✨ Financial Statements and Notes
6 SEPTEMBER
NEW ZEALAND GAZETTE
3129
14. Financial Instruments
General
The group states its investments at balance date at estimated market value. The trustees consider that the fair value of the financial assets is identical to the value in the statement of financial position.
Concentration of Credit Risk
The group, from time to time, has significant funds in trading bank deposits. The group limits risk by spreading the deposits over several trading banks. The group has not required collateral or other security to support its financial statements.
The group further limits risk through its policy of placing investment funds with four separate fund managers, with each fund manager having an investment mandate which requires that they diversify their investments on the group’s behalf. The group has sought and obtained the advice of a professional financial adviser prior to making its investment allocation and placement decisions.
Interest Rate Risk
The bank deposits are sensitive to changes in interest rates, as are a proportion of the funds managed by the fund managers and a portion of the loan to Topoclimate South Trust.
15. Capital Commitments
Commitments of $5,452,390 exist for grants which will be distributed from either capital or future income sources in future years. These grants have not been recorded in either the statements of financial performance or financial position. Specific commitments are as follows:
| 2001 | 2000 | |
|---|---|---|
| Southern Institute of | 3,452,390 | – |
| Technology | ||
| Southland Outdoor Stadium | 2,000,000 | – |
| Trust | ||
| Southland Indoor Stadium | – | 1,000,000 |
| Trust | ||
| Topoclimate South | – | 453,333 |
| Charitable Trust | ||
| 5,452,390 | 1,453,333 |
The years in which these commitments fall due are as follows:
| Year ending 31 March | 2001 | 2000 |
|---|---|---|
| Year ending 31 March 2001 | – | 1,453,333 |
| Year ending 31 March 2002 | 2,774,131 | – |
| Year ending 31 March 2003 | 1,839,131 | – |
| Year ending 31 March 2004 | 839,128 | – |
| 5,452,390 | 1,453,333 |
16. Related Party Transactions
During the year, the group purchased legal services from Preston Russell Law to the value of $5,248.11. One of the group’s trustees, Warwick Cambridge, is a partner of Preston Russell Law.
17. Tax Calculation
| 2001 | 2000 | |
|---|---|---|
| Net surplus before taxation as per | 3,732,673 | 13,530,536 |
| statement of financial performance | ||
| Less Charitable business exemption | 1,956,550 | 1,250,015 |
| Dividend income on black-list | 165,264 | – |
| Tax refund included in income | 43,635 | – |
| Realised gains loss on black-list | 2,303,920 | – |
| 4,469,369 | 1,250,015 | |
| (736,696) | 12,280,521 | |
| Add FIF income | 2,334,720 | – |
| Unrealised loss on black-list | 134,464 | – |
| Unrealised loss on NZ equities | 986,804 | (180,802) |
| Unrealised loss on grey equities | 11,388,610 | (1,033,505) |
| Reversal of unrealised loss on currency | 218,175 | (218,175) |
| hedging (31/03/00) | ||
| Non deductible expenditure | 486,949 | 409,584 |
| Imputation credits received | 98,510 | 433,487 |
| NRWT credits received | 57,535 | 128,621 |
| RWT credits received | – | 10,604 |
| 15,705,767 | (450,186) | |
| Total taxable income | 14,969,071 | 11,830,335 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 119
Gazette.govt.nz —
NZ Gazette 2001, No 119
✨ LLM interpretation of page content
💰
Financial Instruments and Capital Commitments
(continued from previous page)
💰 Finance & RevenueFinancial Instruments, Credit Risk, Interest Rate Risk, Capital Commitments, Investments, Grants
💰 Related Party Transactions
💰 Finance & RevenueRelated Party Transactions, Legal Services, Trustees
- Warwick Cambridge, Trustee and partner of Preston Russell Law
💰 Tax Calculation
💰 Finance & RevenueTax Calculation, Charitable Business Exemption, Dividend Income, Tax Refund, FIF Income, Imputation Credits, NRWT Credits, RWT Credits