TORRES STRAIT REGIONAL AUTHORITY
Notes to and forming part of the financial statements for the period ended 30 June 2014
Note 6: Financial Assets
| 2014 $'000 | 2013 $'000 | |
| Note 6A: Cash and Cash Equivalents | ||
| Cash on hand or on deposit | 2,041 | 931 |
| Cash on hand or on deposit - TSRA Housing Fund | 670 | 545 |
| Total cash and cash equivalents | 2,711 | 1,476 |
TSRA's financial performance and balance sheet must be read in the context of its enabling legislation, the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and the impact of accounting standards on the valuation of financial assets.
The ATSI Act requires that funds available under the TSRA Housing Fund, including interest earnings, are to be used exclusively for housing loans. Consequently, income earned on the TSRA Housing Fund is not available for operational expenses but is directed back into new loans.
| Note 6B: Trade and Other Receivables | ||
| Goods and services receivables in connection with | ||
| External parties | 204 | 1,235 |
| Total goods and services receivables | 204 | 1,235 |
| Other receivables | ||
| GST receivable from the Australian Taxation Office | 955 | 1,681 |
| Loans | 5,362 | 5,319 |
| Total other receivables | 6,317 | 7,000 |
| Total trade and other receivables (gross) | 6,521 | 8,235 |
| Less impairment allowance | ||
| Goods and services | - | (65) |
| Loans | (112) | (115) |
| Total impairment allowance | (112) | (180) |
| Total trade and other receivables (net) | 6,409 | 8,055 |
| Trade and other receivables (net) expected to be recovered in | ||
| No more than 12 months | 1,878 | 3,524 |
| More than 12 months | 4,531 | 4,531 |
| Total trade and other receivables (net) | 6,409 | 8,055 |
| Trade and other receivables (gross) aged as follows | ||
| Not overdue | 6,477 | 8,030 |
| Overdue by: | ||
| 0 to 30 days | 12 | 18 |
| 31 to 60 days | 7 | 7 |
| 61 to 90 days | 6 | 8 |
| More than 90 days | 19 | 172 |
| Total trade and other receivables (gross) | 6,521 | 8,235 |
| Impairment allowance aged as follows | ||
| Overdue by: | ||
| More than 90 days | (112) | (180) |
| Total impairment allowance | (112) | (180) |
Credit terms are net 30 days (2013: 30 days).
TORRES STRAIT REGIONAL AUTHORITY
Notes to and forming part of the financial statements for the period ended 30 June 2014
| 2014 $'000 |
2013 $'000 |
|
| TSRA holds a portfolio of concessional loans that are provided for business development and home ownership programs. The values of these loans as at 30 June 2014 are as follows: | ||
| Concessional loans - nominal value | 5,831 | 5,761 |
| Less: unexpired discount | (469) | (442) |
| Concessional loans - carrying value | 5,362 | 5,319 |
Loans to individuals and businesses were made under the Business Funding Scheme for periods up to 10 years and Home Loans for periods up to 32 years. In relation to the housing loans, TSRA holds mortgages as sole mortgagor over the houses for which the loans are provided. TSRA receives market advice from a qualified valuer or market expert on the value of a property prior to the loan being approved. In relation to Business Funding Scheme loans, from 2007-08 TSRA has required that inexperienced business owner(s) successfully complete an approved business course and submit a business plan prior to the loan being approved. Security is not required for Business Funding Scheme loans. Principal is repaid in full at maturity. Interest rates for Business Funding Scheme loans were fixed in accordance with the loan contracts. Housing Loan interest rates were varied on 1 January 2014 in accordance with the loan contracts. Effective interest rates average 4.21% (2013: 4.17%) for Business Funding Sche me loans and 5.06% (2013: 5.29%) for Housing loans.
Reconciliation of the Impairment Allowance:
Movements in relation to 2014
| Movements in relation to 2014 | |||
| Goods and services $'000 |
Loans $'000 |
Total $'000 |
|
| Opening balance | (65) | (115) | (180) |
| Amounts recovered and reversed | 65 | 3 | 68 |
| Closing balance | - | (112) | (112) |
| Movements in relation to 2013 | |||
| Goods and services $'000 |
Loans $'000 |
Total $'000 |
|
| Opening balance | (57) | (123) | (180) |
| Amounts written off | - | 3 | 3 |
| Amounts recovered and reversed | - | 5 | 5 |
| Increase recognised in net surplus | (8) | - | (8) |
| Closing balance | (65) | (115) | (180) |
| 2014 $'000 | 2013 $'000 | |
| Note 6C: Other Investments | ||
| Term deposits | 30,321 | 30,000 |
| Term deposits - TSRA Housing Fund | 7,073 | 6,800 |
| Total other investments | 37,394 | 36,800 |
| Other investments are expected to be recovered in: | ||
| No more than 12 months | 37,394 | 36,800 |
| Total other investments | 37,394 | 36,800 |
Term deposits were invested at 30 June 2014 for $29,139,946 (3.65% interest rate maturing on 25 October 2014), $2,080,956 (3.66% interest rate maturing on 30 October 2014) and $6,172,911 (2.5% interest rate maturing on 19 September 2014).