Page 42 - AHEIA Annual Report

NOTE 14 FINANCIAL INSTRUMENTS
This note presents information about the Association’s nancial instrument risk management objectives, policies and processes for measuring and managing risk.
The Executive Committee has responsibility for the establishment and oversight of the risk management framework to identify and analyse the risks faced by the Association.
The Association’s principal nancial instruments comprise cash and short-term deposits, fair value through pro t or loss assets and accounts receivable/payable. At the end of the 2016 nancial year, the Association had investments of $2,270,068 (2015: $2,152,792) in managed funds through MLC Masterkey Investment. These funds are managed by third parties to achieve the growth targets set by the Committee of Management, which evaluates the performance of its portfolio based on reports received from the external nancial advisor.
The Association's activities expose it primarily to the nancial risks of changes in interest rates, price risk, liquidity risk and credit risk. The Association does not enter into or trade nancial instruments including derivative nancial instruments for speculative purposes. The Executive Committee reviews and agrees policies for managing each of these risks and undertakes regular monitoring of the performance of its nancial assets and liabilities.
Financial assets Note
Cash and cash equivalents 5A Term Deposits 5C Trade Receivables 5B Managed Investment Portfolio 5C
Financial Liabilities
Trade Payables 7A
Category 2016 2015 $$
N/A 330,697
1,071,691 100,000 9,303 2,152,792
75,848
Held to maturity
Loans and receivables
Fair value through pro t or loss
Financial liabilities measured at amortised cost
550,000 205,079 2,270,068
234,865
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AHEIA Annual Report 2016