2010-11 Annual Report - Taranaki District Health Board

page 75
Notes to the Financial Statements
For the Year Ended 30 June 2011
Group - 2011
The following table sets out the contractual cash flows for all financial liabilities (post refinancing):
Carrying Contractual
value Cash Flows
0-3 month 3-12 months 1-3 years 3-7 years
$000 $000 $000 $000 $000 $000
Non-derivative financial liabilities
Trade and other payables 25,394 25,394 25,394 - - -
Finance leases - - - - - -
Loans and borrowings 29,000 35,522 - 1,762 10,085 23,675
54,394 60,916 25,394 1,762 10,085 23,675
Parent - 2011
The following table sets out the contractual cash flows for all financial liabilities (post refinancing):
Carrying Contractual
value Cash Flows
0-3 month 3-12 months 1-3 years 3-7 years
$000 $000 $000 $000 $000 $000
Non-derivative financial liabilities
Trade and other payables 23,675 23,675 23,675 - - -
Finance leases - - - - - -
Loans and borrowings 29,000 35,522 - 1,762 10,085 23,675
52,675 59,197 23,675 1,762 10,085 23,675
(e) Sensitivity Analysis
In managing interest rate risk Taranaki District Health Board has adopted two strategies, (i) having term borrowings with the Crown Health Financing
Agency on fixed rates, and (ii) having the maturity dates of the four individual loans to the Crown Health Financing Agency at different dates. Any
increase in interest rates on a specific term loan when it matures and is rolled is therefore reduced, as only that specific loan is impacted.
As at 30 June 2011, if floating interest rates had been 100 basis points higher/lower, with all other variables held constant, the surplus for the year
would have been $310k higher/lower.
The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date.
Judgements of reasonably possible movements
Consolidated and Parent
Surplus for the
period
Higher/(lower)
2011 2010
$000 $000
+1% (100 basis points) 310 310
-1% (100 basis points) (310) (310)
25 CONTINGENT LIABILITIES
Taranaki District Health Board sometimes has claims that have been made by or against Taranaki District Health Board in the ordinary course of
business. The Board Members do not consider the outcome of these claims will have a material adverse affect on the financial position of Taranaki
District Health Board.