129.037 Mahitahi Hauora Annual Report 2023-24 v8 - Low Res Spreads - Flipbook - Page 51
30 June 2024 - Notes to the Financial Statements for the Year Ended
Note
Carrying
amount
Total
contractual
cash
On Demand
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
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
(iv)
Interest Rate Risk
At reporting date, the Trust has the following 昀椀nancial assets exposed to New Zealand variable interest rate risk:
2024
2023
$
$
Bank - Cash and cash equivalents
8,281,758
5,113,868
Investments - short term deposits with maturities 4 - 12 months
2,678,238
1,047,873
10,959,996
6,161,741
6.06% was the average interest rate earned on cash deposits and short term deposits (2023:3.27%)
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 $109,600/($109,600) on the Trust’s investment portfolio exposed to floating
rates at reporting date (2023: 100 basis point increase/(decrease) of $61,617/($61,617)).
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 surplus or de昀椀cit and net assets or equity of a 1% movement equals to 100 basis points
$109,600 (2023: $61,617).
(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.
(vii) Other Risks
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 further shift in focus to strengthen our relevance in the new system being introduced on July 2022.
In July 2022 the Trust re-shaped and implemented their funding model and reduced infrastructure costs.
The Trust Board and Management are continuously working on aligning their strategy with the direction of the Government’s
plan. However, there is risk that other organisations or models of cooperation may be favoured by stakeholders and/or the
commissioning arm of Health NZ in the future.
51.
