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Notes to the Financial StatementsCarrying amount$000Contractual cashflow $000Less than 6Months $0006 - 12 Months$0001 - 2 years $000Group 2012Trade and other payables 5,222 5,222 5,222 - -Total 5,222 5,222 5,222 - -Parent 2012Trade and other payables 5,208 5,208 5,208 - -Total 5,208 5,208 5,208 - -Group 2011Trade and other payables 5,314 5,314 5,314 - -Total 5,314 5,314 5,314 - -Parent 2011Trade and other payables 5,284 5,284 5,284Total 5,284 5,284 5,284Interest rate riskWelTec has exposure to interest rate risk to the extent that it has outstanding investments at fixed rates. The interest rates risk on investments ismanaged through the use of short term investments, in accordance with Council Policy. No significant exposure to interest rate risk exists on theremaining financial assets and liabilities.Sensitivity analysisThe table below illustrate the potential profit or loss and equity impact for reasonably possible market movements, with all other variables heldconstant, based on financial instrument exposures at the balance date.2012 Profit -50bps$0002012 Profit +50bps$0002011 Profit -50bps$0002011 Profit +50bps$000Group and Institute Interest rate riskFinancial AssetsCash and cash equivalents (10) 10 (18) 18Other financial assets (6) 6 - -Total sensitivity (16) 16 (18) 18Explanation of interest rate risk sensitivityThe interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured on a basispoints (bps) movement. For example, a decrease in 25 bps is equivalent to a decrease in interest rates of 0.25%. The sensitivity for interest rate swapshas been calculated using a derivative valuation model based on a parallet shift in interest rates of -50bps/+50bps.33 RELATED PARTY DISCLOSURESSignificant transactions with government related entitiesThe government influences the roles of WelTec as well as being a major source of revenue.WelTec has received funding and grants from the Tertiary Education Commission totalling $30.4m (2011, $28.6m) to provide education services for theyear ended 31 December 2012. WelTec also utilises land and buildings legally owned by the Crown.Collectively, but not individually, significant transactions with government related entitiesIn conducting its activities, WelTec is required to pay various taxes and levies (such as GST, PAYE, ACC levies) to the Crown and entities related to theCrown. The payment of these taxes and levies is based on the standard terms and conditions that apply to all tax and levy payers. WelTec is exempt frompaying income tax and FBT.WelTec purchases goods and services from entities related to the Crown and it also provides services to entities related to the Crown. The purchaseand provision of goods and services to government-related entities for the year ended 31 December 2012 are small when compared to WelTec’s totalexpenditure and revenue and have all been conducted on an arms’ length basis. The purchase of goods and services included the purchase of electricityfrom Genesis and Meridian Energy, air travel from Air New Zealand, and postal services from New Zealand Post. The provision of services to governmentrelatedentities mainly related to the provision of educational courses.80 | WELLINGTON INSTITUTE OF TECHNOLOGY