✨ Financial Reports
12 Social Loans
The Foundation has made loans to four community organisations. The loans are secured and regular monthly repayments are made. The loans are at a concessionary interest rate of 6% which is accounted for as a community distribution grant with interest foregone being added back to income.
| Current 2014 | Term 2014 | Total 2014 | Current 2013 | Term 2013 | Total 2013 | |
|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | $ | |
| Whanganui Regional | ||||||
| Health Network | 50,000 | 208,334 | 258,334 | 50,000 | 258,334 | 308,334 |
| Community House | 12,000 | 33,000 | 45,000 | 12,000 | 47,000 | 59,000 |
| YMCA | 36,000 | 129,000 | 165,000 | |||
| Te Oranganui | 36,000 | 129,000 | 165,000 | |||
| Total | 134,000 | 499,334 | 633,334 | 62,000 | 305,334 | 367,334 |
13 Financial Instruments
Fair Value Measurement
Financial instruments are required to be specified in a hierarchy of fair value based on the degree to which fair value is observable.
Level 1: Fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e derived from prices).
Level 3: Fair value measurements are those based on valuation techniques that include inputs for the asset or liability that are not based on observable market data.
All financial instruments held by the Group at fair value are classified as Level 1 except for hedge contracts which are classified as level 2 and there have been no transfers between levels during the year.
Risks arising from the Group’s financial assets and liabilities are inherent in the nature of the Group’s activities, and are managed through an ongoing process of risk identification, measurement and monitoring. The Group is exposed to credit risk, liquidity risk, and market risk (including currency, interest rate and pricing risks).
The Group’s income is generated from its financial assets. Liabilities which arise from its operations are met from cash flows provided by these assets.
Information regarding the fair value of assets and liabilities exposed to risk is regularly reported to the Foundation’s management, the Foundation’s Investment Audit and Compliance Committee and ultimately to the Board of Trustees. The Investment Portfolio is regularly rebalanced to ensure that asset classes remain within the Strategic Asset Allocation set out in the Foundation’s Statement of Investment Policy and Objectives (SIPO).
The SIPO sets out the Foundation’s investment objectives. These can be summarised as:
- to ensure that the investment fund is invested prudently;
- to provide inter-generational equity with regard to distribution levels over time;
- to ensure that money is available for distribution, as required, to meet the needs and distribution policies of the Foundation; and
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NZ Gazette 2014, No 95
✨ LLM interpretation of page content
💰 Social Loans by Community Organizations
💰 Finance & RevenueSocial Loans, Community Organizations, Financial Assistance, Whanganui, YMCA
💰 Fair Value Measurement of Financial Instruments
💰 Finance & RevenueFair Value, Financial Instruments, Risk Management, Investment Policy