Department of Foreign Affairs and Trade
Notes to and Forming Part of the Financial Statements
Note 20: Administered – Financial Assets
| 2015 | 2014 | ||
|---|---|---|---|
| $’000 | $’000 | ||
| Note 20A: Trade and Other Receivables | |||
| Goods and services receivables in connection with | |||
| External parties1 | 2,043 | 1,417 | |
| Related parties | 149 | 18 | |
| Total goods and services receivable | 2,192 | 1,435 | |
| Advances and loans | |||
| Concessional loan receivable – Australia-Indonesia | |||
| Partnership for Reconstruction and Development | 141,221 | 120,394 | |
| Other – travellers emergency loans | 1,289 | 1,317 | |
| Total advances and loans | 142,510 | 121,711 | |
| Other receivables | |||
| Related entities | 9,582 | 748 | |
| Statutory receivables | 12,368 | 10,419 | |
| Net position of Efic – NIA2 | 8,291 | 485 | |
| Passport fees, passport act fines and consular fees | 1,547 | 1,437 | |
| Other | – | 58 | |
| Total other receivables | 31,788 | 13,147 | |
| Total trade and other receivables (gross) | 176,490 | 136,293 | |
| Less impairment allowance | |||
| Advances and loans – travellers emergency loans | (266) | (405) | |
| Receivables – passport act fines | (40) | (31) | |
| Receivables – external parties | (551) | (440) | |
| Total impairment allowance account3 | (857) | (876) | |
| Total trade and other receivables (net) | 175,633 | 135,417 | |
| Trade and other receivables (net) are expected to be recovered | |||
| No more than 12 months | 33,658 | 14,630 | |
| More than 12 months | 141,975 | 120,787 | |
| Trade and other receivables (gross) aged as follows | |||
| Not overdue | 174,515 | 134,559 | |
| Overdue by | |||
| 0 to 30 days | 107 | 377 | |
| 31 to 60 days | 2 | 44 | |
| 61 to 90 days | 15 | 339 | |
| More than 90 days | 1,851 | 974 | |
| Total trade and other receivables (gross) | 176,490 | 136,293 | |
| 1. Goods and services receivable are with entities external to the Australian Government. Credit terms were within 30 days (2014: 30 days). | |||
| 2. Loans on the National Interest Account (NIA) are funded from the Efic Commercial Account at fair value. The amount disclosed above reflects the Commonwealth’s exposure on business undertaken on the NIA. It reflects the net amount of: | |||
| – assets in the form of loans and rescheduled credit insurance debts to overseas governments, commitment fees on loans received by Efic but not yet paid to the Commonwealth, bond premiums receivable from exporters. | |||
| – liabilities relating to the reimbursement to Efic for debt forgiveness on loans, provision for unearned income on loan premiums, accrued expenses including Efic administration fees and other creditors. | |||
| 3. Impairment allowance account is all aged more than 90 days. | |||
| Reconciliation of the Impairment Allowance Account | ||||
| Movements in relation to 2015 | ||||
| Advances and loans | Receivables – passports | Receivables – external parties | Total | |
|---|---|---|---|---|
| $’000 | $’000 | $’000 | $’000 | |
| Opening balance | 405 | 31 | 440 | 876 |
| Amounts impaired | – | 9 | 165 | 174 |
| Amounts recovered and reversed | (139) | – | (54) | (193) |
| Closing balance | 266 | 40 | 551 | 857 |
| Movements in relation to 2014 | ||||
| Advances and loans | Receivables – passports | Receivables – external parties | Total | |
| $’000 | $’000 | $’000 | $’000 | |
| Opening balance | 403 | 31 | 199 | 633 |
| Amounts impaired | – | – | 332 | 332 |
| Amounts recovered and reversed | 2 | – | (91) | (89) |
| Closing balance | 405 | 31 | 440 | 876 |
| 2015 | 2014 | ||
|---|---|---|---|
| $’000 | $’000 | ||
| Note 20B: Other Investments | |||
| Non-monetary ‘available for sale’ IDA and ADF Subscriptions – fair value1 | 1,936,071 | 1,544,835 | |
| Efic – Commercial Account2 | 436,800 | 225,926 | |
| Tourism Australia3 | 19,502 | 16,323 | |
| Total other investments | 2,392,373 | 1,787,084 | |
| 1. The Australian Government holds these investments long term for policy reasons. The AASB 139 technical definition ‘available for sale’ does not indicate an intention to trade these investments. The investment represents subscription-based membership rights (not control) held by the Australian Government in accordance with the articles of association for the International Development Association (IDA) and the Asian Development Fund (ADF). There is no observable market value for these investments and fair value has been determined through professional valuation advice (Refer also to Notes 19, 26, 1.22). | |||
| 2. Efic’s principal activity is the provision of competitive finance and insurance services to Australian exporters and Australian companies investing in new projects overseas. The Australian Government guarantees to Efic’s creditors for the payment of monies payable by Efic on the Commercial Account (CA). The Minister for Trade and Investment has the powers to determine and instruct Efic to pay a dividend in accordance with section 55(1) of the Export Finance and Insurance Corporation Act 1991. | |||
| 3. DFAT administers Tourism Australia on behalf of the Government for oversight and management purposes and to improve linkages internationally. The department’s investment in these entities is measured at fair value as at 30 June. Fair value has been taken to be the net assets of the entity as at balance date. | |||
| Investments are expected to be recovered in | |||
| No more than 12 months | – | – | |
| More than 12 months | 2,392,373 | 1,787,084 | |
| Total other investments | 2,392,373 | 1,787,084 | |