27
TRUST WA I KATO
ANNUAL REPORT
2 0 1 4
7. Donations Payable
2014
2013
NZ$’000
NZ$’000
Donations Payable
1,605
1,600
1,605
1,600
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.
8. 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.
9. Sport Waikato Loan
The loan to Sport Waikato was 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
$2,000,000 and by a first mortgage over Sport
Waikato’s leasehold estate and interest in
their site at Wintec. The loan was interest free
and repaid in full on 19 August 2013. The loan
balance was made up as follows:
2014
2013
NZ$’000
NZ$’000
Donations
4,335
5,217
Sponsorships
200
295
4,535
5,512
Subject to fulfilment of the
conditions, the contingent
liabilities are payable
as follows:
Not later than 1 year
3,790
3,315
Later than 1 year and
not later than 5 years
745
2,197
4,535
5,512
The Trustees have adopted an investment
strategy with a targeted long term annual
rate of return of 6.6% (2013: 7.1%) of the Trust
portfolio value. Recognising that actual returns
are likely to fluctuate from year to year, the
Trust retains the variation from the target in
an Investment Fluctuation Reserve, so that in
years when investment returns are less than
the target, sufficient funds are available to
meet expenditure and make donations. If the
Trust fund falls below the value that needs to
be maintained for the benefit of current and
future generations the levels of expenditure
and donations are reviewed by the Trust.
2014
2013
NZ$’000
NZ$’000
Loan Principal
1,500
1,500
Fair Value Adjustment
on Initial Recognition of
Interest Free Loan
(525)
(525)
Cumulative Notional
Interest
525
476
Repaid
(1,500)
-
-
1,451
