NIPS Annual Report and Accounts 2012-13 - Department of Justice

ANNUAL
REPORT
and Accounts
10. Financial Instruments
2012-13 2011-12
Housing Loans £000 £000
Balance at 1 April 1,710 2,129
Additions - 15
Disposals (6) -
Repayments (530) (518)
Impairments 6 -
Revaluations 59 84
Balance at 31 March 1,239 1,710
Loans repayable within 12 months transferred to financial assets < 1 Year (313) (434)
Balance at 31 March due in more than 1 year 926 1,276
Balance at 31 March comprises:
Carrying value 1,343 1,879
Net discount at 3.5% (101) (159)
Impairment (3) (10)
Amortised amount (Fair value) at 31 March 1,239 1,710
Loans repayable within 12 months transferred to financial assets < 1 Year (313) (434)
Balance at 31 March due in more than 1 year 926 1,276
As the cash requirements of the Northern Ireland Prison Service are met through the Estimate process,
financial instruments play a more limited role in creating and managing risk than would apply to a
non-public sector body. Under IAS 39 and IFRS 7, the Northern Ireland Prison Service is required to
recognise, measure and disclose the elements of its 0% interest Housing Loan Scheme at fair value.
These elements have been identified within both Non-current and Current Financial Assets.
The carrying value has been discounted at a rate of 3.5% in line with Treasury guidelines.
The Northern Ireland Prison Service had 289 loans to officers at 31 March 2013 (300 at 31 March
2012) and does not hold any other financial assets. The Northern Ireland Prison Service is therefore
exposed to little credit, liquidity or market risk.
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