✨ Financial Statements
Bay of Plenty Community Trust Incorporated
Notes to the financial statements (continued)
in New Zealand Dollars ($000's)
14 Financial instruments (continued)
The Trust continuously monitors the credit quality of major financial institutions that are counter parties to its financial instruments and does not anticipate non-performance by the counter parties. The Trust further minimises its credit exposure by limiting the amount of funds placed with any one financial institution at any one time.
The Trust makes a number of loans to eligible community groups and organisations over periods of up to five years. These are not grants and are fully expected to be repaid in full within the terms of the loan. The Trust requires evidence of the applicant’s ability to repay the loan and also considers a number of other factors before advancing the loan and deciding on whether or not to waive a security interest. At the reporting date, the Trust had one loan secured by a First Mortgage (note 11).
Liquidity risk
The following table sets out the contractual cash flows for all financial liabilities:
| Statement of Financial Position | Contractual cash flows | 6 months or less | 6-12 months | 1 to 2 years | 2 to 5 years | More than 5 years | |
|---|---|---|---|---|---|---|---|
| Trust 2013 | |||||||
| Grants Payable | 845 | 845 | 200 | 223 | 322 | 100 | 0 |
| Trade and other payables | 208 | 208 | 208 | 0 | |||
| Total | 1053 | 1053 | 408 | 223 | 322 | 100 | 0 |
| | | | | | | | |
| Trust 2012 | | | | | | | |
| Grants Payable | 232 | 232 | | 232 | | | 0 |
| Trade and other payables | 58 | 58 | 58 | | | | 0 |
| Total | 290 | 290 | 58 | 232 | 0 | 0 | 0 |
Employee Entitlements have not been included as they are not a financial liability
Capital management
The Trust’s funds include trust capital, grants maintenance reserve, inflation & population growth reserve and retained earnings.
The Trust’s policy is to maintain a strong capital base to sustain future development of the Trust.
The Trust is not subject to any externally imposed capital requirements.
The Trust’s policies in respect of capital management and allocation are reviewed regularly by the Board of Trustees.
Sensitivity analysis
Table 1 shows the Trust’s portfolio as at 31 March 2013 as well as the long term expected return. The return one standard deviation above and below the expected return is also shown.
Table 1: Sensitivity analysis for the Trust’s portfolio 31 March 2013
| Asset allocation (31 March 2013) | Long term expected return p.a. | -1 Std deviation return p.a. | +1 Std deviation return p.a. |
|---|---|---|---|
| Investment Portfolio | 100.00% | 6.00% | -2.10% |
Next Page →
NZ Gazette 2013, No 110
✨ LLM interpretation of page content
💰
Bay of Plenty Community Trust Incorporated Financial Statements
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Community Trusts, Bay of Plenty, Cash Equivalents, Short Term Deposits, Loans, Investments, Financial Instruments, Liquidity Risk, Market Risk, Foreign Currency Risk, Interest Rate Risk