KU Financial Report
Notes to the Financial Statements
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( c) Financial Risk Management Objectives The Board and Management manage the financial risks relating to operations of the company. These include credit risk, liquidity risk, interest rate risk and market risk.
The company does not enter into, or trade financial instruments for speculative purposes. The company does not use derivative financial instruments.
The company’ s investments expose it primarily to the financial risks of changes in interest rate and market fair value adjustments.
( d) Other price risks The company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The company does not actively trade these investments.
( e) Interest Rate Risk Management The company is exposed to interest rate risk as it invests its surplus funds in variable rate instruments. The risk is managed by regular review of its variable interest rate investments.
The following table details the company’ s exposure to interest rate risk at the balance date:
Fixed Interest Rate Maturity
2010 Revenue Average Interest rate |
Variable Interest rate |
Less than 1 Year |
1 to 5 Years More than 5 Years |
Non-interest Bearing |
Total |
% $ $ $ $ $ $
Financial Assets Cash |
2.53 % |
16,627,388 |
- |
- |
- |
- |
16,627,388 |
Receivables and other |
|
|
|
|
|
|
|
current assets |
- |
- |
- |
- |
- |
2,406,073 |
2,406,073 |
Investment in Managed Funds |
- |
- |
- |
- |
- |
7,621,477 |
7,621,477 |
16,627,388 |
- |
- |
- |
10,027,550 |
26,654,938 |
Financial Liabilities Payables |
- |
- |
- |
- |
- |
20,404,934 |
20,404,934 |
----- 20,404,934 20,404,934
Cash includes $ 11,235,604( 2009: $ 22,022,809) which is held for disbursement in accordance with government funding agreements, including to organisations other than KU.
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36 KU Children’ s Services