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Note 26: Special Accounts and FMA Act Section 39 Investments

Note 26A. Special Accounts (’Recoverable GST exclusive’)

Special Accounts
  Other trust moneys (Special Public Money)1 Australians at War Account (Special Public Money)2 Military Death Claim Special Account (Special Public Money)3 Defence Service Homes Insurance Account (Departmental)4 Services for Other Entities and Trust Moneys Special Account - Department of Veterans’ Affairs5 Anzac Centenary Public Fund Special Account6
  2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
2013
$’000
2012
$’000
Balance brought forward from previous period - 77 203 194 732 288 1,550 1,834 99 - - -
Increases:                        
Appropriation credited to special account - - - - - - - - - - - -
Royalties received - - 22 9 - - - - - - - -
Realised investments - - - - 1,970 1,550 9,300 12,600 - - - -
Premiums received - - - - - - 34,996 30,762 - - - -
Other receipts - 53 - - 507 675 5,354 21,898 63 99 1 -
Exchange rate variances - - - - - - - - - - - -
Total increases - 53 22 9 2,477 2,225 49,650 65,260 63 99 1 -
Available for payments - 130 225 203 3,209 2,513 51,200 67,094 162 99 1 -
Decreases:                        
Departmental                        
Claim payments - - - - - - (27,840) (36,858) - - - -
Reinsurance premiums paid - - - - - - (7,225) (5,999) - - - -
Other payments - - - - - - (8,260) (8,087) (87) - - -
Total Departmental decreases - - - - - - (43,325) (50,944) (87) - - -
Special Public Money                        
Payments made for ad-hoc requests - - - - (6) (19) - - - - - -
Payments made to beneficiaries on attaining 18 years of age - - - - (650) (262) - - - - - -
Investments made from the special account (FMA Act s39) - - - - (2,020) (1,500) (6,000) (14,600) - - - -
Other payments made - (130) - - - - - - - - - -
Total special public money decreases - (130) - - (2,676) (1,781) (6,000) (14,600) - - - -
Total decreases - (130) - - (2,676) (1,781) (49,325) (65,544) (87) - - -
Total balance carried to the next period - - 225 203 533 732 1,875 1,550 75 99 1 -

Notes to and forming part of the financial statements

Note 26A. Special Accounts (Recoverable GST exclusive) (continued)

1. Appropriation: Financial Management and Accountability Act 1997, s. 20
Establishing Instrument: Financial Management and Accountability Act 1997, s. 20, Initial Determination to Establish Components of the Reserved Money Fund.
Purpose: To receive donations from veterans and others for the purposes of maintaining and improving OAWG facilities as either specified by the donor or for other general purposes.

Hellfire Pass Memorial account was abolished on 26 June 2012 by the Financial Management and Accountability (Abolition of 24 Special Accounts) Determination 2012/02. On 26 June 2012 the carrying balance of this account was recognised as a receipt to Services for Other Entities and Trust Moneys Special Account . Department of Veterans. Affairs special account.

2. Appropriation: Financial Management and Accountability Act 1997, s. 20 Establishing Instrument: Financial Management and Accountability Determination 2005/07 Purpose: For promoting ‘Australians at War’ documentary and educate the community about Australia’s wartime heritage. This account is non-interest bearing.

3. Appropriation: Financial Management and Accountability Act 1997, s. 20 Establishing Instrument: Financial Management and Accountability Determination 2005/07 Purpose: Administration of Death Claim Compensation amounts on behalf of dependents of a Defence Force member after the member’s death. This account is non-interest bearing.

4. Appropriation: Financial Management and Accountability Act 1997, s. 21 Establishing Instrument: Defence Service Homes Act 1918, s. 40 Purpose: To make all payments by the Commonwealth in connection with its activities as insurer under Defence Service Homes Act 1918, s. 40.

5. Appropriation: Financial Management and Accountability Act 1997, s. 20 Establishing Instrument: Financial Management and Accountability (Establishment of SOETM Special Account . DVA) Determination 2012/10 Purpose: To receive donations from veterans and others for the purposes of maintaining and improving OAWG facilities as either specified by the donor or for other general purposes. This account is non-interest bearing and was established on 26 June 2012 by the Financial Management and Accountability (Establishment of SOETM Special Account - DVA) Determination 2012/10.

6. Appropriation: Financial Management and Accountability Act 1997, s. 20 Establishing Instrument: Financial Management and Accountability (Anzac Centenary Public Fund Special Account) Determination 2013/02 Purpose: To receive gifts or contributions of money to provide funding for events, projects, initiatives and activities relating to the Anzac Centenary

Notes to and forming part of the financial statements

Note 26B. Investments Made under section 39 of the FMA Act (’Recoverable GST exclusive’)

Investments Made under section 39 of the FMA Act
2013 Balance brought forward from previous period $’000 Investments made $’000 Investment income $’000 Movement in value of realised investments $’000 Investments realised $’000 Total balance carried to the next period $’000
Defence Service Homes Act 1918, s40 48,746 6,000 1,601 (117) (9,300) 46,930
Financial Management and Accountability Determination 2005/07 1,450 2,020 94 - (2,064) 1,500
2012 Balance brought forward from previous period $’000 Investments made Investment income Movement in value of realised investments $’000 Investments realised $’000 Total balance carried to the next period
Defence Service Homes Act 1918, s40 44,817 14,600 2,137 (208) (12,600) 48,746
Financial Management and Accountability Determination 2005/07 1,500 1,500 90 - (1,640) 1,450

Investment strategy

Defence Service Homes Act 1917, s49 Monies are invested according to strategies laid out by the Investment Committee. The objective of DSHIS’s investments is “To achieve an annual return net of costs equivalent to at least the RBA cash rate”. Monies are invested according to strategies laid out by the Investment Committee. The account is restricted to invest in assets prescribed in Section 39 of the Financial Management Accountability Act 1997.

Financial Management and Accountability Determination 2005/07 Monies are invested to achieve the objective of “making a maximum return on investments within risk tolerance guidelines”. To achieve this objective, investments are only made in assets prescribed in Section 39 of the Financial Management Accountability Act 1997.

Notes to and forming part of the financial statements

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