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Services Trust Funds—Report for 2020-21


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AUSTRALIA

Services Trust Funds Act 1947

Royal Australian Navy Relief Trust Fund

Annual Report by the Trustees for the period 1 July 2020 to 30 June 2021

The Hon Andrew Gee, MP Minister for Veterans' Affairs and Defence Personnel Parliament House Canberra ACT 2600

Dear Minister

The Trustees of the Royal Australian Navy Relief Tmst Fund present the Annual Report 2020-21 for the year ended 30 June 2021. The report is to meet the requirements of section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and as such includes both annual performance statements and annual financial statements.

Yours sincerely

SL Glassock, CSC Commodore, RAN Chair of Trustees Royal Australian Navy Relief Trust Fund

30 July 2021

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TABLE OF CONTENTS

INTRODUCTION ................................................................................................................................ 4

ENABLING LEGISLATION AND PURPOSE ................................................................................ 4

ORGANISATIONAL STRUCTURE ................................................................................................. 4

RESPONSIBLE MINISTER .......................................................................................................................................................... 4

MINISTERIAL DIRECTIONS AND GOVERNMENT POLICY ORDERS ....................................................................................................... 4

SIGNIFICANT NON-COMPLIANCE ISSUES WITH FINANCE LAW .......................................................................................................... 5

THE ACCOUNTABLE AUTHORITY ............................................................................................................................................... 5

PERFORMANCE ................................................................................................................................ 7

OVERVIEW OF THE FUNDS OPERATIONS .................................................................................................................................... 7

OVERALL FINANCIAL POSITION ................................................................................................................................................. 7

SUMMARY OF BENEFITS PROVIDED ........................................................................................................................................... 8

ANNUAL PERFORMANCE STATEMENT ........................................................................................................................................ 9

SIGNIFICANT ACTIVITIES AND CHANGES AFFECTING THE FUND DURING THE PERIOD ........................................................................... 9

OUTLOOK FOR FUTURE ........................................................................................................................................................... 9

OTHER MATTERS ........................................................................................................................... 10

MAIN CORPORATE GOVERNANCE PRACTICES ........................................................................................................................... 10

AUDIT COMMITTEE .............................................................................................................................................................. 11

RELATED ENTITY TRANSACTIONS ............................................................................................................................................ 13

JUDICIAL DECISIONS AND REVIEWS BY OUTSIDE BODIES ............................................................................................................. 13

INDEMNITIES AND INSURANCE PREMIUMS ............................................................................................................................... 13

ENVIRONMENTAL PERFORMANCE ........................................................................................................................................... 13

WORK HEALTH AND SAFETY .................................................................................................................................................. 13

ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND ............................................................. 17

APPENDIX B - ANNUAL PERFORMANCE STATEMENT OF THE ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND ............................................................................. 34

APPENDIX C - LIST OF REQUIREMENTS ................................................................................ 37

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ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

ANNUAL REPORT FOR PERIOD 1 JULY 2020—30 JUNE 2021

INTRODUCTION

The Trustees, as the Accountable Authority, of the Royal Australian Navy Relief Trust Fund (the Fund) are responsible for the preparation, and providing a copy to the responsible Minister, of this Annual Report on the operations of the Fund for the period 1 July 2020 - 30 June 2021 (the period) under section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The Trustees of the Fund present the Annual Report for the period.

ENABLING LEGISLATION AND PURPOSE

The Fund was established by the Services Trust Funds Act 1947 (STF Act). The STF Act provides that the Trustees shall apply the Fund to providing benefits for members of the Australian Defence Force (ADF) who have served in, or in association with, the Royal Australian Navy (RAN) and to the dependants of such members.

As part of enabling legislation for the Fund to provide a broader range of benefits, in 2013 the Trustees established the ‘Keeping Watch’ program within the Fund to provide for the comfort or welfare of a person who is currently appointed or enlisted as a Permanent or Reserve member of the RAN. The Fund has received Deductible Gift Recipient status for the ‘Keeping Watch’ program.

The Trustees administer the Fund to assist current and former members of the Australian Defence Force (ADF) who have served in, or in association with, the RAN and to the dependants of such members (eligible persons). The Fund seeks to use available assets to deliver significant value to eligible persons in a timely, relevant, and meaningful manner.

ORGANISATIONAL STRUCTURE

Responsible Minister

The Fund operates within the Defence Portfolio and is responsible to the Minister for Veterans’ Affairs and Defence Personnel (the Minister).

The Minister may, by instrument in writing published in the Gazette, authorise the Trustees to administer other property. The responsible Minister did not authorise the Trustees to administer other property during the period.

Ministerial directions and government policy orders

There were no Ministerial Directions made, or Government Policy Orders issued, to the Fund during the period.

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Significant non-compliance issues with finance law

Section 17BE(h) of the PGPA Rules require that Commonwealth entities’ annual reports must include a statement of any significant non-compliance issues that relate to the finance law that were reported to the responsible Minister under paragraph 19(1)(e) of the PGPA Act during the reporting period. During the reporting period, there was one related entity transaction disclosed in Note 3.2 that was provided in contravention of the STF Act.

The Accountable Authority

The Trustees of the Fund are the Accountable Authority and are appointed by the Minister.

The Trustees are not employees of the Fund and the Fund does not provide the Trustees with any form of remuneration for their service to the Fund. All Trustees are involved in the management and administration of the Fund and are therefore considered executive members of the Accountable Authority.

During 2020-21 financial year the Board met four times and these meetings were held in Canberra.

A summary of attendance for the Trustees of the Fund is listed in the following table:

Name Position Held Total number of

meetings held Number of meetings attended

CDRE S. Glassock Chair of Trustees 4 4

CMDR C. Ween Deputy Chair 4 3

CMDR S. Harris Trustee 4 4

CAPT K. Ryan* Trustee 4 1

LEUT L. Houlahan Trustee 4 4

CMDR M. Lee Trustee 4 3

CPO A. Kerr Trustee 4 4

* Attended all meetings during the period following appointment, one of one meeting

Trustees at end of period

As at 30 June 2021 the Trustees of the Fund, their qualifications and experience, and meeting attendance are as follows:

Chair: Commodore Shane Glassock, CSC, RAN - Appointed 08 April 2019

Experience / Qualifications: Master of Science and Master of Maritime Studies and 32 years’ experience as a member of the RAN

Deputy Chair/Trustee: Commander Christina Ween, RAN - Appointed 01 March 2018 Additional Responsibilities: Deputy Chair from 28 June 2019 ongoing Experience / Qualifications: Master of Military and Defence Studies, Bachelor of Science (Honours), Chartered member of the Chartered Institute of Logistics

and Transport, Member of the Australian Institute of Company Directors, 28 years’ experience as a member of the RAN

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Trustee: Commander Susan Harris, CSM, RAN - Appointed 29 February

2016

Additional Responsibilities: Secretary from 28 June 2019 ongoing Experience / Qualifications: Masters of Business (Human Resources), Masters of Management Studies (Governance), Graduate of the Australian Institute of Company Directors, Certified Practitioner Australian HR Institute,

Bachelor of Arts, 27 years’ experience as a member of the RAN

Trustee: Captain Katrina Ryan, RAN - Appointed 24 April 2021

Experience / Qualifications: Master of Science in Management (Manpower Systems Analysis), Master of Business Administration, Bachelor of Science (Hons), and 31 years’ experience as a member of the RAN

Trustee: Lieutenant Loretta Houlahan, RAN - Appointed 03 September 2019 Additional Responsibilities: Risk, Compliance and Governance from 28 June 2019 ongoing Experience / Qualifications: Bachelor of Science (Honours), Master of Science, Master of Laws (Juris Doctor), Graduate of the Australian Institute of Company

Directors and admitted as a Lawyer in 2015. Experience in science and private legal practice and 5 years’ experience as a Legal Officer in the RAN

Trustee: Commander Mark Lee, RAN - Appointed 03 September 2019

Experience / Qualifications: Master of Business Administration (MBA), Master of Management (Operations and Logistics) Graduate Certificate of Professional Accounting, Chartered Member of the Logistics and Transport Institute of Australia, Certified Professional Logistician, Chartered Institute of Logistics and Transport, Graduate of the Australian Institute of Company Directors, Certified Risk Management Assurance, Institute of Internal Auditors, Justice of Peace (NSW), 26 years’ experience as a member of the RAN

Trustee: Chief Petty Officer Andrea Kerr, CSM, RAN - Appointed 03

September 2019

Experience / Qualifications: Master of Human Resource Management (Organisational Change Management specialisation), Graduate Certificate Business (Public Sector Management), 25 years’ experience as a member of the RAN

Previous Trustees during the period

During the period, one Trustee resigned. Reasons included additional responsibilities with increased workload due to operational service requirements. The details of the Trustee, their qualifications and experience, and meeting attendance are as follows:

Trustee: Commander Adrian Kemp, RAN

Additional Responsibilities: Communications from 28 June 2019 ongoing Experience / Qualifications: Master of Military and Defence Studies, Bachelor of Arts in history, 19 years as a media practitioner and 21 years’ experience as a member of the RAN

Meeting Attendance: Resigned on 24 April 2021 - attended two of the three meetings prior to resignation

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Administrative support, structure and locations

The Fund’s Principal Office is located in Canberra in the Australian Capital Territory. The Principal Office is staffed with two full-time personnel (one Australian Public Servant (APS) and one RAN permanent member). A member of the RAN in each Ship and Establishment wherever located is appointed as a representative of the Fund. The Fund’s representative at the Ship and Establishment, having received the application, forwards it the Principal Office for processing and decision by the Trustees or their delegated representative at the Principal Office.

The average staffing levels for the Fund during the period are shown in the table below:

Location State Male Female Total

Employment Status Ongoing Ongoing

30 June 2021 ACT 1 1 2

30 June 2020 ACT 1 1 2

PERFORMANCE

Overview of the Funds Operations

The Trustees utilise the Fund’s general-purpose assets, provide benefits for eligible persons through the provision of general purpose interest-free loans of up to $7,000, special interest-free loans of up to $5,000, Christmas loans of up to $1,500 and, in some situations, cash grants for members experiencing unexpected financial hardships or bereavement. A principles-based system is applied in deciding if a member is permitted to borrow money from the Fund for general purpose loans and special loans. The Fund is economically viable for loans and grants; however, the Fund relies on periodic contributions from the RAN Central Canteens Fund (RANCCF) to continue to maintain the level of grants and interest-free loans.

In addition, the Trustees utilise the assets donated to the Keeping Watch program to provide grants for the comfort or welfare of a person who is in financial need and currently appointed or enlisted as a Permanent or Reserve member of the RAN. The Trustees continue to work to ensure the long-term viability of the Keeping Watch program by seeking to grow the asset base, while ensuring the assets are appropriately used.

Overall Financial Position

The Fund’s Audited Financial Statements, including the independent Audit Report, are at Appendix A.

A comparison of the assets and liabilities for the Fund for the years ended 30 June 2021 and 30 June 2020 is as follows:

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The Fund’s Assets At 30 June 2021

$

At 30 June 2020 $

Invested and Working Capital 2,516,827 2,112,733

Loans and Other Receivables Intangibles

3,419,622 20,724

3,606,351 28,427

Total Assets 5,957,173 5,747,511

Supplier Payables 13,183 23,413

Total Liabilities 13,183 23,413

Net Assets 5,943,990 5,724,098

Summary of Benefits Provided

The following benefits were provided by the Fund during the period:

Loans

During the period, 1,772 loans were made compared to 2,051 in the previous period (1 July 2019 - 30 June 2020) and, as a result, the total amount of the loans decreased from $9.1m in the previous period to $7.6m.

The breakdown of loans made in the year ended 30 June 2021 and 30 June 2020 is as follows:

Nature Loans Made Percentage of Cases

Year ended

30 June 21 Year ended 30 June 20 Year ended

30 June 21 Year ended 30 June 20

General Purpose Loans 1,282 1,612 72.35 78.60

Trainee Loans 9 9 0.51 0.43

Special Loans 13 17 0.73 0.83

Christmas Loans 468 413 26.41 20.14

TOTALS 1,772 2,051 100.00 100.00

Expenditure on loans in the years ended 30 June 2021 and 30 June 2020 was as follows:

Nature Year

Year ended 30 June 21

$

Year ended 30 June 20 $

General Purpose Loans 6,848,595 8,489,068

Other Loans 63,431 76,664

Christmas Loans 693,305 612,740

TOTALS 7,605,331 9,178,472

Grants

During the period 26 grants (17 from funds held in Keeping Watch and 9 from other funds held by the Fund) totalling $72,302 were made to assist serving members and their dependants. This included eight bereavement grants to assist with covering short-term expenses ahead of Defence entitlements being accessed. A donation was also made to the Jalasenastri (Navy Officer Wives Association) of 2nd Fleet Command (Pangkoarmada II) on behalf of the sailors and officers of the Royal Australian Navy in support of the families KRI Nanggala-402 lost at sea.

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Implication of COVID-19

There were no major disruptions to the operation of the Principal Office due to the COVID-19 pandemic. Continuity planning, including working from home arrangements for Trustees and staff were maintained through access to Defence remote access technology.

As a result of COVID-19 the number of loans provided during the period decreased by 13.60% as compared to previous year resulting in decreased total value of loans (total value of loans decreased by 17.14%).

As an additional measure, the Fund introduced a mid-year reduced admin fee interest free loan based on the standard Christmas loan product. The intent being to assist those seeking a short holiday or dealing with unexpected costs. A total of 170 loans were provided to a value of $251,515.00.

The ability to vary or suspend repayment of a loan for a specified period where instances of financial hardship had occurred due to unforeseen and/or compelling reasons, was agreed in principal by the trustees, however was not required during the period. The trustees remain ready to assess each request individually.

The RAN Central Canteens Board continued to provide strong support for the Fund through regular grants, made possible through canteen sales.

Annual Performance Statement

In the 2020/21 Corporate Plan for the Royal Australian Navy Relief Trust Fund, the Trustees reaffirmed that the intended result of the Fund was to provide benefits to eligible persons in a timely, relevant, and meaningful manner.

Feedback from recipients of benefits, Commanding Officers, Personnel Officers and others who are involved in managing and/or administering recipients of Fund benefits indicates that the Fund is providing meaningful and relevant benefits to eligible personnel in a timely manner.

Furthermore, feedback indicates that the Fund should continue to raise awareness about its products and services through communications spanning a variety of formats. The Full Annual Performance Statement is at Appendix B.

Significant Activities and Changes Affecting the Fund during the period

There have been no significant activities or changes that have occurred during the reporting period that have affected or may affect the Fund and its operations.

Outlook for Future

The key objective for the Fund is to manage its financial operations in a manner that will provide a moderate cash growth in order to continue to provide relevant products to eligible personnel. The Trustees of the Fund review the products regularly to ensure that these meet the contemporary needs of RAN members. Achievement of this strategy will be met by, active management of the administrative fees, ongoing review of loan amounts and cash flow of the Fund to ensure sufficient cash reserves are available to service the demand for loan and grant products.

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OTHER MATTERS

Main Corporate Governance Practices

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) obliges all Commonwealth officials to apply sound governance practices and procedures in their day-to-day work.

Governance is the set of responsibilities and practices, policies and procedures exercised by the Trustees to provide strategic direction and ensure that objectives are achieved, risks are managed and resources are used responsibly and with accountability. The key governance documents include:

a. RANRTF Corporate Plan. The Corporate Plan sets out the Fund’s purpose, as required by the PGPA Act, and describes the activities to be undertaken and intended deliverables. The plan provides a four-year outlook, is updated annually and published in the public domain.

b. RANRTF Annual Report, including Annual Performance Statements. The Fund’s annual report is a principal formal accountability mechanism between the Fund and the Minister, and is a requirement of the PGPA Act. The annual report provides an important historical record of what the Fund did during the period.

c. Accountable Authority Instructions (AAIs). The AAIs enable the Trustees, as the accountable authority to meet their general duties by setting out appropriate controls and directions for officials, especially in relation to the proper use and management of the public resources for which they are responsible (section 15 of the PGPA Act), and maintaining an appropriate system of internal controls including measures for ensuring that officials comply with the finance law (section 16 of the PGPA Act).

d. Risk Management Plan (RMP). The Fund adopts Commonwealth and Defence best practice for risk management and fraud control to meet obligations to members, the RAN and the Australian Government. The RMP outlines the Trustees’ approach and oversight of risk management of the Fund in alignment with the RANRTF Corporate Plan and provides:

i. transparency of risk management within the Fund,

ii. a structure to draw out accountabilities and responsibilities of risk within the Fund, and

iii. a collective framework that articulates accountabilities and responsibilities for risk shared with other entities.

Day-to-Day Operations of the Fund

The Principal Office staff manage the day-to-day operations of the Fund. In the first instance, loan applications are checked by the Ship or Establishment representative and then forwarded to the Principal Office. The Principal Office staff then validate the application in accordance with the Business Rules, and return for correction if not in accordance with the requirements. Special Loans require additional supporting documentation and are processed by the Principal Office then referred to the Board of Trustees for consideration.

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On an as required basis, a sample audit is conducted to validate that the loans are being used for the intended purpose. Ad hoc audit activities are undertaken based on an assessment of the likelihood of misuse and the monitoring of loan applications by the Principal Office and the Trustees.

The Trustees and Principal Office staff conduct briefings to courses for Ship and Establishment representatives, Commanding Officers and Executive Officers to ensure that they are aware of their responsibilities in administering the activities of the Fund. In addition, the Trustees are available to answer queries and provide advice to Commanding Officers when dealing with unusual situations which may be assisted by the provision of a loan or grant.

Audit Committee

During the reporting period, the Audit Committee continued its audit function as required by the PGPA Act. Under the Audit Committee Charter, the RANRTF Audit Committee comprises no less than three (3) members and no more than five (5) independent members appointed by the Board and meets not less than quarterly per year. The Audit Committee’s main responsibilities include:

a. Providing confidence in the credibility and reliability of performance statements, financial statements, and other financial information released to other interested and relevant parties; and

b. Oversight of internal controls and risk assessment management to ensure the net assets of the Fund are protected, and the efficient and effective delivery of services to RAN personnel are maintained.

The primary role and functions of the audit committee are stated in the Charter. The audit charter was reviewed and updated in June 2021 and is available at the following link:

https://www.keepingwatch.org.au/images/pdf/RAN_Relief_Trust_Fund_Audit_Committee_Charter_ 2021.pdf

The current audit committee is comprised of five independent members listed below:

Chair of Audit Committee: Lieutenant Commander Peter Chapman, RAN, CSM - (Appointed 01 June 2021) Experience / Qualifications: Master of Science (Workforce Analytics), Master of Commerce (Strategic Management), Bachelor of Commerce (Accounting),

Certified Practitioner Australian Human Resource Institute, 16 years’ experience as a member of the RAN

Deputy Chair: Commander M Adams, RAN (Appointed 01 June 2021) Experience / Qualifications: Master of Defence and Strategic Studies (PSC-J), Graduate Certificate of Logistics, Bachelor of Business (Finance), 25 years’ experience as a member of the RAN

Member: Commander K Robson, RAN (Appointed 01 June 2021)

Experience / Qualifications: Master of Strategy and Management, Master of Defence Strategic Studies, Member of Australian Human Resources Institute, Diploma of Government (Financial Services), Diploma of Government (Management), CERT IV Business, 20 years’ experience as a member of RAN

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Member: Lieutenant I Green, RAN (Appointed 01 June 2021)

Experience / Qualifications: Master of Logistics Management, Bachelor of Arts (Hons), 10 years’ experience as a member of the RAN

Member: Mrs Sally Witt (Appointed 06 July 2020)

Experience / Qualifications: Graduate Certificate in Accounting, 20 years’ experience as a member of the Australian Public Service

A summary of attendance for the Audit Committee is listed in the following table:

Name Number of

meetings attended Total number of meetings Total annual

remuneration

Lieutenant Commander P Chapman, RAN, CSM 1 1 $0

Commander M Adams, RAN 1 1 $0

Commander K Robson, RAN 1 1 $0

Lieutenant I Green, RAN 0 1 $0

Mrs Sally Witt 4 4 $0

Previous audit committee members during the period

During the period, the following audit committee members resigned. The details of these audit committee members, their qualifications and experience, and meetings attended are as follows:

Chair of Audit Committee: Captain KJ Ryan, RAN - Appointed 02 March 2018; Resigned on 24 April 2021 Experience / Qualifications: Master of Science in Management (Manpower Systems Analysis), Master of Business Administration, Bachelor of Science (Hons), and

31 years’ experience as a member of the RAN

Member: Lieutenant Commander RA Higgins, RAN - Independent member - Appointed 23 March 2018; Resigned on 01 Jun 2021 Experience / Qualifications: Bachelors of Commerce in Finance and Professional Accounting, 14 years’ experience as a member of the RAN

Member/Trustee: Commander SL Harris, CSM, RAN - Appointed 30 August 2019; Resigned on 01 Jun 2021

Experience / Qualifications: Masters of Business (Human Resources), Masters of Management Studies (Governance), Graduate of the Australian Institute of Company Directors, Certified Practitioner Australian HR Institute, Bachelor of Arts, 27 years’ experience as a member of the RAN

A summary of attendance for the previous Audit Committee is listed in the following table:

Name Total number of

meetings

Number of meetings attended

Total annual remuneration

Captain K Ryan, RAN, 3 3 $0

Commander S Harris, RAN 3 3 $0

Lieutenant Commander R Higgins, RAN 3 2 $0

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Related Entity Transactions

In accordance with the STF Act, a person who is a Tmstee or a dependant of a Tmstee of any fund shall not receive benefits from the Fund. During the period there was one related entity transactions disclosed in Note 3.2 that was provided in contravention of the STF Act.

Judicial Decisions and Reviews by Outside Bodies

There were no judicial or administrative tribunal decisions made during the period that have had, or may have, a significant effect on the operation of the Fund.

There were no reports on the Fund during the period from the Auditor-General (other than a report under section 43 of the PGPA Act), a committee of the Parliament, the Commonwealth Ombudsman or the Office of the Australian Information Commissioner.

Indemnities and Insurance Premiums

The Fund holds insurance with the Australian Government's self-managed insurance fund, COMCOVER for risks including Directors' and Officers' Liability, Fraud and Fidelity, General Liability and Personal Accident. The Trustees are not aware of any incident occurring, of any claims

made, or any circumstances that are likely to give rise to a claim.

Environmental Performance

The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) requires agencies to refer any action likely to have a significant impact on the environment. The Fund did not refer any action for formal consideration under the EPBC Act.

Work Health and Safety

The Tmstees and all those who assist the Trustees are either members of the RAN or the APS, and undertake their duties as part of their service in the RAN or employment in the APS. The Fund utilises the Department of Defence work health and safety protocols, security, training, welfare, reporting and other systems to ensure the health and safety of the Tmstees and those who assist the Trustees. The Tmstees are not aware of any notifiable incidents that arose out of the operations of the Fund.

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Conclusion

The Trustees are responsible under the PGPA Act for the preparation and content of the report of operations in accordance with Public Governance Performance and Accountability (Financial Reporting) Rule 2015. This report of operations is made in accordance with a resolution of the Trustees and is signed for and on behalf of the Trustees.

;lassock, ^SC Commodore, RAN Chair of Tmstees Royal Australian Navy Relief Trust Fund

C Ween Commander, RAN Deputy Chair Royal Australian Navy Relief Trust Fund

30 July 2021 30 July 2021

GPO Box 707 CANBERRA ACT 2601 38 Sydney Avenue FORREST ACT 2603 Phone (02) 6203 7300

INDEPENDENT AUDITOR’S REPORT

To the Minister for Defence Personnel

Opinion

In my opinion, the financial statements of the Royal Australian Navy Relief Trust Fund (the Entity) for the year ended 30 June 2021:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

(b) present fairly the financial position of the Entity as at 30 June 2021 and its financial performance and cash flows for the year then ended.

The financial statements of the Entity, which I have audited, comprise the following as at 30 June 2021 and for the year then ended:

• Statement by the Trustees and Fund Secretary; • Statement of Comprehensive Income; • Statement of Financial Position; • Statement of Changes in Equity; • Cash Flow Statement; and • Notes to the financial statements, comprising a Summary of Significant Accounting Policies and other explanatory

information.

Basis for Opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Other Information

The Accountable Authority is responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2021 but does not include the financial statements and my auditor’s report thereon.

My opinion on the financial statements does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Accountable Authority’s Responsibility for the Financial Statements

As the Accountable Authority of the Entity, the Trustees are responsible under the Public Governance, Performance and Accountability Act 2013 for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards - Reduced Disclosure Requirements and the rules made under the Act. The Trustees are also responsible for such internal control as the Trustees determine is necessary to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Entity’s ability to continue as a going concern, taking into account whether the entity’s operations will cease as a result of an administrative restructure or for any other reason. The Trustees are also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority;

• conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern; and

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Australian National Audit Office

Jennifer Carter Senior Director Delegate of the Auditor-General

Canberra 30 July 2021

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ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

STATEMENT BY TRUSTEES AND OPERATIONS MANAGER

In our opinion, the attached financial statements for the year ended 30 June 2021 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Fund will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with a resolution of the Tmstees.

S Glassock, CSC Commodore, RAN Chair of Tmstees

C Ween Commander, RAN Deputy Chair

L Sundar, CPA, FGIA Mr Operations Manager

30 July 2021 30 July 2021 30 July 2021

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ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2021

Notes 2021

$

2020

$

NET COST OF SERVICES Expenses Employee benefits 1.1A 181,743 166,876

Suppliers 1.1B 27,480 31,196

Grants 1.1C 72,302 89,454

Depreciation and amortisation 1.1D 7,703 -

Losses from loan re-measurement 1.1E 305,952 506,592

Total expenses 595,180 794,118

Own source income

Own-source revenue

Loans revenue 1.2A 65,060 81,000

Interest 1.2B 368,845 572,464

Contributions and other sources 1.2C 199,424 166,171

Resources received free of charge 1.2D 181,743 166,876

Total own-source revenue 815,072 986,511

Surplus 219,892 192,393

Total Comprehensive Income 219,892 192,393

The above statement should be read in conjunction with the accompanying notes

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ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

Notes 2021

$

2020

$

ASSETS

Financial assets

Cash and cash equivalents 2.1A 2,516,827 2,112,733

Loans and other receivables 2.1B 3,419,622 3,606,351

Total financial assets 5,936,449 5,719,084

Non-financial assets

Intangibles 2.2A 20,724 28,427

Total non-financial assets 20,724 28,427

Total assets 5,957,173 5,747,511

LIABILITIES

Payables

Suppliers 2.3A 13,183 23,413

Total payables 13,183 23,413

Total liabilities 13,183 23,413

Net assets 5,943,990 5,724,098

EQUITY

Retained surplus 5,943,990 5,724,098

Total equity 5,943,990 5,724,098

The above statement should be read in conjunction with accompanying notes

20

ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

STATEMENT OF CHANGES IN EQUITY FOR PERIOD ENDED 30 JUNE 2021

Retained Earnings Total Equity

2021 2020 2021 2020

$ $ $ $

Opening Balance Balance carried forward from previous period 5,724,098 5,531,705 5,724,098 5,531,705

Comprehensive Income Surplus for the period 219,892 192,393 219,892 192,393

Total comprehensive income 219,892 192,393 219,892 192,393

Closing balance as at 30 June 5,943,990 5,724,098 5,943,990 5,724,098

The above statement should be read in conjunction with the accompanying notes

21

ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

CASH FLOW STATEMENT FOR THE PERIOD ENDED 30 JUNE 2021

Notes 2021

$

2020

$

OPERATING ACTIVITIES

Cash received

Loans repayments from members 7,486,108 8,809,862

Interest 368,845 572,464

Administration fees 65,060 81,000

RANCCF contribution 103,001 104,601

Donations 96,423 61,570

Total cash received 8,119,437 9,241,883

Cash used

Loans provided to members 7,605,331 9,178,472

Grants 72,302 89,454

Audit fees 30,910 20,570

Other expenses 6,800 7,796

Total cash used 7,715,343 9,296,292

Net cash from operating activities 404,094 333,205

INVESTING ACTIVITIES

Cash used

Purchase of Intangible - upgrade to LAMS - (25,583)

Net cash used by investing activities - (25,583)

Net increase in cash held 404,094 307,622

Cash and cash equivalents at the beginning of the reporting period

2,112,733

1,805,111

Cash and cash equivalents at the end of the reporting period

2.1A

2,516,827

2,112,733

The above statement should be read in conjunction with the accompanying notes

22

OVERVIEW

Objective of the Royal Australian Navy Relief Trust Fund (RANRTF)

The RANRTF (the Fund) is a corporate Commonwealth entity and a not-for-profit entity. The Fund was established by the Services Trust Funds Act 1947 (the Act). The Act provides that the Trustees shall, subject to and in accordance with the regulations, apply the Fund in providing benefits for members of the Australian Defence Force who have served in, or in association with, the Royal Australian Navy and to the dependants of such members.

The Fund does not directly receive nor is reliant on Government funding. The Fund has a single outcome, which is to provide benefits to eligible persons.

The Trustees administer the Fund to assist current and former members of the Australian Defence Force (ADF) who have served in, or in association with, the RAN and to the dependants of such members (eligible persons).

The Fund seeks to use available assets to deliver significant value to eligible persons in a timely, relevant, and meaningful manner.

The Basis of Preparation

The Financial Statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

• Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and

• Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.

New Accounting Standards

All new/revised/amending standards and/or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect, and are not expected to have a future material effect, on the Fund’s financial statements.

Taxation

The Fund is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). The Australian Taxation Office has advised that the Fund is a ‘financial supply provider’, consequently GST is not charged on revenue. The Fund has no entitlement to input tax credits. Expenses are GST inclusive.

23

Events After the Reporting Period

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Fund.

24

FINANCIAL PERFORMANCE This section analyses the financial performance of the Fund for the year ended 2021.

1. Expenses

2021

$

2020

$

1.1A. Employee benefits Wages and Salaries received free of charge 181,743 166,876

Total employee benefits 181,743 166,876

1.1B. Suppliers Goods and services supplied or rendered Comcover

3,035

2,631

System software maintenance 1,308 1,308

Advertising 788 1,812

Bank fees 1,669 1,995

Audit fees 20,680 20,570

Training - 50

Miscellaneous - 2,830

Total goods and services supplied or rendered 27,480 31,196

Total suppliers 27,480 31,196

1.1C. Grants Grants to eligible members 21,952 19,100

Keeping Watch grants to eligible members 50,350 70,354

Total grants 72,302 89,454

1.1D Depreciation and amortisation Amortisation 7,703 -

Total depreciation and amortisation 7,703 -

1.1E. Losses from loan re-measurement Loss from initial recognition of loans and receivables at fair value. 305,952 506,592

Total Losses from Loan Re-measurement 305,952 506,592

Losses are recognised for interest foregone on interest free loans issued by the Fund at the time the loan is issued.

Accounting Policy Competitive Neutrality

The Fund 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.

25

1.2 Own-Source Revenue 2021 2020

$ $

1.2A. Loans revenue Loan administration fees 65,060 81,000

Total loans revenue 65,060 81,000

Accounting Policy RANRTF charges a administration fee to loan applicants to help defray administrative expenses and to provide growth in the Fund. These loan administration fees are recognised as income in the year the loan is made and form part of the outstanding loan amount. Loan interest is then recognised based on the fair value of the loan using the effective interest rate method.

1.2B. Interest

Interest from bank accounts 5,488 8,578

Loan Interest 363,357 563,886

Total interest 368,845 572,464

Accounting Policy Interest revenue is recognised using the effective interest method.

1.2C. Contributions and other sources RANCCB contributions 103,001 104,601

Donations 96,423 61,570

Total contributions 199,424 166,171

1.2D. Resources received free of charge Salaries 181,743 166,876

Total resources received free of charge 181,743 166,876

Accounting Policy Resources Received Free of Charge 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.

26

Financial Position This section analyses the Fund’s 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. Financial Assets 2021 2020

$ $

2.1A. Cash and cash equivalents Cash at bank 1,051,714 1,086,845

Deposit accounts 1,465,113 1,025,888

Total cash and cash equivalents 2,516,827 2,112,733

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 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

2.1B. Loans and other receivables

Loans outstanding 3,426,302 3,614,951

Administration fees receivable 3,320 1,400

Total loans and other receivables (gross) 3,429,622 3,616,351

Less impairment allowance (10,000) (10,000)

Total loans and other receivables (Net) 3,419,622 3,606,351

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

Reconciliation of the Impairment Allowance

Opening Balance (10,000) (10,000)

Amounts written off - -

Decrease recognised in net surplus - -

Closing balance (10,000) (10,000)

Accounting Policy Financial assets are assessed for impairment at the end of each reporting period.

27

2.2. Non - Financial Assets 2021 2020

$ $

2.2A. Intangibles Loans application and management system 83,257 83,257

Accumulated amortisation (62,533) (54,830)

Total intangibles 20,724 28,427

Analysis of intangibles Reconciliation of the opening and closing balances of Intangibles As at 1 July 2020

Gross book value 83,257 54,830

Accumulated depreciation (54,830) (54,830)

Net book value 1 July 2020 28,427 -

Additions - 28,427

Disposals - -

Amortisation expense (7,703) -

Net book value 30 June 2021 20,724 -

Net book value as at 30 Jun represented by: Gross book value 83,257 83,257

Accumulated amortisation (62,533) (54,830)

20,724 28,427

Accounting Policy Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements.

In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

Intangibles

The Fund’s intangibles comprise capitalised costs relating to the development of the Loan Application Management System. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

The costs are amortised on a straight-line basis over its anticipated useful life. The useful life of these website costs is three years.

All software assets were assessed for indications of impairment as at 30 June 2021.

28

2.3 Payables 2021 2020

$ $

2.3A. Suppliers Trade creditors and accruals 13,183 23,413

Total suppliers 13,183 23,413

People and Relationships This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

3.1 Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Fund directly or indirectly, including any Trustee (whether executive or otherwise) of that Fund. The Fund has determined the key management personnel to be the Trustees.

Under Part 2, Section 11 (1) of the Services Trust Funds Act 1947, Trustees are not entitled to receive from the Fund any remuneration for any work done by them in relation to the administration of the Fund. Under Part 2, Section 14 of the Services Trust Funds Act 1947, a person who is a Trustee or a dependant of a Trustee shall not receive any benefits from the Fund.

The Trustees received no remuneration or loans during the period, other than as disclosed in Note 3.2 Related Party Disclosures.

The following persons were Trustees during the reporting period:

Commodore Shane Glassock, CSC, RAN (Appointed: 08 April 2019)

Captain Katrina Ryan, RAN (Appointed: 24 April 2021)

Commander Christina Ween, RAN (Appointed: 01 March 2018)

Commander Susan Harris, CSM, RAN (Appointed: 29 February 2016)

Lieutenant Loretta Houlahan, RAN (Appointed: 03 September 2019)

Commander Mark Lee, RAN (Appointed: 03 September 2019)

Chief Petty Officer Andrea Kerr, CSM, RAN (Appointed: 03 September 2019)

Commander Adrian Kemp, RAN (Appointed: 01 July 2018; Resigned on 24 April 2021)

Key management personnel remuneration excludes the remuneration and other benefits of the Minister for Defence Personnel. The Minister for Defence Personnel’s remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the Fund.

29

3.2 Related Party Disclosures

Related party relationships:

The Fund is an Australian Government controlled entity. Related parties to the Fund are the Minister for Veterans’ Affairs and Defence Personnel, Cabinet Ministers, Trustees, Key Management Personnel including the Executive, and other Australian Government entities.

Transactions with related parties:

Significant transactions with related parties can include: • the payments of grants or loans; • purchases of goods and services; • asset purchases, sales transfers or leases; • debts forgiven; and • guarantees.

Giving consideration to relationships with related parties, and transactions entered into during the reporting period by the Fund, it has been determined that there was one related party transaction to be separately disclosed.

The following transaction with related party occurred during the financial year:

• The Fund provided a general purpose loan of $7,040 to the spouse of Commander Susan Harris in contravention of paragraph 14 of the Services Trust Fund Act 1947 which prohibits a person who is a trustee or a dependent of a trustee to receive benefits from the Fund. This loan was provided in the normal course of business and no special terms were applied. The outstanding balance at year end is $3,517.00 which was repaid fully on 14 July 2021.

3.3 Resources provided “Free of Charge” to the Fund During the year, the following resources were provided free of charge by the Department of Defence: • Use of ADF and APS personnel; • Office accommodation with computer, telephone and postage support; and • Use of the ADF pay system to recover loan repayments from serving RAN members.

The value of ADF and APS personal services provided has been recognised as employee benefits expense (Note 1.1A) and resources received free of charged (Note 1.2D).

All other resources cannot be reliably measured and have not been recognised in the financial statements.

30

Managing Uncertainties This section analyses how the Fund manages financial risks within its operating environment.

4. Contingent Assets and Liabilities

The Fund has no contingencies in either the current or the immediately preceding reporting periods therefore a Schedule for such items has not been included in the financial statements.

Accounting Policy Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

5. Financial Instruments 2021

$

2020

$

5.1A. Categories of financial instruments Financial assets at amortised cost

Cash and cash equivalents 2,516,827 2,112,733

Loans and other receivables 3,419,622 3,606,351

Total financial assets at amortised cost 5,936,449 5,719,084

Financial Liabilities

Financial liabilities measured at amortised cost

Trade creditors and accruals 13,183 23,413

Total financial liabilities measured at amortised cost 13,183 23,413

Accounting Policy Financial assets With the implementation of AASB 9 Financial Instruments for the first time in 2019, the Fund classifies its financial assets in the following category:

a. financial instruments measured at amortised cost. The classification depends on both the entity’s business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or receive a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Comparatives have not been restated on initial application.

Financial Assets at Amortised Cost

Financial assets included in this category need to meet two criteria: 1. the financial asset is held in order to collect the contractual cash flows; and 2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Effective Interest Method Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost.

31

Impairment of Financial Assets Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12-month expected credit losses if risk has not increased.

The simplified approach for trade, contract and lease receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime credit losses.

A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset.

Financial liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value Through Profit or Loss Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Financial Liabilities at Amortised Cost Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis.

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).

5.1B. Net Gains and or losses on financial assets 2021

$

2020

$

Financial assets at amortised cost

Cash and cash equivalents

Interest revenue from investments 1.2B 5,488 8,578

Net gain from cash and cash equivalents 5,488 8,578

Loans and receivables

Loan administration fees 1.2A 65,060 81,000

Loan interest 1.2B 363,357 563,886

Loss on initial recognition of loans and 1.1E receivables at fair value

(305,952)

(506,592)

Net gain from loans and receivables 122,465 138,294

Net gains on financial assets at amortised cost 127,953 146,872

32

OTHER INFORMATION

6.1 Current/Non-current distinction for assets and liabilities

6.1A: Current/Non-current distinction for assets and liabilities

2021

$

2020 $

Assets expected to be recovered in: No more than 12 months

Cash and cash equivalents Loans and other receivables

2,516,827 3,419,622 2,112,733 3,606,351

Total no more than 12 months 5,936,449 5,719,084

More than 12 months

Intangibles 20,724 28,427

Total more than 12 months 20,724 28,427

Total assets 5,957,173 5,747,511

Liabilities expected to be settled in: No more than 12 months

Suppliers 13,183 23,413

Total no more than 12 months 13,183 23,413

Total liabilities 13,183 23,413

6.2 Insurance

The Fund has insured for risks through the Government’s insurable risk managed fund, called ‘Comcover’. Worker’s compensation is insured through Comcare.

6.3 Investment of surplus money

Subparagraphs 59(1) (a) and (b) of the PGPA Act allows corporate Commonwealth entities to invest money that is not immediately required for the purposes of the entity.

The Fund’s surplus moneys are on deposit with the Australian Military Bank and Defence Bank.

6.4 Economic dependency

The Fund receives economic support from Department of Defence by way of provision of administrative support, computer, communication facilities and office accommodation for the Fund’s Principal Office staff. The Trustees consider, however, that in the event that the support provided by the Department of Defence was fully or partly withdrawn, the Fund is in a position that it could continue to provide benefits, although likely at a reduced level, to eligible persons.

33

6.5 Disclosure of commitments

The Fund has no commitments in either the current or the immediately preceding reporting periods and therefore a Schedule for such items has not been included in the financial statements.

34

APPENDIX B - ANNUAL PERFORMANCE STATEMENT OF THE ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

The Trustees, as the Accountable Authority, of the Royal Australian Navy Relief Trust Fund (the Fund) present the 2020-2021 Annual Performance Statement of the Fund, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In the opinion of the Trustees, this Annual Performance Statement is based upon properly maintained records, accurately reflects the performance of the Fund, and complies with subsection 39(2) of the PGPA Act.

Purpose of the Fund

The Fund was established by the Services Trust Funds Act 1947 (the Act). The Act provides that the Trustees shall apply the Fund towards providing benefits for members of the Australian Defence Force (ADF) who have served in, or in association with, the Royal Australian Navy (RAN) and to the dependants of such members.

Intended Results

In the 2020/21 Corporate Plan for the Royal Australian Navy Relief Trust Fund the Trustees determined that the intended result of the Fund was to provide benefits to eligible persons in a timely, relevant, and meaningful manner.

Performance Measurement Methodology

The Trustees determined that the Fund’s performance in achieving its intended result would be measured via surveying those who received benefits from the Fund, Commanding Officers, Personnel Officers and others who are involved in managing and/or administering recipients of Fund benefits. As part of this survey, Commanding Officers of Ships and Establishments were invited to identify any additional ways in which the Fund could provide other or greater benefits that are relevant and meaningful.

Actual Results

Feedback from recipients of benefits, Commanding Officers, Personnel Officers and others who are involved in managing and/or administering recipients of Fund benefits indicates that the Fund is providing meaningful and relevant benefits to eligible personnel in a timely manner.

Analysis of Results

Performance Criterion 1 - Timely

Source: Corporate Plan Page 4

Measurement methodology: A survey was sent to Commanding Officers, Personnel Officers and others who are involved in managing and/or administering recipients of the Fund asking for their assessment of the relevance of the Fund to their personnel

Results: In accordance with the RANRTF Rules and Procedures Manual, and as advertised to local agents, General Purpose loans are to be processed and paid within three weeks of the Principal Office’s receipt of a correctly completed loan application. In reality, most loans are paid in a far shorter timeframe than those advertised. Special Loans are generally processed within three working

35

days and, if the situation is urgent and all relevant information to enable Trustee decision making is provided, special loans can be processed and paid within the same day. There were no negative comments from the survey regarding timeframes for payments of loans and one suggestion to remove the two-person approval process to help improve this element of the Fund’s business. Responses indicated that loans were processed within reasonable timeframes and expectations. Comments related to the timeliness included:

“All benefits are always actioned in a timely manner by the RANRTF Loan Office”

“…they can be paid or provided the benefits without having to wait for payday or an extended period for the funds to be transferred into their account. As previously noticed, the time in which transactions occur has improved dramatically…”

“Staff constantly provide a quick turnaround of normal loans, and provide timely and quicker processing should something be required due to urgency of circumstances”

Analysis: A deliberate decision was undertaken by the Trustees to advertise timelines that adequately allowed for processing times taking into account the workload of the Principal Office and the batching of the General Purpose loans. Actual timeframes for payment of loans are generally well inside the advertised times for most General Purpose loans and the Fund is extremely responsive in staffing requests for Special loans where there is an urgent requirement for the funds.

Performance Criterion 2 - Relevant and Meaningful

Source: Corporate Plan Page 4

Measurement methodology: A survey was forwarded to Commanding Officers, Personnel Officers and others who are involved in managing and/or administering recipients of the Fund asking for their assessment of the relevance and meaningfulness of the Fund’s products to their personnel.

Results: Responses to the survey were received from six Commanding Officers and/or Personnel Officers, with the focus of the feedback primarily on the wide range of financial products and services provided by the Fund. Over recent years’ the adoption of a more principles based approach, which enables a broader range of loan products able to be utilised across a wider span of purchase options, and the provisions of an additional “Christmas 2.0 loan” has shown rewards with the following comments representative of the feedback received:

“Both … are relevant and provide Command and members with enough flexibility to meet individual circumstances”

“Yes, especially over this COVID period, I feel more members have been using the funds…”

“The loans and the products available under the loan remain relevant, the fact that the loan has increased in monetary value is reflective of contemporary costs of the type of things that the loan is intended for and has been well received”

“The wider scope of the RANRTF Loan is valuable tool that allows members to have better use of the loans.”

Analysis: The feedback indicates that the products provided by the Fund are both meaningful and relevant to the recipients and are assisting to provide additional support to members that are experiencing challenging and complex personal circumstances. Furthermore, the increased range of

36

loan products are identified as an important resource for Command, when providing assistance options to their members.

As in previous years, eligibility for the 2020 Christmas Loan was restricted to personnel not already holding a General Purpose or Special Loan in order to manage the demand on the Fund’s limited cash reserves and to avoid potential for imposing an over burdening debt on members. However, this year due to the health of the Fund an additional Christmas 2.0 loan was offered to assist with easing the burden of the impacts of COVID-19 on RAN members. Whilst there was a pleasing uptake of this product, the Fund remains very healthy and there remains sufficient funds available to satisfy the demand for the General Purpose loan, as the Fund’s primary product.

Analysis of the feedback indicates that the Fund, whilst doing an adequate job of ensuring its products and services are promoted and advertised appropriately, should not become complacent and should strive to raise awareness about its products and services through regular and ongoing communications spanning a wide variety of formats.

37

APPENDIX C - LIST OF REQUIREMENTS

PGPA Rule Reference Part of Report

Description Requirement

17BE Contents of annual report

17BE(a) Enabling

Legislation and Purpose

Details of the legislation establishing the body Mandatory

17BE(b)(i) Performance A summary of the objects and functions of the entity as set out in legislation Mandatory

17BE(b)(ii) Enabling Legislation and Purpose

The purposes of the entity as included in the entity’s corporate plan for the reporting period Mandatory

17BE(c) Organisational Structure The names of the persons holding the position of responsible Minister or responsible

Ministers during the reporting period, and the titles of those responsible Ministers

Mandatory

17BE(d) Organisational Structure Directions given to the entity by the Minister under an Act or instrument during the

reporting period

If applicable, mandatory

17BE(e) Organisational Structure Any government policy order that applied in relation to the entity during the reporting

period under section 22 of the Act

If applicable, mandatory

17BE(f) Not

Applicable Particulars of non-compliance with: (a) a direction given to the entity by the Minister under an Act or instrument during

the reporting period; or (b) a government policy order that applied in relation to the entity during the reporting period under section 22 of the Act

If applicable, mandatory

17BE(g) Annual

Performance Statements

Annual performance statements in accordance with paragraph 39(1)(b) of the Act and section 16F of the rule

Mandatory

17BE(h), 17BE(i)

Organisational Structure A statement of significant issues reported to the Minister under paragraph 19(1)(e) of the

Act that relates to non-compliance with finance law and action taken to remedy non-compliance

If applicable, mandatory

17BE(j) Organisational Structure Information on the accountable authority, or each member of the accountable authority, of

the entity during the reporting period

Mandatory

17BE(k) Organisational Structure Outline of the organisational structure of the entity (including any subsidiaries of the

entity)

Mandatory

38

PGPA Rule Reference Part of Report

Description Requirement

17BE(ka) People and Relationships Statistics on the entity’s employees on an ongoing and non-ongoing basis, including the

following: (a) statistics on full-time employees; (b) statistics on part-time employees; (c) statistics on gender; (d) statistics on staff location

Mandatory

17BE(l) Organisational Structure Outline of the location (whether or not in Australia) of major activities or facilities of

the entity

Mandatory

17BE(m) Other Matters Information relating to the main corporate governance practices used by the entity during the reporting period

Mandatory

17BE(n), 17BE(o)

People and Relationships For transactions with a related Commonwealth entity or related company

where the value of the transaction, or if there is more than one transaction, the aggregate of those transactions, is more than $10,000 (inclusive of GST): (a) the decision-making process undertaken

by the accountable authority to approve the entity paying for a good or service from, or providing a grant to, the related Commonwealth entity or related company; and (b) the value of the transaction, or if there is

more than one transaction, the number of transactions and the aggregate of value of the transactions

If applicable, mandatory

17BE(p) Not

Applicable Any significant activities and changes that affected the operation or structure of the entity during the reporting period

If applicable, mandatory

17BE(q) Not

Applicable Particulars of judicial decisions or decisions of administrative tribunals that may have a significant effect on the operations of the entity

If applicable, mandatory

17BE(r) Not

Applicable Particulars of any reports on the entity given by: (a) the Auditor-General (other than a report

under section 43 of the Act); or (b) a Parliamentary Committee; or (c) the Commonwealth Ombudsman; or (d) the Office of the Australian Information

Commissioner

If applicable, mandatory

39

PGPA Rule Reference Part of Report

Description Requirement

17BE(s) Not

Applicable An explanation of information not obtained from a subsidiary of the entity and the effect of not having the information on the annual report

If applicable, mandatory

17BE(t) Other Matters Details of any indemnity that applied during the reporting period to the accountable authority, any member of the accountable authority or officer of the entity against a liability (including premiums paid, or agreed to be paid, for insurance against the authority, member or officer’s liability for legal costs)

If applicable, mandatory

17BE(taa) Other Matters The following information about the audit committee for the entity: (a) a direct electronic address of the charter determining the functions of the audit committee; (b) the name of each member of the audit committee; (c) the qualifications, knowledge, skills or experience of each member of the audit committee; (d) information about each member’s attendance at meetings of the audit committee; (e) the remuneration of each member of the audit committee

Mandatory

17BE(ta) People and

Relationships Information about executive remuneration Mandatory

17BF Disclosure requirements for government business enterprises

17BF(1)(a)(i) Not Applicable An assessment of significant changes in the entity’s overall financial structure and

financial conditions

If applicable, mandatory

17BF(1)(a)(ii) Not Applicable An assessment of any events or risks that could cause financial information that is

reported not to be indicative of future operations or financial conditions

If applicable, mandatory

17BF(1)(b) Not Applicable Information on dividends paid or recommended

If applicable, mandatory

40

PGPA Rule Reference Part of Report

Description Requirement

17BF(1)(c) Not Applicable Details of any community service obligations the government business enterprise has

including: (a) an outline of actions taken to fulfil those obligations; and (b) an assessment of the cost of fulfilling

those obligations

If applicable, mandatory

17BF(2) Not

Applicable A statement regarding the exclusion of information on the grounds that the information is commercially sensitive and would be likely to result in unreasonable commercial prejudice to the government business enterprise

If applicable, mandatory

_____________________________________

Australian

Military Forces

Relief Trust Fund

Annual Report

2020 - 2021

____________________________________

- 2 -

Trustees

Of the

Australian Military Forces Relief Trust Fund

As of

30 June 2021

____________________________________________________________________

Brigadier W.B. STOTHART, DSC, AM, CSC (Chair of Trustees)

Lieutenant Colonel C. KELLY, CSC, CSM

Captain D. KHANENKOV

Warrant Officer Class One K. BULLMAN, OAM

Warrant Officer Class One M. BATES, OAM

Warrant Officer Class One R. SHEPPARD

Mr T. HEENAN

__________________________________________________________________________________________________

- 3 -

AUSTRALIAN MILITARY FORCES RELIEF TRUST FUND SEVENTY-THIRD ANNUAL REPORT Minister for Veterans’ Affairs and Defence Personnel

Dear Minister

The Trustees of the Australian Military Forces Relief Trust Fund (AMFRTF), trading as the Army Relief Trust Fund (ARTF), have the honour to submit their report of operations for the year ended 30th June 2021 (the period). This report is accompanied by audited Financial Statements for the period and associated notes which are to be read as part of this report.

The AMFRTF was established by the Services Trust Funds Act 1947. The AMFRTF provides 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.

Ministerial Directions and Finance Minister’s Orders

There were no Ministerial Directions or Finance Minister’s Orders issued to the AMFRTF during the period.

Public Governance, Performance and Accountability Act 2013

The AMFRTF complies with the requirements of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) with respect to:

 reporting to Minister and Parliament;  content of Annual Report;  audit of the AMFRTF's Financial Statements by the Auditor-General;  banking and investment powers of authorities;  general policies of the Australian Government; and  conduct of directors and officers, including the civil consequences of any breach of their

duties by the directors and officers.

Significant non-compliance issues with finance law

Section 17AG and 17BE of the Public Governance, Performance and Accountability Rule require that Commonwealth entities' annual reports must include a statement of any significant non-compliance issues that relate to the finance law that were reported to the responsible Minister under paragraph 19(1)(e) of the PGPA Act. During the reporting period there were no non-compliance issues reported.

Statutory powers of direction

The AMFRTF is a Corporate Commonwealth Entity and operates within the Defence Portfolio reporting to the Minister for Veterans’ Affairs and Defence Personnel.

The Minister for Veterans’ Affairs and Defence Personnel may, by instrument in writing published in the Gazette, authorise the Trustees to administer other property. This authority was not exercised during the year.

Reviews by outside bodies

The Fund's financial statements are audited annually, in accordance with the requirements of the Services Trust Funds ACT 1947 and the PGPA Act, by the Australian National Audit Office.

- 4 -

Risk Management and Fraud Control

The Trustees have established a risk management and fraud control plan in line with the Commonwealth’s endeavours to make risk management an integral part of everyday business practice. The AMFRTF adopts Commonwealth and Defence best practice for risk management and fraud control to meet obligations to Army members and the Australian Government. The AMFRTF Risk Management and Fraud Control Plan was reviewed and updated in June 2021.

Work Health and Safety

The Trustees and all those who assist the Trustees are either members of the Army, ex-service man and the Australian Public Service (APS). The personnel undertake their duties as part of their service in the Army, volunteering and employment in the APS. The Fund utilises the Department of Defence’s work health and safety protocols, security, training, welfare, reporting and other systems to ensure the health and safety of the Trustees and its APS staff.

Indemnities and insurance premiums for officers

The AMFRTF has taken out insurance coverage with Comcover for directors and officers’ liability, fraud and fidelity, general liability and personal accident. There were no related incident claims during the period.

Audit Committee

In accordance with the requirements of the PGPA Act the Fund has established an Audit Committee. The primary objectives of the AMFRTF Audit Committee are stated in the charter at https://armyrtf.com.au/wp-content/uploads/AMFRTF-Audit-and-Risk-Committee-Charter-2.pdf.

The Audit Committee provides advice to the Trustees and its main objectives are:

 review internal controls and ensure adequate procedures are in place;  review risk management and fraud control practices;  improve the objectivity and reliability of financial reporting, and  ensure the Board complies with all governance and other obligations.

Audit Committee Members

Captain Dmitry Khanenkov is the Chair of Audit Committee. He has number of years’ experience in finance and resource management roles in Army. His qualifications include Bachelor of Economics and Graduate Diploma of Accounting. He also completed an Auditing & Compliance Officer training course through Army. (Trustee)

Sergeant John Cox has number of years’ experience in resource management. He is a Regimental Audit Board member and a Non-Public Monies Account Treasurer in Army. (Independent member)

Warrant Officer Alison Huber has extensive experience in resource management and serving in Army for over three decades. Warrant Officer Huber also has over twenty years management experience in Army’s Non-Public Monies Account aspect. (Independent member)

A summary of attendance for the AMFRTF Audit Committee is listed in the following table:

Name Meetings attended Eligible meetings Remuneration

CAPT D. Khanenkov 3 3 $0

SGT J. Cox 3 3 $0

WO1 A. Huber 3 3 $0

- 5 -

Board of Trustees

The Services Trust Funds Act 1947 provides for the establishment of the AMFRTF and the termination and appointment of Trustees by the responsible Minister. Board members received no remunerations from the Trust. The Board met three times in Canberra during FY2020-21.

Name Position Meetings Attended Appointment

BRIG W. Stothart Chair of Trustees 3 21 Jan 2019

MR T. Heenan Trustee 3 02 Jun 2011

CAPT D. Khanenkov Trustee 1 01 Jun 2017

WO1 K. Bullman* Trustee 1 20 Aug 2018

WO1 M. Bates Trustee 2 20 Aug 2018

LTCOL C. Kelly Trustee 2 11 Jan 2019

WO1 R. Sheppard Trustee 0 23 May 2021

* Trustee resigned 01 Dec 2020

Board Members during 2020 -21

Brigadier Wade Stothart, DSC, AM, CSC. Brigadier Stothart joined the Australian Regular Army in 1987 and completed operational service in Bosnia, East Timor, Afghanistan, and the Middle East. Brigadier Stothart holds a Bachelor of Arts, Master of Arts (International Relations), Master of Management and completed the Company Directors Course in 2019.

Warrant Officer Class One Michael Bates, OAM. Warrant Officer Class One Bates joined the Australian Regular Army in March 1988 and has completed operational service in Namibia, East Timor, Middle East, Timor Leste, Solomon Islands and Vanuatu.

Captain Dmitry Khanenkov. Captain Khanenkov joined the Australian Regular Army in June 2015. Captain Khanenkov holds a Bachelor of Economics, Graduate Diploma of Accounting. Masters of Strategic Human Resource Management.

Mr T. Heenan. Mr Heenan graduated from the Officer Cadet School Portsea in December 1978 into the Royal Australian Infantry Corps. He served a variety of regimental and non-corps postings, undertook Technical Staff Officer training at the Royal Military College of Science, Shrivenham UK in 1990, and in 1993 attended the Army Command and Staff Course at Queenscliff. Tim left the Army in March 2000 to serve as a Defence Public Servant. This service included a three year exchange posting with the US Department of Defence in Washington DC and an 11 year tenure within Defence’s Counter Improvised Explosive Device Task Force. He retired from the Public Service in 2019.

Warrant Officer Class One Ken Bullman, OAM. Warrant Officer Class One Bullman joined the Australian regular Army in March 1984 and has completed operational service in Bougainville, Iraq and Afghanistan. Ken’s overseas representational duties have included exchange and regimental duties in the United Kingdom, New Zealand, Papua New Guinea, France and Belgium.

Lieutenant Colonel Caroline Kelly, CSC, CSM. Lieutenant Colonel Kelly, CSC, CSM joined the Australian Army in 1991. Lieutenant Colonel Kelly holds a Bachelor of Arts (Economics) and a Masters of Business; both from the UNSW.

Warrant Officer Class One Racheal Sheppard. Warrant Office Class One Sheppard joined the Australian Army in Oct 2002 and has completed operational service in East Timor and the Middle East. Warrant Officer Class One Sheppard holds a Diploma of Paramedicine and a Diploma in Nursing.

- 7 -

ANNUAL PERFORMANCE STATEMENT 2020-21

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 2020-21 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 2020-21.

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 2020-21 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 2021:

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

131 16 12 3 97 50 26 39 62

6

111 32

623,220 77,944 57,400 12,300

469,600 238,400 124,800 168,050 281,916

30,000 516,400 156,000

Total 585 2,756,030

- 8 -

3. The target of greater than 75 per cent 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 2021:

Ranks Loans % Amounts $

Private 38 1,050,820

Lance Corporal 9 249,200

Corporal 23 634,750

Sergeant 13 365,700

Warrant Officer 9 254,944

Lieutenant 2 55,000

Captain 4 106,600

Major 1 31,116

Lieutenant Colonel 1 7,900

Total 100 2,756,030

Performance criterion Provide financial assistance to former members or dependants in financial and necessitous circumstances through hardship grants. Criterion source Corporate Plan 2020-21 Activity 2 Results A total of $13,222 was funded under hardship grants in this reporting period. These grants were within the approach to the strategic direction of the Board. Four hardship grants were provided to member, ex-servicemen and dependants helping with essential expenses.

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 2020-21 Activity 3 Results

1. The Statement of Comprehensive Income demonstrates the AMFRTF continues to be self-sustaining with a profit of $178,693 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 $22,686 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 $2,881,759 and earns interest between 0.3% - 0.85% p.a. 4. Trustees approved $9,861 of bad and doubtful debts to be written off. This was within the acceptable less than 1% range of the total debtor control.

GPO Box 707 CANBERRA ACT 2601 38 Sydney Avenue FORREST ACT 2603 Phone (02) 6203 7300

INDEPENDENT AUDITOR’S REPORT

To the Minister for Defence Personnel

Opinion

In my opinion, the financial statements of the Australian Military Forces Relief Trust Fund (the Entity) for the year ended 30 June 2021:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

(b) present fairly the financial position of the Entity as at 30 June 2021 and its financial performance and cash flows for the year then ended.

The financial statements of the Entity, which I have audited, comprise the following as at 30 June 2021 and for the year then ended:

• Statement by the Trustees and Fund Secretary; • Statement of Comprehensive Income; • Statement of Financial Position; • Statement of Changes in Equity; • Cash Flow Statement; and • Notes to the financial statements, comprising a Summary of Significant Accounting Policies and other explanatory

information.

Basis for Opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Other Information

The Accountable Authority is responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2021 but does not include the financial statements and my auditor’s report thereon.

My opinion on the financial statements does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Accountable Authority’s Responsibility for the Financial Statements

As the Accountable Authority of the Entity, the Trustees are responsible under the Public Governance, Performance and Accountability Act 2013 for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards - Reduced Disclosure Requirements and the rules made under the Act. The Trustees are also responsible for such internal control as the Trustees determine is necessary to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Entity’s ability to continue as a going concern, taking into account whether the entity’s operations will cease as a result of an administrative restructure or for any other reason. The Trustees are also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority;

• conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern; and

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Australian National Audit Office

Jennifer Carter Senior Director Delegate of the Auditor-General

Canberra 30 July 2021

CONTENTS Page

Primary financial statements

Statement of Comprehensive Income 13

Statement of Financial Position 14

Statement of Changes in Equity 15

Cash Flow Statement 16

Overview

Australian Military Forces Relief Trust Fund 17

Notes to the financial statements:

1. Financial Performance

1.1 Expenses 18

1.2 Own-Source Income 19

2. Financial Position

2.1 Financial Assets 20

2.2 Non-Financial Assets 21

2.3 Payables 21

3. People and Relationships

3.1 Resources Provided Free of Charge 22

3.2 Key Management Personnel Remuneration 22

3.3 Related Party Disclosures 23

4. Managing Uncertainties

4.1 Financial Instruments 24

4.2 Contingent Assets and Liabilities 25

5. Other Information

5.1 Current/non-current distinction for assets and liabilities 26

5.2 Economic Dependency 26

- 12 -

Appendix A - List of Requirements

AUSTRALIAN MILITARY FORCES RELIEF TRUST FUND

Statement of Comprehensive Income for the year ended 30 June 2021

Notes 2021 2020

$ $

NET COST OF SERVICES

Expenses

Employee benefits 1.1A 164,374 165,147

Suppliers 1.1B 69,686 38,407

Grants 1.1C 13,222 2,885

Loss from loan re-measurement 1.1D 217,065 336,060

Total expenses 464,347 542,499

Own-Source Income

Own-source revenue Loans revenue 1.2A 94,483 126,195

Interest 1.2B 278,999 486,656

Resources received free of charge 1.2C 164,374 165,147

Other income 1.2D 100,348 24,601

Total own-source revenue 638,204 802,599

Gains Reversal of write-downs and impairment 1.2E 4,836 10,800

Total gains 4,836 10,800

Total own-source income 643,040 813,399

Surplus 178,693 270,900

Total comprehensive income 178,693 270,900

The above statement should be read in conjunction with the accompanying notes.

- 13 -

AUSTRALIAN MILITARY FORCES RELIEF TRUST FUND

Statement of Financial Position as at 30 June 2021

Notes 2021 2020

$ $

ASSETS

Financial assets Cash and cash equivalents 2.1A 3,732,444 2,946,067

Loans and other receivables 2.1B 2,531,558 3,148,654

Total financial assets 6,264,002 6,094,721

Non-financial assets Prepayments 2.2A 277 277

Total non-financial assets 277 277

Total assets 6,264,279 6,094,998

LIABILITIES

Payables Suppliers 2.3A 10,828 20,240

Total payables 10,828 20,240

Total liabilities 10,828 20,240

Net assets 6,253,451 6,074,758

EQUITY

Retained surplus 6,253,451 6,074,758

Total equity 6,253,451 6,074,758

The above statement should be read in conjunction with the accompanying notes.

- 14 -

AUSTRALIAN MILITARY FORCES RELIEF TRUST FUND

For the year ended 30 June 2021

2021 2020 2021 2020

$ $ $ $

Opening balance

Balance carried forward from previous period 6,074,758 5,803,858 6,074,758 5,803,858

Comprehensive income Surplus for the period 178,693 270,900 178,693 270,900

Total comprehensive income 178,693 270,900 178,693 270,900

Closing balance as at 30 June 6,253,451 6,074,758 6,253,451 6,074,758

The above statement should be read in conjunction with the accompanying notes.

Retained earnings Total equity

- 15 -

Statement of Changes in Equity

AUSTRALIAN MILITARY FORCES RELIEF TRUST FUND

for the year ended 30 June 2021

Notes 2021 2020

$ $

OPERATING ACTIVITIES Cash received Loan repayments from members 3,258,971 3,769,308

Interest 278,311 505,776

Donations 100,348 24,401

Loan overpayments 5,450 2,600

Total cash received 3,643,080 4,302,085

Cash used Loans provided to members 2,756,030 3,600,500

Grants 13,222 2,885

Audit fees 30,580 20,240

Suppliers (including contract labour) 48,646 17,125

Loan refunds 8,200 5,587

Bank fees 25 987

Total cash used 2,856,703 3,647,324

Net cash from operating activities 786,377 654,761

Net increase in cash held 786,377 654,761

Cash and cash equivalents at the beginning of the reporting period 2,946,067 2,291,306

Cash and cash equivalents at the end of the reporting period 2.1A 3,732,444 2,946,067

The above statement should be read in conjunction with the accompanying notes

- 16 -

Cash Flow Statement

- 17 -

OVERVIEW

The Australian Military Forces Relief Trust Fund (AMFRTF) is a Corporate Commonwealth Entity and a not-for-profit entity. The AMFRTF was established by the Services Trust Funds Act 1947 (the Act). The Act provides that the Trustees shall, subject to and in accordance with the regulations, apply the Fund in providing benefits for members of the Defence Forces who have served in, or in association with, the Australian Army and to the dependants of such members. The AMFRTF does not receive nor is it reliant on the Australian Government for funding.

The Basis of Preparation

The Financial Statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013. The financial statements have been prepared in accordance with: a. Public Governance, Performance and Accountability (Financial Reporting) Rule

2015 (FRR); and b. Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board that apply

for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.

New Accounting Standards

All new/revised/amending standards and/or interpretations that were issued prior to the sign-off date and are applicable to future reporting periods are not expected to have a future material impact on the financial statements.

Taxation

The AMFRTF is exempt from all forms of taxation except Fringe Benefits Tax and the Goods and Services Tax (GST). The Australian Taxation Office has advised that the AMFRTF is a ‘financial supply provider’, consequently GST is not charged on revenue. The AMFRTF has no entitlement to input tax credits. Expenses are GST inclusive.

Events After the Reporting Period

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the AMFRTF.

2021 2020

$ $

1.1A: Employee benefits Wages and salaries received free of charge 164,374 165,147

Total employee benefits 164,374 165,147

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

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

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.

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.

AMFRTF receives resources free of charge in the form of staffing support from the Departmenmt of Defence. The associated revenue for resources received free of charge is recorded at note 1.2C.

- 18 -

Financial Performance This section analyses the financial performance of AMFRTF for the year ended 2021 1.1: Expenses

Accounting Policy

2021 2020

$ $

1.2A: Loans Revenue Members fund maintenance contribution 94,483 126,195

Total loans revenue 94,483 126,195

Accounting Policy

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

1.2C: Resources Received Free of Charge Salaries 164,374 165,147

Total resources received free of charge 164,374 165,147

Accounting Policy

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

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

Interest revenue is recognised using the effective interest method.

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.

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.

- 19 -

1.2: Own-Source Income

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.

2021 2020

$ $

2.1A: Cash and Cash Equivalents Cash at bank and on hand 227,113 316,400

Cash management call account 623,573 865,756

Term deposits 2,881,758 1,763,911

Total cash and cash equivalents 3,732,444 2,946,067

2.1B: Loans and Other Receivables Loans outstanding 2,558,279 3,190,760

Accrued interest 9,294 8,606

Total loans and other receivables (gross) 2,567,573 3,199,366

Less: Impairment allowance (36,015) (50,712)

Total loans and other receivables (net) 2,531,558 3,148,654

Reconciliation of the Impairment Allowance

Movements in relation to 2021

Loans Total

$ $

As at 1 July 2020 (50,712) (50,712)

Bad debts written off 9,861 9,861

Amounts recovered and reversed 7,514 7,514

Increase recognised in net surplus (2,678) (2,678)

Total as at 30 June 2021 (36,015) (36,015)

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. Impairment of any debts is reviewed at end of the reporting period.

Accounting Policy

- 20 -

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

2.1: Financial Assets

Cash is recognised at its nominal amount. Cash and cash equivalents includes: a) cash on hand; b) term deposits in bank accounts with an original maturity of 12 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

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.

Accounting Policy

Financial Position

Movements in relation to 2020

Loans Total

$ $

As at 1 July 2019 (74,643) (74,643)

Bad debts written off 13,130 13,130

Amounts recovered and reversed 16,969 16,969

Increase recognised in net surplus (6,168) (6,168)

Total as at 30 June 2020 (50,712) (50,712)

2021 2020

$ $

2.2A: Prepayments Prepayments 277 277

Total prepayments 277 277

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

2021 2020

$ $

2.3A: Suppliers Trade creditors and accruals 10,828 20,240

Total Suppliers 10,828 20,240

- 21 -

2.3: Payables

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

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).

Accounting Policy

a. Salaried Australian Public Servants, b. Office accommodation with computer, telephone, postage and stationery support, and c. Use of the Australian Defence Force pay system to recover loan repayments from serving Australian Army members.

2021 2020

Full time equivalent (FTE) staff received free of charge 2 2

The following persons were Trustees during the reporting period: Appointed: Ceased:

Brigadier W. STOTHART 21/01/2019

Mr T. HEENAN 02/06/2011

Captain D. KHANENKOV 01/06/2017

Warrant Officer Class One K. BULLMAN 20/08/2018 01/12/2020

Warrant Officer Class One M. BATES 20/08/2018

Lieutenant Colonel C. KELLY 11/01/2019

Warrant Officer Class One R. Sheppard 23/05/2021

Under Part 2, Section 11 (1) of the Services Trust Funds Act 1947 , Trustees are not entitled to receive from the AMFRTF any remuneration for any work done by them in relation to the administration of the AMFRTF. Under Part 2, Section 14 of the Services Trust Funds Act 1947 , a person who is a Trustee or a dependant of a Trustee shall not receive any benefits from the AMFRTF. The Trustees received no remuneration or benefits from the AMFRTF during the period.

3.2: Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the AMFRTF directly or indirectly, including any Trustee (whether executive or otherwise) of the AMFRTF. AMFRTF has determined the key management personnel to be the Trustees.

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Chair

Trustee

People and relationships This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

During the period the following resources were provided free of charge by the Department of Defence:

3.1: Resources Provided Free of Charge

Trustee

Trustee

Key management personnel remunerations excludes the remuneration and other benefits of the Minister for Defence and the Minister for Veterans' Affairs and Defence Personnel. The Ministers' remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the AMFRTF.

Trustee

Trustee Trustee

• the payments of grants or loans; • purchases of goods and services; • asset purchases, sales transfers or leases; • debts forgiven; and • guarantees.

The AMFRTF is an Australian Government controlled entity. Related parties to AMFRTF are the Minister for Defence Personnel, Cabinet Ministers, Trustees, key management personnel and other Australian Government entities.

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Related party relationships:

Transactions with related parties:

3.3: Related Party Disclosures

Significant transactions with related parties can include:

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the AMFRTF, it has been determined that there are no related party transactions to be separately disclosed.

4.1: Financial Instruments

2021 2020

$ $

4.1A: Categories of Financial Instruments Financial Assets at amortised cost Cash and cash equivalents 3,732,444 2,946,067

Loans and receivables 2,531,558 3,148,654

Total financial assets at amortised cost 6,264,002 6,094,721

Financial Liabilities at amortised cost Trade creditors and accruals 10,828 20,240

Total financial liabilities at amortised cost 10,828 20,240

Effective Interest Method

Financial Liabilities at Fair Value Through Profit or Loss

Financial Assets at Amortised Cost Financial assets are measured at amortised cost when the financial asset is held in order to collect the contractual cash flows and the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

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Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Managing uncertainties

Accounting Policy Financial Assets

Impairment of Financial Assets

This section analyses how the AMFRTF manages financial risks within is operating environment

Income is recognised on an effective interest rate basis except for financial assets at fair value through profit or loss.

Financial assets are assessed for impairment at the end of each reporting period. Financial assets are assessed for impairment at the end of each reporting period based on expected credit losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12‐month expected credit losses if risk has not increased.

The AMFRTF classifies its financial assets in the following categories: a) financial assets at fair value through profit or loss; b) financial assets at fair value through other comprehensive income; and c) financial assets measured at amortised cost. The classification depends on both the entity's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date. All financial assets are presently measured at amortised cost.

4.1: Financial Instruments continued

Financial Liabilities at Amortised Cost

2021 2020

$ $

4.1B: Net Gains and Losses from Financial Assets

Financial assets at amortised cost Cash and cash equivalents Bank interest revenue 26,352 39,154

Net gain from cash and cash equivalents 26,352 39,154

Loans and receivables Members contributions on loans 94,483 126,195

Loan interest revenue 252,647 447,502

Loss on initial recognition of loans on receivables at fair value (217,065) (336,060)

Net gain from loans and receivables 130,065 237,637

Net gain on financial assets at amortised cost 156,417 276,791

4.2: Contingent Assets and Liabilities

The AMFRTF has no contingencies in either the current or the immediately preceding reporting periods therefore a schedule for such items has not been included in the financial statements.

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Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis. 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).

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent as asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

Accounting Policy

5.1: Current/non-current distinction for assets and liabilities

2021 2020

$ $

Assets expected to be recovered in no more than 12 months: Cash and cash equivalents 3,732,444 2,946,067

Loans and other receivables 1,943,771 2,512,936

Prepayments 277 277

Total no more than 12 months 5,676,492 5,459,280

Assets expected to be recovered in more than 12 months: Loans and other receivables 587,787 635,718

Total more than 12 months 587,787 635,718

Total assets 6,264,279 6,094,998

Liabilities expected to be settled in no more than 12 months: Suppliers 10,828 20,240

Total no more than 12 months 10,828 20,240

Total more than 12 months - -

Total liabilities 10,828 20,240

Other information

The AMFRTF receives economic support from the Department of Defence by way of the provision of administrative support, computer and communication facilities, staff and office accommodation for the AMFRTF Secretariat. However, the Trustees consider that in the event that the support provided by the Department of Defence was withdrawn, the AMFRTF is in a position to be economically self sufficient.

-END OF FINANCIAL STATEMENTS-

5.2: Economic Dependency

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Appendix A - List of Requirements

PGPA Rule Reference Part of Report

Description Requirement

17BE Contents of annual report

17BE(a) 3 Details of the legislation establishing the body Mandatory

17BE(b)(i) 3 A summary of the objects and functions of the entity as set out in legislation

Mandatory

17BE(b)(ii) 3 The purposes of the entity as included in the entity’s corporate plan for the reporting period

Mandatory

17BE(c) 3 The names of the persons holding the

position of responsible Minister or responsible Ministers during the reporting period, and the titles of those responsible Ministers

Mandatory

17BE(d) 3 Directions given to the entity by the

Minister under an Act or instrument during the reporting period

If applicable, mandatory

17BE(e) N/A Any government policy order that applied in relation to the entity during the reporting period under section 22 of the Act

If applicable, mandatory

17BE(f) 3 Particulars of non-compliance with:

(a) a direction given to the entity by the Minister under an Act or instrument during the reporting period; or

(b) a government policy order that applied in relation to the entity during the reporting period under section 22 of the Act

If applicable, mandatory

17BE(g) 13 Annual performance statements in accordance with paragraph 39(1)(b) of the Act and section 16F of the rule

Mandatory

17BE(h), 17BE(i)

3 A statement of significant issues reported to the Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with finance law and action taken to remedy non-compliance

If applicable, mandatory

PGPA Rule Reference Part of Report

Description Requirement

17BE(j) 4 Information on the accountable authority, or each member of the accountable authority, of the entity during the reporting period

Mandatory

17BE(k) 3 Outline of the organisational structure of the entity (including any subsidiaries of the entity)

Mandatory

17BE(ka) 22 Statistics on the entity’s employees on an ongoing and non-ongoing basis, including the following: (a) statistics on full-time employees; (b) statistics on part-time employees; (c) statistics on gender; (d) statistics on staff location

Mandatory

17BE(l) 5 Outline of the location (whether or not in

Australia) of major activities or facilities of the entity

Mandatory

17BE(m) 3 Information relating to the main corporate governance practices used by the entity during the reporting period

Mandatory

17BE(n), 17BE(o)

N/A For transactions with a related Commonwealth entity or related company where the value of the transaction, or if there is more than one transaction, the aggregate of those transactions, is more than $10,000 (inclusive of GST): (a) the decision-making process

undertaken by the accountable authority to approve the entity paying for a good or service from, or providing a grant to, the related Commonwealth entity or related company; and (b) the value of the transaction, or if there

is more than one transaction, the number of transactions and the aggregate of value of the transactions

If applicable, mandatory

17BE(p) N/A Any significant activities and changes that affected the operation or structure of the entity during the reporting period

If applicable, mandatory

PGPA Rule Reference Part of Report

Description Requirement

17BE(q) N/A Particulars of judicial decisions or decisions of administrative tribunals that may have a significant effect on the operations of the entity

If applicable, mandatory

17BE(r) 9 Particulars of any reports on the entity

given by: (a) the Auditor-General (other than a report under section 43 of the Act); or (b) a Parliamentary Committee; or (c) the Commonwealth Ombudsman; or (d) the Office of the Australian

Information Commissioner

If applicable, mandatory

17BE(s) N/A An explanation of information not obtained from a subsidiary of the entity and the effect of not having the information on the annual report

If applicable, mandatory

17BE(t) N/A Details of any indemnity that applied during the reporting period to the accountable authority, any member of the accountable authority or officer of the entity against a liability (including premiums paid, or agreed to be paid, for insurance against the authority, member or officer’s liability for legal costs)

If applicable, mandatory

17BE(taa) 4 The following information about the audit committee for the entity: (a) a direct electronic address of the charter determining the functions of the audit committee; (b) the name of each member of the audit committee; (c) the qualifications, knowledge, skills or experience of each member of the audit committee; (d) information about each member’s attendance at meetings of the audit committee; (e) the remuneration of each member of the audit committee

Mandatory

17BE(ta) 22 Information about executive remuneration

Mandatory

PGPA Rule Reference Part of Report

Description Requirement

17BF Disclosure requirements for government business enterprises

17BF(1)(a)(i) N/A An assessment of significant changes in the entity’s overall financial structure and financial conditions

If applicable, mandatory

17BF(1)(a)(ii) N/A An assessment of any events or risks that could cause financial information that is reported not to be indicative of future operations or financial conditions

If applicable, mandatory

17BF(1)(b) N/A Information on dividends paid or recommended

If applicable, mandatory

17BF(1)(c) N/A Details of any community service obligations the government business enterprise has including: (a) an outline of actions taken to fulfil

those obligations; and (b) an assessment of the cost of fulfilling those obligations

If applicable, mandatory

17BF(2) N/A A statement regarding the exclusion of information on the grounds that the information is commercially sensitive and would be likely to result in unreasonable commercial prejudice to the government business enterprise

If applicable, mandatory