Annual Report 2017-2018 OmbudsmanNT
Tabled paper 934
Tabled Papers for 13th Assembly 2016 - 2020; Tabled Papers; ParliamentNT
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OMBUDSMANS OFFICE NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2018 119 14. FINANCIAL INSTRUMENTS A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments held by the Ombudsmans Office include cash and deposits, receivables and payables. The Agency has limited exposure to financial risks as discussed below. a) Credit risk The Agency has limited credit risk exposure (risk of default). In respect of any dealings with organisations external to Government, the agency has adopted a policy of only dealing with credit worthy organisations and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. Receivables Receivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. A reconciliation and aging analysis of receivables is presented below. Internal receivables (a) Aging of receivables Aging of impaired receivables Net receivables $000 $000 $000 2017-18 Not overdue Overdue for less than 30 days Overdue for 30 to 60 days Overdue for more than 60 days Total - - 2016-17 Not overdue Overdue for less than 30 days Overdue for 30 to 60 days Overdue for more than 60 days 1 1 Total 1 1 (a) Internal receivables are from entities controlled by the NTG (entities listed in TAFR 2016-17 Note 43: Details of controlled entities at reporting date), whereas external receivables are from third parties external to the NTG. b) Liquidity risk Liquidity risk is the risk that the agency will not be able to meet its financial obligations as they fall due. The Agencys approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due. c) Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises interest rate risk, price risk and currency risk. The primary market risk that an agency is likely to be exposed to is interest rate risk.