Page 25 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 3. Financial Risk Management (Continued) (b) Liquidity risk (continued) Liquidity risk is the risk that the University may be unable to meet its payment obligations associated with its financial liabilities when they fall due. Prudent liquidity risk management implies maintaining sufficient cash and other liquid assets and maintaining the availability of funding through an adequate amount of committed credit facilities. Liquidity risk management process The University’s liquidity management process, as carried out within the University and monitored by the Finance Committee through the Finance and Business Services Division includes: (i) Monitoring future cash flows and liquidity on an ongoing basis. This incorporates an assessment of expected cash flows and the availability of collateral which could be used to secure funding if required; (ii) Maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against any unforeseen interruption to cash flow; and (iii) Optimising cash returns on investments. Financial liabilities cash flows The tables below summarise the maturity profile of the University’s financial liabilities at 31 March based on contractual undiscounted payments. Within 1 Month 2 to 3 Months Total $’000 $’000 $’000 As at 31 March 2020: Accounts payable - 1,171,295 1,171,295 Designated receipts - 120,305 120,305 Leases 838 109,304 110,142 Bank overdraft 59,707 - 59,707 Total financial liabilities (contractual maturity dates) 60,545 1,400,904 1,461,449 As at 31 March 2019: Accounts payable - 816,746 816,746 Designated receipts - 7,000 7,000 Bank overdraft 11,516 - 11,516 Total financial liabilities (contractual maturity dates) 11,516 823,746 835,262 University of Technology, Jamaica 141
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