QNU Annual Report 08-09.indd - Queensland Nurses Union

AUDITOR’S REPORT
QUEENSLAND NURSES UNION OF EMPLOYEES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
NOTE 24: FINANCIAL INSTRUMENTS
(a) Risk Management
The union is exposed to the following risks from their use of financial instruments:
• Market Risk
• Credit Risk
• Liquidity Risk
The Committee has overall responsibility for risk management. The Committee has established risk management policies designed to identify
and monitor risks from financial instruments and ensure any adverse effects from these risks are minimized. The Committee meet on a regular
basis to review compliance with risk management policy and to analyse financial risk exposure in the context of the current economic
environment.
(b) Interest Rate Risk
Interest rate risk is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates. Interest rate risk
arises on balances of cash and cash equivalents. The entity minimises this risk by using a term deposit facility. The union is exposed to
interest rate risk and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:
Weighted Average
Effective Rate
2009
Floating Interest Rate
Fixed Interest Rate Maturing
Within
1 Year 1 to 5 Years
2008 2009 2008 2009 2008 2009 2008
% % $ $ $ $ $ $
Financial Assets:
Cash at bank 4.25% 6.55% 495,369 303,508 - - - -
Deposits 6.55% 7.70% - - 5,248,179 4,630,171 - -
Total Financial Assets 495,369 303,508 5,248,179 4,630,171 - -
44 | Annual Report 2008-09 | Queensland Nurses’ Union of Employees