2015-16
Corrections-Annual-Report-2015-16
Corrections-Annual-Report-2015-16
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DEPARTMENT OF CORRECTIONAL SERVICES<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
For the year ended 30 June 20<strong>16</strong><br />
c) Liquidity Risk<br />
Liquidity risk is the risk that the agency will not be able to meet its financial obligations as<br />
they fall due. The agency’s approach to managing liquidity is to ensure that it will always<br />
have sufficient liquidity to meet its liabilities when they fall due.<br />
The following tables detail the agency’s remaining contractual maturity for its financial assets<br />
and liabilities.<br />
20<strong>16</strong> Maturity analysis for financial assets and liabilities<br />
Variable Interest Rate<br />
Fixed Interest Rate<br />
Less than<br />
a Year<br />
1 to 5<br />
Years<br />
More than<br />
5 Years<br />
Less than<br />
a Year<br />
1 to 5<br />
Years<br />
More than 5<br />
Years<br />
Non<br />
Interest<br />
Bearing Total<br />
Weighted<br />
Average<br />
$000 $000 $000 $000 $000 $000 $000 $000 %<br />
Assets<br />
Cash and deposits 9 840 9 840<br />
Receivables 1 537 1 537<br />
Total Financial Assets 11 377 11 377<br />
Liabilities<br />
Deposits held (1 102) (1 102)<br />
Payables (17 817) (17 817)<br />
Finance lease liabilities (3 653) (18 774) (493 683) (5<strong>16</strong> 110)<br />
Total Financial Liabilities (3 653) (18 774) (493 683) (18 919) (535 029)<br />
<strong>2015</strong> Maturity analysis for financial assets and liabilities<br />
Variable Interest Rate<br />
Fixed Interest Rate<br />
Less than<br />
a Year<br />
1 to 5<br />
Years<br />
More than<br />
5 Years<br />
Less than<br />
a Year<br />
1 to 5<br />
Years<br />
More than 5<br />
Years<br />
Non<br />
Interest<br />
Bearing Total<br />
Weighted<br />
Average<br />
$000 $000 $000 $000 $000 $000 $000 $000 %<br />
Assets<br />
Cash and deposits 12 284 12 284<br />
Receivables 3 256 3 256<br />
Total Financial Assets 15 540 15 540<br />
Liabilities<br />
Deposits held (891) (891)<br />
Payables (19 606) (19 606)<br />
Finance lease liabilities (780) (19 556) (499 865) (520 201)<br />
Total Financial Liabilities ( 780) (19 556) (499 865) (20 497) (540 698)<br />
d) Market Risk<br />
Market risk is the risk that the fair value of future cash flows of a financial instrument will<br />
fluctuate because of changes in market prices. It comprises interest rate risk, price risk and<br />
currency risk.<br />
(i) Interest Rate Risk<br />
The Department of Correctional Services is not exposed to interest rate risk as agency<br />
financial assets and financial liabilities, with the exception of finance leases are non-interest<br />
bearing. Finance lease arrangements are established on a fixed interest rate and as such do<br />
not expose the Department of Correctional Services to interest rate risk.<br />
DEPARTMENT OF CORRECTIONAL SERVICES 190
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