BankVic Annual Report 2019

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Notes To and Forming Part of the Financial Statements (continued) Note 20: Key Management Personnel Disclosures continued c. Transactions with key management personnel In addition to their salaries, the Company also provides non-cash benefits to key management personnel, and contributes to post- benefit accumulation superannuation funds on their behalf. d. Key management personnel compensation The key management personnel compensation relating to employees is included in the Salaries and Related expenses on the Statement of Comprehensive Income. Compensation relating to the Directors is disclosed in the same note. The key management personnel compensation is as follows: Directors’ Fees 562,041 480,225 Directors’ Severance Benefits 110,062 126,841 Short-term employee benefits – salaries/fees/non-monetary benefits 3,031,870 2,863,332 Other long-term benefits 77,052 34,110 Post-employment benefits – superannuation contributions 181,223 206,575 e. Loans to key management personnel The following loan facilities were outstanding by key management personnel or related parties who are related to key management personnel at normal member rates during the year: 2019 $ 2018 $ 3,962,248 3,711,083 Balance owing as at 30 June 2,536,209 1,459,838 Summary of Transactions New Advances 1,688,000 473,830 Repayments made during the year 675,863 4,485,589 Interest Received on loans to key management personnel 68,738 112,856 The key personnel who held the loan/continuing credit accounts with the Company during the year were: W.G. Taylor, M. Luttick, G. Miller, D.R. Boell, L.J. Nolan, A.J. White, D. L. Robertson, R. Boissezon, S. Wall, A. De Fazio. f. Severance A formal policy for Directors’ severance benefits was approved at the Annual General Meeting in 2008. A Director appointed or elected prior to 18 November 2011 is entitled to a severance benefit upon ceasing to be a Director of the Company equivalent to the previous two years earnings where a Director has at least nine years service and the previous three years earnings where a Director has at least fifteen years service. A Director appointed or elected post 18 November 2011 who is entitled to a severance benefit, is entitled to a sum not exceeding twelve months remuneration, calculated in accordance with s200F of the Corporations Act 2001 (Cth). The severance benefit applies if a Director ceases to be a Director due to a change of control or merger or sale of a significant part of the business or the Director voluntarily resigns from office. The severance benefit does not apply if the Director fails to be re-elected or the Director dies in office or where a Director resigns subsequent to having been nominated as a candidate for Director election and before that election takes place. The amount provided for Directors’ severance benefit is estimated on an accruals basis even though a Director may not have served the required term of office. The provision at 30 June 2019 is $231,117 (2018: $440,734) and is presented in Note 16. g. Other key management personnel transactions There are no other transactions or contracts to which key management personnel are a related party. 50 | BANKVIC // ANNUAL REPORT 2019
Note 21: Financial Instruments a. Interest rate risk The Company’s exposure to interest rate risk for the classes of financial assets and financial liabilities is set out below: Financial Instruments Floating Interest Rate 1 year or less Fixed Rates Maturing In Over 1 to 5 years More than 5 years Non-interest bearing Total carrying amount as per Balance Sheet 30 June 2019 $’000 $’000 $’000 $’000 $’000 $’000 i. Financial assets Cash and Cash Equivalents 52,779 - - - 678 53,457 Receivables - - - - 1,377 1,377 Term Deposits - 57,776 - - - 57,776 Certificates of Deposit - 83,729 - - - 83,729 Floating Rate Notes 195,006 - - - - 195,006 Loans and Advances - Gross* 1,461,694 58,074 148,379 406 - 1,668,553 Equity Investments - - - - 2,225 2,225 ii. Financial liabilities 1,709,479 199,579 148,379 406 4,280 2,062,123 Payables - - - - 10,669 10,669 Deposits 1,285,100 489,202 49,331 - 26,628 1,850,261 Borrowings - - - - 13,159 13,159 1,285,100 489,202 49,331 - 50,456 1,874,089 Effective Interest Rate ranges for Financial Instruments excluding Loans and advances 0.0% - 3.32% (Loans and advance is 3.1% - 12.95%) | 51
Page 1 and 2: ANNUAL REPORT 2019
Page 3 and 4: CONTENTS Chair Message.............
Page 5 and 6: CEO Message Serving those who serve
Page 7 and 8: 2010 2014 Mobile banking launches A
Page 9 and 10: Financial Highlights Loans ($’bil
Page 11 and 12: This year, we contributed $425,967
Page 13 and 14: 5 6 7 5. Faith Page DIRECTOR Bachel
Page 15 and 16: 6 7 8 9 6. Michelle Arundel CHIEF P
Page 17 and 18: Board Evaluation The Board assesses
Page 19 and 20: Corporate Governance Committee Chai
Page 21 and 22: Directors’ Report Interests in th
Page 23 and 24: Events subsequent to balance date T
Page 25 and 26: | 25
Page 27 and 28: FINANCIAL STATEMENTS Statement of c
Page 29 and 30: Balance Sheet As at 30 June 2019 As
Page 31 and 32: Statement of Cash Flows For the yea
Page 33 and 34: Upon adoption, there have been no c
Page 35 and 36: In applying its policies on securit
Page 37 and 38: time upon completion of performance
Page 39 and 40: Note 4: Profit Profit before income
Page 41 and 42: Note 5: Income tax Income Tax Expen
Page 43 and 44: Note 9: Loans and Advances (continu
Page 45 and 46: Note 11: Property, Plant And Equipm
Page 47 and 48: Note 14: Payables 2019 $’000 2018
Page 49: Note 18: Contingent Liabilities and
Page 53 and 54: Note 21: Financial Instruments (con
Page 55 and 56: In addition, excessive concentratio
Page 57 and 58: Note 23: Regulatory Capital Reconci
Page 59 and 60: Independent Auditor’s Report To t
Page 62: Police Financial Services Limited A

BankVic Annual Report 2019

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