Annual report 2012
18.11 Tai Wānanga
Mana Forbes is a Te Mana Whakahaere member of Te Wānanga o Aotearoa and is also the chair of
the Board of Trustees of Tai Wānanga. Te Wānanga o Aotearoa provides administration services for
Tai Wānanga.
2012
2011
$’000 $’000
Sales to Tai Wānanga
57
521
2012
2011
Amounts owing by and to Tai Wānanga
$’000 $’000
Trade receivables
1
2
Trade payables
-
-
Te Wānanga o Aotearoa is the parent of the group and controls two entities, being Open Wānanga Limited
and the Aotearoa Scholarship Trust.
Significant transactions with government-related entities
The government influences the roles of Te Wānanga o Aotearoa as well as being a major source of revenue.
Te Wānanga o Aotearoa has received funding and grants from the Tertiary Education Commission totalling
$135.109m (2011 - $133.376m) to provide education and research services for the year ended 31
December 2012.
Collectively, but not individually, significant transactions with government-related entities
In conducting its activities, Te Wānanga o Aotearoa is required to pay various taxes and levies (such as
GST, PAYE and ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and
levies is based on the standard terms and conditions that apply to all tax and levy payers.
Te Wānanga o Aotearoa is exempt from paying income tax, resident withholding tax and FBT.
Te Wānanga o Aotearoa purchases goods and services from entities related to the Crown and it also
provides services to entities related to the Crown.
The purchase and provision of goods and services to government-related entities for the year ended 31
December 2012 are small when compared to the total expenditure and revenue of Te Wānanga o Aotearoa
and have all been conducted on an arms length basis. The purchase of goods and services included
the purchase of electricity from Genesis, air travel from Air New Zealand and postal services from New
Zealand Post. The provision of services to government-related entities mainly related to the provision of
educational courses.
Terms and conditions of transactions with related parties
Provision of services to and purchases from related parties are made in arm’s length transactions at both
normal market prices and normal commercial terms.
Outstanding balances at 31 December 2012 and 2011 are unsecured and settlement occurs in cash.
There have been no guarantees provided or received for any related party receivables.
For the year ended 31 December 2012, the group has not raised any provision for impairment of
receivables relating to amounts owed by related parties as the payment history has been excellent, (2011
- NIL). This assessment is undertaken each financial year following an examination of the financial position
of the related party and the market in which the related party operates in.
When assessed as required the group raises such a provision.
113
