✨ Financial Statements
2304 NEW ZEALAND GAZETTE No. 92
Accordingly, the trustees consider that the fair value of each class of financial asset and financial liabilities is the same as the carrying value in the statement of financial position.
Concentration of credit risk
The concentrations of credit risk incurred by the trust are managed by Tower Asset Management and BT Funds Management (NZ) Limited. Credit risk also exists with the loan agreements entered into during the year.
Trustees consider the risk of non-recovery of these investments to be within satisfactory guidelines.
Maximum exposures to credit risk as at balance date are:
| 2000 | 1999 | |
|---|---|---|
| $ | $ | |
| Bank accounts | 2,130,809 | 63,720 |
| Accounts receivable | 207,976 | 151,139 |
| Investments | 50,376,937 | 48,683,684 |
Currency risk
The Community Trust of Wellington incurs currency risk as a result of investment transactions managed by Tower Asset Management and BT Funds Management (NZ) Limited.
Interest rate risk
The investments of the Community Trust of Wellington which are sensitive to changes in interest rates are managed by Tower Asset Management and BT Funds Management (NZ) Limited. The Community Trust of Wellington is also exposed to interest rate fluctuation on loans, as the debt is on a floating rate.
9. Term Loan
| 2000 | 1999 | |
|---|---|---|
| $ | $ | |
| Bank of New Zealand | ||
| Current | 42,807 | 97,915 |
| Non current | 664,518 | 648,932 |
| Total liability | 707,325 | 746,847 |
Security: Registered first mortgage held over property situated at 19 Jardin Mile, Ngauranga
Interest Rate: 8.01% pa (fixed for 4 years)
Repayments: For the first five years, 60 consecutive monthly payments of $8159.57. After five years the repayment instalments may be varied so the whole of the loan plus interest is repaid over the term of the loan.
Final repayment date: Repayment based on 12 year term
10. Investment income (net)
| 2000 | 1999 | |
|---|---|---|
| $ | $ | |
| Portfolio income-realised and unrealised revenue | 9,321,011 | 4,729,761 |
| Less fund management fees and expenses | (176,486) | (227,979) |
| Total investment income (net) | 9,144,525 | 4,501,782 |
11. Reconciliation of net surplus(deficit) with net cash flow from operating activities
| 2000 | 1999 | |
|---|---|---|
| $ | $ | |
| Net surplus/(deficit) | 6,421,195 | (841,466) |
| Add/(deduct) financing items: | ||
| Interest expense | 58,289 | - |
| Add/(deduct) non cash items: | ||
| Depreciation | 2,423 | 1,793 |
| Unrealised loss of investment property | 83,750 | - |
| Portfolio investment income reinvested | (9,251,669) | (4,858,175) |
| (2,686,012) | (5,697,848) | |
| Add/(deduct) movements in other working capital items: | ||
| (Increase)/decrease in accounts receivable | (56,837) | 30,926 |
| (Increase)/decrease in prepayments | (97) | (1,342) |
| Increase/(decrease) in accounts payable | 132,293 | (243,090) |
| Increase/(decrease) in G.S.T. | 1,109 | 4,201 |
| Increase/(decrease) in taxation paid | (3) | (2,307) |
| Increase/(decrease) in tax provision | 20,694 | - |
| (169,645) | (211,612) | |
| Add/(deduct) items classified as an investing activity: | ||
| Movement-Tower Asset Management | (19,804) | 29,484 |
| Movement-BT Funds Management (NZ) Limited | 86,223 | 286,979 |
| 66,419 | 316,463 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 92
Gazette.govt.nz —
NZ Gazette 2000, No 92
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Consolidated Notes to the Financial Statements for the Year Ended 31 March 2000
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