Notes to and forming part of the Concise Financial Statements

for the yar ended 30 June 2007

This concise financial report relates to the consolidated entity of TCorp and its controlled entities at the end of, or during, the year ended 30 June 2007.

All amounts shown are in Australian dollars and are rounded to the nearest million dollars unless otherwise stated.

There is no statutory requirement for TCorp to prepare a concise financial report and it does not need to comply with Accounting Standard AASB 1039 Concise Financial Reports.  However, this concise financial report has been prepared in compliance with AASB 1039.

1. Segment Information

TCorp operates solely within the capital markets, banking and finance industry segment to provide financial services to the New South Wales public sector.  Given the nature of its core functions and the legislative intent, TCorp operates within Australia, although it does raise a proportion of its funding from offshore.  As such, no geographic location segment reporting is presented within this financial report.

2. Dividends

TCorp is a Statutory Corporation established under the Treasury Corporation Act 1983. Prior financial year profits have been retained in lieu of subscribed capital.  Any current financial year profits not required to maintain the New South Wales Government agreed appropriate level of equity are declared as dividends to New South Wales Treasury.

	2007 $m	2006 $m
Dividends proposed and payable:
1 August 2007	16.9	-
1 December 2007	16.9	-
Dividends paid in previous years:
1 August 2006		5.0
1 December 2006		6.0
	33.8	11.0

3. Contingent Liabilities and Commitments

1. The Corporation has on loan to the fixed interest market under its stock lending facility Corporation bonds with total market value of $1,455.6 million (2006: $486.9 million).
   These bonds are not recorded in the Corporation’s financial statements.
   In the extremely unlikely event of default by the borrowers of bonds, the Corporation would obtain ownership of security pledges which had a market value at 30 June 2007 of $359.7 million (2006: $28.0 million) to offset the increased liability.  The remaining amount has been lent within TCorp’s policy, and would constitute a receivable in these circumstances.
2. During the year, the Corporation provided a short term liquidity facility to approved client authorities.  This facility is offered on a revolving basis.  At the year end, the total facilities were $4,362.5 million (2006: $3,727.5 million) and undrawn commitments were $3,152.7 million (2006: $2,977.2 million). Drawn commitments are recognised in the balance sheet.
3. The Corporation has issued unconditional payment undertakings on behalf of some New South Wales public sector clients participating in the national wholesale electricity market to pay to the system administrators on demand in writing any amount up to an aggregate maximum agreed with individual participants.
   The Corporation has also issued undertakings on behalf of other New South Wales public sector clients in respect of those clients performance under contracts with third parties.
   Amounts paid under these undertakings are recoverable from the New South Wales public sector agency participants.  This financial accommodation is Government guaranteed.
   At balance date, the aggregate amounts totalled $1,587.0 million (2006: $571.2 million).
4. The Corporation has a commitment totalling $650.0 million (2006: $650.0 million) to provide motor vehicle finance to the New South Wales Government. As at year end, undrawn commitments are $121.7 million (2006: $212.2 million). Drawn commitments are recognised on the balance sheet.
5. The Corporation is lessor to a finance lease arrangement to purchase rolling stock and on-lease to public sector clients. The (asset) balance of stock currently under lease total $5.1 million (2006: $2.2 million) and the Corporation has a net obligation of nil (2006: nil) under the arrangement. There is therefore no asset or liability recognised in the balance sheet which is in accordance with UIG Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

END OF AUDITED CONCISE FINANCIAL REPORT

Director's Declaration

The directors declare that in their opinion, the concise consolidated financial report of New South Wales Treasury Corporation complies with Accounting Standard AASB 1039 Concise Financial Reports.

The financial statements and specific disclosures included in this concise financial report have been derived from the full financial report for the year ended 30 June 2007.

This declaration is made in accordance with a resolution of the directors.

 

 

Sydney, 25 August 2007