Investor Presentaiton

Department of Health Notes to the financial statements For the year ended on 30 June 2023 8.1 Financial risk management (continued) Liquidity risk Liquidity risk arises when the department is unable to meet its financial obligations as they fall due. The department is exposed to liquidity risk through its trading in the normal course of business. The department has appropriate procedures to manage cash flows including drawdown of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments. Market risk Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the department's income or the value of its holdings of financial instruments. The department does not trade in foreign currency and is not materially exposed to other price risks [for example, equity securities or commodity prices changes]. The department's exposure to market risk for changes in interest rates relate primarily to the long-term debt obligations. All borrowings are due to the WATC and are repayable at fixed rates with varying maturities. Other than as detailed in the interest rate sensitivity analysis table at note 8.1(e) 'Interest rate sensitivity analysis', the department is not exposed to interest rate risk because the majority of cash and cash equivalents and restricted cash are non-interest bearing and it has no borrowings other than the Treasurer's advance (non-interest bearing), WATC borrowings and finance leases (fixed interest rate). b) Categories of financial instruments The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are: 2023 2022 $'000 $'000 Financial assets Cash and cash equivalents Restricted cash and cash equivalents Financial assets at amortised cost (a) 68,912 128,508 119,530 123,619 125,348 136,468 313,790 388,595 Total financial assets Financial liabilities Financial liabilities at amortised cost (b) 71,405 151,895 Total financial liabilities 71,405 151,895 a) The amount of financial assets at amortised cost excludes GST recoverable from the ATO (statutory receivable). b) The amount of financial liabilities at amortised cost excludes GST payable to the ATO (statutory payable). < 180 Contents About us Significant issues Report on operations Agency performance Operational disclosures ⚫Key performance indicators Financial disclosures and compliance • Appendix

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