Page 155 - DUT Annual Report 2020

DURBAN UNIVERSITY OF TECHNOLOGY
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
22. RISK MANAGEMENT (continued)
22.2 Credit risk (continued)
Receivables
Counterparties without external credit rating: Group 1 - Student fees
Total receivables
Group 1 - existing student accounts with some defaults in the past.
Credit risk
Cash at bank and short-term deposits
All cash and short-term deposits are held with major banks in South Africa.
22.3 Liquidity risk
2020 2019 R’000 R’000
DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
582 922
582 922
3 585 288
345 409
345 409
2 987 612
Liquidity is the risk that the University will encounter difficulty in meeting obligations associated with financial liabilities.
The University’s operations are mainly cash driven.
The timing and nature of the University’s cash inflows and outflows are such that liquidity problems are unlikely to arise. Furthermore, the University has access to funds through either its holding of short-term bank deposits or the un-endowed investments portfolio in the event that any unforeseen events occur. The cash flow position is monitored by management on a monthly basis.
The University has minimised its liquidity risk by ensuring that it has adequate banking facilities and reserve borrowing capacity.
Banking facilities:
The University has the following facilities with its bankers:
   
Credit card facility of R1.6 million. Diners card facility of R0.2 million. Fleet facility of R0.6 million.
Guarantee by the bank of R1.7 million.
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