Territory Stories

Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)

Details:

Title

Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)

Other title

Tabled paper 1556

Collection

Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT

Date

2015-11-19

Description

Deemed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C01622

Parent handle

https://hdl.handle.net/10070/273151

Citation address

https://hdl.handle.net/10070/799706

Page content

Northern Territory Motor Accidents (Compensation) Commission Notes to the Financial Statements - 30 June 2015Annual Report 2015 Page 91 Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 77 33. Risk management and financial instruments information continued Maturity profiles of undiscounted financial liabilities. MACC 1 year or less > 1 year and < 5 years > 5 years No term Total $000 $000 $000 $000 $000 30 June 2015 Deposits - - - - - Borrowings - - - - - Securitisation liabilities - - - - - Trade and other payables 5,208 - - - 5,208 Related party payables 385 - - - 385 Interest rate swaps - - - - - Total undiscounted financial liabilities 5,593 - - - 5,593 30 June 2014 Deposits 429,858 22,412 - 111,550 563,820 Borrowings 25,530 26,170 - - 51,700 Securitisation liabilities 2,964 11,788 43,938 - 58,690 Trade and other payables 30,041 - - - 30,041 Interest rate swaps 124 35 - - 159 Total undiscounted financial liabilities 488,567 60,405 43,938 111,550 704,410 The maturity analysis disclosure in 2015 represents MACCs undiscounted financial liabilities, whereas the 2014 comprises of TIO Insurance and Banking business and MAC Fund undiscounted financial liabilities d) Derivative financial instruments MACC uses derivative financial instruments to hedge financial risk from movements in interest rates. All such transactions are carried out within the parameters set by the third party. Derivative financial instruments are carried at fair value and recorded in the Statement of Financial Position as assets and liabilities. Changes in values of derivative financial instruments, other than interest rate swaps designated as cash flow hedges, are recognised in the profit and loss section of the statement of profit or loss or other comprehensive income. The accounting treatment of interest rate swaps designated as cash flow hedges is described in note 33 a (i). At year end MACC held derivative exposures to manage exposure on the investments held for trading portfolio, and deposit portfolio, of Interest Rate Swaps with a net notional value of $357 million (2014: $329 million) and a fair value of $0.2 million (2014: $0.23 million). Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 76 33. Risk management and financial instruments information continued The ageing analysis in 2015 represents MACCs financial assets, whereas the 2014 comprises of TIO Insurance and Banking business and MAC Fund financial assets. (c) Liquidity risk Liquidity is the ability to access funds at short notice via internal or external sources to the organisation. Liquidity risk is the risk that MACC will be unable to meet its obligations in an orderly manner as and when they fall due. This includes the risk that MACC may not be able to borrow funds when required, or at an acceptable cost. Liquidity risk arises due to unanticipated obligations arising. This may occur when anticipated receipts do not eventuate, or when short term sources of funds are withdrawn, or where MACC is exposed to one particular market sector. The three main elements of managing Liquidity risk are: Day-to-day cash management: Involves the use of working cash and investment balances. The key tool used to manage cash balances involves the use of cash flow forecasts. Short Term Liquidity management: Involves the use of both internal and external tools and facilities. MACC utilises tools including cash flow forecasts and investment maturity profiles to ensure liquidity does not fall below prudential limits. The external facilities include committed and uncommitted stand-by lines for planned and emergency funding requirements. Long Term Liquidity management: Involves the use of budgets and business plans to protect against a liquidity problem in the future. MACC maintain close relationships with bankers and financial intermediaries to ensure the availability of committed and uncommitted funds from a number of sources. The following table summarises the maturity profile of MACCs liabilities. This is based on contractual undiscounted repayment obligations, which includes estimated interest repayments. The maturity profiles of Insurance contract liabilities are determined on the basis of discounted estimated timing of net cash outflows and are disclosed in note 19 (e). Repayments that are subject to notice are treated as if notice were to be given immediately.


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