Wellington Limited National Disaster Fund 15,722 16,184 24,296,722 22,266,050 $24,077,841 $22,724,891 Signed on behalf of the board of trustees: R. J. SIMPSON, Chairperson. W. A. CAMBRIDGE, Trustee. Dated this 11th day of May 1994. (The notes to the financial statements form part of and are to be read in conjunction with this balance sheet.) Statement of Cash Flows for the Year Ended 31 March 1994 1994$ 1993$ Cash flow from operating activities Cash was derived from: Other23,000 23,000 Cash was disbursed to: Administration expenses20,000 0 Audit fees1,620 827 Grants to the community799,960 498,960 Other expenses9,615 16,348 Trustees expenses2,960 6,401 Trustees remuneration19,250 24,625 853,405 547,161 Net cash flow from operating activities830,405 524,161 Cash flow from investing activities Cash was derived from: Dividend from TBNZ Limited2,003,963 1,302,291 Interest on investment203,856 141,017 2,207,819 1,443,308 Cash was disbursed to: Investment in Trust Bank Southland Limited968,866 422,556 Investment in Trust Bank Wellington Limited Disaster Fund462 1,049 Investment in Trust Bank New Zealand Limited shares3,000,000 0 2,030,672 423,605 Net cash flow from operating activities177,147 1,019,703 Net movement in cash653,258 495,542 Opening cash balance1,123,886 628,344 Closing cash balance$470,628 $1,123,886 Notes to the Financial Statements for the Year Ended 31 March 1994 1. Statement of Accounting Policies General Accounting Policies The general accounting policies adopted in the preparation of these financial statements are: The measurement base adopted is the historical cost basis. Reliance has been placed on the fact that the entity is a going concern. The matching of revenues earned and expenses incurred using accrual accounting except that dividend income is accounted for on a receipts basis. Particular Accounting Policies The following are the particular accounting policies which have a material effect on the measurement of results and financial position: Dividend income from Trust Bank New Zealand Limited is included in the revenue statement when it is received. Grants made are included in the revenue statement when committed. Shares in Trust Bank New Zealand Limited are stated at cost. 2. Dividend 1994$ 1993$ Dividends received from Trust Bank New Zealand Limited. Final dividend (declared in respect of the financial year ended 31 March 1993 and received 2 July 1993) 1,169,963 738,090 This brings the total dividend received to $1,734,164 of which $564,201 was received last year. Interim dividend in respect of the financial year ended 31 March 1994, received on 3 December 1993 834,000 564,201 $2,003,963 $1,302,291 3. Taxation For taxation purposes the trust is deemed to be a charitable organisation. It's income is not subject to taxation. 4. Goods and Services Tax The trust is not registered for goods and services tax purposes. Accordingly the financial statements are stated on a G.S.T. inclusive basis. 5. Shares in Trust Bank New Zealand Limited The trust holds 16.889 percent shareholding in Community Trusts Nominees Limited, having purchased a further 1 428 571 shares at the time of the public share float in March 1994 at the strike price of $2.10, giving total shares held of 57 028 571. 6. Investment Reserve 1994 $ 1993 $ Balance 1 April 1993973,562 651,769 20 percent of 199293 dividend233,993 147,618 20 percent of 199394 interim dividend166,800 112,840 Interest85,724 61,335 Transfer from undistributed surplus1,539,921 0 Balance 31 March 1994$3,000,000 $973,562 7. Undistributed Surplus 1994 $ 1993 $ Balance 1 April 1993470,329 208,726 Net suplus for the year866,433 261,603 Transfer to investment reserve1,539,921 Balance 31 March 1994($203,159) $470,329 8. Grants Not Paid 1994$ 1993$ Committed grants not yet disbursed: Wakatipu Environmental Society1,000 1,000 Southland Polytechnic bursaries3,750 2,500 ICC swimming pool666,000 666,000 $670,750 $669,500 9. Commitments The trust has agreed to grant a further $334,000 over the next year towards a swimming pool in Invercargill. This brings the total committed to $1 million. This commitment is made subject to availability of funds. 10. Donation A payment was made from the National Disaster Fund to the Kaikoura Flood Relief appeal and this amount represents the community trust's portion. 11. Reconciliation of Net Surplus to Operating Activities 1994$ 1993$ Net surplus for the year1,352,950 583,396 Increase (decrease) in other liabilities9,359 322,064 (Increase) decrease in other assets2,015,567 409,918 Net movement in investing activities177,147 1,019,703 Net cash flow from (used in) operating activities($830,405) ($524,161) Auditors' Report to the Members of Trust Bank Southland Community Trust Incorporated We have audited the financial statements in accordance with accepted auditing standards, and have carried out such procedures as we considered necessary. In our opinion the financial statements give, using the historical cost method, a true and fair view of the financial position of the Trust Bank Southland Community Trust Incorporated as at 31 March 1994 and the results of its activities and cash flows for the year ended on that date. DELOITTE TOUCHE TOHMATSU, Chartered Accountants. Dated at Invercargill this 13th day of May 1994. A copy of the full list of grants is available upon request from Trust Bank Southland Limited, 25 Don Street, Invercargill.