36
F I N A N C I A l S T A T E M E N T S
2013
2012
NZ$’000
NZ$’000
Donations
5,217
3,582
Sponsorships
295
45
5,512
3,627
Subject to fulfilment of the conditions,
the contingent liabilities are payable
as follows:
Not later than 1 year
3,315
881
Later than 1 year and
not later than 5 years
2,197
2,746
5,512
3,627
10 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 $2,000,000 and by a first mortgage over
Sport Waikato’s leasehold estate and interest in their
site at Wintec. The loan is interest free and repayable
in one lump sum by 19 August 2013. The carrying
value of the loan is calculated using the effective
interest method to recognise notional interest income.
The loan balance is made up as follows:
2013
2012
NZ$’000
NZ$’000
Loan Principal
1,500
1,500
Fair Value Adjustment on Initial
Recognition of Interest Free Loan
(525)
(525)
Cumulative Notional Interest
476
357
1,451
1,332
7 TRUST FUNDS
2013
2012
Base Capital Value
NZ$’000
NZ$’000
Balance at the Beginning of the Year
267,743
261,944
Transfer from Comprehensive Income
3,928
5,799
Balance at the End of the Year
271,671
267,743
Base Capital Value is adjusted on a quarterly
compounding basis for inflation and regional
population growth.
2013
2012
Investment Fluctuation Reserve
NZ$’000
NZ$’000
Balance at the Beginning of the Year
(6,198)
(7,207)
Transfer from Comprehensive Income
20,035
1,009
Balance at the End of the Year
13,837
(6,198)
The Trustees have adopted an investment strategy
with a targeted long term annual rate of return of 7.1%
(2012: 7.5%) of the Trust portfolio value. Recognising
that actual returns are likely to fluctuate from year to
year, the Trust retains the variation from the target in
an Investment Fluctuation Reserve, so that in years
when investment returns are less than the target,
sufficient funds are available to meet expenditure and
make donations. If the Trust fund falls below the value
that needs to be maintained for the benefit of current
and future generations the levels of expenditure and
donations are reviewed by the Trust.
8 DONATIONS PAYABLE
2013
2012
NZ$’000
NZ$’000
Donations Payable
1,600
1,255
1,600
1,255
Donations payable are discretionary donations where
there are no significant conditions attached or where
the significant conditions attached to the donations
have been met at balance date.
9 CONTINGENT LIABILITIES:
DONATIONS AND SPONSORSHIPS
Donations that are classified as contingent liabilities
at balance date are discretionary donation obligations
that are reliant on fulfilment of certain conditions in
future years. Sponsorships that are classified as
contingent liabilities at balance date are sponsorship
contracts which are reliant on fulfilment of certain
conditions in future years. The following contingent
liabilities exist for donations and sponsorships that
have been approved in the current or previous years.
