Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p13
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 13/76)
Character Range: 59907–65213

C – Operational risk reserve

An operational risk reserve is required under Australian Prudential Regulation Authority Standards to maintain adequate financial resources to address potential losses arising from operational risks.  The Trustee has assessed a reserve of approximately 0.25% of funds under management as being appropriate for the Plan.

Income Statement for Defined Contribution Superannuation Plan
for the year ended 30 June 20XX

                                                             Note  $000
Superannuation activities
Interest revenue – direct cash deposits                            8,152
Distributions from cash management trusts                          211,534
Interest from Australian securities held directly                  282,045
Interest from overseas securities held directly                    66,283
Dividend revenue – listed Australian shares held directly          286,794
Distributions from wholesale international share trusts            99,325
Net rentals from directly held property                            28,068
Distributions from unlisted property trusts                        82,407
 Net remeasurement changes in assets measured at fair value        1,903,074
 Total superannuation activities revenue                           2,967,682

Investment expenses                                                (55,972)
Administration expenses                                            (41,662)
Other operating expenses                                     E     (1,642)
Total expenses                                                     (99,276)

Net income from superannuation activities                          2,868,406
Net loss from insurance activities                           F     (36)
Profit from operating activities                                   2,868,370

Less: Net benefits allocated to members' accounts                  (2,635,776)
Profit before income tax                                           232,594
Income tax expense                                                 (235,553)
Loss after income tax                                              (2,959)

Note D – Total revenue             $000

Superannuation activities revenue  2,967,682
Insurance contract revenue         77,810
                                   3,045,492

Note E – Other operating expenses  $000

Trustee fees                       (298)
Commissions paid directly          (323)
Audit fees                         (309)
Advertising and sponsorship        (712)
Other operating expenses           (1,642)

Note F – Insurance activities        $000

Insurance contract revenue           77,810
Less: Outwards reinsurance premiums  (77,806)
Net premium revenue                  4
Reinsurance recoveries revenues      23,219
Insurance contract claims expenses   (22,833)
Movement in insurance liabilities    (1,059)
Movement in reinsurance assets       633
Net loss from insurance activities   (36)

Statement of Changes in Member Benefits for Defined Contribution Superannuation Plan
for the year ended 30 June 20XX

                                                             $000
Opening balance of member benefits                           18,014,382
Contributions:
 Employer                                                    2,622,940
 Member                                                      241,812
 Transfers from other superannuation plans                   704,162
 Government co-contributions                                 27,746
Income tax on contributions (refer Note G)                   (416,373)
Net after tax contributions                                  3,180,287

Benefits to members                                          (811,432)
Insurance premiums charged to members' accounts              (77,810)
Death and disability benefits credited to members' accounts  23,880
Benefits allocated to members' accounts, comprising:
 Net investment income                                        2,677,097
 Administration fees                                          (41,321)   2,635,776
Closing balance of member benefits                           22,965,083

Note G – Income tax on contributions  $000

Contributions tax                     (415,616)
Contributions surcharge               (757)
                                      (416,373)

Statement of Changes in Reserves for Defined Contribution Superannuation Plan
for the year ended 30 June 20XX

                                Unallocated surplus/ (deficiency)
                                                                   Investment reserve  Operational  Total equity
                                                                                       risk
                                $000                               $000                $000         $000
Opening balance                 –                                  3,330               57,341       60,671
Profit/(Loss) for period        (2,959)                            –                   –            (2,959)
Net transfers to/from reserves  2,959                              (1,675)             (1,284)      –
Closing balance                 –                                  1,655               56,057       57,712

Statement of Cash Flows for Defined Contribution Superannuation Plan
for