geoff hawkings - Waiariki Institute of Technology

note 16: reconciliation of the net surplus from operations with the net cash Flows
from operating activities
50 60 2006 ANNUAL REPORT
2006 2005
$000s $000s
Net Surplus from Operations 495 646
Add (Less) Non-cash Items:
Depreciation 2,691 2,599
Add (Less) Movements in Working Capital Items:
(Increase)/Decrease in Accounts Receivable (542) (17)
(Increase)/Decrease in Pre-payments (25) 285
(Increase)/Decrease in Inventories 53 (16)
(Decrease)/Increase in Fees in Advance 82 (409)
(Decrease)/Increase in Accounts Payable 820 114
Add (Less) Items Classified as Investing Activities:
Net Loss/(Gain) on Sale of Assets (13) (4)
Add: Net Cash Outflows from Trust/Special Funds (4) (17)
NET CASH FLOW FROM OPERATING ACTIVITIES 3,557 3,181
note 17: Financial instruments
Cash and bank, accounts receivable (net), accounts payable, investments and non-current liabilities
are financial instruments. The maximum credit risk is disclosed in the Statement of Financial Position.
The only collateral or security in respect of financial instruments relate to non-current liabilities
disclosed in Note 14.
Cash, bank and accounts receivable are the main credit risks. The bank risk is reduced by spreading
short term investments over high credit quality financial institutions. There is no major concentration of
credit risk with respect to accounts receivable.
Financial instruments in the current section of the Statement of Financial Position are shown at values
equivalent to their fair values. The investments are shown at cost.
The Institute anticipates that these liabilities will be held to maturity and, accordingly, settlement at the
reported fair value of these financial instruments is unlikely.
All the Institute’s financial instruments are in New Zealand dollars so there is no currency risk.
Weighted average effective interest rates
2006 2005
Call Account 7.3% 6.8%
note 18: Post balance Date events
There has been no event or activity likely to significantly affect the financial position of the Institute as at
31 December 2006.