Financial Statements of Waikato River Clean-Up Trust
for the period ended 30 June 2013
Restoring and protecting the health and wellbeing of the Waikato River
44
c) Interest rate risk
2013
Balance
Maturity
Effective
date
interest rate
Term Deposit
1,000,000 20/10/13
4.20%
Term Deposit
1,000,000 26/11/13
4.21%
Term Deposit
2,000,000 26/08/13
4.19%
Term Deposit
1,000,000 20/02/14
4.01%
Term Deposit
1,000,000 20/12/13
3.93%
Term Deposit
2,000,000 26/07/13
4.15%
Term Deposit
2,000,000 05/01/14
4.25%
Term Deposit
1,000,000 20/09/13
4.10%
Term Deposit
1,000,000 26/11/13
4.25%
Term Deposit
445,104 15/08/13
2.66%
12,445,104
2012
Balance
Maturity
Effective
date
interest rate
Term Deposit
1,600,000 27/10/12
4.65%
Term Deposit
2,554,508 02/09/12
4.66%
Term Deposit
19,235,117 06/09/12
4.75%
23,389,625
d) Sensitivity analysis
In managing interest rate risk the trust aims to reduce the impact of short-term
fluctuations on the trust’s earnings by investing in short term deposits. Over the
longer-term, however, permanent changes in interest rates will have an impact on
profit. A decrease in interest rates of one percent would reduce interest income
by $120,000.
e) Credit quality of financial assets
The credit quality of financial assets that are neither past due nor impaired can
be assessed by reference to Standard and Poor’s credit ratings (if available) or to
historical information about counterparty default rates.
2013
2012
COUNTERPARTIES WITH CREDIT RATINGS
Cash at bank and term deposits, bonds
AA
344,849
-
AA-
14,071,661
28,418,426
A+
624,821
-
A-
244,696
-
15,286,027
28,418,426
f) Contractual maturity analysis of non-derivative financial liabilities
The Trust relevant maturity groupings for financial liabilities based on the
remaining balances at balance date of $235,018 are due to mature in less than
1 year.
