Final Annual Report - Health Workforce Australia

Note 15: Financial Instruments

Notes to and forming part of the financial statements for the year ended 30 June 2014

Page last updated: 18 May 2015

Note 15A: Categories of Financial Instruments &

Note 15B: Net Income and Expense from Financial Assets
  2014 2013
  $'000  $'000 
Note 15A: Categories of Financial Instruments
Financial Assets  
Cash at Bank 117,979 28,374
Receivables 8,944 968
Investments - 128,500
Carrying amount of financial assets 126,923  157,842 
Financial Liabilities  
Supplier Payables 1,072 3,853
Grants 1,306 18,319
Carrying amount of financial liabilities 2,378  22,172 
Note 15B: Net Income and Expense from Financial Assets
Interest revenue 4,868 7,128
Net gain from financial assets 4,868  7,128 
Note 15C: Fair Value of Financial Instruments
  Carrying amount Fair value Carrying amount Fair value
  2014 2014 2013 2013
  $'000 $'000 $'000 $'000
Financial Assets  
Cash at Bank  117,979  117,979  28,374  28,374
Trade and other receivables  8,944  8,944  968  968
Investments - -  128,500  128,500
Total 126,923 126,923 157,842 157,842
Financial Liabilities  
Supplier Payables 1,072 1,072 3,853 3,853
Grants 1,306 1,306 18,319 18,319
Total 2,378 2,378 22,172 22,172

Note 15D: Credit Risk

HWA is exposed to minimal credit risk as the majority of other receivables is the net GST receivable from the Australian Taxation Office for June 2014.

The following table illustrates the entity's gross exposure to credit risk, excluding any collateral or credit enhancements.

Note 15D: Credit Risk
  2014 2013
  $'000 $'000
Financial assets  
Trade and other receivables 8,944 968
Total 8,944 968

Credit quality of financial instruments not past due or individually determined as impaired

Credit quality of financial instruments not past due or individually determined as impaired
  Not past due nor impaired Not past due nor impaired Past due or impaired Past due or impaired
  2014 2013 2014 2013
  $'000 $'000 $'000 $'000
Trade and other receivables 8,944 968 - -
Total 8,944 968  - -

Note 15E: Liquidity Risk

Liquidity risk is the risk that HWA will encounter difficulty in meeting obligations associated with financial liabilities.

HWA is dependent upon revenue from Government under a multi schedule funding agreement between Department of Health and HWA. Without this revenue HWA would be unable to meet its obligations.

Note 15E: Liquidity Risk
Maturities for non-derivative financial liabilities 2014
  within 1 year 1 to 2 years 2 to 5 years 5 years--> > 5 years Total
  $'000 $'000 $'000 $'000 $'000
Supplier Payables 1,072 - - - 1,072
Grants 1,306 - - - 1,306
Total 2,378  -  -  - 2,378
Maturities for non-derivative financial liabilities 2013
  within 1 year 1 to 2 years 2 to 5 years 5 years--> > 5 years Total
  $'000 $'000 $'000 $'000 $'000
Supplier Payables 968 - - - 968
Grants 18,319 - - - 18,319
Total 19,287  -  -  - 19,287

The entity has no derivative financial liabilities in both the current and prior year.

Note 15F: Market Risk

HWA is subject to an interest rate risk on bank account interest and term deposits.

HWA is not subject to any other price risks on financial instruments.

Note 15F: Market Risk
Sensitivity analysis of the risk that the entity is exposed to for 2014
  Change in risk variable Effect on
    Profit and loss Equity
  % $'000 $'000
Interest rate risk 0.6 759 759
Interest rate risk (0.6) (759) (759)
Sensitivity analysis of the risk that the entity is exposed to for 2013
  Change in risk variable Effect on
    Profit and loss Equity
  % $'000 $'000
Interest rate risk 1.2 1,882 1,882
Interest rate risk (1.2) (1,882) (1,882)