Full report - State Library of Victoria - Victoria Online

Consolidated State Library
of Victoria
2008 2007 2008 2007
26 CONTINGENT LIABILITIES Note $’000 $’000 $’000 $’000
The Library Board of Victoria is not aware of any contingent liability
as at 30 June 2008 (2006–07 Nil).
27 COMMITMENTS
Operating Leases
Commitments for minimum lease payments in relation to non-cancellable
operating leases are payable as follows:
Not later than one year 1,025 812 1,025 812
Later than one year,
not later than five years 1,980 2,042 1,980 2,042
Later than five years – – – –
3,005 2,854 3,005 2,854
Other Commitments:
Not later than one year 1,375 670 1,375 670
Later than one year,
not later than five years 1,713 180 1,713 180
Later than five years 792 864 792 864
3,880 1,714 3,880 1,714
Total Commitments 6,885 4,568 6,885 4,568
Other Commitments are utilities, IT suppliers and rental of Ballarat offsite storage site.
28 REMUNERATION OF AUDITORS
Fees paid and payable to the
Auditor-General for auditing
the financial report 34 30 30 27
The Auditor-General provided no other services.
29 NOTES TO THE CASH FLOW STATEMENT
(a) Reconciliation of Cash
For the purpose of the Cash Flow Statement, the Library Board of Victoria considers cash to
include cash on hand and in banks, cash management accounts and investments in bank
bills and fixed interest securities, net of bank overdrafts. Cash at end of the reporting
period, as shown in the Cash Flow Statement, is reconciled to the related items in the
Balance Sheet as follows:
Cash on hand 2 9 7 9 7
Cash at bank 2 595 1,308 383 1,108
Investments 4 18,227 18,826 13,000 13,500
18,831 20,141 13,392 14,615
(b) Reconciliation of net result for the
year to net cash inflow from
operating activities
Net Result for the year (2,309) 3,799 (2,535) 3,027
Depreciation of equipment 1,890 1,882 1,890 1,882
Depreciation of buildings 3,884 3,868 3,884 3,868
Depreciation of collection 2,345 1,303 2,345 1,303
(Profit)/loss on sale of assets 394 1 394 1
Donations in kind (1,799) (1,135) (1,799) (1,135)
Non-cash appropriation (depreciation) (1,118) (7,556) (1,118) (7,556)
Grant funds received this year,
not yet expended (1,454) (224) (1,454) (224)
Repayment of finance lease 7 6 7 6
Changes in Operating Assets
and Liabilities
Provisions 337 471 337 471
Debtors (626) (303) (626) (303)
Inventory 6 (6) 6 (6)
Investments (160) 1,676 500 1,752
Creditors (617) (399) (617) (399)
Prepayments (191) (243) (191) (243)
Accrued interest 88 (12) 73 (12)
Accrued expenses 95 17 95 17
Prepaid revenue (27) (79) (27) (79)
Net cash provided from operating activities 745 3,066 1,164 2,370
Consolidated State Library
of Victoria
2008 2007 2008 2007
29 (Cont‘d) Note $’000 $’000 $’000 $’000
(c) Non-cash financing and investing activities
Acquisition of collections
During the year the consolidated entity received collections with an aggregate fair value
of $1,799,312 through public donations. These acquisitions are not reflected in the
statement of cash flows.
Property, plant and equipment
During the year the consolidated entity acquired property, plant and equipment with an
aggregate fair value of $393,344 through payments made by the Department of Premier
and Cabinet on behalf of the State Library of Victoria (Redevelopment).
These acquisitions are not reflected in the statement of cash flows.
30 FINANCIAL INSTRUMENTS
(a) Significant Accounting Policies
Details of the significant accounting policies and methods adopted, including the criteria
for recognition, the basis of measurement and the basis on which income and expenses
are recognised, with respect to each class of financial asset, financial liability and equity
instrument are disclosed in Note 1 to the financial statements.
(b) Categorisation of Financial Instruments
Financial Assets Category
Cash and
cash equivalents N/A 2 604 1,315 392 1,115
Receivables Loans and 3 2,187 1,538 2,190 1,564
receivables
Short term deposits N/A 4 13,000 13,500 13,000 13,500
Other financial
assets
Financial assets
(at amortised cost) 4 15 – – –
Equity investments Financial assets
(at fair value) 4 13,238 15,040 – –
Financial Liabilities
Payables Financial liabilities
(at amortised cost) 9 2,482 3,047 2,482 3,047
Interest bearing Financial liabilities
liabilities (at amortised cost) 10 94 107 94 107
(c) Credit Risk
Credit risk arises from the financial assets of the Board, which comprise cash and
cash equivalents, receivables, short term deposits and equity investments. The Board’s
exposure to credit risk arises from the potential default of counter parties on their
contractual obligations resulting in financial loss to the Board. Credit risk is measured
at fair value and is monitored on a regular basis.
Credit risk associated with the Board’s financial assets is minimal because the main
debtors are Victorian Government Departments. For debtors other than government,
it is the Board’s policy to carry out a thorough credit approval process. Credit terms
are 30 days and overdue accounts are regularly reviewed and followed up in accordance
with the Board’s Debt Collection Policies and Procedures.
The Board does not engage in hedging for its financial assets.
The Board does not hold any collateral as security nor credit enhancements relating
to any of their financial assets.
The carrying amount of financial assets recorded in the Financial Report represents
the Board’s maximum exposure to credit risk.
As at reporting date there is no event to indicate that any of the financial assets were
impaired. There are no financial assets that have had their terms renegotiated so as to
prevent them from being past due or impaired and they are stated at the carrying amounts
as indicated. The following table discloses the aging only of financial assets that are past
due but not impaired:
92/93
Library Board of Victoria Annual Report O7—O8