✨ Financial Statements Notes
5 AUGUST 2011 NEW ZEALAND GAZETTE, No. 119 3355
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2011
22. DATABASE LOAN
The Trust and ten of the other eleven Community Trusts established under the 1988 Trustee Bank Restructuring Act are combining resources to own and operate an integrated donation management and financial management information system. The system has been implemented and once final development is completed will be owned and operated by a limited partnership named Te Kete Putea Limited Partnership (TKPLP), which is likely to be established in the first half of the new financial year. The total cost of the project is expected to be in the order of $1.5m. The Trust’s estimated contribution to these costs is 8.16%.
It is envisaged that the capital of the limited partnership will consist of 10,000 units and each Trust will hold units broadly in proportion to its audited capital at 31 March 2008. The value of each unit will be determined once project costs are finalised. Until such time as TKPLP has been established, ASB Community Trust (ASBCT) is entering into project contracts with vendors on behalf of the Trusts and meeting the funding requirements for the project in terms of a letter of indemnity from each of the participating Trusts. The contracts with the vendors provide for the contracts to be novated to TKPLP once it becomes established.
The Trust has met its funding proportion for the project by way of a loan to ASBCT, which has agreed to undertake the work on the project and incur the project commitments. The Trust has granted an indemnity in favour of ASBCT in respect of such commitments. This loan, shown in the Trust’s balance sheet, is unsecured and interest free. On the formation of TKPLP, the loan from the Trust will be extinguished by being retained and applied by ASBCT towards the Trust’s capital contribution to TKPLP.
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NZ Gazette 2011, No 119
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Database Loan and Limited Partnership Formation
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💰 Finance & RevenueFinancial statements, Database loan, Limited partnership, Trust contributions, Project funding