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Note 28: Administered - Financial instruments

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2015 2014
Notes $'000 $'000

28A: Categories of financial instruments

Financial assets
Loans and receivables
Cash and cash equivalents 20A 3 4
Trade receivables 20B 559 812
Loans 20B 120,592 118,627
Other receivables 20B 26 560
Personal benefit recoveries 20B 1,362 1,617
Available for sale
Investments 20C 9,140,266 8,641,932
Total financial assets 9,262,808 8,763,552
Financial liabilities
Financial liabilities measured at amortised cost
Trade creditors 22A 3,530 6,324
Accrued payables 22A 14,319 13,769
Operating lease rentals 22A 211 171
Grants an subsidies payable 22B 6,771 13,424
Total financial liabilities 24,831 33,688

28B: Net gains and losses from financial assets

Loans and receivables
Interest revenue 18B 6,072 1,626
Impairment on financial instruments 17G (69) (59)
Impairment of personal benefit recoveries 17G (443) 1,050
Net gains/(losses) on loans and receivables 5,560 2,617
Available for sale financial assets
Dividend revenue 18C 11,849 4,723
Net gains/(losses) on available-for-sale financial assets 11,849 4,723
Net gains on financial assets 17,409 7,340

28C: Fair value of financial assets

The Department considers that the carrying amounts of financial instruments reported in the balance sheet are a reasonable approximation of fair value.

28D: Credit risk

The Administered activities of the Department are exposed to minimal credit risk as the majority of financial assets are trade receivables, advances and loans to State and Territory Governments, and shares in associated and Government controlled entities. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of receivables $122,539,748 (2014: $121,616,563). The Department has assessed the risk of default on payment and has allocated $1,191,529 (2014: $737,442) to an impairment allowance account. This amount has been determined following an assessment of invoices greater than 90 days.

The following table illustrates the Department's gross exposure to credit risk. The Department holds no collateral to mitigate credit risk.

2015 2014
Notes $'000 $'000
Loans and receivables
Cash and cash equivalents 20A 3 4
Trade receivables 20B 559 812
Loans 20B 120,592 118,627
Other receivables 20B 26 560
Personal benefit recoveries 20B 1,362 1,617
Available for sale
Investments 20C 9,140,266 8,641,932
Total 9,262,808 8,763,552

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
2015 2014 2015 2014
$'000 $'000 $'000 $'000
Loans and receivables
Cash and cash equivalents 3 4
Trade receivables 180 364 379 448
Loans 120,592 118,627
Other receivables 26 560
Personal benefit recoveries 1,362 1,617
Available for sale
Investments 9,140,266 8,641,932
Total 9,261,067 8,761,487 1,741 2,065

Ageing of financial assets that are past due but not impaired for 2015

0 to 30 days 31 to 60 days 61 to 90 days 90+ days Total
$'000 $'000 $'000 $'000 $'000
Loans and receivables
Trade receivables 3 10 264 277
Personal benefit recoveries 273 273
Total 3 10 537 550

Ageing of financial assets that are past due but not impaired for 2014

0 to 30 days 31 to 60 days 61 to 90 days 90+ days Total
$'000 $'000 $'000 $'000 $'000
Loans and receivables
Trade receivables 149 10 190 8 357
Personal benefit recoveries 971 971
Total 149 10 190 979 1,328

Trade receivables have been individually assessed for impairment by departmental officers. Recovery of debt has been considered based on communication with the debtor, and where determined to be unrecoverable an allowance was recognised.

28E: Liquidity risk

The Department's financial liabilities are trade creditors, grants and subsidies payable. The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the Department (eg Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

The Department receives appropriations and manages its funds to ensure it is able to meet its financial obligations as they fall due. The Department also has policies in place to ensure timely payment of invoices and has no past history of default.

Maturities for non-derivative financial liabilities 2015

On demand Within 1 year 1 to 5 years > 5 years Total
2015 2015 2015 2015 2015
Notes $'000 $'000 $'000 $'000 $'000
Liabilities at amortised cost
Trade creditors 22A 3,530 3,530
Accrued payables 22A 14,319 14,319
Operating lease rentals 22A 211 211
Grants and subsidies payable 22B 6,771 6,771
Total 24,831 24,831

Maturities for non-derivative financial liabilities 2014

On demand Within 1 year 1 to 5 years > 5 years Total
2014 2014 2014 2014 2014
Notes $'000 $'000 $'000 $'000 $'000
Liabilities at amortised cost
Trade creditors 22A 6,324 6,324
Accrued payables 22A 13,769 13,769
Operating lease rentals 22A 171 171
Grants and subsidies payable 22B 13,424 13,424
Total 33,688 33,688

28F: Market risk

The Department holds basic financial instruments that do not expose the Department to market risks. The Department is also not exposed to 'currency risk' or 'other price risk'.

Interest rate risk

The only interest-bearing items on the schedule of assets administered on behalf of Government are loans made to State and Territory Governments. All those bearing interest are at a fixed interest rate that does not fluctuate due to changes in the market interest rate. Those with variable interest rates are significantly concessional so that any movement in the market rate will not have a material impact on the carrying amount of the receivable.

28G: Concessional loans

2015 2014
$'000 $'000
Natural Disaster Relief and Recovery Arrangements
Nominal value 136,968 138,267
Less: Unexpired discount (8,122) (11,304)
Principle repayment (8,254) (8,336)
Carrying value 120,592 118,627
Total Natural Disaster Relief and Recovery Arrangements 120,592 118,627

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