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Services Trust Funds Act - Royal Australian Navy Relief Trust Fund - Report for - 1988


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Services Trust Funds Act 1947

Royal Australian Navy Relief Trust Fund Reports by the Trustees for the year 1 January 1988-31 December 1988

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The Services Trust Funds A c t 1947

Report by the Trustees of

Royal Australian Navy Relief IVust Fund for the year 1 January to 31 December 1988

Australian Government Publishing Service Canberra

Trustees of the Royal Australian Navy Relief Trust Fund

Rear-Admiral Anthony Michael Carwardine, AM, RAN (Chairman) Commodore John Raymond Da Costa, RAN Commander Michael John Lehan, r a n e m Lieutenant-Commander Edwin Harold Kendall-Torry, RAN Commander Andrew Gloag Dalgleish, BEM, RAN (RETIRED) (Secretary)

© Commonwealth of Australia 1988 ISSN 0811-4234

THE PARLIAMENT" OF THE COMMONWEALTH O F A U STR A LIA PARLIAMENTARY PAPER

No. 2 0 8 OF 1989

Ordered to be printed by authority ά

ISSN G727-41R1

Printed in Australia by Ambassador Press Pty. Ltd., Granville.

ADMINISTRATIVE AGENCIES

New South Wales HMAS Albatross Nowra

HMAS Kuttabul Sydney

HMAS Nirimba Sydney

HMAS Penguin Sydney

HMAS Platypus Sydney

HMAS Waterhen Sydney

HMAS Watson Sydney

Command Personal Services Office Sydney

Australian Capital Territory HMAS Creswell Jervis Bay

HMAS Harman Canberra

Victoria HMAS Cerberus Western Port

Western Australia HMAS Stirling Rockingham

Command Personal Services Office Rockingham

Queensland HMAS Moreton Brisbane

HMAS Cairns Cairns

Tasmania HMAS Huon Hobart

South Australia HMAS Encounter Port Adelaide

Northern Territory HMAS Coonawarra Darwin

HMA Ships HMAS Adelaide

HMAS Brisbane HMAS Canberra HMAS Cook HMAS Darwin HMAS Derwent HMAS Hobart HMAS Jervis Bay HMAS Moresby HMAS Parramatta HMAS Perth

HMAS Stalwart HMAS Stuart HMAS Success HMAS Swan HMAS Sydney HMAS Tobruk HMAS Torrens

United States of America HMAS Waratah Washington

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Annual Report of the Trustees 1988

The Hon. David Simmons, MP Minister for Defence Science and Personnel

Sir, 1. The Trustees of the Royal Australian Navy Relief Trust Fund have the honour to submit their report for the period 1 January to 31 December, 1988, under the terms of section 34 of the Services Trust Funds Act, 1947.

PURPOSE 2. Generally, the object of the Fund is to provide relief for eligible persons who require financial assistance either by means of grants or interest free loans.

ADMINISTRATION 3. The responsibility for the administration of the Fund rests, under the Act, with the Trustees, who have held quarterly meetings during the year. The responsibility for receiving and investigating applications for financial assistance is delegated by

the Trustees to various agencies, authorised to make loans up to a limit of $300.00 without prior reference to the Trustees. Should an agency consider that a loan is justified, which in itself or in combination with any amount outstanding from previous loans apart from Housing and Furniture loans would exceed $300.00 the

case is referred to the Trustees for decision. In each Agency, authority to exercise the function of Agent, within the limits set out above, is delegated by the Trustees to the Commanding Officer by an Instrument of Delegation signed under seal. A monthly schedule of loans and grants

made is rendered by each Agency, with the exception of the overseas Agency who renders the schedule half-yearly, setting out the reasons for assistance. The Com­ manding Officer may select an officer to act as Treasurer. Each Agency is given an advance, and expenditure is reimbursed monthly from

the central fund with the exception of the overseas Agency. The advance comprises a basic figure to cover expenditure on the Commanding Officer’s authority plus an amount to meet the Agent’s estimated expenditure during the month on loans approved by the Trustees. Advances are made to the Overseas Agency as required.

The monthly and half-yearly accounts of each Agency are audited by the Supply Officer of the Ship or Establishment before despatch to the Trustees. The central accounts of the fund are subject to audit by the Australian Audit Office, and are reported upon by the Auditor-General in his Annual Report.

ASSISTANCE RENDERED 4. A. GRANTS TO WIDOWS Widows Grants amounting to $1,700.00 were made during 1988.

B. OTHER GANTS Assistance grants to distressed ex-Naval Personnel, or their dependants, totalling $2,139.00 were made during the period under review.

C. GRANTS FOR HOUSEKEEPING SERVICES The sum of $40,712.82 was paid out as grants for housekeeping services in order to assist Naval families in time of crisis through illness and other emergencies. A total of two hundred and fifteen families was assisted

through the year.

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D. LOANS The reasons for which loans were made during the last two years are as follows:

Loans made Percentage o f cases Year ended Year ended Year ended Year ended 31 Dec. 87 31 Dec. 88 31 Dec. 87 31 Dec. 88

Housing............................. 9 26 0.3 0.8

Furniture............................ 2 846 3 Oil 95.8 96.5

Medical ............................. 4 6 0.1 0.2

Travelling and Removals 15 11 0.5 0.4

Domestic (overdue accounts) ........... 67 47 2.3 1.5

Legal .................................. 10 3 0.3 0.1

Funeral............................... 9 6 0.3 0.2

Other R easons.................. 12 8 0.4 0.3

2 972 3 118 100.0 100.0

Expenditure on loans during the last two years is as follows:

Year ended 31 Dec. 87 $

Year ended 31 Dec. 88 $

Housing L oans.............. ........ 11 000.00 32 500.00

Furniture Loans............ ........ 3 383 276.00 3 588 438.00

Other Loans .......................... 77 126.00 57 544.75

3 471 402.00 3 678 482.75

Loans are repaid by means of fortnightly allotments through the Defence Pay system or by cash repayments. Interest free loans are made available to assist both married and unmarried members to purchase a home or land on which to build a home; for maintenance or alterations to a home already owned; or to furnish a home. The maximum amount of each loan is limited to $1 200.00. Further loans of up to $1 200.00 to a total value of $5 000.00 may be allowed after each loan has been fully repaid. The total value of loans may be increased to $7 000.00 for members who have completed 12 years service, and to $9 000.00 for members who have completed 20 years service.

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FINANCIAL POSITION 5. Accumulated funds increased by $179 816.36 during the year under review, mainly due to contributions of $112 739.62 from the RAN Central Canteens fund. Interest from all sources was $41 092.10.

A comparison of the Funds assets for 1987 and 1988:

The Fund’s Assets A t 31 Dec. 87 A t 31 Dec. 88

$ $

Invested Capital ...................................... 470 283.98 412 911.49

Working Capital ...................................... I l l 917.46 206 749.14

Out on Loan ............................................. 1 526 015.67 1 654 208.28

Accrued Interest...................................... 943.00 12 814.63

2 109 160.11 2 286 683.54

Financial Statements for the year ended 31 December 1988, are submitted herewith.

Yours faithfully,

A.M. CARWARDINE Rear Admiral, RAN

J.R. DA COSTA Commodore, RAN

M.J. LEHAN Commander, RANEM

E.H. KENDALL-TORRY Lieutenant Commander, RAN

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ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND STATEMENT OF ACTIVITY FOR THE YEAR ENDED 31 DECEMBER 1988

1987 1988

$ $ Notes $ $

REVENUE

14,382.87 Interest (2) 41,092.10

RAN Central Canteens

108,179.02 Fund - Contributions

- Reimbursement of Grants for Housekeeping

(3) 112 739.62

76 241.15 Services (4) 94 072.81

28.96 198 832.00 Miscellaneous (5) 847.15 248 751.68

EXPENSES

37 426.33 Grants (6) 44 551.82

938.00 Bad and Doubtful Debts 1 289.80

6 578.00 Audit Fees (7) 6 970.00

Australian Government Employees

65.10 Compensation 65.10

239.00 Insurance (8) 239.00

9 300.00 Salary Secretary 10 338.00

1 600.00 Machine Accounting (9) 1 650.00

1 780.00 Travelling (10) 1 650.00

1 538.50 59 464.93 Miscellaneous (11) 2 181.60 68 935.32

OPERATING SURPLUS OF REVENUE OVER EXPENSES TRANSFERRED 139 367.07 TO CAPITAL ACCUMULATION 179 816.36

The accompanying notes form an integral part of these statements.

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ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND STATEMENT OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 1988

1987 1988

S $ Notes $ $

CAPITAL ACCUMULATION Balance as at

1 913 916.51 1 January 1988 2 053 283.58

Surplus of Revenue over Expenses transferred from

139 367.07 2 053 283.58 Statement of Activity 179 816.36 2 233 099.94

This is represented by:

CURRENT ASSETS

470 283.98 Investments 412 911.49

54 726.95 Cash at Bank 151 126.61

57 190.51 Agency Advances 55 622.53

1 530 015.67 Loans Outstanding (12)

Less: Provision for

1 658 208.28

4 000.00 1 526 015.67 Doubtful Debts 4 000.00 1 654 208.28

943.00 Accrued Income (13) 12 814.63

2 109 160.11 TOTAL ASSETS 2 286 683.54

CURRENT LIABILITIES RANCCF Contributions for Housekeeping Services Received in 38 583.33 Advance 39 697.40

17 054.20 Sundry Creditors (14) 6 677.20

239.00 Accrued Expenses (7, 8) 7 209.00

55 876.53 TOTAL LIABILITIES 53 583.60

2 053 283.58 NET ASSETS 2 233 099.94

The accompanying notes form an integral part of these statements.

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ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS FOR THE YEAR ENDED 31 DECEMBER 1988 1987 1988

$_____________________________________________________ $

SOURCES OF FUNDS Funds from Operations (Note 1 below)

198 832.00 Inflows of Funds from Operations 248 751.68

58 526.93 Outflows of Funds from Operations 67 645.52

140 305.07 181 106.16

Reduction in Assets

274 216.16 Cash at Bank —

149.00 Accrued Income —

— Investments 57 372.49

— Agency Advances 1 567.98

3 622 456.62 Loan Repayments 3 581 849.33

Increase in Liabilities

337.86 Unclaimed Monies 79.00

Advance from RANCCF for Housekeeping 15 516.66 Services 1 114.07

_____ 239.00 Accrued Expenses 6 970.00

4 053 220.37 3 830 059.03

APPLICATIONS OF FUNDS Increase in Assets

470 283.98 Investments 17 324.92 Agency Advances — Cash at Bank 96 399.66

— Accrued Income 11 871.63

3 560 918.56 New Loans 3 711 331.74

Reduction in Liabilities 4 692.91 Outstanding Refunds 10 456.00

4 053 220.37 3 830 059.03

Notes (1) RECONCILIATION OF OPERATING RESULT WITH FUNDS FROM OPERATIONS

140 305.07 Funds from Operations 181 106.16

Less Non-Fund Item

938.00 Bad Debts 1 289.80

139 367.07 Operating Surplus 179 816.36

The accompanying notes form an integral part of these statements.

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ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

NOTES TO AND FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 1988

Summary of Accounting Policies 1. Accounting Basis and Valuation — The financial statements have been prepared in accordance with the Guide­ lines for the Form and Standard of Financial Statements of Commonwealth

Undertakings issued by the Minister for Finance and encompass the accrual and going concern bases. Accounts are kept in historical costs.

Foreign Currency Transactions — Foreign currency gains and losses on transactions are brought to account in the period in which they are realised.

Commitments — The Trust has not entered into any arrangements for capital expenditure, lease or hire commitments.

Resources Provided “Free of Charge” — Because of the nature of the Fund, certain resources such as accommodation, office equipment, stationery, salaries, telephones, printing are provided free of charge by the Department of Defence. It has not been possible to de­

termine the value of these services to the Fund although 3 service personnel, whose annual salaries total $83 446.00 are employed full-time by the Fund.

2. Interest — Consists of interest from Bank Accounts of $1 445.74 ($3 885.74) and In­ vestment Interest of $39 646.36 ($10 497.13).

3. RAN Central Canteens Fund Contributions — Consists of 2 half yearly contributions as decided upon by the RAN Central Canteens Board.

4. Reimbursement of Grants for Housekeeping Services — Consists of 2 bulk payments received in advance in May and November as decided upon by the RAN Central Canteens Board and Donations from the Naval Wives Groups specifically for Housekeeping Services totalling

$1 250.00 ($700.00).

5. Miscellaneous — Consists of Bank Account Debit Tax (BAD) and Financial Institutions Duty (FID) reversals from previous charges imposed incorrectly by the bank to RAN Relief Trust Fund accounts $847.15 ($28.96).

6. Grants — Consists of Housekeeping Grants of $40 712.82 ($28 355.13), Widows Grants of $1 700.00 ($6 350.00) and Assistance Grants of $2 139.00 ($2 721.20).

7. Audit Fees — Consists of Audit Fees payable in November 1988 and not yet paid $6 970.00.

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8. Insurance — Consists of premiums in respect of Public Liability Insurance due for payment in November 1988 and not yet paid $239.00.

9. Machine Accounting — Consists of Computer and Photocopying facilities from the Naval Health Benefits Society (NHBS), based on a mutually agreed assessment of costs.

10. Travelling — Consists of air fares of 2 Trustees and Secretary for quarterly meetings.

11. Miscellaneous — Consists of bank charges, purchase of Bank Audit Certificates, purchase of stationery, net Loss on Exchange in overseas accounts, service cost of sum­ mons and FID and BAD charges (see note 5 above).

12. Loans Outstanding/Provision for Doubtful Debts — Standing provision of $4 000.00 is maintained for doubtful debts. The ad­ equacy of the provision is regularly reviewed.

— Sundry debtors for loans:

Balance 1 January add new loans, refunds etc.

less repayments Bad debts

Balance as at 31 December

1988

$1 530 015.67 $3 711 331.74 $5 241 347.41 $3 581 849.33 $ 1 289.80

$3 583 139.13 $1 658 208.28

1987

$1 592 491.73 $3 560 918.56 $5 153 410,29 $3 622 456.62

$ 938.00

$3 623 394.62 $1 530 015.67

13. Accrued Income — Consists of Bank Interest accrued for agencies, Short Term Call Account and Head Office main account of $12 814.63 ($943.00).

14. Sundry Creditors — Consists of Unclaimed monies of $1 802.63 ($1 723.63) allotments com­ menced on loans not yet paid out and outstanding refunds due at 31 Decem­ ber 1988 of $4 874.57 ($15 330.57).

In our opinion the Statement of Activity, Statement of Assets and Liabilities, Statement of Sources and Applications of Funds and Notes to and forming part of the financial statements show fairly the operations of the Royal Australian Navy Relief Trust Fund for the year ended 31 December 1988 and state of affairs as at that date. The statements have been made out in accordance with the Guidelines for the Form and Standard of Financial Statements of Commonwealth Undertakings.

Rear Admiral, RAN ·, Trustees

Commodore, RAN / RAN Relief

Commander, RANEM 1 Trust

Lieutenant Commander, RAN / Fund

Commander, RAN (Rtd) Secretary

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STATEMENT PURSUANT TO SECTION 8 OF THE FREEDOM OF INFORMATION ACT

ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND

ESTABLISHMENT The Trustees and the Trust Fund were established in accordance with the Services Trust Funds Act 1947.

ORGANISATION The office of Trustees is located in Melbourne.

FUNCTIONS The Trustees assist and alleviate need amongst serving members and their families through grants and interest-free loans, and assist distressed ex-members and their dependants with grants.

POWERS The Trustees may grant assistance to eligible applicants.

FOI PROCEDURES AND INITIAL CONTACT POINTS Requests for access to documents of the Trustees should be directed to the Trustees of the RAN Relief Trust Fund, Department of Defence (Navy), Victoria Barracks, St Kilda Road, Melbourne, Vic. 3004.

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COMMONWEALTH OF AUSTRALIA AUSTRALIAN AUDIT OFFICE Victorian Region

16 June 1989 The Honourable the Minister for Defence Science and Personnel Parliament House CANBERRA ACT 2600

Dear Minister ROYAL AUSTRALIAN NAVY RELIEF TRUST FUND AUDIT REPORT ON FINANCIAL STATEMENTS Section 34 of the Services Trust Funds Act 1947 declares the Trustees of the Royal Australian Navy Relief Trust Fund to constitute a public authority to which Division 3 of Part XI of the Audit Act 1901 applies. That Division (sections 63J to 63M) prescribes certain matters relating to the accounts and financial statements of the Trust Fund and their audit. Pursuant to sub-section 63M(2) of the Audit Act, the Trustees of the Royal Australian Navy Relief Trust Fund have submitted for my report the financial statements of the Fund for the year ended 31 December 1988. The statements comprise:

• Statement of Activity • Statement of Assets and Liabilities • Statement of Sources and Applications of Funds and • Notes to and Forming Part of the Financial Statements. The statements have been prepared in accordance with the policies outlined in Note 1 to the accounts and in accordance with the Guidelines for the Form and Standard of Financial Statements of Com­ monwealth Undertakings approved by the Minister for Finance. The statements are in the form approved by the Minister for Finance pursuant to sub-section 63M(1) of the Audit Act. A copy of the statements is enclosed for your information. The statements have been audited in conformance with the Australian Audit Office Auditing Standards.

In accordance with sub-section 63M(2) of the Audit Act, I now report that the statements are in agreement with the accounts and records of the Royal Australian Navy Relief Trust Fund and, in my opinion: • the statements are based on proper accounts and records

and

• the receipt, expenditure and investment of moneys and the acquisition and disposal of assets by the Fund during the year have been in accordance with the Services Trust Funds Act.

Yours sincerely AUSTRALIAN AUDIT OFFICE

M.P. Mangin Regional Manager.

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