Mahitahi Hauora Annual Report 20222023 FINAL v17 - Flipbook - Page 39
30 June 2023 - Notes to the Financial Statements for the Year Ended
Note
Carrying
amount
Total
contractual
cash
On Demand
6 months
- 1 year
More than
1 year
$
$
$
$
$
As at 30 June 2023
Payables
12
2,177,455
2,177,455
2,177,455
-
-
Funds held on behalf
of other parties
15
1,072,973
1,072,973
1,072,973
-
-
3,250,428
3,250,428
3,250,428
-
-
As at 30 June 2022
Payables
12
4,101,112
4,101,112
4,101,112
-
-
Finance Leases
14
1,881
1,881
1,881
-
-
Funds held on behalf
of other parties
15
569,543
569,543
569,543
-
-
4,672,536
4,672,536
4,672,536
-
-
(iv) Interest Rate Risk
At reporting date, the Trust has the following 昀椀nancial assets exposed to New Zealand variable interest rate risk
2023
2022
$
$
Bank - Cash and cash equivalents
5,113,868
3,173,011
Investments - short term deposits with maturities 4 - 12 months
1,047,873
2,512,122
6,161,741
5,685,133
3.27% was the average interest rate earned on cash deposits and short term deposits (2022:1.62%) The Trust has no
borrowings.
It is estimated a 100 basis point decrease in interest rates would result in a decrease in the Trust's interest earned in a year by
approximately $61,617 on the Trust's investment portfolio exposed to floating rates at reporting date (2022: 100 basis point
decrease of $56,851)
Based on historical movements and volatilities and management's knowledge and experience, management believes that the
above movements are 'reasonably possible' over a twelve month period: A shift of between 1% and 2% in market interest rates.
The impact on the pro昀椀t or loss of a 1% movement equals to 100 basis points $61,617 (2022: $56,851).
(v) 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.
(vi) Other Risks
In April 2021, the Government announced major health reforms which will impact the Trust. As part of the reforms, the
Government will abolish the 20 district health boards and create a single health organisation to be called Health NZ. Primary
health organisations will evolve into locality network organisations that will work collaboratively with Maori, Communities
and Providers to improve health outcomes in the locality by changing the way in which community and primary health care is
delivered. The reforms will be implemented over three years.
In December 2021 the Trust reoriented their mahi to ensure Mahitahi Hauora could continue its work to deliver our vision and
meet our Trust's purposes, while effectively serving the new system. The health reform required Mahitahi Hauora to undertake a
39.