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