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Assets and Liabilities Administered on Behalf of the Government

4. Assets and Liabilities Administered on Behalf of the Government

This section analyses assets used to conduct operations and the operating liabilities incurred as a result the NCA 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.

Notes to and forming part of the Financial Statements

4.1 Administered - Financial Assets

2019

2018

$'000

$'000

4.1A: Cash and Cash Equivalents

Cash on hand or on deposit

413

107

Total cash and cash equivalents

413

107

4.1B: Trade and Other Receivables

Goods and services receivables

901

903

Fees

539

547

Fines

806

562

GST receivables

56

11

Total trade and other receivables (gross)

2,302

2,023

Less impairment allowance

( 91)

(61)

Total trade and other receivables (net)

2,211

1,962

Credit terms for goods and services were within 30 days (2018: 30 days).

Accounting Policy

Financial assets

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, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective method adjusted for any loss allowance.

Pay Parking Impairment Allowance

Pay parking revenue includes ticketing fees and parking infringements. Infringements become a debt upon issuing the Parking Infringement Notice (PIN) and are accounted for as an administered receivable. The risk of non-payment of infringement debt is provided by way of an impairment allowance accounted for under AASB 9 Financial Instruments.

AASB 9 requires that an entity is to classify financial assets at amortised cost, fair value through other comprehensive income or fair value through profit and loss on the basis of both: the entity's business model for managing financial assets and the contractual cash flow characteristics of the financial asset. An allowance for impairment was set up to reflect the pay parking infringement receivables to the amount expected to be collected. The NCA has developed a methodology that considers the amount of debt owing within a number of categories and applies a weighted probability of collection for each category.