Notes to the Financial Statements 

Note 22: Borrowings

Consolidated University
This Year Last Year This Year Last Year
$000 $000 $000 $000
Opening Balance 1,475 1,598 1,475 1,598
less Loans Repaid (75) (123) (75) (123)
Closing Balance 1,400 1,475 1,400 1,475
 
Current Portion - Finance Lease 2 2 2 2
Current Portion - Loan 60 80 60 80
Non Current Portion - Finance Lease 1,338 1,340 1,338 1,340
Non Current Portion - Loan - 53 - 53
  1,400 1,475 1,400 1,475

The Finance lease was fair valued at inception using a discount rate of 12.07%. The University's other loan is an interest free loan from the Energy Efficiency and Conservation Authority which has been fair valued using the discount rate of 8.7%. This rate was the market rate applicable at the time the loan was originally fair valued, December 2006.

Finance lease

(a) Leasing arrangements
The Finance lease relates to University buildings which become the property of the University at the conclusion of the lease term in 2046.

(b) Finance lease liabilities

Minimum Future Lease Payments Present Value of minimum future lease payments
Consolidated University Consolidated University
  This Year Last Year   This Year Last Year   This Year Last Year   This Year Last Year
  $000 $000   $000 $000   $000 $000   $000 $000
No later than 1 year 164 164 164 164 154 154 154 154
Between 1 and 5 years 655 655 655 655 459 459 459 459
Later than five years 5,188 4,860 5,188 4,860 728 729 728 729
Minimum Lease Payments 6,006 5,679 6,006 5,679 1,340 1,342 1,340 1,342
Less future finance charges (4,666) (4,337) (4,666) (4,337)
Present value of minimum lease payments 1,340 1,342 1,340 1,342 1,340 1,342 1,340 1,342


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