✨ Financial Statements Notes
19 AUGUST 2013 NEW ZEALAND GAZETTE, No. 110 2985
Bay of Plenty Community Trust Incorporated
Notes to the financial statements (continued)
in New Zealand Dollars ($000’s)
10 Investment in Te Kete Putea Limited Partnership
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 final development was completed during the financial year. The system is owned and operated by a limited partnership named Te Kete Putea Limited Partnership (TKPLP) which was established in the current financial year. The total cost of the project was $2,380,000.
In the previous year the Trust’s contribution were recorded as ‘Loans’ in the Statement of Financial Position. This was an unsecured interest free loan to ASB Community Trust which agreed to undertake work on the project and incur project commitments. On formation of TKPLP, the loan from the Trust was extinguished by being retained and applied by ASB Community Trust towards the Trust’s capital contribution to TKPLP.
The capital of the limited partnership consists of 10,000 units and each Trust holds units broadly in proportion to its audited capital at 31 March 2008.
The investment in TKPLP was initially valued at $90k. Subsequent to initial recognition, the investment will be recorded at fair value. Fair value is determined using an appropriate valuation technique. The Trust classifies TKPLP as a Level 3 financial asset, as the valuation is not based on observable market data.
11 Loans
From time to time the Trust advances funds to organisations at low interest rates or interest free. The loans are classified as loans and receivable and, after initial recognition, are measured at amortised cost using effective interest rate method less any impairment loss.
The loan balance is made up as follows:
| Organisation | Maturity Date | Interest rate % | 2013 | 2012 |
|---|---|---|---|---|
| Rautahi Marae Trust | 23/07/2015 | 0% | 3 | - |
| Habitat for Humanity | 23/12/2015 | 0% | 83 | - |
| Tauhara Centure Trust | 27/06/2016 | 3% | 58 | 77 |
| West Rotorua Parish | 1/04/2016 | 3% | 60 | 113 |
| Paradise Point Development Trust | 12/08/2017 | 3% | 48 | 62 |
| Tauranga Boys’ College | 1/12/2015 | 3% | 55 | 75 |
| Tauranga Squash Club | 23/03/2017 | 3% | 900 | 900 |
| Other | 0 | - | 213 |
Less fair value adjustment in initial recognition of low interest or interest free loans | | (294) | (96) |
Total | | | 913 | 1,344|
Classified as:
Current | | | 88 | 182 |
Non-current | | | 825 | 1,162|
Total | | | 913 | 1,344|
For the purposes of calculating amortised cost and interest, the rate applying to the Reserve Bank swap rate at inception date of each advance is used.
The loan to Tauranga Squash Club is secured by way of first mortgage, had an interest free period of one year, and then has had interest at 3%pa applied since 1 October 2012.
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NZ Gazette 2013, No 110
✨ LLM interpretation of page content
💰
Bay of Plenty Community Trust Incorporated Financial Statements
(continued from previous page)
💰 Finance & Revenue17 June 2013
Financial Statements, Community Trusts, Bay of Plenty, Revenue, Expenses, Grants, Accounting, Interest Income, PIE Income, Fair Value Investment, Miscellaneous Income, Conference Income, Accountancy Fees, Depreciation, Office Costs, Trust Administration, KiwiSaver, Wages, Trustees' Remuneration, Auditor's Remuneration, Grants Expenditure, Active Sector, Community Economic Development, Culture and Heritage, Education, Health, Dillon Scholarship, Kawerau District Council, Sport Bay of Plenty, Philips Search & Rescue Trust, Whakatane District Council, Contingent Liabilities, Property, Plant and Equipment, Furniture & Fittings, Office Equipment, Motor Vehicle