CPL Annual Report 2011/12 - Cerebral Palsy League

The Cerebral Palsy League’s approach to
managing liquidity is to ensure as far as
possible it will always have sufficient liquidity
to meet its liabilities when due, under both
normal and stressed conditions, without
incurring unacceptable losses or risking
damage to the entity’s reputation.
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Typically the Cerebral Palsy League ensures
it has sufficient cash on demand or unused
credit facilities to meet expected operational
expenses for a period of 60 days.
MARKET RISK
Market risk is the risk that changes in market
prices, such as interest rates and equity prices
will affect the Cerebral Palsy League’s income
and expenses or the value of its holdings of
financial instruments. The objective of market
risk management is to manage and control
market risk exposures within acceptable
parameters, while optimising the return.
Interest rate risk refers to the risk that the
value of a financial instrument or cash flows
associated with the instrument will fluctuate
due to changes in market interest rates.
Interest rate risk arises from interest-bearing
financial assets and liabilities that the Cerebral
Palsy League utilises. Interest-bearing
financial assets are generally short-term liquid
assets.
The Cerebral Palsy League’s interest rate risk
arises primarily from investments in cash and
cash equivalents and bank loans at variable
interest rates which exposes the entity to
cash flow interest rate risk. The Cerebral
Palsy League does not hedge its interest
rate risk exposure.
“We focus on how
our organisation can
continuously improve to
deliver services above and
beyond client expectations.
This focus on excellence
drives the Cerebral Palsy
League’s development
of efficient and effective
systems.”
Angela Tillmanns
CEO
Cerebral Palsy League | Annual Report 2011/12