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Introductory statement

We, the Board of Trustees of the Australian Military Forces Relief Trust Fund (AMFRTF), as the accountable authority of the Fund present the AMFRTF 2019-20 Annual Performance Statement as required under section 39 (1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

In our opinion, this Annual Performance Statement is based on properly maintained records, accurately reflects the performance of the AMFRTF and complies with the requirement under section 39(2) of the PGPA Act.

Purpose

The purpose of the AMFRTF is to provide benefits through loans and grants that contribute to the welfare of members of the Australian Army, in particular members who have served in the Australian Army and for the dependants of these members. This accords with the objectives as defined in the Services Trust Funds Act 1947.

The AMFRTF has set goals to continually achieve this purpose. These goals cover the current and subsequent years of the AMFRTF Corporate Plan 2019-20.

Results

Performance criterion

Provide financial assistance to members of the Army through the provision of low cost and affordable loans.

Criterion source

AMFRTF Corporate Plan 2019-20 Activity 1

Results

  1. Funds disbursed within the guidance annual budget $4.420m.
  2. Number and types of loans are in scope. The following table shows the analysis of loan funded for the year ended 30 June 2020:

Loan Type

Numbers of loans

Amounts $

Debt consolidation

Dental

Education

Funeral expenses

Furniture / household needs

Housing purchase / repair / moving

Legal

Medical

Other – multi types

Travel

Vehicle repair / purchase

Wedding / engagement

149

8

24

9

115

71

36

39

81

27

179

30

704,900

38,400

112,500

43,000

541,500

345,700

169,900

179,500

352,400

119,000

852,400

141,300

Total

768

3,600,500

3.. The target of greater than 75% of loans issued to junior ranks (Sergeant and below) was met. The following table shows the analysis of loan funds for the year ended 30 June 2020:

Ranks

Loans %

Amounts $

Private

42.5

1,577,800

Lance Corporal

9

311,700

Corporal

22

788,700

Sergeant

9

336,200

Warrant Officer

7

239,600

Lieutenant

3

103,500

Captain

4

123,000

Major

3

102,000

Lieutenant Colonel

0.5

18,000

Total

100

3,600,500

Performance criterion

Provide financial assistance to former members or dependants in financial and necessitous circumstances through hardship grants.

Criterion source

Corporate Plan 2019-20 Activity 2

Results

A total of $2,885 was funded under hardship grants in this reporting period. These grants were within the approach to the strategic direction of the Board. Two hardship grants were provided to an Army member’s funeral cost and a grant paid to cover expenses for a member’s family.

Performance criterion

Use sound financial management and investment practices in accordance with PGPA Act and Services Trust Funds Act 1947 and other relevant standards, rules and legislation.

Criterion source

Corporate Plan 2019-20 Activity 3

Results

  1. The Statement of Comprehensive Income demonstrates the AMFRTF continues to be self-sustaining with a profit of $270,900 for the reporting period.
  2. There are no non-compliant findings on governance and legislative requirements for the reporting period.
  3. Interest income on investment of $35,365 has been reported for this period. The AMFRTF strategy of holding four term deposits with a minimum $1.5m capital is to earn interest as a means to cover costs and ensure self-sustainment. It stands at $1,763,911 and earns interest between 1.1% -1.6% p.a.
  4. Trustees approved $13,130 of bad and doubtful debts to be written off. This was within the acceptable less than 1% range of the total debtor control.

Visit

https://www.transparency.gov.au/annual-reports/australian-military-forces-relief-trust-fund/reporting-year/2019-20-11