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66 21. Categories of fi nancial assets and liabilities The carrying amount of fi nancial assets and liabilities in each of the NZ IAS 39 categories are as follows: Loans and receivables: 22. Financial instrument risks The Health and Disability Commissioner’s activities expose it to a variety of fi nancial instrument risks, including market risk, credit risk and liquidity risk. The Health and Disability Commissioner has a series of policies to manage the risks associated with fi nancial instruments and seeks to minimise exposure from fi nancial instruments. These policies do not allow any transactions that are speculative in nature to be entered into. Market risk Fair value interest rate risk Fair value interest rate risk is the risk that the value of a fi nancial instrument will fl uctuate owing to changes in market interest rates. The Health and Disability Commissioner’s exposure to fair value interest rate risk is limited to its bank deposits, which are held at fi xed rates of interest. The Health and Disability Commissioner does not actively manage its exposure to fair value interest rate risk The average interest rate on the Health and Disability Commissioner’s term deposits is 3.8% (2011: 3.9%). Cash fl ow interest rate risk Actual Actual 2012 2011 $ $ Cash and cash equivalents 1,636,227 1,656,353 Debtors and other receivables 36,596 262,632 Total loans and receivables 1,672,823 1,918,985 Financial liabilities measured at amortised cost: Creditors and other payables 518,094 448,938 Total fi nancial liabilities measured at amortised cost 518,094 448,938 Cash fl ow interest rate risk is the risk that the cash fl ows from a fi nancial instrument will fl uctuate because of changes in market interest rates. Investments and borrowings issued at variable interest rates expose the Health and Disability Commissioner to cash fl ow interest rate risk.
Credit risk Credit risk is the risk that a third party will default on its obligation to the Health and Disability Commissioner, causing the Health and Disability Commissioner to incur a loss. Due to the timing of its cash infl ows and outfl ows, the Health and Disability Commissioner invests surplus cash with registered banks. The Health and Disability Commissioner’s maximum credit exposure for each class of fi nancial instrument is represented by the total carrying amount of cash and cash equivalents (note 6), and net debtors (note 7). There is no collateral held as security against these fi nancial instruments, including those instruments that are overdue or impaired. The Health and Disability Commissioner has no signifi cant concentrations of credit risk, as it has a small number of credit customers and only invests funds with registered banks with specifi ed Standard and Poor’s credit ratings of AA or better. Liquidity risk Liquidity risk is the risk that the Health and Disability Commissioner will encounter diffi culty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining suffi cient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Health and Disability Commissioner aims to maintain fl exibility in funding by keeping committed credit lines available. In meeting its liquidity requirements, the Health and Disability Commissioner maintains a target level of investments that must mature within specifi ed time frames. Sensitivity analysis As at 30 June 2012, if the deposit rate had been 50 basis points higher or lower, with all other variables held constant, the surplus/defi cit for the year would have been $5,000 (2011: $8,150) higher/lower. This movement is attributable to increased or decreased interest expense on the cash deposits. The table below analyses the Health and Disability Commissioner’s fi nancial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. Future interest payments on fl oating rate debt are based on the fl oating rate at the balance sheet date. The amounts disclosed are the contractual undiscounted cash fl ows. The contractual undiscounted amounts equal the carrying amounts. HDC ANNUAL REPORT 2012 67
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ANNUAL REPORT for the year ended 30
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1. Commissioner’s Foreword ......
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1.0 Commissioner’s Foreword The m
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1.1 2011/12 Priorities In line with
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2.0 Role of the Health and Disabili
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2.2 Impact and outcomes HDC and the
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Deputy Commissioner, Complaints Res
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CASE STUDY: Lack of consistent appr
Page 17 and 18: Nature of complaints The HDC receiv
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Page 25 and 26: Having a national focus each year o
Page 27 and 28: CASE STUDY: Achieving compensation
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Page 33 and 34: Disability related complaints recei
Page 35 and 36: 5.0 Organisational Performance, Dev
Page 37 and 38: 5.6 Processes and technology Sustai
Page 39 and 40: 6.2 Output Class 2: Advocacy Perfor
Page 41 and 42: 6.4 Output Class 4: Education Perfo
Page 43 and 44: 7.0 Statement of Responsibility In
Page 45 and 46: HDC ANNUAL REPORT 2012 An audit inv
Page 47 and 48: STATEMENT OF FINANCIAL POSITION as
Page 49 and 50: STATEMENT OF CASH FLOWS for the yea
Page 51 and 52: Standards, amendments, and interpre
Page 53 and 54: Disability Commissioner and the cos
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Page 57 and 58: 3. Other income 4. Personnel costs
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Page 63 and 64: 13. Non current liability Lease inc
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Page 67: 19. Employee remuneration Total rem
Page 71 and 72: Transparency Engagement Consumer Ce
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