Department of Sustainability, Environment, Water, Population and Communities

Note 26E. Credit Risk
The administered activities of the Department were not exposed to a high level of credit risk as the majority of financial assets were cash, receivables, advances and loans to State and Territory Governments. The Department managed its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, the Department had policies and procedures that guided employees in the debt recovery techniques that were to be applied. The Department assessed the risk of the default on payment and allocated the following amounts to an impairment allowance account: Goods and services $1,300,000 (2012: $500,000).
The following table illustrates the Department's gross exposure to credit risk, excluding any collateral or credit enhancements.
				2013	2012
				$'000	$'000
Financial assets
Loans and receivables
Cash and cash equivalents				-	-
Advances and loans				5,998	8,116
Goods and services and other receivables				1,041	1,170
Total				7,039	9,286
The Department held no collateral to mitigate against credit risk.
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
		2013	2012	2013	2012
		$'000	$'000	$'000	$'000
Financial assets
Loans and receivables
Cash and cash equivalents		-	-	-	-
Advances and loans		5,998	8,116	-	-
Goods and services and other receivables		891	868	150	302
Total		6,889	8,984	150	302
Ageing of financial assets that were past due but not impaired for 2013
	0 to 30	31 to 60	61 to 90	90+
	days	days	days	days	Total
	$'000	$'000	$'000	$'000	$'000
Loans and receivables
Other receivables	91	10	12	37	150
Total	91	10	12	37	150
Ageing of financial assets that were past due but not impaired for 2012
	0 to 30	31 to 60	61 to 90	90+
	days	days	days	days	Total
	$'000	$'000	$'000	$'000	$'000
Loans and receivables
Other receivables	202	2	-	98	302
Total	202	2	-	98	302

Note 26F. Liquidity Risk
The Department’s financial liabilities were trade creditors and grant payables. The exposure to liquidity risk was based on the notion that the Department would encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the Department was appropriated funding from the Australian Government and the Department managed its budgeted funds to ensure it had adequate funds to meet payments as they fell due. In addition, the Department had policies in place to ensure timely payments were made when due and had no past experience of default.
Maturities for non-derivative financial liabilities 2013
	On demand	Within 1 year	1 to 2 years	2 to 5 years	>5 years	Total
	$'000	$'000	$'000	$'000	$'000	$'000
Other liabilities
Trade creditors and accruals	-	7,166	-	-	-	7,166
Grants payable	-	23,058	-	-	-	23,058
Total	-	30,224	-	-	-	30,224
Maturities for non-derivative financial liabilities 2012
	On demand	Within 1 year	1 to 2 years	2 to 5 years	>5 years	Total
	$'000	$'000	$'000	$'000	$'000	$'000
Other liabilities
Trade creditors and accruals	-	8,715	-	-	-	8,715
Grants payable	-	33,334	-	-	-	33,334
Total	-	42,049	-	-	-	42,049

The Department had no derivative financial liabilities in either 2013 or 2012.

Note 26G. Market Risk
The Department held basic financial instruments that did not expose the Department to certain market risks. The Department was not exposed to 'Currency Risk'. Interest Rate Risk The only interest bearing items on the balance sheet were the ‘Loans to State and Territory Governments’. These items had fixed interest and would not fluctuate due to changes in the market interest rate. Other Price Risk The Department’s administered activities were not exposed to “Other Price Risk’. Its administered investments were not traded on the Australian Stock Exchange. It did not hold any other financial instruments that would be exposed to price risk.