Notes 3 -5


Note 3: Creditors and other payables

2015/16 2016/17
Actual
($000)
  Actual
($000)
14,270 Payables and accurals 18,155
2,660 Import Entry - transaction Fees payable 2,858
6 Other creditors - Departmental 11
16,936 Total creditors and other payables 21,024

Creditors and other payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of creditors and other payables approximates their fair value.

Note 4: Financial instruments

The carrying amounts of financial assets and financial liabilities in each of the PBE IPSAS 30.11 categories are as follows:

2015/16 2016/17
Actual
($000)
  Actual
($000)
  Cash and receivables  
1,162,606 Cash and cash equivalents 953,423
966,190 Debtors and other receivables 1,086,172
2,128,796 Total cash and receivables 2,039,595
  Financial liabilities measured at amortised cost  
16,936 Creditors and other payables 21,024
16,936 Total financial liabilities measured at amortised cost 21,024

Credit risk

Credit risk is the risk that a third party will default on its obligation, causing a loss to be incurred.

In the normal course of its business, credit risk arises from debtors and deposits with banks.

Funds must be deposited with Westpac, a registered bank.

Maximum credit exposure for each class of financial instrument is represented by the total carrying amount of cash and cash equivalents, and net debtors. There is collateral held as security against some of these financial instruments in the form of bank guarantees and deposits held in trust.

Note 5: Major budget variations

Schedules and statements: non-departmental

Non-Departmental revenue

Crown Revenue changes are driven by economic conditions and changes in consumer behaviour.

Non-Departmental expenses

Expenses are less than budget due to effective debt management and some significant doubtful debts not needing to be written off.

Non-Departmental assets

Assets are less than budget due to the effective collection of debt and transfer of cash held at year-end.