Department of Education

16.9
Administered
receivables
2011
$’000
2010
$’000
Central office receivables 8 11
Total 8 11
Settled within 12 months 8 11
Total 8 11
16.10
Administered
cash and
deposits
Administered cash and deposits include the balance of the special deposits and trust fund accounts held by the
department, and other cash held, which are administered or held in a trustee capacity or agency arrangement.
2011
$’000
2010
$’000
Special Deposits and Trust Fund balance
T511 – Department of Education Operating Account – –
Total – –
16.11
Reconciliation
of
administered
net result to
net cash from
administered
operating
activities
2011
$’000
2010
$’000
Net result (3) (961)
(Increase)/decrease in receivables 3 743
Net cash from (used by) operating activities – (218)
16.12 (a) Risk management policies
Financial The department has exposure to the following risks from its use of financial instruments:
instruments • credit risk
(administered) • liquidity risk
• market risk.
The Head of Agency has overall responsibility for the establishment and oversight of the department’s risk
management framework. Risk management policies are established to identify and analyse risks faced by the
department, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
(b) Credit risk exposures
Credit risk is risk of financial loss to the department if a customer or counterparty to a financial instrument fails to
meet its contractual obligations.
The credit risk in relation to cash is deemed to be low as counterparty failure is managed by dealing with financially
sound and reputable banks. The carrying amount of financial assets recorded in the financial statements, net of
any allowances for losses, represents the department’s maximum exposure to credit risk. The department is not
exposed to concentration of credit risk of any significance.
The department does not hold any collateral or other security against any financial assets.
Standard debtor terms are 30 days net. Collectability of receivables is reviewed at balance date and provision for
impairment is raised when collection of a debt is judged to be doubtful. There were no administered financial assets
that were past due as at 30 June 2011, for the year ended 30 June 2010 there were no administered financial assets.
The majority of the amount outstanding as at 30 June 2011 has been received since balance date.
(c) Liquidity risk
Liquidity risk is the risk that the department will not be able to meet its financial obligations as they fall due. The
department’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its
liabilities when they fall due.
As at 30 June 2011, the department had no administered financial liabilities.
(d) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. The primary market risk that the department is exposed to is interest rate risk.
As at 30 June 2011, there is no interest rate exposure on administered activities, as all financial instruments were
non-interest bearing.
Financial Statements – Notes
125