ECCB 2016/2017 Annual Report

ECCB ANNUAL REPORT 2016/2017

131

Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2017 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2017

11. Accounts receivable and prepaid expenses

2017 $

2016 $

18,794,813 10,625,337 652,129 30,072,279

Prepaid expenses Accounts receivable Staff mortgage loans

26,067,510 7,058,880 900,928 34,027,318

Provision for impairment of receivables

(1,255,109)

(1,315,109)

28,817,170

32,712,209

Current

13,586,940

12,557,177

Non-current

15,230,230

20,155,032

28,817,170 32,712,209 Staff mortgage loans accrue interest at a rate of 4% per annum and are secured by real estate property with variable repayment terms. As the loans are granted at a preferential interest rate, this has given rise to a short term employee benefit asset in the amount of $184,788 (2016: $261,227) at the statement of financial position date. This amount is included in prepaid expenses. The Bank’s receivables have been assessed for indicators of impairment. Accounts receivable include amounts that are past due for which the Bank has recognised a specific provision for impairment of receivables after the assessment. The provision for impairment of receivables is assessed by reference to collectability by conducting aging analysis and assessing the current financial condition of debtors. An amount due from the Eastern Caribbean Enterprise Fund (ECEF) was found to be impaired following the receipt of a letter from the Board of Directors of the ECEF dated 7 April 2016 indicating that the operations of the company had been suspended. Accordingly, a provision for impairment of $1,315,109 had been recorded for the year ended 31 March 2016. During the current financial year, the provision has been reduced by $60,000 as a result of the recovery of impaired receivables. Reconciliation of provision for impairment on accounts receivable The movement in provision for impairment on accounts receivable is as follows: 2017 $ 2016 $ Balance, beginning of year 1,315,109 - Provision during the year - 1,315,109 Amounts recovered during the year (60,000) - Balance, end of year 1,255,109 1,315,109

67