Complete annual report 2010-11 - Land - NSW Government

State Property Authority
Notes to and Forming Part of the Financial Statements
For the Year Ended 30 June 2011
Aged Reconciliation of Total Finance 2011 2010
Lease Liabilities $'000 $'000
Minimum Lease Payments:
Payable within one year 6,003 6,003
Payable later than one year but not later than five years 24,014 24,014
Payable later than five years 46,176 52,180
Total Minimum Lease Payment Commitment 76,193 82,197
Finance Costs:
Payable within one year (3,504) (3,687)
Payable later than one year but not later than five years (11,870) (12,762)
Payable later than five years (12,706) (15,318)
Total Finance Costs Commitment (28,080) (31,767)
Total Finance Lease Liability:
Payable within one year 2,499 2,316
Payable later than one year but not later than five years 12,144 11,252
Payable later than five years 33,470 36,862
Total Finance Lease Liability at 30 June 48,113 50,430
The Authority's Finance Lease Liabilities comprise leases on Noel Park House, Tamworth and on part of the Colonial
State Bank Building, Sydney. The Noel Park House lease has a lease term of 25 years with no option to purchase the
asset at the completion of the lease term in 2017. The discount rate implicit in the lease is 8.31% pa. The Colonial
State Bank lease liability is being amortised over the estimated economic life of the building, which is 40 years and
ends in 2026. The discount rate implicit in the lease is 7.61% pa.
15. CONTINGENT ASSETS AND LIABILITIES
(a)
Contingent Assets
There are no known material contingent assets at 30 June 2011.
(b)
Contingent Liabilities
There are no known material contingent liabilities at 30 June 2011.
16. FINANCIAL INSTRUMENTS
The Authority’s principal financial instruments are outlined below. These financial instruments arise directly from the
Authority’s operations or are required to finance the Authority’s operations. The Authority does not enter into or trade
financial instruments, including derivative financial instruments, for speculative purposes.
The Authority’s main risks arising from financial instruments are outlined below, together with the Authority’s objectives,
policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included
throughout these financial statements.
The Chief Executive Officer has overall responsibility for the establishment and oversight of risk management and reviews
and agrees policies for managing risks. Risk management policies are established to identify and analyse the risks faced
by the Authority, to set risk limits and controls and to monitor risks. Risk management reporting and compliance with
policies is reviewed on a regular basis by the Authority's Audit and Risk Committee.
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State Property Authority