129.042 Mahitahi Hauora Annual Report 2024-25_Spreadsv07 - Flipbook - Page 48
Notes to the Financial Statements for the Year Ended - 30 June 2025
Note
Carrying
amount
Total
contractual
cash
On Demand
Payables
12
1,168,443
1,168,443
1,168,443
Funds held on behalf of other parties
15
846,684
846,684
846,684
2,015,127
2,015,127
2,015,127
As at 30 June 2025
As at 30 June 2024
Payables
12
1,348,879
1,348,879
1,348,879
Funds held on behalf of other parties
15
887,251
887,251
887,251
2,236,130
2,236,130
2,236,130
(iv)
Interest Rate Risk
At reporting date, the Trust has the following 昀椀nancial assets exposed to New Zealand variable interest rate risk:
2025
2024
$
$
Bank - Cash and cash equivalents
1,595,291
8,281,758
Investments - short term deposits with maturities 4 - 12 months
5,581,523
2,678,238
7,176,814
10,959,996
4.10% was the average interest rate earned on cash deposits and short term deposits (2024:6.06%)
The Trust has no borrowings.
It is estimated a 100 basis point increase/(decrease) in interest rates would result in an increase/(decrease) in the Trust’s
interest earned in a year by approximately $71,744/($71,744) on the Trust’s investment portfolio exposed to floating rates
at reporting date (2024: 100 basis point increase/(decrease) of $109,600/($109,600)).
It is estimated a 200 basis point increase/(decrease) in interest rates would result in an increase/(decrease) in the Trust’s
interest earned in a year by approximately $143,488/($143,488) on the Trust’s investment portfolio exposed to floating
rates at reporting date (2024: 200 basis point increase/(decrease) of $219,200/($219,200)).
Based on historical movements and volatilities as well as management’s knowledge and experience, management believes
that the above movements are ‘reasonably possible’ over a 12 month period: a shift of between 1%-2% in market interest
rates.
(vi)
Fair Values
The following 昀椀nancial assets and liabilities being cash, investments - short term deposits and trade receivable and payable
balances of a short term nature and funds held on behalf of, accordingly the carrying amount is a reasonable approximation
of their values.
48.
