Port Hedland Port Authority Annual Report 2011 - Parliament of ...

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Note 18. Non-Current Liabilities - Provisions 2011 2010 Employee Benefits - Long Service Leave 136 170 Other Employee Benefits 350 359 486 529 Movements in Provisions Movements in each class of provision during the financial year, other than employee benefits, are set out below. Employee Benefits – Long Service Leave Other Employee Benefits 2011 Total $’000 $’000 $’000 Non Current Carrying Amount at Start of Year 170 359 529 Movements for the Year (34) (9) (43) Carrying Amount at End of Year 136 350 486 (a) Pension and Gold State Scheme Reconciliation of the Present Value of the Defined Benefit Obligation 2011 2010 $'000 $'000 Present Value of Defined Benefit Obligations at the Beginning of the Year 358 304 Interest Cost 18 15 Actuarial (Gains)/Losses 11 76 Benefits Paid (37) (37) Present Value of Defined Benefit Obligations at End of the Year 350 358 Two persons remain in this scheme Note 19. Dividends 2011 2010 $'000 $'000 Dividends Paid in the financial year - 2,651 A dividend is recommended after financial year end by the board in accordance with S84 of the Port Authorities Act 1999, based on the dividend formula agreed between the Minister for Transport and the Treasurer. The dividend proposed for the 2010/11 year is $2,026,111 (2010 dividend there was no dividend payable as the after tax result was a loss). Page 72
Note 20. Financial Instruments (a) Financial Risk Management Objectives and Policies Financial instruments held by the Authority are cash and cash equivalents, term deposits, loans, Treasurer’s advances and receivables and payables. The Authority has limited exposure to financial risks. The Authority’s overall risk management program focuses on managing the risks identified below. Credit risk Credit risk arises when there is the possibility of the Authority’s receivables defaulting on their contractual obligations resulting in financial loss to the Authority. The Authority measures credit risk on a fair value basis and monitors risk on a regular basis. The maximum exposure to credit risk at Statement of Financial Position date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment, as shown in the table at Note 11. The Authority trades only with recognised, creditworthy third parties. The Authority has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the Authority’s exposure to bad debts is minimal. There are no significant concentrations of credit risk. The Authority has very low levels of default. All overdue accounts are reviewed monthly by the Board and legal action instigated if necessary. There has only been one case where this action was necessary in the current year and none in the prior year. Provision for impairment of financial assets is calculated based on past experience, and current and expected changes in client credit ratings. For financial assets that are either past due or impaired, refer to Note 11 ‘Receivables’. The Authority’s credit risk management is further supported by rental agreements and sections 116 & 117 of the Port Authorities Act 1999. Section 116 refers to the liability to pay port charges in respect of vessels and Section 117 refers to the liability to pay port charges in respect of goods. Port charges are defined in Section 115. Liquidity risk The Authority is exposed to liquidity risk through its trading in the normal course of business. Liquidity risk arises when the Authority is unable to meet its financial obligations as they fall due. The Authority’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, loans and finance leases. The Authority has appropriate procedures to manage cash flows by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments. Market risk The Authority does not trade in foreign currency and is not materially exposed to other price risks (for example, equity securities or commodity prices changes). The Authority’s exposure to market risk for changes in interest rates relate primarily to the long-term debt obligations. The Authority’s borrowings are all obtained through the Western Australian Treasury Corporation (WATC) and are at fixed rates with varying maturities. The risk is managed by WATC through portfolio diversification and variation in maturity dates. Other than as detailed in the Interest rate sensitivity analysis table, the Authority has limited exposure to interest rate risk because it has no borrowings other than WATC borrowings. Page 73
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Port Hedland Port Authority Annual
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CONTENTS 05 Who We Are 07 Year in R
Page 5 and 6:
005 WHO WE ARE OUR VISION, MISSION,
Page 7 and 8:
007 With a trade record of 199 mill
Page 9 and 10:
009 OUR HISTORY 1896 Construction o
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011 and has commenced construction
Page 13 and 14:
013 JAN FORD Dip Business (RE) Dire
Page 15 and 16:
015 OUR EXECUTIVE CAPTAIN LINDSAY C
Page 17 and 18:
“The PHPA provides and maintains
Page 20 and 21:
Our SENIOR MANAGEMENT
Page 22 and 23: 022 “This section discusses the s
Page 24 and 25: 024 The Walk provides a connection
Page 26 and 27: 026 Orange Ball, Port Hedland Speed
Page 28 and 29: 028 berths at BHP’s Harriet Point
Page 30 and 31: 030 for Port Hedland having to be d
Page 32 and 33: 032 Ratio of Accident/Total Vessel
Page 34 and 35: 034 OUR PEOPLE PEOPLE and CULTURE T
Page 36 and 37: 036 Code of Conduct The code of con
Page 38: 038 Organisational Structure Board
Page 41 and 42: 041 OUR ENVIRONMENT Environmental M
Page 43 and 44: 043 Mangrove Research Further work
Page 45 and 46: 045 The PHPA and the Board are comm
Page 47 and 48: 047 • A comprehensive annual insu
Page 49 and 50: PORT HEDLAND PORT AUTHORITY FINANCI
Page 51 and 52: Figure 1 - PHPA OPERATING REVENUE &
Page 53 and 54: Statement of Financial Position as
Page 55 and 56: Statement of Cash Flows for the Yea
Page 57 and 58: Various assumptions are required in
Page 59 and 60: The collectability of receivables i
Page 61 and 62: In addition, the long service leave
Page 63 and 64: Note 3. Revenue Revenue consists of
Page 65 and 66: Note 8. Income Tax Expense 2011 201
Page 67 and 68: Note 12. Current Assets - Inventori
Page 69 and 70: Note 14. Non-Current Assets 2011 20
Page 71: Note 17. Non Current Liabilities De
Page 75 and 76: 2011 Weighted Average Effective Int
Page 77 and 78: Note 21. Director and Executive Dis
Page 79 and 80: Note 22. Remuneration of Auditors R
Page 81 and 82: Note 26. Events Occurring after the
Page 83 and 84: Page 83
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Port Hedland Port Authority Annual Report 2011 - Parliament of ...

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