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Forest NSW Annual Report 2012

Notes to and forming part of the financial statements For the year ended 30 June 2012 1 Year or 1 to 5 More than Non Interest Total Statutory Corporation - 2011 Less Years 5 Years Bearing $’000 $’000 $’000 $’000 $’000 Financial Assets           Cash and cash equivalents 8864 - - - 8864 Trade and other receivables - - - 44 032 44 032 Total Financial Assets 8864 - - 44 032 52 896             Financial Liabilities           Interest bearing loans and borrowings 17 015 75 594 39 393 - 132 002 Trade and other payables - - - 29 534 29 534 Total Financial Liabilities 17 015 75 594 39 393 29 534 161 536 Net Financial Assets/(Liabilities) (8151) (75 594) (39 393) 14 498 (108 640) The carrying values of financial instruments are equal to the fair value except for loans and borrowings where the fair value is $138 699 333 (c) Other Qualitative Disclosures Managed debt portfolios NSW Treasury Corporation (TCorp.) manages interest rate risk exposures applicable to specific borrowings of Forests NSW in accordance with a debt portfolio mandate agreed between the two parties. TCorp. receives a fee for this service, (which may include a performance component where TCorp. is able on behalf of Forests NSW to add value by achieving a reduction in Forests NSW debt costs against an agreed benchmark). TCorp. uses derivatives, primarily interest rate futures, to establish short-term (tactical) and longer term (strategic) positions within agreed tolerance limits to manage portfolio duration and maturity profiles. At reporting date the carrying value of borrowings and derivatives (net of funds held at call) managed by TCorp. stood at $133.2 million (2011: $131.8 million). Hour-Glass Investment Facilities Forests NSW holds units in the following Hour-Glass investment facilities:- Facility Investment Sectors Investment Horizon Cash Facility Cash, Money market instruments Up to 1.5 years The unit price of each facility is equal to the total fair value of the net assets held by the facility divided by the total number of units on issue for that facility. Unit prices are calculated and published daily. NSW Treasury Corporation (TCorp.) as trustee for the above facility is required to act in the best interest of the unit holders and to administer the trust in accordance with the trust deed. As trustee, TCorp. has appointed external managers to manage the performance and risks of each facility in accordance with a mandate agreed by the parties. A significant portion of the administration of the facilities is outsourced to an external custodian. Note 24: Operating Leases At balance date Forests NSW had operating lease/rental agreements as Lessee totalling $10,287,106 (2011: $10,333,850). These agreements relate to occupancy of land, offices and equipment throughout the State. Forests NSW had no other material lease and hire purchase agreements. Economic Economic Statutory Statutory Entity Entity Corporation Corporation 2012 2011 2012 2011 $'000 $'000 $'000 $'000 Not later than one year 977 804 977 804 Later than 1 year and not later than five years 2455 2438 2455 2438 Later than 5 years 6855 7092 6855 7092 Total (including GST) 10 287 10 334 10 287 10 334 At balance date Forests NSW had operating lease/rental agreements as lessor totalling $24 905 308 (2011: $27 149 031). These agreements relate to occupancy of buildings and land throughout the State. Forests NSW had no other material lease and hire purchase agreements. Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance 91


Forest NSW Annual Report 2012
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