✨ Financial Statements Notes
NEW ZEALAND GAZETTE, No. 97
15 AUGUST 2012
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2012
12. SPORT WAIKATO LOAN
The loan to Sport Waikato is secured by a first ranking General Security Agreement (GSA) in favour of the Trust over all of Sport Waikato’s present and after-acquired property with a first priority amount of no less than $2,000,000 and by a first mortgage over Sport Waikato’s leasehold estate and interest in their site at Wintec. The loan is interest free and repayable in one lump sum by 19 August 2013. The loan balance is made up as follows:
| 2012 | 2011 | |
|---|---|---|
| NZ$ 000 | NZ$ 000 | |
| Loan Principal | 1,500 | 1,500 |
| Fair Value Adjustment on Initial Recognition of Interest Free Loan | (525) | (525) |
| Cumulative Notional Interest | 357 | 247 |
| 1,332 | 1,222 |
The above loan carrying value is calculated using the market interest rate at the time of the loan drawdown. The fair value of the Sport Waikato loan at balance date is $1,387,319 (2011: $1,290,866). The cumulative notional interest is calculated at 9% which was the rate used when the fair value of the loan was calculated at inception. The fair value calculation is based on the 1.5 year (2011: 2.5 year) bank loan rate of 5.8% (2011: 6.5%).
13. DATABASE LOAN
The Trust and ten of the other eleven Community Trusts established under the 1988 Trustee Bank Restructuring Act have combined 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 $2,380,000. The Trust’s contribution to these costs is 8.2%.
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 Trust will hold 820 units. The value of each unit has been determined at $238.22. 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 2012, No 97
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Notes to Financial Statements for The Waikato Community Trust Incorporated
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💰 Finance & RevenueFinancial Statements, Property, Plant and Equipment, Depreciation, Waikato Community Trust