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Notes to the Financial Statements Note 27: Related Party Transactions The following related party transactions occurred between the University and WaikatoLink Limited, U Leisure Limited (ULL), The University of Waikato Foundation (Foundation), The Student Campus Building Fund Trust (SCBFT), LCo New Zealand Limited (LCoNZ), The University of Waikato Alumni Association Incorporated (Alumni) and the University of Waikato Research Trust (UoW RT) occurred during the year: | | WaikatoLink | ULL | Foundation | SCBFT | LCoNZ | Alumni | UoW RT | | | | $ | $ | $ | $ | $ | $ | $ | | | | Payments in 2008 to: | | 1,113,205 | 693,024 | - | 360 | 316,472 | - | 3,420,000 | | (2007) | | 701,560 | 609,605 | 173,848 | 3,975 | 314,705 | 37,095 | 14,539,000 | | | | Receipts in 2008 from: | | 144,544 | 393,404 | 2,492,359 | 353,424 | 28,786 | 3,600 | - | | (2007) | | 532,156 | 448,081 | 57,985 | 334,509 | - | 7 | - | | | | Accounts Receivable at 31 December 2008 owing from: | | 4,395,825 | 37,157 | 5,742 | - | - | - | - | | (2007) | | 3,444,703 | 66,188 | 87,618 | - | - | - | - | | | | Accounts Payable at 31 December 2008 owing to: | | 81,657 | 19,231 | - | 551,142 | 615 | - | 13,551,000 | | (2007) | | 69,414 | 30,290 | 7,108 | 1,198,078 | 46,835 | - | 14,539,000 | WaikatoLink Limited has an associate company, Rural Link Limited, which commenced trading in 2007. The following transactions are between the University and Rural Link Limited: | | This Year | | Last Year | | | $ | | $ | | Total payments to Rural Link Limited | | 118,733 | | 750 | | Total receipts from Rural Link Limited | | - | | - | | Accounts Receivable at 31 December from Rural Link Limited | | - | | - | | Accounts Payable at 31 December to Rural Link Limited | | - | | 23,850 | Key Management Personnel The University has defined key management personnel as all direct reports to the Vice Chancellor, members of Council, Finance Committee, Vice Chancellor's Committee and Risk Management Committee. There are some close family members of key management personnel employed by the University and some enrolled as students. The terms and conditions of those arrangements are no more favourable than the University would have adopted if there were no relationship to key management personnel. Key Management Personnel, and their close family members, have also had the following specific transactions with the University: - The University has provided analysis services to NZ Biotechnologies, in which a councillor's spouse is a director. The value of the work in 2008 was nil (2007 : $2,762) and the balance outstanding at year end was nil ( 2007 : $3,108).
- During the year the University purchased recruitment and feasibility services from Deloitte, in which a member of Finance Committee is a partner. These services cost $77,342 (2007 : $9,773). There is a balance of $0 (2007 : $0) at year end for unpaid invoices. Deloitte also purchased goods from the University totalling $512 (2007 : $444) and at year end owed $0 (2007 : $0).
- The University receives various donations, research revenue and consultancy fees from Gallagher Group Ltd and Gallagher Charitable Trust, in which a member of Council is a director. These totalled $74,945 (2007 : $50,343). The balance outstanding at year end was $0 (2007 : $332).
- During the year the University purchased legal services from Norris Ward McKinnon, in which a member of Council was CEO until July 2008. These services cost $973,494 (2007 : $226,898). There was a balance of $0 at year end (2007 : $27,966) for unpaid invoices. The University also received sponsorship and sundry income from Norris Ward McKinnon totalling $0 (2007 : $3,349). The balance outstanding at year end was $0 (2007 : $0).
- During the year the University purchased goods and services from New Zealand Post in which a member of Council is the Chair, and another member of council is CFO. The value of these goods and services totalled $245,355 in 2008 (2007 : $380,507). The balance outstanding at year end was $14,220 (2007 :$45,046).
- During the year the University also purchased goods and services from Express Couriers Ltd in which two members of Council are directors. The value of theses goods and services totalled $74,632 in 2008 (2007 : $12,247). The balance outstanding at year end was $1,200 (2007 : $2,212).
- A member of council is a director of Innovation Park. During the year the University provided services totalling $10,683 (2007 : $0) and the balance owing at year end was $5,625 (2007 : $0). The University is also a tenant of Innovation Waikato and paid them a total of $205,749 (2007 : $192,020) during the year. The balance owing at year end was $975 (2007 : $0).
- A member of Risk Management Committee is CEO of Tainui Group Holdings. During the year the University paid them $3,161,039 (2007 : $2,131,224) in lease payments. There was a balance owing at year end of $108,864 (2007 : $1,850,736). The University also received the amount of $1,168 (2007 : $1,893) from Tainui Group for services during the year. The balance owing at year end was nil (2007 : $0).
- The University also has key management personnel serving on the board of WaikatoLink Limited. The University's dealings with WaikatoLink Limited are disclosed above.
The University enters into transactions with government departments and Crown agencies. These are not separately disclosed because they are conducted on an arms length basis in the normal course of business. The government influences the roles of the University as well as being a major source of revenue. |
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