Note 12: Financial instruments

12.1 Risk exposures

a) Risk management policies

The department does not hold any derivatve financial instruments.

b) Credit risk exposures

The financial assets held by the department are cash and receivables where there is no credit risk. The department earns interest on nominal account balances for select accounts held at the Department of Treasury and Finance and on school bank account balances. Interest earned on these respective accounts during 2006-07 ranged from 0% to 6.08%.

12.2 Net fair values of financial assets and liabilities

	2007		2006
	Total carrying amount $’000	Net fair value $’000	Total carrying amount $’000	Net fair value $’000
Financial assets
Cash at bank	61,069	61,069	48,317	48,317
Receivables	6,530	6,530	6,804	6,804
Total financial assets	67,599	67,599	55,121	55,121
Financial liabilities (recognised)
Creditors and accrued expenses	5,439	5,439	5,743	5,743
Other financial liabilities	14,083	14,083	10,716	10,716
Total financial liabilities (recognised)	19,522	19,522	16,459	16,459
Total financial liabilities (unrecognised)	-	-	-	-

Financial assets

The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.

Financial liabilities

The net fair values for creditors, accrued expenses and prepaid revenue are approximated by their carrying amounts.

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