Notes To The Financial Statements (Continued) For The Year Ended 30 June 2014 15 LONG TERM PAYABLES 2014 2013 $ $ Interest Rate Secured loans at amortized cost Bank loans 16% 373 690 396 835 Amount due for settlement within 12 months 19 559 15 528 Amount due for settlement after 12 months 373 690 396 835 393 249 412 363 The principal features of the organisation’s borrowings are as follows: (a) A mortgage loan of US $432,418. The loan was taken out on 01 August 2011 and is repayable in equal monthly installments over 10 years. The loan carries an effective interest rate at 16.0 % per annum. The mortgage was used for the purchase of 16 Oxford Road property. Title deeds for Amalungelo Building, 94 Fort Street, Bulawayo valued at $105 000.00 were ceded as part collateral for the mortgage. 16 TRADE AND OTHER PAYABLES Unutilised Project Funds - Danida Special Projects Other 3 369 618 175 629 195 016 218 887 3 564 634 394 516 Trade and other payables are non-interest bearing and are normally settled on 30 – 60 day terms. 17 COMMITMENTS AND CONTIGENCIES Operating lease commitments - Board as Lessee The organisation has entered into a commercial lease on building from which its Legal Publications Unit is located. The life of the lease is 3years in which a renewal option is included. There are no restrictions placed upon the organisation. Future minimum rentals payable under non-cancelled operating as at 30 June are as follows Within one year 146 472 160 567 Interest bearing loans The organisation obtained a mortgage facility as disclosed in note 15 18 PRIOR PERIOD ADJUSTMENTS Interest bearing borrowings of $425,609 were incorrectly included in accounts payable at 30 June 2012 at $387,790. The financial statements of 2013 have been restated to correct this error. The effect of the restatement on those financial statements is summarised below. There is no effect in 2013. Impact on Statement of Financial Position 2013 $ Decrease in accounts payables (396 835) Increase in long term liabialities 396 835 Impact on Statement of Profit or Loss and Other Comprehensive income Increase in deficit 103 456 Impact on Statement of Cash Flows Increase in financing activities Decrease in operating activities Impact on Statement of Cash Flows Prior year interest adjustment 396 835 5 000 53