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Queensland Art Gallery Board of Trustees Annual Report 2013–14
FINANCIAL STATEMENTS
PART B
30
30
Queensland Ar t Gallery Board of Trustees
Notes to and forming par t of the Financial Statements 2013–14
27. Contingent Liabilities
(a) Litigation in progress
The Gallery does not have any litigation before the Courts, nor is it aware of any pending
litigation.
(b) Financial Guarantees
As part of contractual negotiations (mainly in relation to exhibition or sponsorship
contracts), the Gallery is occasionally required to provide financial guarantees. In
accordance with the
Statutory Bodies Financial Arrangements Act 1982
, the Gallery has
approval from the Treasurer to provide financial guarantees under certain conditions; the
balance of the guarantees are approved by the Treasurer. The guarantees are not
recognised in the Statement of Financial Position as the Gallery does not expect the
guarantees to be called upon. As at 30 June 2014, there were no material guarantees in
place.
28. Financial Instruments – Economic Entity
(a) Categorisation of Financial Instruments
The Gallery has the following categories of financial assets and financial liabilities:
Not
e
Economic Entity
Parent Entity
2014
2013
2014
2013
$000
$000
$000
$000
Financial Assets
Cash and cash equivalents
12
9,506
3,240
9,506
3,240
Receivables
13
863
688
863
688
Held-to-maturity investments:
Term deposits with financial
institutions – held at amortised
cost
14
7,000
8,000
7,000
8,000
Investments held at fair value:
Investments in the QTC Capital
Guaranteed Cash Fund
14
976
902
976
902
Investments in the QIC Growth
Fund
14
13,992
11,574
13,992
11,574
Total
32,337 24,404 32,337 24,404
Financial Liabilities
Payables
17
2,150
1,585
2,150
1,585
(b) Financial Risk Management
The Gallery’s activities expose it to a variety of financial risks — interest rate risk, credit
risk, liquidity risk and market risk.
Financial risk management is implemented pursuant to government and Gallery policies.
These policies focus on the unpredictability of financial markets and seek to minimise
potential adverse effects on the financial performance of the Gallery. Financial risk is
managed by the Financial Services Section, in accordance with these policies.
The Financial Services Section regularly reports to the Queensland Art Gallery Board of
Trustees and the Queensland Art Gallery | Gallery of Modern Art Foundation Committee in
relation to financial assets.
The Gallery measures risk exposure using a variety of methods as follows: