Annual Report 2016-17

Judicial Commission of NSW – Annual Report 2016–17 106 (c) Liquidity Risk Liquidity risk is the risk that the entity will be unable to meet its payment obligations when they fall due. The entity continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. During the current and prior year, there were no defaults on any loans payable. No assets have been pledged as collateral. The entity’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk. The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in NSW TC 11/12. For small suppliers, where not specified, payment is made no later than 30 days from the date of receipt of a correctly rendered invoice. For other suppliers, if trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or statement is received. For small business suppliers, where payment is not made within the specified time period, simple interest must be paid automatically unless an existing contract specifies otherwise. For payments to other suppliers the Head of an authority may automatically pay the supplier simple interest. No interest was applied during the year. The Commission has no interest rate exposure on its financial liabilities. (d) Market Risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Commission does not have any investments or interest bearing liabilities and therefore has minimal exposure to market risk. (e) Fair value compared to carrying amount Financial instruments are recognised at amortised cost, which approximate fair value because of their short-term nature. 19. RELATED PARTY DISCLOSURES 2017 $’000 The entity’s key management personnel compensation are as follows: Short-term employee benefits: Salaries 1,043 Other monetary allowances 0 Non-monetary benefits 0 Post-employment benefits 78 Termination benefits 0 Total remuneration 1,121 During the year, the entity did not enter into any transactions with key management personnel, their close family members and controlled or jointly controlled entities thereof. During the year, the entity entered into transactions with other entities that are controlled/jointly controlled/ significanty influenced by the NSW Government. These transactions in aggregate are a significant portion of the Judicial Commission’s activities. These transactions include: • Long Service Leave and Defined Benefit Superannuation assumed by the Crown • Appropriations • Transactions relating to the Treasury Banking System • Employer contributions paid to Defined Benefit Superannuation funds • Payments into the Treasury Managed Fund for workers’ compensation insurance and other insurances 20. EVENTS AFTER THE REPORTING PERIOD There were no events subsequent to balance date which affect the financial statements. Judicial Commission of New South Wales Notes to the financial statements for the year ended 30 June 2017 End of audited financial statements