The University of Waikato - Te Whare Wananga o WaikatoThe University of Waikato - Te Whare Wananga o Waikato

2006 Annual Report

   
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Notes to the Financial Statements 

Note 5: Term Liabilities

Consolidated and University
  This Year
$000
  Last Year
$000
Opening Balance   7,897   7,597
less Loans Repaid   (7,461)   (7,400)
plus Loans Raised   -   7,700
plus Finance Lease Loan Raised   1,345   -
Closing Balance 1,781   7,897
 
Current Portion - Loans   161   80
Non Current Portion - Loans   1,620   7,817
1,781   7,897

The weighted average interest rate of the term liabilities is 10.13% (2005-6.96%).

Finance leases                  
  Minimum Future Lease Payments Present Value of minimum
future lease payments
Consolidated University Consolidated University
This Year
$000
Last Year
$000
This Year
$000
Last Year
$000
This Year
$000
Last Year
$000
This Year
$000
Last Year
$000
No later than 1 year   164 - 164 - 154 - 154 -
Later than 1 year and not later than 2 years   164 - 164 - 138 - 138 -
Later than 2 years and not later than 5 years   491 - 491 - 326 - 326 -
Later than five years   6,008 - 6,008 - 727 - 727 -
Minimum Lease Payments   6,827 - 6,827 - 1,345 - 1,345 -
Less future finance charges   (5,482)   (5,482)  
Present value of minimum lease payments   1,345 - 1,345 - 1,345 - 1,345 -

Finance leases relate to University buildings which become the property of the University at the conclusion of the lease term in 2046.

This lease agreement was previously recorded as an operating lease, but was reviewed in 2006 during the IFRS compliance project and it was determined that it was in fact a finance lease.

In January 2007, the University has obtained approval from the Ministry of Education for the finance lease liability to be added to the balance sheet.

As the approval was not given prior to 31 December 2006 the University was in breach of the Education Act 1989 requiring ministerial approval for all borrowings.



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