T R U S T W A I K A T O
A N N U A L R E P O R T 2 0 1 1 / 2 0 1 2
6. 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 $2,000,000 and by a first mortgage over
Sport Waikato’s leasehold estate and interest in their site at
Wintec. The loan is interest free and repayable in one sum by 19
August 2013. The loan balance is made up as follows:
2012
2011
NZ$’000 NZ$’000
Loan Principal
1,500
1,500
Fair Value Adjustment on Initial
Recognition of Interest Free Loan
(525)
(525)
Cumulative Notional Interest
357
247
1,332
1,222
The above loan carrying value is calculated using
the market interest rate at the time of the loan
drawdown. The fair value of the Sport Waikato loan
at balance date is $1,387,319 (2011: $1,290,866).
The cumulative notional interest is calculated at
9% which was the rate used when the fair value of
the loan was calculated at inception. The fair value
calculation is based on the 1.5 year (2011: 2.5 year)
bank loan rate of 5.8% (2011: 6.5%).
7. Database Loan
The Trust and ten of the other eleven Community
Trusts established under the 1988 Trustee Bank
Restructuring Act have combined resources to own
and operate an integrated donation management
and financial management information system.
The system has been implemented and once
final development is completed will be owned and
operated by a limited partnership named Te Kete
Putea Limited Partnership (TKPLP), which is likely
to be established in the first half of the new financial
year. The total cost of the project is $2,380,000. The
Trust’s contribution to these costs is 8.2%.
The capital of the limited partnership will consist of
10,000 units and each Trust will hold units broadly
in proportion to its audited capital at 31 March 2008.
The Trust will hold 820 units. The value of each unit
has been determined at $238.22. Until such time
as TKPLP has been established, ASB Community
Trust (ASBCT) is entering into project contracts
with vendors on behalf of the Trusts and meeting
the funding requirements for the project in terms of
a letter of indemnity from each of the participating
Trusts. The contracts with the vendors provide
for the contracts to be novated to TKPLP once it
becomes established.
The Trust has met its funding proportion for the
project by way of a loan to ASBCT, which has
agreed to undertake the work on the project and
incur the project commitments. The Trust has
granted an indemnity in favour of ASBCT in respect
of such commitments. This loan, shown in the
Trust’s balance sheet, is unsecured and interest
free. On the formation of TKPLP, the loan from
the Trust will be extinguished by being retained
and applied by ASBCT towards the Trust’s capital
contribution to TKPLP.
8. DONATIONS
On 24 April 2012 the Waikato Times published a list totalling
$7,088,150 which showed the donations approved by the Trust
during the year ended 31 March 2012.
$
Total donations published in the Waikato Times
7,088,150
Less:
Future conditional commitments included in above:
Cambridge - Rotorua Live Steamers Inc
5,000
Coromandel Heritage Trust
55,000
Matahuru Papakainga Committee
50,000
Mesh Sculpture Hamilton
15,000
Order of St John - Te Kauwhata
64,000
Order of St John Tainui (Mokau)
30,000
Order of St John - Putaruru
40,000
Philips Search and Rescue Trust
75,000
St Mark’s Church
100,000
Taumaranui Netball Centre
10,000
Tauwhare School Board of Trustees
10,000
Waitetuna School
5,000
459,000
Add:
Past conditional commitments paid during year:
Motiti Marae
12,000
Stanley Avenue School
10,000
Te Ohaaki Marae - Huntly
30,000
Te Papatapu Marae
60,000
Te Whanau Putahi
50,000
162,000
Less:
Payment of donations payable at beginning of year
Community Waikato
500,000
Music and Arts Waikato Trust
300,000
Sport Waikato - SportsForce
680,000
1,480,000
Add:
Donations approved during the year and payable
at end of year
Community Waikato
500,000
Music and Arts Waikato Trust
75,000
Sport Waikato - SportsForce
680,000
1,255,000
Less:
Donations refunded during year:
Fuel Festival Trust
5,000
Hamilton Children and Families Trust
750
Maniapoto Netball Association Inc
228
Matamata Primary School
1,000
National Foundation for the Deaf Inc
3,000
South Waikato Achievement Trust
5,000
Tairua Indoor Pool Feasibility Study Committee
2,000
Te Kopua Marae Committee
1,000
Toy Library - Te Aroha
750
Upper Central Zone of NZ Rugby League Inc
5,040
23,768
Total donations for the year shown in the
Statement of Comprehensive Income
6,542,382
A full list of donations is available on request from the
Trust office, or at
www.trustwaikato.co.nz
F I N A N C I A l S T A T E M E N T S
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