Financial Performance
Financial Performance | This section analyses the financial performance of AMFRTF for the year ended 2021 | |||
1.1: Expenses | ||||
2021 | 2020 | |||
$ | $ | |||
1.1A: Employee benefits | ||||
Wages and salaries received free of charge | 164,374 | 165,147 | ||
Total employee benefits | 164,374 | 165,147 | ||
Accounting policy | ||||
AMFRTF receives resources free of charge in the form of staffing support from the Department of Defence. The associated revenue for resources received free of charge is recorded at note 1.2C. | ||||
1.1B: Suppliers | ||||
Goods and services supplied or rendered | ||||
General expenses | 298 | 1,028 | ||
Contract labour | 42,860 | - | ||
Consultants expenses - website | 2,063 | 2,475 | ||
Audit fees | 20,680 | 20,240 | ||
Insurance expense | 2,973 | 2,656 | ||
Printing | 787 | 733 | ||
Computer expenses | - | 10,288 | ||
Bank charges | 25 | 987 | ||
Total suppliers | 69,686 | 38,407 | ||
1.1C: Grants | ||||
Hardship grants | 13,222 | 2,885 | ||
Total grants | 13,222 | 2,885 | ||
Accounting policy | ||||
Competitive Neutrality | ||||
The AMFRTF was established to provide benefits to eligible persons and does not carry out Government business activities on a commercial basis nor operate in a competitive, or potentially competitive, environment. Therefore it is not required to make Australian Income Tax Equivalent payments to the Government. | ||||
Bad and Doubtful Debts | ||||
Bad debts are provided for or written off during the period in which they are identified according to the impairment requirements of AASB 9 Financial Instruments. | ||||
1.1D: Losses from Loan Re-measurement | ||||
Losses from initial recognition of loans at fair value | 217,065 | 336,060 | ||
Total losses from loan re-measurement | 217,065 | 336,060 | ||
Accounting policy | ||||
Loans issued by the AMFRTF are classified as financial assets and initially measured at their fair value. The difference between the notional value of a loan and its fair value on the date of issue is recognised as a loss in the Income Statement. Subsequently, loans are carried at amortised cost. Refer also to note 2.1B. | ||||
1.2: Own-source Income | ||||
2021 | 2020 | |||
$ | $ | |||
1.2A: Loans Revenue | ||||
Members fund maintenance contribution | 94,483 | 126,195 | ||
Total loans revenue | 94,483 | 126,195 | ||
Accounting Policy | ||||
AMFRTF charges a maintance contribution fee to loan recipients to cover administrative expenses and to support growth in the AMFRTF. These contribution fees are recognised as income in the year the loan is made and form part of the outstanding loan balance. Loan interest is then recognised based on the fair value of the loan (adjusted for the maintenance contribution) using the effective interest rate method. | ||||
1.2B: Interest | ||||
Investments | 22,686 | 35,365 | ||
Loan interest | 252,647 | 447,502 | ||
Bank accounts | 3,666 | 3,789 | ||
Total interest | 278,999 | 486,656 | ||
Accounting Policy | ||||
Interest revenue is recognised using the effective interest method. | ||||
1.2C: Resources Received Free of Charge | ||||
Salaries | 164,374 | 165,147 | ||
Total resources received free of charge | 164,374 | 165,147 | ||
Accounting Policy | ||||
Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature. Refer also to note 3.1. | ||||
1.2D: Other Income | ||||
Donations | 79,156 | 24,401 | ||
Military Army Shop contributions | 21,192 | - | ||
Miscellaneous | - | 200 | ||
Total other income | 100,348 | 24,601 | ||
Accounting Policy | ||||
Other income is recognised when AMFRTF gains control of the amount, this is usually when the cash is received in the case of donations and contributions. | ||||
1.2E: Reversal of write-downs and impairment | ||||
Reversal of impairment losses | 4,836 | 10,800 | ||
Total reversals of previous asset write-downs and impairments | 4,836 | 10,800 | ||
Visit
https://www.transparency.gov.au/annual-reports/australian-military-forces-relief-trust-fund/reporting-year/2020-21-14