2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

Note 13Other financial assetsCouncilGroupActual Actual Actual Actual2012 2011 2012 2011$000 $000 $000 $000CURRENT PORTIONShort term bank deposits with maturities of 4-12 months - - 108 211Total current portion - - 108 211NON-CURRENT PORTIONSecurities, stocks, bonds and shares forLong Term Investment Fund 19,735 22,039 19,735 22,039Other advances 395 248 395 248Unlisted shares (Civic Assurance) 494 269 494 269Shares in subsidiaries (Palmerston North Airport Ltd) 10,842 10,842 - -Total non-current portion 31,466 33,398 20,624 22,556Financial Statements Note 13Total other financial assets 31,466 33,398 20,732 22,767Impairment◊There are no impairment provisions for otherfinancial assets. None of the financial assets areeither past due or impaired.Fair value◊ The carrying value of loans and receivables,short term bank deposits and other advancesapproximates their fair value, except as detailedbelow.PNCC manages a Long Term Investment Fund in accordance with the Treasury Policy. The Fund was invested as follows:CouncilGroupActual Actual Actual Actual2012 2011 2012 2011$000 $000 $000 $000SSgA (Overseas shares) 5,803 6,406 5,803 6,406Directly held NZ bonds 13,932 15,633 13,932 15,63319,735 22,039 19,735 22,039◊◊The Long Term Investment Fund comprises aportion invested in shares which is managedon behalf of PNCC by mandate with State StreetGlobal Advisors and a portion invested in bondsmanaged directly by PNCC. The portion managedon behalf of PNCC do not have contractual repricingor maturity dates. Fair value of overseasshares have been determined by the investmentmanager by reference to quoted market pricesconverted at rates of forward exchange coveror year end exchange rates if no cover exists.Fair value of NZ bonds has been determinedby the investment advisor by discounting cashflows from the instruments using a discount ratederived from relevant market inputs.During 2007/08 the Council resolved thatthe Long Term Investment Fund would beprogressively wound down and used to retirepresent debt or in substitution for new debt. Inaccordance with this decision total distributionsfrom the Fund for the year amounted to $2.6m(2011 $15.9m) compared with the originalbudget of $3.3m (2011 $4.0m).◊During the 2008 year PNCC provided a loan of$2.5m to the Manfeild Park Trust to assist withthe construction of a multi-purpose indoor/outdoor stadium at Manfeild Park. Underthe terms of the loan agreement principalrepayments were deferred for five years andthen were to be repayable monthly over thenext 20 years. Interest was to accrue at theaverage borrowing rate incurred by PNCC andbe deferred for the first two years with thetotal sum accrued to be payable on a monthlybasis over the following five years in additionto ongoing interest. During 2010 it was agreedthat the interest accrued would be capitalisedto the loan and that no interest shall accrueor be payable for the next five years. It wasfurther agreed that there will be no principalrepayments during that period.156Palmerston North City Council Annual Report 2011/12