Notes to the Financial Statements

Note 22: Borrowings

Consolidated University
This Year Last Year This Year Last Year
$000 $000 $000 $000
Opening Balance 1,400 1,475   1,400 1,475
less Borrowings Repaid (62) (75)   (62) (75)
Closing Balance 1,338 1,400   1,338 1,400
 
Current Portion - Finance Lease 2 2   2 2
Current Portion - Loan - 60   - 60
Non Current Portion - Finance Lease 1,336 1,338   1,336 1,338
Non Current Portion - Loan - -   - -
1,338 1,400   1,338 1,400

The Finance lease was fair valued at inception using a discount rate of 12.07%. The University's other loan was an interest free loan from the Energy Efficiency and Conservation Authority (EECA) which was 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. The EECA loan was fully repaid in 2010.

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 5,024 5,188   5,024 5,188   725 728   725 728
Minimum Lease Payments 5,843 6,006   5,843 6,006   1,338 1,340   1,338 1,340
Less future finance charges (4,505) (4,666)   (4,505) (4,666)    
Present value of minimum lease payments 1,338 1,340   1,338 1,340   1,338 1,340   1,338 1,340


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