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) during the year:

WaikatoLink
$
ULL
$
Foundation
$
SCBFT
$
LCoNZ
$
Alumni
$
UoW RT
$
Payments in 2010 to: 1,594,394 684,183 - - 251,566 - 2,249,000
(2009) 2,516,470 713,552 - - 238,924 - 3,980,120
 
Receipts in 2010 from: 238,316 399,069 612,788 205,911 176,865 - 348,982
(2009) 244,124 383,553 725,371 230,141 159,365 - 404,335
 
Accounts Receivable at 31 December 2010 owing from: 6,180,180 63,259 - - - - -
(2009) 4,682,030 69,034 - - - - -
 
Accounts Payable at 31 December 2010 owing to: 125,198 89 225,323 925,968 16,342 - 15,796,000
(2009) 96,470 33,974 - 729,504 350 - 15,611,000

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 35,116 36,316
Total receipts from Rural Link Limited 39,437 48,723
Accounts Receivable at 31 December from Rural Link Limited 27,877 41,893
Accounts Payable at 31 December to Rural Link Limited 59 6,024

Key Management Personnel
The University has defined key management personnel as all direct reports to the Vice Chancellor, members of Council, Finance Committee, Senior Leadership Team 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:

  1. During 2009 the University purchased consultancy services from Deloitte. A member of Finance Committee was a partner of Deloitte during 2010 and 2009. These services cost $31,155 in 2009. There was no outstanding balance at year end. Deloitte also purchased goods from the University totalling $1,458 (2009 : $2,404) and had no outstanding balances at either year end.
  2. 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 $55,225 (2009 : $47,000). The balance outstanding at year end was $5,000 (2009 : $0). The University also purchased $0.00 of goods from Gallagher Group (2009 : $1,613)
  3. During the year the University purchased goods and services from New Zealand Post in which a member of Council was the Chair. The value of these goods and services totalled $215,734 in 2010 (2009: $237,673). The balance outstanding at year end was $14,448 (2009 : $50,875).
  4. During the year the University also purchased goods and services from Express Couriers Ltd in which a member of Council was a director. The value of theses goods and services totalled $77,413 in 2010 (2009 : $83,920). The balance outstanding at year end was $4,898.32 (2009 : $13,653).
  5. A member of Council is a director of Innovation Park. During the year the University provided services totalling $0 (2009 : $783) and the balance owing at year end was $0 (2009 : $0). The University is also a tenant of Innovation Waikato and paid them a total of $140,656 (2009 : $255,990) during the year. The balance owing at year end was $1,011 (2009 : $100).
  6. A member of Finance Committee is CFO of Environment Waikato. During the year the University paid them $22,473 in rates payments. There was a balance owing at year end of $49. The University also received the amount of $232,137 from Environment Waikato for services during the year. The balance owing at year end was $14,073.
  7. A member of Finance Committee is a director of R J Hill Laboratories Ltd. During the year the University provided services totalling $22,400 (2009 : $17,998) to Hill Laboratories and the balance owing at year end was $1,311 (2009 : $2,310). The University also purchased services from Hill Laboratories during the year totalling $4,910, (2009: $3,642) the balance outstanding at year end was $0 (2009: $0).
  8. A member of Finance Committee is a director of Landcare Research NZ Ltd. The University provided services totalling totalling $401,908 (2009 : $300,509) to Landcare Research Ltd and the balance owing at year end was $50,914 (2009 : $4,716). The University also purchased services from Landcare Research Ltd during the year totalling $44,375 (2009 : $227,566), the balance outstanding at year end was $1748 (2009: $0).
  9. A member of Senior Leadership Team is a director of Hamilton East Medical Centre. The University purchased services from Hamilton East Medical Centre during the year totalling $316 (2009 : $0), the balance outstanding at year end was $0.
  10. The spouse of a key management person is a director of NZ Biotechnologies. During the year the University provided services totalling $7,200 (2009 : $0) to NZ Biotechnologies Ltd and the balance owing at year end was $0.
  11. Two key management personnel are directors of Te Runanganui O Ngati Porou. During the year the University provided services totalling $3,097 and the balance owing at year end was $0. The University also purchased services from Te Runangaui O Ngati Porou totalling $78, the balance outstanding at year end was $0.
  12. A member of Council and Finance Committee is a director of Nexus Publications. During the year the University provided services totalling $906 to Nexus and the balance owing at year end was $129. The University also purchased advertising from Nexus totalling $21,540, the balance outstanding at year end was $0.
  13. A member of Senior Leadership Team is a director of NZ Tertiary Education Consortium Ltd. The University received $8,721 during the year from NZTEC Ltd. There was no outstanding balance at year end.
  14. A member of Council and Finance Committee is a director of Tatua Co-operative Dairy Co. During the year the University provided services totalling $9,910 to Tatua Co-op and the balance owing at year end was $978. The University also purchased services totalling $1,053, the balance outstanding at year end was $0.
  15. A member of Council and Finance Committee is a director of Apata Limited. During the year the University purchased services totalling $787 from Apata Ltd and the balance owing at year end was $0.
  16. A member of Council is a director of Habitat for Humanity. During the year the University purchased services totalling $89 from Habitat for Humanity and the balance owing at year end was $0.
  17. A member of finance committee is a director of Finn and Partners. During the year the University provided products totalling $598 to Finn and Partners and the balance owing at year end was $0.
  18. The University also has key management personnel serving on the board of WaikatoLink Limited and ULeisure. The University's dealings with WaikatoLink Limited and ULeisure Ltd are disclosed above.
  19. A member of the Senior Leadership Team is a director of Hamilton Fibre Network Limited (HFN). The University owns shares in HFN (see note 13) and has made a loan to HFN (see note 14). During the year the University increased their investment in HFN by $23,000.

No provision has been required, nor any expense recognised for impairment of receivables for any loans or other receivables to related parties (2009: $0).

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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