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Australian Financial Security Authority Annual Report 2019-20

2. Income and Expenses Administered on Behalf of Government

This section analyses the activities that the Australian Financial Security Authority does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

2.1. Administered - Expenses

Note 2.1A: Impairment Loss on Financial Instruments
	2020 $'000	2019 $'000
Impairment allowance	14,969	125
Bad debts	141	332
Total impairment loss on financial instruments	15,110	457

Note 2.1B: Payments Made Through Special Accounts
	2020 $'000	2019 $'000
Official Trustee management fees	284	284
Program payments	60,977	47,445
Payments to Official Trustee	202	13
Transcription services	754	611
Restitution payments	3,691	3,079
Legal Aid commission payments	125	593
Total other expenses	66,033	52,025

Accounting Policy Impairment A provision for impairment of PPOs is recognised when there are no assets identified as available for realisation an application to the PPO debt. This accounting treatment in no way impacts the legal liability of the defendant to pay the PPO debt, nor the ability of the Official Trustee to receive instructions at a subsequent time to realise property for application to the PPO debt. Payments made through Special Accounts Section 297 of the Proceeds of Crime Act 2002 specifies permitted payments from the Confiscated Assets Account maintained by AFSA. Program payments are made pursuant to written Ministerial orders and are used for crime prevention or law enforcement initiatives, or for measures related to diversion from illegal drug use including treatment. Restitution payments are payments the Commonwealth is directed to make by an order pursuant to section 297(fa) of the Proceeds of Crime Act 2002.

2.2. Administered - Income

Revenue

Note 2.2A: Charges
	2020 $'000	2019 $'000
Taxation Revenue
Realisations charge	38,621	37,217
Interest charge	190	538
Total charges	38,811	37,755

Accounting Policy Charges revenue relates to levies on asset realisations and interest paid by the Official Trustee and Registered Practitioners. Registered Practitioners were required to lodge Annual Administration Returns by 4 August 2020 for the 2019–20 financial year. AFSA recognises charges revenue based on amounts paid by the Official Trustee and Annual Administration Return lodgements.

Note 2.2B: Fees and Fines
	2020 $'000	2019 $'000
Non-Taxation Revenue
Pecuniary Penalty Orders	198	535
Forfeiture Orders	37,695	63,782
Official Trustee fees	11,776	11,647
NPII search fees	5,578	5,803
Bankruptcy notice fees	2,201	3,275
Debt agreement proposal fees	1,830	2,649
Other	1,839	2,119
Total fees and fines	61,117	89,810

Accounting Policy Administered Revenue All administered revenues are revenues that relate to ordinary activities performed by AFSA on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed. Fees and Fines Fees for activities performed by AFSA under the Bankruptcy Act 1966 and Proceeds of Crime legislation are outlined in the Cost Recovery Impact Statements referred to in note 5.3. PO’s and Forfeiture Orders are statutory revenues recorded and collected by AFSA on behalf of the Commonwealth.

Note 2.2C: Interest
	2020 $'000	2019 $'000
Interest on Common Investment Fund Equalisation Account	181	285
Total interest	181	285

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