Challenger TAFE | Annual Report 2006 - Parliament of Western ...
Challenger TAFE | Annual Report 2006 - Parliament of Western ...
Challenger TAFE | Annual Report 2006 - Parliament of Western ...
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110 <strong>Challenger</strong> <strong>TAFE</strong> | <strong>Annual</strong> <strong>Report</strong> <strong>2006</strong><br />
<strong>Challenger</strong> <strong>TAFE</strong><br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE YEAR ENDED 31 DECEMBER <strong>2006</strong><br />
1. Employee benefi ts expense - increased expenditure on salaries resulted from increases in both salary and delivery loads<br />
2. Supplies and services - variance results from increased expenditure minor works and resources provided by the Department <strong>of</strong><br />
Education and Training.<br />
3. Depreciation and Amortisation - refl ects increase in building valuations plus a complete year <strong>of</strong> depreciation for the $8M leasehold<br />
improvement.<br />
4. Capital User Charge - CUC increased to meet requirements subsequent to revaluation <strong>of</strong> land and buildings<br />
5. Other expenses - increased salary oncosts and building maintenance expense<br />
6. Fee for Service - increased General Fee for Service activity<br />
7. Student fees and charges - refl ects increased delivery<br />
8. State Funds - Increased DPA funding due to increased training delivery levels and funding increased Capital User Charge<br />
9. Liabilities assumed by the Treasurer - a pension scheme employee transferred into the College and the full pension scheme<br />
liability was recognised as a revenue.<br />
10. Resources received free <strong>of</strong> charge - higher due to the increased delivery support system expenditure<br />
38 Financial Instruments<br />
(a) Financial Risk Management Objectives and Policies<br />
Financial instruments held by the College are cash and cash equivalents, and receivables and payables. The College has limited<br />
exposure to fi nancial risks. The College’s overall risk management program focuses on managing the risk identifi ed below:<br />
Credit Risk<br />
The College trades only with recognised, creditworthy third parties. The College has policies in place to ensure<br />
that sales <strong>of</strong> products and services are made to customers with an appropriate credit history. In addition<br />
receivable balances are monitored on an ongoing basis with the result that the College’s exposure to bad debts<br />
is minimal. There are no signifi cant concentrations <strong>of</strong> credit risk.<br />
Liquidity risk<br />
The College has appropriate procedures to manage cash fl ows including monitoring forecast cash fl ows<br />
to ensure that suffi cient funds are available to meet its commitments.<br />
Cash fl ow Interest Rate Risk<br />
The College exposure to market risk for changes in interest rate is low and primarily relates to funds on mid term deposit.<br />
(b) Financial Instrument disclosures