Notes to the Financial Statements
for the year ended 30 June 2005
Note 1: Investments by Counterparty
Investments are undertaken in line with the Department's investment strategy. Investments were held with the following counterparties at 30 June (investments valued at book value).
| |
2005
Actual
$000 |
2004
Actual
$000 |
| Current |
| Westpac |
17,269 |
32,114 |
| National Bank |
21,651 |
18,970 |
| ANZ |
18,173 |
45,340 |
| BNZ |
40,909 |
21,678 |
| ASB |
40,997 |
- |
| Government stock |
- |
3,002 |
| Total Current |
138,999 |
121,104 |
| |
| Non-Current |
| Westpac |
- |
- |
| National Bank |
- |
- |
| ANZ |
10,000 |
6,000 |
| BNZ |
16,048 |
33,166 |
| ASB |
13,633 |
- |
| Government stock |
4,079 |
4,132 |
| Total Non-Current |
43,760 |
43,298 |
| Total Investments by Counterparty |
182,759 |
164,402 |
| |
| Interest Rates |
| Short-term deposits |
6.92% |
5.75% |
| Term deposits |
6.57% |
6.12% |
| Government stock |
6.48% |
6.45% |
| |
|
Note 2: Book Value of Investments
|
| Book Value of Investments |
| Bank deposits |
160,615 |
133,102 |
| Bank bonds |
18,065 |
24,666 |
| Government stock |
4,079 |
7,134 |
| Total Book Value of Investments |
182,759 |
164,902 |
Note 3: Financial Instruments
Financial instruments that are potentially subject to credit risk principally consist of cash on hand, bank balances, accounts receivable, short-term deposits and investments.
Credit Risk
The maximum exposures to credit risk at balance date are:
| |
2005
Actual
$000 |
2004
Actual
$000 |
| Cash held |
8,118 |
4,438 |
| Accounts receivable |
4,009 |
2,877 |
| Investments |
182,759 |
164,402 |
| Total |
194,886 |
171,717 |
There are no major concentrations of credit risk with respect to accounts receivable.
Currency Risk
The Residential Tenancies Trust Account has no currency risk, given that any financial instruments it deals with are in New Zealand dollars.
Interest Rate Risk
The Residential Tenancies Trust Account has no interest rate risk, as all investments are held to maturity. Deposits are held with authorised New Zealand banks.
Fair Value
The fair value of all financial instruments is equivalent to the carrying amount disclosed in the Statement of Financial Position, apart from the investment in government stock, the fair value of which is the market value of $4,102,060 (2004: $7,293,255); and bank bonds, the fair value of which is $18,021,473 (2004: $24,510,517).
Note 4: Reconciliation of Net Cash Flows from Operating Activities to Operating Surplus
| |
2005
Actual
$000 |
2004
Actual
$000 |
| Operating surplus |
- |
- |
| Add/(less) movements in working capital |
| (Increase)/decrease in interest payable |
(3,819) |
151 |
| Increase/(decrease) in interest receivable |
1,132 |
(441) |
| Net cash flows from operating activities |
(2,687) |
(290) |
Note 5: Commitments and contingencies
The Residential Tenancies Trust Account has no commitments or contingent liabilities at balance date (2004: Nil).
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