Foundation Annual Report 2008/09 - State Library of New South ...

notes to the financial statements
for the year ended 30 June 2009
16. Financial instruments and risk management (continued)
(b) Price risk
The Foundation is exposed to equity securities price risk arising from its investments in financial instruments at fair value
through profit or loss. These investments are placed with NSW Treasury Corporation (TCorp). The Foundation's investment
policies are supported by TCorp's risk management policies and processes.
(c) Credit risk
Credit risk is the risk of financial loss arising from another party to a contract or financial position
failing to discharge thereunder. The Foundation's maximum exposure to credit risk is represented by the carrying amounts of
the financial assets and liabilities included in the Balance Sheet.
(d) Liquidity risk
Liquidity risk is the risk that the Foundation will not be able to meet its payment obligations when they fall due. The
Foundation continually manages this risk through monitoring its cash flows and maintaining sufficient cash and cash
equivalents to meet projected outgoings. The Foundation's exposure to liquidity risk is considered insignificant based on the
data from prior periods and the current assessment of risk.
(e) Sensitivity analysis
The following table summarises the sensitivity of the Foundation's financial instrument's risks.
As at 30 June 2009
Floating
interest
1 year or
less
1 to 5
years
Non interest
bearing
Total
$'000 $'000 $'000 $'000 $’000
Financial assets
Cash 445 - - - 445
Receivables - - - - -
Other financial assets - 10,978 - - 10,978
Investments - equity - - - 321 321
Weighted average interest rate 4.68% 0.73%
445 10,978 - 321 11,744
Financial liabilities
Payables - - - 55 55
Provisions - - - 414 414
- - - 469 469
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State Library of New South Wales Foundation annual Report 2008/09