KU Annual Report 2010 - Page 35

21. Notes to the Cash Flow Statement 2010 $ 2009 $ (a) Reconciliation of (Deficit) for the period to Net Cash Flows From Operating Activities (Deficit) for the period Depreciation and amortisation of non-current assets Loss on sale of non-current assets Dividends received Interest received Changes in net assets and liabilities: Decrease / (Increase) in current receivables and other assets (Decrease) / Increase in current payables and other liabilities Increase in provisions (1,178,344) 648,088 14,164 (376,134) (136,331) (48,086) 669,189 6,739 (138,931) (162,160) 362,490 (9,583,212) 1,133,523 (407,570) 13,088,572 1,182,334 Net cash from operating activities (9,115,756) 14,190,088 (b) Reconciliation of Cash and Cash Equivalents For the purposes of the cash flow statement, cash and cash equivalents include cash at bank and on hand. Cash and cash equivalents at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows: Cash and cash equivalents 16,627,388 27,608,816 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. During 2009 KU received $52,546,466 of cash in relation to Government brokered programs and expended $31,893,298 on Government brokered programs. As at 31 December 2009 KU had $25,923,980 of prepaid government funding shown as a liability in the financial statements. During 2010 KU expended this amount, resulting in cash flow on brokered programs exceeding receipts by $11,019,236 and a liability of $15,207,136. 22. Financial Instruments (a) Capital Risk Management The capital structure of the company includes cash and cash equivalents and retained earnings. (b) Categories of Financial Instruments 2010 $ 2009 $ Financial assets Loans and receivables Cash and cash equivalents Available for sale financial assets 2,406,073 16,627,388 7,621,477 2,398,334 27,608,816 7,561,554 Financial Liabilities Trade and other payables 20,404,934 30,724,789 The carrying amount reflected above represent the Company’s maximum exposure to credit risk for such loans and receivables. Continues... 115th Annual Report 2010 35