Page 88 - Safaricom Foundation Annual Report 2020-2021

(f) Cash and cash equivalents
Cash and and and cash cash equivalents
include cash cash in in in in hand deposits held at call with with banks and and and other short term highly liquid investments with with original maturities of three months or less (g) Comparatives
Where necessary comparatives have been adjusted to to conform to to changes in in presentation in in the current year (h) Payables
Payable relates to to outstanding cheques to to various project beneficiaries that had not cleared in in in the the the bank by the the the end of the the the reporting period and and provisions for accrued expenses 3 Financial risk management objectives and policies
The The Foundation’s Foundation’s activities expose it it it it to a a a a a a a a a a variety of financial risks: market risk risk risk risk risk credit risk risk risk risk risk and liquidity risk risk risk risk risk The The Foundation’s Foundation’s overall risk risk risk risk risk management programme focuses on on on on the operational operational risks and seeks to minimise potential adverse effects on on on on its operational operational performance The Foundation does not hedge any risks Financial risk management management is is carried out by by the the Foundation’s management management under policies
approved by by the the Board of Trustees Market risk (i) Foreign exchange risk The Foundation receives all its its donations donations in in in in Kenya Kenya Shillings mainly from Safaricom PLC and makes most of its its donations donations in in in in Kenya Kenya Shillings The Foundation is is therefore not exposed to foreign exchange risk (ii) Price risk The Foundation does not hold any financial instruments subject to price risk (iii) Interest rate risk The The Foundation does not have any interest-bearing financial liability The The current bank account call deposits and treasury-bills however earn interest As at 31 March 2021 an increase/decrease of 10 basis points would have resulted in in in in in a a a a a a a a a a a decrease/increase in surplus before tax of Shs Shs 91 751 (2020: Shs Shs 420 776) Credit risk Credit Credit risk risk risk arises from cash at at bank bank and short-term deposits with banks as as as well as as as other receivables Credit Credit risk risk risk is is is is is the the risk risk risk that a a a a a a a a a a a a counter party will default on on on on on its contractual obligations resulting in in fin financial loss to the the Foundation Foundation Credit risk is is managed by the the Foundation’s Senior Manager - Finance The Foundation does not have any significant concentrations of credit risk The Senior Manager - Finance monitors the the bank balances and and donations receivable on on on on on on a a a a a a a a a a a a a a monthly basis and and gives the the Foundation’s Board of Trustees an an an an an update on on on on the the status in in fin in fin the the monthly board meeting For banks and financial financial institutions only reputable well-established financial financial institutions are accepted While cash cash and and cash cash equivalents
government securities and and deposits with financial institutions are also subject to impairment requirements of IFRS 9 the identified impairment loss was immaterial The amount that best represents the Foundation’s maximum exposure to credit risk at at at 31 March is is made up as follows:
85 Safaricom Foundation Annual Report