❓ A WA parliamentary question seeks information on the cash reserves of key energy corporations and their respective policies on cash holdings. The answer provides specific figures and outlines the internal policies governing cash management for each entity.
AnsweredQoN 7316Legislative Assembly
QuestionView source ↗
(1) What is the cash and cash equivalents balance for each of the following entities as at 31 December 2011:
(a) Western Power;
(b) Horizon;
(c) Synergy; and
(d) Verve Energy?
(2) Has the Government given any policy guidelines to these entities regarding their levels of cash and cash equivalents holdings, and if yes, what are these guidelines; and
(a) If no, do the boards of these entities have policy guidelines regarding their level of cash and cash equivalent holdings, and if yes, what are these guidelines?
(a) Western Power;
(b) Horizon;
(c) Synergy; and
(d) Verve Energy?
(2) Has the Government given any policy guidelines to these entities regarding their levels of cash and cash equivalents holdings, and if yes, what are these guidelines; and
(a) If no, do the boards of these entities have policy guidelines regarding their level of cash and cash equivalent holdings, and if yes, what are these guidelines?
AnswerView source ↗
Answered
27 March 2012
Responded by
Minister representing the Minister for Energy
Response time
33 days
(1)(a) Western Power: $17,170,000.00
(b) Horizon: $89,527,627.90
(c) Synergy: $187,355,000.00
(d) Verve Energy: $35,365,116 with $35,004,000 in deposits and the remaining in operating accounts
(2) No
(a) Synergy's Board has instructed the organisation to abide by internal treasury policy and investment guidelines, which limit cash investments to a term of no longer than 12 months.
Western Power's Board reviews and approves the "Management of Treasury Risks Policy" and the "Treasury Management Framework" on an annual basis.
The Horizon Power Board has approved a ceiling on counterparty exposure to $200 million. That is, cash and cash equivalent cannot exceed this value. This parameter forms part of Horizon Power's "Financial Risk Management Framework" which was last updated and approved by the Horizon Power Board in December 2011.
In Verve Energy, policy guidelines in relation to cash and cash equivalent holdings are provided in its Treasury Policy, which include the following requirements:
· The Board delegates the responsibility for day-to-day management of treasury matters to the Treasury Management Committee.
· One of the objectives of the Treasury Policy is to ensure adequate funding is available at all times to meet the commitments of Verve Energy as they arise. This objective is to be achieved via active cash management on a daily basis. A minimum balance of cash and cash equivalents to be held is set in the Treasury Procedural Manual.
· Debt will be retired on maturity in preference to carrying cash and cash equivalents unless otherwise approved by the Treasury Management Committee, in which case such investments will be of a short-term nature (no more than 6 months) and align with the forecast retirement profile of debt. The Treasury Policy has set out the forms of investments acceptable to Verve Energy.
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(b) Horizon: $89,527,627.90
(c) Synergy: $187,355,000.00
(d) Verve Energy: $35,365,116 with $35,004,000 in deposits and the remaining in operating accounts
(2) No
(a) Synergy's Board has instructed the organisation to abide by internal treasury policy and investment guidelines, which limit cash investments to a term of no longer than 12 months.
Western Power's Board reviews and approves the "Management of Treasury Risks Policy" and the "Treasury Management Framework" on an annual basis.
The Horizon Power Board has approved a ceiling on counterparty exposure to $200 million. That is, cash and cash equivalent cannot exceed this value. This parameter forms part of Horizon Power's "Financial Risk Management Framework" which was last updated and approved by the Horizon Power Board in December 2011.
In Verve Energy, policy guidelines in relation to cash and cash equivalent holdings are provided in its Treasury Policy, which include the following requirements:
· The Board delegates the responsibility for day-to-day management of treasury matters to the Treasury Management Committee.
· One of the objectives of the Treasury Policy is to ensure adequate funding is available at all times to meet the commitments of Verve Energy as they arise. This objective is to be achieved via active cash management on a daily basis. A minimum balance of cash and cash equivalents to be held is set in the Treasury Procedural Manual.
· Debt will be retired on maturity in preference to carrying cash and cash equivalents unless otherwise approved by the Treasury Management Committee, in which case such investments will be of a short-term nature (no more than 6 months) and align with the forecast retirement profile of debt. The Treasury Policy has set out the forms of investments acceptable to Verve Energy.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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