A funding arrangement alongside a year-end balance
SA Water's financial statements report cash and cash equivalents of AUD 4,350 thousand at June 30, 2025. They separately describe a short-term borrowing facility of AUD 150 million with the South Australian Government Financing Authority, bearing interest at SAFA's daily cash rate. The two figures answer different questions: what was held on the reporting date, and what financing arrangement existed to support short-term funding.
Timing determines the practical question
Capital expenditure and operating payments fall on particular dates. Regulated revenue recovery follows its own arrangements. A facility can support the management of those timing differences, but its stated size is not evidence that the full amount was drawn or remained in a bank account. Adding it to cash would obscure the distinction between funding access and resources already held.
A rate reference is a defined exposure
The daily cash-rate term gives the short-term facility a specific pricing reference. It does not disclose the interest terms of the entire long-term borrowing portfolio. For a capital counterparty, the useful discussion concerns the relationship between payment schedules, financing access and the cost of the relevant borrowing arrangement, rather than an aggregate interest forecast derived from one facility.
Expert Follow-Up Questions
Does the cash balance establish payment capacity throughout the year?
No. It records the position at a reporting date. The published June 2024 comparative was AUD 3,543 thousand, but two year-end balances cannot identify the lowest daily balance or demonstrate coverage of every payment date.
What would sharpen a funding discussion?
A current schedule of committed payments and the applicable financing terms would connect the disclosed arrangements with specific obligations. The report does not construct a maturity ladder or cash-coverage stress test from the aggregate balances.