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Financial Position

Financial Position

This section analyses the AMFRTF assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

2.1: Financial Assets

2019

2018

$

$

2.1A: Cash and Cash Equivalents

Cash at bank and on hand

99,902

189,534

Cash management call account

281,977

129,013

Term deposits

1,909,427

1,867,436

Total cash and cash equivalents

2,291,306

2,185,983

Accounting Policy

Cash is recognised at its nominal amount. Cash and cash equivalents includes:
a) cash on hand;
b) demand deposits in bank accounts with an original maturity of 9 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

2.1B: Trade and Other Receivables

Loans outstanding

3,579,377

3,520,578

Accrued interest

27,726

23,921

Total trade and other receivables (gross)

3,607,103

3,544,499

Less: Impairment allowance

(74,643)

(80,239)

Total trade and other receivables (net)

3,532,460

3,464,260

Loans for Army members were made under contract for a period up to two years. No security is required. Interest of 2% is charged as a management fee on general loans.

Accounting Policy

Loans and Receivables
Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest are measured at amortised cost using the effective interest method adjusted for any loss allowance.

Reconciliation of the Impairment Allowance

Movements in relation to 2019

Loans

Total

$

$

As at 1 July 2018

(80,239)

(80,239)

Bad debts written off

16,280

16,280

Amounts recovered and reversed

20,850

20,850

Increase recognised in net surplus

(31,534)

(31,534)

Total as at 30 June 2019

(74,643)

(74,643)

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Movements in relation to 2018

Loans

Total

$

$

As at 1 July 2017

(97,639)

(97,639)

Bad debts written off

24,372

24,372

Amounts recovered and reversed

37,575

37,575

Increase recognised in net surplus

(44,547)

(44,547)

Total as at 30 June 2018

(80,239)

(80,239)

Accounting Policy
Financial assets are assessed for impairment at the end of each reporting period using an expected credit loss model.

2.2: Non-Financial Assets

2019

2018

$

$

Intangibles

Web site at cost

67,000

67,000

Accumulated amortisation

(67,000)

(67,000)

Total intangibles

-

-

Accounting Policy

The AMFRTF's intangibles comprise an externally developed website. The asset is carried at cost less accumulated amortisation. Software is amortised on a straight-line basis over its anticipated useful life.

2.2A: Prepayments

Prepayments

332

885

Total prepayments

332

885

No indicators of impairment were found for other non-financial assets.

2.3: Payables

2019

2018

$

$

2.3A: Suppliers

Trade creditors and accruals

20,240

13,000

Total Suppliers

20,240

13,000

Accounting Policy

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Visit

https://www.transparency.gov.au/annual-reports/australian-military-forces-relief-trust-fund/reporting-year/2018-2019-18