rockdale city council city council is a body politic of nsw, australia - being constituted as a...

Rockdale City Council GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2014

One Community, Many Cultures, Endless Opportunity

Financial Statements 2014

page 1

Rockdale City Council

General Purpose Financial Statements for the financial year ended 30 June 2014

Contents

1. Understanding Council's Financial Statements

2. Statement by Councillors & Management

3. Primary Financial Statements:

- Income Statement- Statement of Comprehensive Income- Statement of Financial Position- Statement of Changes in Equity- Statement of Cash Flows

4. Notes to the Financial Statements

5. Independent Auditor's Reports:

- On the Financial Statements (Sect 417 [2]) - On the Conduct of the Audit (Sect 417 [3])

Overview

(i) These financial statements are General Purpose Financial Statements and cover the consolidated operationsfor Rockdale City Council.

(ii) Rockdale City Council is a body politic of NSW, Australia - being constituted as a Local Government areaby proclamation and is duly empowered by the Local Government Act (LGA) 1993 of NSW.

Council's Statutory Charter is detailed in Paragraph 8 of the LGA and includes giving Council;

the ability to provide goods, services & facilities, and to carry out activities appropriate to the current & futureneeds of the local community and of the wider public,

the responsibility for administering regulatory requirements under the LGA and

a role in the management, improvement and development of the resources in the area.

A description of the nature of Council's operations and its principal activities are provided in Note 2(b).

(iii) All figures presented in these financial statements are presented in Australian Currency.

(iv) These financial statements were authorised for issue by the Council on 15 October 2014.Council has the power to amend and reissue these financial statements.

Page

4

67

5

2

3

8

9

8183

Financial Statements 2014_

Rockdale City Council Notes to the Financial Statements for the financial year ended 30 June 2014 Understanding Council's Financial Statements

page 2

Introduction Each year, individual Local Governments across NSW are required to present a set of audited financial statements to their Council & Community. What you will find in the Statements The financial statements set out the financial performance, financial position & cash flows of Council for the financial year ended 30 June 2014. The format of the financial statements is standard across all NSW Councils and complies with both the accounting & reporting requirements of Australian Accounting Standards and requirements as set down by the Office of Local Government. About the Councillor/Management Statement The financial statements must be certified by Senior staff as "presenting fairly" the Council's financial results for the year, and are required to be adopted by Council - ensuring both responsibility for & ownership of the financial statements. About the Primary Financial Statements The financial statements incorporate 5 "primary" financial statements: 1. The Income Statement

Summarises Council's financial performance for the year, listing all income & expenses. This statement also displays Council's original adopted budget to provide a comparison between what was projected and what actually occurred. 2. The Statement of Comprehensive Income

Primarily records changes in the fair values of Council's Infrastructure, Property, Plant & Equipment. 3. The Statement of Financial Position

A 30 June snapshot of Council's financial position indicating its Assets, Liabilities & “Net Wealth”. 4. The Statement of Changes in Equity

The overall change for the year (in dollars) of Council's "Net Wealth".

5. The Statement of Cash Flows

Indicates where Council's cash came from and where it was spent. This statement also displays Council's original adopted budget to provide a comparison between what was projected and what actually occurred.

About the Notes to the Financial Statements The Notes to the financial statements provide greater detail and additional information on the 5 primary financial statements. About the Auditor's Reports Council's financial statements are required to be audited by external accountants (that generally specialize in Local Government). In NSW, the Auditor provides 2 audit reports: 1. An opinion on whether the financial statements

present fairly the Council's financial performance & position, &

2. Their observations on the conduct of the Audit

including commentary on the Council's financial performance & financial position.

Who uses the Financial Statements ? The financial statements are publicly available documents & must be presented at a Council meeting between 7 days & 5 weeks after the date of the Audit Report. Submissions from the public can be made to Council up to 7 days subsequent to the public presentation of the financial statements. Council is required to forward an audited set of financial statements to the Office of Local Government.



General Purpose Financial Statements for the financial year ended 30 June 2014

Statement by Councillors and Management made pursuant to Section 413(2)(c) of the Local Government Act 1993 (as amended)

The attached General Purpose Financial Statements have been prepared in accordance with:

• The Local Government Act 1993 (as amended) and the Regulations made thereunder,

• The Australian Accounting Standards and professional pronouncements, and

• The Local Government Code of Accounting Practice and Financial Reporting.

To the best of our knowledge and belief, these Financial Statements:

• present fairly the Council's operating result and financial position for the year, and

• accords with Council's accounting and other records.

We are not aware of any matter that would render the Reports false or misleading in any way.

Signed in accordance with a resolution of Council made on 15 October 2014.

Councillor Shane O'Brien Councillor Liz Barlow MAYOR COUNCILLOR

4&4L 4R1e-

Meredith Wallace GENERAL MANAGER

Alister Duncan RESPONSIBLE ACCOUNTING OFFICER

page 3


This Statement should be read in conjunction with the accompanying Notes. page 4


Income Statement for the financial year ended 30 June 2014

$ '000

Income from Continuing OperationsRevenue:Rates & Annual ChargesUser Charges & FeesInterest & Investment RevenueOther RevenuesGrants & Contributions provided for Operating Purposes 2

Grants & Contributions provided for Capital PurposesOther Income:Net gains from the disposal of assetsNet Share of interests in Joint Ventures & AssociatedEntities using the equity method

Total Income from Continuing Operations

Expenses from Continuing OperationsEmployee Benefits & On-CostsBorrowing CostsMaterials & ContractsDepreciation & AmortisationImpairmentOther Expenses

Total Expenses from Continuing Operations

Operating Result from Continuing Operations

Discontinued Operations

Net Profit/(Loss) from Discontinued Operations

Net Operating Result for the Year

Net Operating Result attributable to CouncilNet Operating Result attributable to Non-controlling Interests

Net Operating Result for the year before Grants andContributions provided for Capital Purposes

Original Budget as approved by Council - refer Note 16Financial Assistance Grants for 13/14 are lower, reflecting a timing difference due to a change in how the grant is paid - refer Note 3 (e)2

19

4a

4d

79,782

30,899

408

356 22,685 18,786

(4,694)

-

4e

Budget 1

59

-

4c

3e,f

11,750

(4,694)

(4,694)

10,274

4d

5

4b

24

5,521 3,532 4,483 6,207

3,541 5,427

31,703

133

90,237

4,242 6,688

11

2014

3,239

8,525

5,371

6,128 4,967

3b

Notes

3a

3d3c

3e,f

-

1

(547)

-

(9,072)

(547)

320 21,470

55,554

-

-

84,331

(547)

83,784

32,438

19,181 -

10,922

-

82,867

7,370

7,370

-

7,370

84,476

Actual 2013

(11,382)

-

52,932

16,674 -

23,800

Actual 2014

416

15,014

55,515 6,306

(7,644)




Statement of Comprehensive Income for the financial year ended 30 June 2014

$ '000

Net Operating Result for the year (as per Income statement)

Other Comprehensive Income:

Amounts which will not be reclassified subsequently to the Operating Result Gain (loss) on revaluation of I,PP&EAdjustment to correct prior period errorsImpairment (loss) reversal relating to I,PP&ETotal Items which will not be reclassified subsequentlyto the Operating Result

Amounts which will be reclassified subsequently to the Operating Resultwhen specific conditions are metNil

Total Other Comprehensive Income for the year

Total Comprehensive Income for the Year

Total Comprehensive Income attributable to CouncilTotal Comprehensive Income attributable to Non-controlling Interests

- 34,637

Notes

20b (ii)

20b (ii)

2014

(1,395)

35,622

7,370

41,597

34,227

41,597

-

Actual

16,535

-

2013

(18,102)

(4,694)

-

34,227 16,535

11,841

11,841

Actual




Statement of Financial Position as at 30 June 2014

$ '000

ASSETSCurrent AssetsCash & Cash EquivalentsInvestmentsReceivablesInventoriesOtherNon-current assets classified as "held for sale"Total Current Assets

Non-Current AssetsInvestmentsReceivablesInventoriesInfrastructure, Property, Plant & EquipmentInvestments accounted for using the equity methodInvestment PropertyIntangible AssetsNon-current assets classified as "held for sale"OtherTotal Non-Current Assets

TOTAL ASSETS

LIABILITIESCurrent LiabilitiesPayablesBorrowingsProvisionsTotal Current Liabilities

Non-Current LiabilitiesPayablesBorrowingsProvisionsTotal Non-Current Liabilities

TOTAL LIABILITIES

Net Assets

EQUITYRetained EarningsRevaluation ReservesCouncil Equity InterestNon-controlling Interests

Total Equity

6b

8

7

Notes

894,541

-

-

1,946

8

923,932

9,333

6b

8

10

132,521

2014

791,411

10

10

20

10

20

1,096

894,541

852,944

476,190

-

894,541

77,372

6,063

1,931

260

29,391

Actual

7

14199

20,000

22,535

-

483,560

6,856 7,047

27,540

20,493

710

852,944

376,754

6,326

8803,112

1,887

880,484

7,955

-

824 11,714 12,106

63,903 8,009

5,665

25

10

852,944

410,981

10

586 48,000

102 64

792,334

-

10,085

317

- -

6,146 721

2013Actual

22

6a 58,673

1,787 -

777,080

81

580

- 253

-

22

4,810




Statement of Changes in Equity for the financial year ended 30 June 2014

$ '000

Opening Balance (as per Last Year's Audited Accounts)

a. Correction of Prior Period Errorsb. Changes in Accounting Policies (prior year effects)

Revised Opening Balance (as at 1/7/13)

c. Net Operating Result for the Year

d. Other Comprehensive Income - Revaluations : IPP&E Asset Revaluation Rsve - Revaluations: Other Reserves - Transfers to Income Statement - Impairment (loss) reversal relating to I,PP&EOther Comprehensive Income

Total Comprehensive Income (c&d)

e. Distributions to/(Contributions from) Non-controlling Interests

f. Transfers between Equity

Equity - Balance at end of the reporting period

$ '000

Opening Balance (as per Last Year's Audited Accounts)

a. Correction of Prior Period Errorsb. Changes in Accounting Policies (prior year effects)

Revised Opening Balance (as at 1/7/12)

c. Net Operating Result for the Year

d. Other Comprehensive Income - Revaluations : IPP&E Asset Revaluation Rsve - Revaluations: Other Reserves - Transfers to Income Statement - Impairment (loss) reversal relating to I,PP&EOther Comprehensive Income

Total Comprehensive Income (c&d)

e. Distributions to/(Contributions from) Non-controlling Interests

f. Transfers between Equity

Equity - Balance at end of the reporting period

Earnings

Non-

Notes

2014

- 20b (ii)

20b (ii)

- 20 (c)

-

476,190

-

7,370

476,190 - 20 (d)

-

7,370

20b (ii)

2013

- (4,694)

446,216

- 394,856

394,887 (31)

20 (d) -

Earnings (Refer 20b)

-

-

- -

Interest

- - -

(18,102) -

(18,102)

-

-

-

-

(18,102) (22,796)

20b (ii)

20b (ii)

20b (ii)

-

852,944

(4,694)

20b (ii)

376,754

Retained

20b (ii) -

Notes

480,884

20 (c) 34,668

- -

483,560

-

476,190 376,754 -

- -

- - - -

-

852,944

(Refer 20b)

852,944

852,944 -

- -

41,597

- -

-

- -

- -

34,227

-

(1,395)

34,227

- 376,754

35,622

- -

-

35,622

894,541

- -

34,637

Equity

(18,102)

875,740

-

-

841,103

875,740 -

34,637

-

-

(18,102)

-

-

-

-

35,622

-

-

34,227

852,944 -

34,227

-

7,370

852,944

Equity

-

Interest

894,541

-

Council controllingInterest

(1,395) -

(1,395)

- - -

-

- -

(18,102) -

(22,796) -

-

-

Interest

-

(4,694)

Non-

41,597

7,370

-

Retained Reserves Total

Total

410,981

-

Reserves Council controlling

-

(18,102)

(4,694)

841,103

-

-




Statement of Cash Flows for the financial year ended 30 June 2014

$ '000

Cash Flows from Operating ActivitiesReceipts:Rates & Annual ChargesUser Charges & FeesInvestment & Interest Revenue ReceivedGrants & ContributionsBonds, Deposits & Retention amounts receivedOtherPayments:Employee Benefits & On-CostsMaterials & ContractsBorrowing CostsBonds, Deposits & Retention amounts refundedOtherNet Cash provided (or used in) Operating Activities

Cash Flows from Investing ActivitiesReceipts:Sale of Investment SecuritiesSale of Infrastructure, Property, Plant & EquipmentPayments:Purchase of Investment SecuritiesPurchase of Infrastructure, Property, Plant & EquipmentNet Cash provided (or used in) Investing Activities

Cash Flows from Financing ActivitiesReceipts:Proceeds from Borrowings & AdvancesPayments:Repayment of Borrowings & AdvancesNet Cash Flow provided (used in) Financing Activities

Net Increase/(Decrease) in Cash & Cash Equivalents

plus: Cash & Cash Equivalents - beginning of year

Cash & Cash Equivalents - end of the year

Additional Information:

plus: Investments on hand - end of year

Total Cash, Cash Equivalents & Investments

Please refer to Note 11 for information on the following:- Non Cash Financing & Investing Activities.- Financing Arrangements.- Net cash flow disclosures relating to any Discontinued Operations

(320) (315) (375) (26,534) (31,441)

(10,072) 11b

88,758

30,085

(30,884)

1,100

58,673

63,903

(5,230)

51

77,975

63,903

(954)

58,661

1,246

5,242

14,072

(7,000)

1,034 2,386

25,603 16,125

4,149 9,032

(11,664) (12,129)

2,200

(1,049)

(32,438)

19,002

Budget

55,554

- 13,492

2014

5,371 3,239

(21,470)

(1,053)

6,128

-

-

18,634 (10,922)

11a64,727

824

47

63,903

(17,857)

11a

1,100

(19,037)

1,180

- (15,950) (25,000)

Actual

567 1,406

7,124

(11,051)

3,491 6,282 3,608

(30,116)

4,041

12,880

53,672

(24,008)

9,033

- (1,253)

Notes

55,787

20132014Actual

6b


page 9


Notes to the Financial Statements for the financial year ended 30 June 2014

Contents of the Notes accompanying the Financial Statements

Details

Summary of Significant Accounting PoliciesCouncil Functions / Activities - Financial InformationCouncil Functions / Activities - Component DescriptionsIncome from Continuing OperationsExpenses from Continuing OperationsGains or Losses from the Disposal of AssetsCash & Cash Equivalent AssetsInvestmentsRestricted Cash, Cash Equivalents & Investments - DetailsReceivablesInventories & Other AssetsInfrastructure, Property, Plant & EquipmentExternally Restricted Infrastructure, Property, Plant & EquipmentInfrastructure, Property, Plant & Equipment - Current Year ImpairmentsPayables, Borrowings & ProvisionsDescription of (and movements in) ProvisionsStatement of Cash Flows - Additional InformationCommitments for ExpenditureStatement of Performance Measures:13a (i) Local Government Industry Indicators (Consolidated)13a (ii) Local Government Industry Graphs (Consolidated)Investment PropertiesFinancial Risk ManagementMaterial Budget VariationsStatement of Developer ContributionsContingencies and Other Liabilities/Assets not recognisedControlled Entities, Associated Entities & Interests in Joint VenturesEquity - Retained Earnings and Revaluation Reserves

Financial Result & Financial Position by Fund"Held for Sale" Non Current Assets & Disposal GroupsEvents occurring after the Reporting DateDiscontinued OperationsIntangible AssetsReinstatement, Rehabilitation & Restoration LiabilitiesFair Value Measurement

Additional Council Disclosures

Council Information & Contact Details

n/a - not applicable

2(a)

32(b)

6(b)

5

42

37

3840

47

45

46

43

23

26

Note

22

14

10(a)10(b)

17

6(a)

4

6(c)

9(c)

11

24

Page

1

25

19

1516

20

21

50

49

44

45

18

1213

10272829

78

9(a)9(b)

28

34

38

48

64

53

80

72 n/a

72

70

27 73

51

71 n/a

53 n/a

66

57

71 n/a

59

69 n/a

68


Rockdale City Council Notes to the Financial Statements for the financial year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies

page 10

The principal accounting policies adopted by Council in the preparation of these consolidated financial statements are set out below in order to assist in its general understanding. Under Australian Accounting Standards (AASBs), accounting policies are defined as those specific principles, bases, conventions, rules and practices applied by a reporting entity (in this case Council) in preparing and presenting its financial statements. (a) Basis of preparation (i) Background These financial statements are general purpose financial statements which have been prepared in accordance with; Australian Accounting Standards and Australian

Accounting Interpretations issued by the Australian Accounting Standards Board,

the Local Government Act (1993) & Regulation,

and the Local Government Code of Accounting

Practice and Financial Reporting. For the purpose of preparing these financial statements, Council has been deemed to be a not-for-profit entity. (ii) Compliance with International Financial Reporting Standards (IFRSs) Because AASBs are sector neutral, some standards either:

(a) have local Australian content and prescription that is specific to the Not-For-Profit sector (including Local Government) which are not in compliance with IFRS’s, or

(b) specifically exclude application by Not for Profit entities.

Accordingly in preparing these financial statements and accompanying notes, Council has been unable to comply fully with International Accounting Standards, but has complied fully with Australian Accounting Standards.

Under the Local Government Act (LGA), Regulations and Local Government Code of Accounting Practice & Financial Reporting, it should be noted that Councils in NSW only have a requirement to comply with AASBs. (iii) New and amended standards adopted by Council During the current year, the following relevant standards became mandatory for Council and have been adopted: AASB 13 Fair Value Measurement AASB 119 Employee Benefits AASB 13 Fair Value Measurement has not affected the assets or liabilities which are to be measured at fair value, however it provides detailed guidance on how to measure fair value in accordance with the accounting standards. It introduces the concept of highest and best use for non-financial assets and has caused the Council to review their valuation methodology. The level of disclosures regarding fair value have increased significantly and have been included in the financial statements at Note 27. AASB 119 Employee Benefits introduced revised definitions for short-term employee benefits. Whilst the Council has reviewed the annual leave liability to determine the level of annual leave which is expected to be paid more than 12 months after the end of the reporting period, there has been no effect on the amounts disclosed as leave liabilities since Council’s existing valuation policy was to discount annual leave payable more than 12 months after the end of the reporting period to present values. (iv) Early adoption of Accounting Standards Council has not elected to apply any pronouncements before their operative date in the annual reporting period beginning 1 July 2013. Refer further to paragraph (ab) relating to a summary of the effects of Standards with future operative dates.



page 11

(v) Basis of Accounting These financial statements have been prepared under the historical cost convention except for: (i) certain financial assets and liabilities at fair

value through profit or loss and available-for-sale financial assets which are all valued at fair value,

(ii) the write down of any Asset on the basis of Impairment (if warranted) and

(iii) certain classes of non current assets (eg.

Infrastructure, Property, Plant & Equipment and Investment Property) that are accounted for at fair valuation.

The accrual basis of accounting has also been applied in their preparation. (vi) Changes in Accounting Policies Council’s accounting policies have been consistently applied to all the years presented, unless otherwise stated. There have also been no changes in accounting policies when compared with previous financial statements unless otherwise stated [refer Note 20(d)]. (vii) Critical Accounting Estimates The preparation of financial statements requires the use of certain critical accounting estimates (in conformity with AASBs). Accordingly this requires management to exercise its judgement in the process of applying the Council's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on Council and that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions Council makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are set out below: (i) Estimated fair values of investment properties

(ii) Estimated fair values of infrastructure, property,

plant and equipment.

Critical judgements in applying Council's accounting policies (i) Impairment of Receivables - Council has made

a significant judgement about the impairment of a number of its receivables in Note 7.

(ii) Projected Section 94 Commitments - Council

has used significant judgement in determining future Section 94 income and expenditure in Note 17.

(b) Revenue recognition Council recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to it and specific criteria have been met for each of the Council’s activities as described below. Council bases any estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Revenue is measured at the fair value of the consideration received or receivable. Revenue is measured on major income categories as follows: Rates, Annual Charges, Grants and Contributions Rates, annual charges, grants and contributions (including developer contributions) are recognised as revenues when the Council obtains control over the assets comprising these receipts. Control over assets acquired from rates and annual charges is obtained at the commencement of the rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates.



page 12

A provision for the impairment on rates receivables has not been established as unpaid rates represent a charge against the rateable property that will be recovered when the property is next sold. Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and is valued at their fair value at the date of transfer. Revenue from Contributions is recognised when the Council either obtains control of the contribution or the right to receive it, (i) it is probable that the economic benefits comprising the contribution will flow to the Council and (ii) the amount of the contribution can be measured reliably. Where grants or contributions recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused grant or contribution is disclosed in Note 3(g). Note 3(g) also discloses the amount of unused grant or contribution from prior years that was expended on Council’s operations during the current year. The Council has obligations to provide facilities from contribution revenues levied on developers under the provisions of S94 of the EPA Act 1979. Whilst Council generally incorporates these amounts as part of a Development Consents Order, such developer contributions are only recognised as income upon their physical receipt by Council, due to the possibility that individual Development Consents may not be acted upon by the applicant and accordingly would not be payable to Council. Developer contributions may only be expended for the purposes for which the contributions were required but the Council may apply contributions according to the priorities established in work schedules. A detailed Note relating to developer contributions can be found at Note 17. User Charges, Fees and Other Income User charges, fees and other income (including parking fees and fines) are recognised as revenue

when the service has been provided, the payment is received, or when the penalty has been applied, whichever first occurs. A provision for the impairment of these receivables is recognised when collection in full is no longer probable. A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not been provided as at balance date. Sale of Infrastructure, Property, Plant and Equipment The profit or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer. Interest and Rents Interest Income from Cash & Investments is accounted for using the effective interest rate at the date that interest is earned. Other Income Other income is recorded when the payment is due, the value of the payment is notified or the payment is received, whichever occurs first. (c) Principles of Consolidation These financial statements incorporate (i) the assets and liabilities of Council and any entities (or operations) that it controls (as at 30 June 2014) and (ii) all the related operating results (for the financial year ended the 30th June 2014). The financial statements also include Council’s share of the assets, liabilities, income and expenses of any Jointly Controlled Operations under the appropriate headings. In the process of reporting on Council’s activities as a single unit, all inter-entity year end balances and reporting period transactions have been eliminated in full between Council and its controlled entities. (i) The Consolidated Fund In accordance with the provisions of Section 409(1) of the LGA 1993, all money and property received by



page 13

Council is held in the Council’s Consolidated Fund unless it is required to be held in the Council’s Trust Fund. The Consolidated Fund and other entities through which the Council controls resources to carry on its functions have been included in the financial statements forming part of this report. The following entities have been included as part of the Consolidated Fund: General Purpose Operations (ii) The Trust Fund In accordance with the provisions of Section 411 of the Local Government Act 1993 (as amended), a separate and distinct Trust Fund is maintained to account for all money and property received by the Council in trust which must be applied only for the purposes of or in accordance with the trusts relating to those monies. Trust monies and property subject to Council’s control have been included in these statements. Trust monies and property held by Council but not subject to the control of Council, have been excluded from these statements. A separate statement of monies held in the Trust Fund is available for inspection at the Council office by any person free of charge. (iii) Joint Ventures Council has no interest in any Joint Venture Entities, Assets or Operations. (iv) Associated Entities Where Council has the power to participate in the financial and operating decisions (of another entity), ie. where Council is deemed to have “significant influence” over the other entities operations but neither controls nor jointly controls the entity, then Council accounts for such interests using the equity method of accounting – in a similar fashion to Joint Venture Entities & Partnerships. Such entities are usually termed Associates.

(v) County Councils Council is not a member of any County Councils. (vi) Additional Information Note 19 provides more information in relation to Joint Venture Entities, Associated Entities and Joint Venture Operations where applicable. (d) Leases All Leases entered into by Council are reviewed and classified on inception date as either a Finance Lease or an Operating Lease. Finance Leases Leases of property, plant and equipment where the Council has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings. Each lease payment is allocated between the liability outstanding and the recognition of a finance charge. The interest element of the finance charge is costed to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Property, plant and equipment acquired under finance leases is depreciated over the shorter of each leased asset’s useful life and the lease term. Operating Leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.



page 14

Lease income from operating leases is recognised in income on a straight-line basis over the lease term. (e) Cash and Cash Equivalents For Statement of Cash Flows (and Statement of Financial Position) presentation purposes, cash and cash equivalents includes; cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with

original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and

bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet but are incorporated into Cash & Cash Equivalents for presentation of the Cash Flow Statement. (f) Investments and Other Financial Assets Council (in accordance with AASB 139) classifies each of its investments into one of the following categories for measurement purposes: financial assets at fair value through profit or

loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. Each classification depends on the purpose/intention for which the investment was acquired & at the time it was acquired. Management determines each Investment classification at the time of initial recognition and re-evaluates this designation at each reporting date.

(i) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets that are “held for trading”. A financial asset is classified in the “held for trading” category if it is acquired principally for the purpose of selling in the short term. Assets in this category are primarily classified as current assets as they are primarily held for trading &/or are expected to be realised within 12 months of the balance sheet date. (ii) Loans and receivables Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Council provides money, goods or services directly to a debtor with no intention (or in some cases ability) of selling the resulting receivable. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Council’s management has the positive intention and ability to hold to maturity. In contrast to the “Loans & Receivables” classification, these investments are generally quoted in an active market. Held-to-maturity financial assets are included in non-current assets, except for those with maturities less than 12 months from the reporting date, which are classified as current assets. (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.



page 15

Investments must be designated as available-for-sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term. Accordingly, this classification principally comprises marketable equity securities, but can include all types of financial assets that could otherwise be classified in one of the other investment categories. They are generally included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date or the term to maturity from the reporting date is less than 12 months. Financial Assets – Reclassification Council may choose to reclassify a non-derivative trading financial asset out of the held-for-trading category if the financial asset is no longer held for the purpose of selling it in the near term. Financial assets other than loans and receivables are permitted to be reclassified out of the held-for-trading category only in rare circumstances arising from a single event that is unusual and highly unlikely to recur in the near term. Council may also choose to reclassify financial assets that would meet the definition of loans and receivables out of the held-for-trading or available-for-sale categories if it has the intention and ability to hold these financial assets for the foreseeable future or until maturity at the date of reclassification. Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and held-to-maturity categories are determined at the reclassification date. Further increases in estimates of cash flows adjust effective interest rates prospectively.

General Accounting & Measurement of Financial Instruments: (i) Initial Recognition Investments are initially recognised (and measured) at fair value, plus in the case of investments not at “fair value through profit or loss”, directly attributable transactions costs Purchases and sales of investments are recognised on trade-date - the date on which the Council commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council has transferred substantially all the risks and rewards of ownership. (ii) Subsequent Measurement Available-for-sale financial assets and financial assets at fair value through profit and loss are subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from changes in the fair value of the financial assets classified as “fair value through profit or loss” category are included in the income statement in the period in which they arise. Unrealised gains and losses arising from changes in the fair value of non monetary securities classified as "available-for-sale" are recognised in equity in the available-for-sale investments revaluation reserve. When securities classified as "available-for-sale" are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities. Impairment Council assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if



page 16

there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. (iii) Types of Investments Council has an approved Investment Policy in order to undertake its investment of money in accordance with (and to comply with) Section 625 of the Local Government Act and S212 of the LG (General) Regulation 2005. Investments are placed and managed in accordance with the Policy and having particular regard to authorised investments prescribed under the Ministerial Local Government Investment Order. Council maintains its investment Policy in compliance with the Act and ensures that it or its representatives exercise care, diligence and skill that a prudent person would exercise in investing Council funds. Council amended its policy following revisions to the Ministerial Local Government Investment Order arising from the Cole Inquiry recommendations. Certain investments that Council holds are no longer prescribed (eg. managed funds, CDOs, and equity linked notes), however they have been retained under grandfathering provisions of the Order. These will be disposed of when most financially advantageous to Council. (g) Fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. Council uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date.

Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. If the market for a financial asset is not active (and for unlisted securities), the Council establishes fair value by using valuation techniques. These include reference to the fair values of recent arm’s length transactions, involving the same instruments or other instruments that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer’s specific circumstances. The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Council for similar financial instruments. (h) Receivables Receivables are initially recognised at fair value and subsequently measured at amortised cost, less any provision for impairment. Receivables (excluding Rates & Annual Charges) are generally due for settlement no more than 30 days from the date of recognition. The collectibility of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off in accordance with Council’s policy. A provision for impairment (ie. an allowance account) relating to receivables is established when there is objective evidence that the Council will not be able to collect all amounts due according to the original terms of each receivable. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.



page 17

Impairment losses are recognised in the Income Statement within other expenses. When a receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the income statement. (i) Inventories Raw Materials and Stores, Work in Progress and Finished Goods Raw materials and stores, work in progress and finished goods in respect of business undertakings are all stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventories held in respect of non-business undertakings have been valued at cost subject to adjustment for loss of service potential. Land Held for Resale/Capitalisation of Borrowing Costs Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specific identification and includes the cost of acquisition, and development and borrowing costs during development. When development is completed borrowing costs and other holding charges are expensed as incurred. Borrowing costs included in the cost of land held for resale are those costs that would have been avoided

if the expenditure on the acquisition and development of the land had not been made. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses. (j) Infrastructure, Property, Plant and Equipment (I,PP&E) Acquisition of assets Council’s non current assets are continually revalued (over a 5 year period) in accordance with the fair valuation policy as mandated by the Office of Local Government. At balance date, the following classes of I,PP&E were stated at their Fair Value; - Investment Properties – refer Note 1(p), - Operational Land (External Valuation)

- Buildings – Specialised/Non Specialised

(External Valuation) - Plant and Equipment

(as approximated by depreciated historical cost)

- Roads Assets incl. roads, bridges & footpaths (Internal Valuation)

- Drainage Assets (Internal Valuation) - Bulk Earthworks (Internal Valuation)

- Community Land (Internal Valuation)

- Land Improvements

(as approximated by depreciated historical cost)

- Other Structures (as approximated by depreciated historical cost)

- Other Assets (as approximated by depreciated historical cost)

Initial Recognition On initial recognition, an assets cost is measured at its fair value, plus all expenditure that is directly attributable to the acquisition.



page 18

Where settlement of any part of an asset’s cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of recognition (ie. date of exchange) of the asset to arrive at fair value. The discount rate used is the Council’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Where infrastructure, property, plant and equipment assets are acquired for no cost or for an amount other than cost, the assets are recognised in the financial statements at their fair value at acquisition date - being the amount that the asset could have been exchanged between knowledgeable willing parties in an arm’s length transaction. Subsequent costs Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to Council and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Asset Revaluations (including Indexation) In accounting for Asset Revaluations relating to Infrastructure, Property, Plant & Equipment: Increases in the combined carrying amounts of

asset classes arising on revaluation are credited to the asset revaluation reserve.

To the extent that a net asset class increase

reverses a decrease previously recognised via the profit or loss, then increase is first recognised in profit or loss.

Net decreases that reverse previous increases of

the same asset class are first charged against revaluation reserves directly in equity to the extent of the remaining reserve attributable to the asset, with all other decreases charged to the Income statement.

Water and sewerage network assets are indexed annually between full revaluations in accordance with the latest indices provided in the NSW Office of Water - Rates Reference Manual. For all other assets, Council assesses at each reporting date whether there is any indication that a revalued asset’s carrying amount may differ materially from that which would be determined if the asset were revalued at the reporting date. If any such indication exists, Council determines the asset’s fair value and revalues the asset to that amount. Full revaluations are undertaken for all assets on a 5 year cycle. Capitalisation Thresholds Items of infrastructure, property, plant and equipment are not capitalised unless their cost of acquisition exceeds the following; Land - council land 100% Capitalised - open space 100% Capitalised - land under roads (purchases after 30/6/08) 100% Capitalised Plant & Equipment Office Furniture > $1,000 Office Equipment > $1,000 Other Plant &Equipment > $1,000 Buildings & Land Improvements Park Furniture & Equipment > $2,000 Building - construction/extensions 100% Capitalised - renovations > $10,000 Other Structures > $2,000 Stormwater Assets Drains & Culverts > $5,000 Other > $5,000 Transport Assets Road construction & reconstruction > $10,000 Reseal/Re-sheet & major repairs: > $10,000 Bridge construction & reconstruction > $10,000



page 19

Depreciation Depreciation on Council's infrastructure, property, plant and equipment assets is calculated using the straight line method in order to allocate an assets cost (net of residual values) over its estimated useful life. Land is not depreciated. Estimated useful lives for Council's I,PP&E include: Plant & Equipment - Office Equipment 5 to 10 years - Office furniture 10 to 20 years - Computer Equipment 4 years - Vehicles 5 to 8 years - Heavy Plant/Road Making equip. 5 to 8 years - Other plant and equipment 5 to 15 years Other Equipment - Playground equipment 5 to 15 years - Benches, seats etc 10 to 20 years Buildings - Buildings : Masonry 50 to 100 years - Buildings : Other 20 to 40 years Stormwater Drainage - Drains 80 to 100 years - Culverts 50 to 80 years Transportation Assets - Sealed Roads : Surface 20 years - Sealed Roads : Structure 50 years - Unsealed roads 20 years - Bridge : Concrete 100 years - Bridge : Other 50 years - Road Pavements 60 years - Kerb, Gutter & Paths 40 years Other Infrastructure Assets - Bulk earthworks Infinite All asset residual values and useful lives are reviewed and adjusted (if appropriate), at each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s

carrying amount is greater than its estimated recoverable amount – refer Note 1(s) on Asset Impairment. Disposal and De-recognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in Council’s Income Statement in the year the asset is derecognised. (k) Land Land (other than Land under Roads) is in accordance with Part 2 of Chapter 6 of the Local Government Act (1993) classified as either Operational or Community. This classification of Land is disclosed in Note 9(a). (l) Land under roads Land under roads is land under roadways and road reserves including land under footpaths, nature strips and median strips. Council has elected not to recognise land under roads acquired before 1 July 2008 in accordance with AASB 1051. Land under roads acquired after 1 July 2008 is recognised in accordance with AASB 116 – Property, Plant and Equipment. (m) Intangible Assets IT Development and Software Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems.



page 20

Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project. Amortisation is calculated on a straight line bases over periods generally ranging from 3 to 5 years. IT development costs include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility and where Council has an intention and ability to use the asset. (n) Crown Reserves Crown Reserves under Council’s care and control are recognised as assets of the Council. While ownership of the reserves remains with the Crown, Council retains operational control of the reserves and is responsible for their maintenance and use in accordance with the specific purposes to which the reserves are dedicated. Improvements on Crown Reserves are also recorded as assets, while maintenance costs incurred by Council and revenues relating the reserves are recognised within Council’s Income Statement. Representations are currently being sought across State and Local Government to develop a consistent accounting treatment for Crown Reserves across both tiers of government. (o) Non-Current Assets (or Disposal Groups) “Held for Sale” & Discontinued Operations Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of either (i) their carrying amount and (ii) fair value less costs to sell, if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. The exception to this is plant and motor vehicles which are turned over on a regular basis. Plant and motor vehicles are retained in Non Current Assets under the classification of Infrastructure, Property,

Plant and Equipment - unless the assets are to be traded in after 30 June and the replacement assets were already purchased and accounted for as at 30 June. For any assets or disposal groups classified as Non-Current Assets “held for sale”, an impairment loss is recognised at any time when the assets carrying value is greater than its fair value less costs to sell. Non-current assets “held for sale” are not depreciated or amortised while they are classified as “held for sale”. Non-current assets classified as “held for sale” are presented separately from the other assets in the balance sheet. A Discontinued Operation is a component of Council that has been disposed of or is classified as “held for sale” and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately on the face of the income statement. (p) Impairment of assets All Council's I,PP&E is subject to an annual assessment of impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Where an asset is not held principally for cash generating purposes (for example Infrastructure Assets) and would be replaced if the Council was deprived of it then depreciated replacement cost is used as value in use, otherwise value in use is estimated by using a discounted cash flow model.



page 21

Non-financial assets (other than goodwill) that suffered a prior period impairment are reviewed for possible reversal of the impairment at each reporting date. Goodwill & other Intangible Assets that have an indefinite useful life and are not subject to amortisation are tested annually for impairment. (q) Payables These amounts represent liabilities and include goods and services provided to the Council prior to the end of financial year which are unpaid. The amounts for goods and services are unsecured and are usually paid within 30 days of recognition. (r) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Amortisation results in any difference between the proceeds (net of transaction costs) and the redemption amount being recognised in the Income Statement over the period of the borrowings using the effective interest method. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. Borrowings are classified as current liabilities unless the Council has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. (s) Borrowing costs Borrowing costs are expensed Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale.

(t) Provisions Provisions for legal claims, service warranties and other like liabilities are recognised when: Council has a present legal or constructive

obligation as a result of past events; it is more likely than not that an outflow of

resources will be required to settle the obligation; and

the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. (u) Employee benefits (i) Short Term Obligations Short term employee benefit obligations include liabilities for wages and salaries (including non-monetary benefits), annual leave and vesting sick leave expected to be wholly settled within the 12 months after the reporting period. Leave liabilities are recognised in the provision for employee benefits in respect of employees’ services up to the reporting date with other short term



page 22

employee benefit obligations disclosed under payables. These provisions are measured at the amounts expected to be paid when the liabilities are settled. All other short-term employee benefit obligations are presented as payables. Liabilities for non vesting sick leave are recognised at the time when the leave is taken and measured at the rates paid or payable, and accordingly no Liability has been recognised in these reports. Wages & salaries, annual leave and vesting sick leave are all classified as Current Liabilities. (ii) Other Long Term Obligations The liability for all long service and annual leave in respect of services provided by employees up to the reporting date (which is not expected to be wholly settled within the 12 months after the reporting period) are recognised in the provision for employee benefits. These liabilities are measured at the present value of the expected future payments to be made using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are then discounted using market yields at the reporting date based on national government bonds with terms to maturity and currency that match as closely as possible the estimated future cash outflows. Due to the nature of when and how Long Service Leave can be taken, all Long Service Leave for employees with 4 or more years of service has been classified as Current, as it has been deemed that Council does not have the unconditional right to defer settlement beyond 12 months – even though it is not anticipated that all employees with more than 4 years service (as at reporting date) will apply for and take their leave entitlements in the next 12 months.

(iii) Retirement benefit obligations All employees of the Council are entitled to benefits on retirement, disability or death. Council contributes to various defined benefit plans and defined contribution plans on behalf of its employees. Defined Benefit Plans A liability or asset in respect of defined benefit superannuation plans would ordinarily be recognised in the balance sheet, and measured as the present value of the defined benefit obligation at the reporting date plus unrecognised actuarial gains (less unrecognised actuarial losses) less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. The present value of the defined benefit obligation is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. However, when this information is not reliably available, Council can account for its obligations to defined benefit plans on the same basis as its obligations to defined contribution plans – i.e. as an expense when they become payable. Council is party to an Industry Defined Benefit Plan under the Local Government Superannuation Scheme, named the “Local Government Superannuation Scheme – Pool B” This Scheme has been deemed to be a “multi employer fund” for the purposes of AASB 119. Sufficient information is not available to account for the Scheme as a defined benefit plan (in accordance with AASB 119) because the assets to the scheme are pooled together for all Councils. The last valuation of the Scheme was performed by Mr Martin Stevenson BSC,FIA, FIAA on 20/02/13 and covers the period ended 30/06/14.



page 23

However the position is monitored annually and the Actuary has estimated that as at 30 June 2014 the prior period deficit still exists. Effective from 1 July 2009, employers are required to contribute additional contributions to assist in extinguishing this deficit. The amount of employer contributions to the defined benefit section of the Local Government Superannuation Scheme and recognised as an expense and disclosed as part of Superannuation Expenses at Note 4(a) for the year ending 30 June 2014 was $ 2,907,000. The amount of additional contributions included in the total employer contribution advised above is $ 345,996. The share of this deficit that can be broadly attributed to Council is estimated to be in the order of $ 1,608,657 as at 30 June 2014. Council’s share of that deficiency cannot be accurately calculated as the Scheme is a mutual arrangement where assets and liabilities are pooled together for all member councils. For this reason, no liability for the deficiency has been recognised in these financial statements. Council has, however, disclosed a contingent liability in Note 18 to reflect the possible obligation that may arise should the Scheme require immediate payment to correct the deficiency. Defined Contribution Plans Contributions to Defined Contribution Plans are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. (iv) Employee Benefit On-Costs Council has recognised at year end the aggregate on-cost liabilities arising from employee benefits, and in particular those on-cost liabilities that will arise when payment of current employee benefits is made in future periods.

These amounts include Superannuation and Workers Compensation expenses which will be payable upon the future payment of certain Leave Liabilities accrued as at 30/6/13. (v) Self insurance Council does not self insure. (w) Allocation between current and non-current assets & liabilities In the determination of whether an asset or liability is classified as current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council’s operational cycle. Exceptions In the case of liabilities where Council does not have the unconditional right to defer settlement beyond 12 months (such as vested long service leave), the liability is classified as current even if not expected to be settled within the next 12 months. In the case of inventories that are “held for trading”, these are also classified as current even if not expected to be realised in the next 12 months. (x) Taxes The Council is exempt from both Commonwealth Income Tax and Capital Gains Tax. Council does however have to comply with both Fringe Benefits Tax and Goods and Services Tax (GST). Goods & Services Tax (GST) Income, expenses and assets are all recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO).



page 24

In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the revenue / expense. Receivables and payables within the Balance Sheet are stated inclusive of any applicable GST. The net amount of GST recoverable from or payable to the ATO is included as a current asset or current liability in the Balance Sheet. Operating cash flows within the Cash Flow Statement are on a gross basis, ie. they are inclusive of GST where applicable. Investing and Financing cash flows are treated on a net basis (where recoverable form the ATO), ie. they are exclusive of GST. Instead, the GST component of investing and financing activity cash flows which are recoverable from or payable to the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from (or payable to) the ATO. (y) New accounting standards and interpretations Certain new (or amended) accounting standards and interpretations have been published that are not mandatory for reporting periods ending 30 June 2014. Council has not adopted any of these standards early. Council’s assessment of the impact of these new standards and interpretations is set out below. Applicable to Local Government with implications: AASB 9 Financial Instruments, associated standards, AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2012-6 Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and transitional disclosures and AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments (effective from 1 January 2017)

AASB 9 Financial Instruments addresses the classification, measurement and de-recognition of financial assets and financial liabilities. The standard is not applicable until 1 January 2015 but is available for early adoption. When adopted, the standard will affect in particular Council’s accounting for its available-for-sale financial assets, since AASB 9 only permits the recognition of fair value gains and losses in other comprehensive income if they relate to equity investments that are not held for trading. Fair value gains and losses on available-for-sale debt investments, for example, will therefore have to be recognised directly in profit or loss although there is currently a proposal by the IASB to introduce a Fair value through Other Comprehensive Income category for debt instruments. There will be no impact on Council’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and Council does not have any such liabilities. The de-recognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The Council has not yet fully assessed the impact on the reporting financial position and performance on adoption of AASB 9. Applicable to Local Government but no implications for Council; AASB 2013-3 Amendments to AASB 136 Recoverable Amount Disclosures for Non-Financial Assets (effective for 30 June 2015 Financial Statements) There are no changes to reported financial position or performance from AASB 2013 – 3, however additional disclosures may be required. Applicable to Local Government but not relevant to Council at this stage; AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, revised AASB 127 Separate Financial Statements and



page 25

AASB 128 Investments in Associates and Joint Ventures and AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (effective for 30 June 2015 Financial Statements for not-for-profit entities) This suite of five new and amended standards address the accounting for joint arrangements, consolidated financial statements and associated disclosures. AASB 10 replaces all of the guidance on control and consolidation in AASB 127 Consolidated and Separate Financial Statements, and Interpretation 12 Consolidation – Special Purpose Entities. The core principle that a consolidated entity presents a parent and its subsidiaries as if they are a single economic entity remains unchanged, as do the mechanics of consolidation. However, the standard introduces a single definition of control that applies to all entities. It focuses on the need to have both power and rights or exposure to variable returns. Power is the current ability to direct the activities that significantly influence returns. Returns must vary and can be positive, negative or both. Control exists when the investor can use its power to affect the amount of its returns. There is also new guidance on participating and protective rights and on agent/principal relationships. Council does not expect the new standard to have a significant impact on its composition. AASB 11 introduces a principles based approach to accounting for joint arrangements. The focus is no longer on the legal structure of joint arrangements, but rather on how rights and obligations are shared by the parties to the joint arrangement. Based on the assessment of rights and obligations, a joint arrangement will be classified as either a joint operation or a joint venture. Joint ventures are accounted for using the equity method, and the choice to proportionately consolidate will no longer be permitted.

Parties to a joint operation will account their share of revenues, expenses, assets and liabilities in much the same way as under the previous standard. AASB 11 also provides guidance for parties that participate in joint arrangements but do not share joint control. Council's investment in the joint venture partnership will be classified as a joint venture under the new rules. As Council already applies the equity method in accounting for this investment, AASB 11 will not have any impact on the amounts recognised in its financial statements. AASB 12 sets out the required disclosures for entities reporting under the two new standards, AASB 10 and AASB 11, and replaces the disclosure requirements currently found in AASB 127 and AASB 128. Application of this standard by Council will not affect any of the amounts recognised in the financial statements, but will impact the type of information disclosed in relation to Council's investments. Amendments to AASB 128 provide clarification that an entity continues to apply the equity method and does not remeasure its retained interest as part of ownership changes where a joint venture becomes an associate, and vice versa. The amendments also introduce a “partial disposal” concept. Council is still assessing the impact of these amendments. Council does not expect to adopt the new standards before their operative date. They would therefore be first applied in the financial statements for the annual reporting period ending 30 June 2015. Not applicable to Local Government per se; None There are no other standards that are “not yet effective” and expected to have a material impact on



page 26

Council in the current or future reporting periods and on foreseeable future transactions. (z) Rounding of amounts Unless otherwise indicated, amounts in the financial statements have been rounded off to the nearest thousand dollars. (aa) Comparative Figures To ensure comparability with the current reporting period’s figures, some comparative period line items and amounts may have been reclassified or individually reported for the first time within these financial statements and/or the notes. (ab) Disclaimer Nothing contained within these statements may be taken to be an admission of any liability to any person under any circumstance.



Note 2(a). Council Functions / Activities - Financial Information

1. Includes: Rates & Annual Charges (incl. Ex-Gratia), Untied General Purpose Grants & Unrestricted Interest & Investment Income.

1. Includes: Rates & Annual Charges (incl. Ex-Gratia), Untied General Purpose Grants & Unrestricted Interest & Investment Income.

page 27

82,867 47,968 Share of gains/(losses) in Associates &

Capital Purpose Revenue

Continuing Operations

-

Joint Ventures (using the Equity Method)

Operating Result from

- General Purpose Income 1 48,697 42,210 46,148 - -

Financial Statem

ents 2014

Economic Affairs

26,405 Total Functions & Activities

60

- 8,682

90,237 83,784 82,867 84,331 79,782

-

408 -

847 1,018

59

-

-

913 336

33,226 84,331

880,484

1,946

-

923,932

-

6,420

1,887

740

5,265

11,695 13,859 -

-

-

2,909

- 2,189 3,511

(57,926) 864,738

(8,076) -

910,291

- - (792) -

2,336 (51,250)

-

84,476

-

-

84,476

408

1,128

- 48,697 42,210 46,148

(547)

(105) (787)

59

7,370

- 8,682 -

(4,694)

(34,899)

(2,697) (286) (422)

(9,035) (8,632) (3,280)

44 873,216 863,358

10 -

1 - 8 - 1

8 - 8

- -

- 1,093 -

288

Actual 2014

35,660 2013

144 - 10

-

(446) 216

489 - (2,221)

(16,409) (1,906)

Actual

- 1,398 257 - 1,315

- 57 4,581 (5,563) 2,247 (4,117) Transport & Communication 464 3,035 8,598

(889) 4,223 4,342 13,006

10,323 4,401 8,959 13,436 9,726

569 Community Services & Education 490 652 Housing & Community Amenities 870 Recreation & Culture 327

754 855

(299) 551 (3,039)

1,074 1,645 1,815

17,574

1,759

2,010 - 4,487 40,773

Health Environment 15,239

4,150 5,881 232 283

3,543 5,839 Public Order & Safety

Governance Administration

18,278 15,529 21,997 216 729 531

2014(2,010)

(20,294) (36,200) 6,097

2014Actual

Original Budget

2014Actual Budget

(1,689) 5,456 4,573 8,126

- - 24,781

2,221 24,535

1,906

$ '000 Income, Expenses and Assets have been directly attributed to the following Functions / Activities.Details of these Functions/Activities are provided in Note 2(b).

Income from Continuing Operations

Expenses from Continuing Operations

Total Assets held (Current &

Non-current) Functions/Activities

20142013Actual Actual Actual

Grants included in Income from Continuing Operations


Original Budget

Original Actual

- 2,909

2014Actual

2013Actual

2013 20142014 2013

21,283 (264)

(1,913) (335)

(2,408)

(4,423) (5,754)


page 28



Note 2(b). Council Functions / Activities - Component Descriptions

Details relating to the Council's functions / activities as reported in Note 2(a) are as follows:

GOVERNANCE

ADMINISTRATION

PUBLIC ORDER & SAFETY

HEALTH

ENVIRONMENT

COMMUNITY SERVICES & EDUCATION

HOUSING & COMMUNITY AMENITIES

WATER SUPPLIESSEWERAGE SERVICES

RECREATION & CULTURE

FUEL & ENERGY - Gas Supplies

AGRICULTURE

MINING, MANUFACTURING & CONSTRUCTION

TRANSPORT & COMMUNICATION

ECONOMIC AFFAIRSCamping areas, caravan parks, tourism and area promotion, industrial development promotion, saleyards andmarkets, real estate development, commercial nurseries, other business undertakings.

Building control, abattoirs, quarries & pits, other.

Urban roads, sealed rural roads, unsealed rural roads, bridges, footpaths, aerodromes, parking areas, busshelters and services, water transport, RMS works, other.

Costs relating to the Council’s role as a component of democratic government, including elections, members’fees and expenses, subscriptions to local authority associations, meetings of council and policy makingcommittees, area representation and public disclosure and compliance.

Corporate Support and Other Support Services (not otherwise attributed to the listed functions / activities).

Fire protection, animal control, beach control, enforcement of local government regulations, emergencyservices, other.

Inspection, immunisations, food control, health centres, other, administration.

Noxious plants and insect/vermin control, other environmental protection, solid waste management, streetcleaning, drainage, stormwater management.

Administration, family day care, child care, youth services, other family and children, aged and disabled, migrantservices, Aboriginal services, other community services, education.

Housing, town planning, street lighting, other sanitation and garbage, public cemeteries, public conveniences,

Public libraries, museums, art galleries, community centres, public halls, other cultural services, swimmingpools, sporting grounds, parks and gardens (lakes), other sport and recreation.


page 29



Note 3. Income from Continuing Operations

$ '000

(a) Rates & Annual Charges

Ordinary RatesResidentialBusinessFarmlandTotal Ordinary Rates

Special RatesInfrastructure LevyLocal Area RatesCommunity Safety LevyStormwater LevyCommunity Building LevyTotal Special Rates

Annual Charges (pursuant to s.496, s.496A, s.496B, s.501 & s.611)Domestic Waste Management ServicesTotal Annual Charges

TOTAL RATES & ANNUAL CHARGES

Council has used 2012 year valuations provided by the NSW Valuer General in calculating its rates.

13,372

1,151 806

4,325

369 465

4,683

Actual

32,743 4,689

6

Actual

1,432

35,368

Notes

37,438 7

2013

2,685

2014

4,192 -

13,372

449 358

30,678

802

13,752

52,932

13,752

55,515


page 30



Note 3. Income from Continuing Operations (continued)

$ '000

(b) User Charges & Fees

Specific User Charges (per s.502 - Specific "actual use" charges)

Waste Management Services (non-domestic)

Waste Management Services (non-rateable)

Total User Charges

Other User Charges & Fees(i) Fees & Charges - Statutory & Regulatory Functions (per s.608)

Building Consents and Construction CertificatesBuilding InspectionsDevelopment & Planning Consent FeesHealth Inspection & Approvals FeeSection 149 Certificates - Zoning (EPA Act)

Section 603 Certificates - Rating CertificatesOtherTotal Fees & Charges - Statutory/Regulatory

(ii) Fees & Charges - Other (incl. General User Charges (per s.608)

Engineering Inspections & Other FeesEnvironmental Enforcement FeesLibrary Fees & ChargesMeals on WheelsParking FeesPermits & Inspection FeesRestoration & Road Opening FeesStreet Furniture Advertising FeeDesign Review PanelOtherTotal Fees & Charges - Other

TOTAL USER CHARGES & FEES

1,033

305

1,507

56

728

67

41

100

430 679

159

305 856

2013Actual Actual

2014

383

91

1,135

1,191 335

22

273

57

155

107 797

235 130

995

19

20

1,682 2,160

119

6,306

62

78

69

281

172

2,806 171

487

131

5,521

180

2,955

90

Notes


page 31




$ '000

(c) Interest & Investment Revenue (incl. losses)

Interest & Dividends - Interest on Overdue Rates & Annual Charges (incl. Special Purpose Rates)

- Interest earned on Investments (interest & coupon payment income)

Fair Value Adjustments - Fair Valuation movements in Investments (at FV or Held for Trading)TOTAL INTEREST & INVESTMENT REVENUE

Interest Revenue is attributable to:Unrestricted Investments/Financial Assets:Overdue Rates & Annual Charges (General Fund)

General Council Cash & InvestmentsRestricted Investments/Funds - External:Development Contributions - Section 94Total Interest & Investment Revenue Recognised

(d) Other Revenues

Rental Income - Residential & Commercial PropertyRental Income - Halls & Community FacilitiesRental Income - Parks & Sporting FacilitiesFines - Car Parking InfringementsFines - OtherLegal Fees Recovery - OtherOtherTOTAL OTHER REVENUE

240

2013

121

5,427

3,532

1,288 192

126 - 23

2014

3,090

-

Actual

1,971

240

202

Actual

1,406

4,483 1,071

386

45 3,532

Notes

3,541

386

3,541

380

958

3,110

2,197 3,292

400

1,305

547

1,080


page 32




$ '000

(e) Grants

General Purpose (Untied)Financial Assistance - General Component

Financial Assistance - Local Roads Component

Pensioners' Rates Subsidies - General Component

Total General Purpose1 The Financial Assistance Grant for 13/14 reflects a one off reduction due to the fact that this grant is no longer being paid in advance by up to 50% as has occurred in previous years - it does not represent a loss of income but is instead a timing difference.

Specific PurposePensioners' Rates Subsidies: - Domestic Waste ManagementLibrary - per capitaMeals on Wheels SubsidyParksRTA Roads & TrafficStreet LightingTransport (Roads to Recovery)

Other - Waterway and Foreshor ImprovementsOtherTotal Specific PurposeTotal Grants

Grant Revenue is attributable to:- Commonwealth Funding- State Funding- Other Funding

(f) Contributions

Developer Contributions:(s93 & s94 - EP&A Act, s64 of the LGA):S 94 - Contributions towards amenities/servicesS 94A - Fixed Development Consent LeviesTotal Developer Contributions

Other Contributions:OtherTotal Other ContributionsTotal Contributions

TOTAL GRANTS & CONTRIBUTIONS

13,896

14

2013 2014

-

1,118

349

157

6,688

6,294

33

378

-

-

394

-

Capital

-

769

-

157

142

394

13,739

-

349

-

394

-

12,986

6,280

14

15,014

753

181

-

1,118

-

5,763

-

40 354

231 260

1,118

- 519

63

-

-

448

6,026

226

2013

-

-

517

(243)

45

-

288 257

Capital

-

17 -

701 387

- 30

235

1

1

4,147

1,548

73

-

1,958 4,147

289 289

Operating 2014

6,207

2,515

2,805

1,101

2,189

280

181

-

-

95

1,003

-

2,036

3,511

735 - 740

-

- -

2,526

864 -

181

4,242

-

-

6,026

3,221

95 95

Operating


page 33




$ '000

(g) Restrictions relating to Grants and Contributions

Certain grants & contributions are obtained by Council on conditionthat they be spent in a specified manner:

Unexpended at the Close of the Previous Reporting Period

add: Grants & contributions recognised in the current period but not yet spent:

less: Grants & contributions recognised in a previous reporting period now spent:

Net Increase (Decrease) in Restricted Assets during the Period

Unexpended and held as Restricted Assets

Comprising: - Specific Purpose Unexpended Grants - Developer Contributions

9,258

1,826 3,059

34,479

34,479

6,399

28,080

2013

(2,859)

31,420

Actual 2014

34,479

15,669

9,789

Actual

44,268

42,442

(5,880)

44,268


page 34



Note 4. Expenses from Continuing Operations

$ '000

(a) Employee Benefits & On-Costs

Salaries and WagesTravellingEmployee Leave Entitlements (ELE)

SuperannuationWorkers' Compensation InsuranceFringe Benefit Tax (FBT)

Training Costs (other than Salaries & Wages)

Occupational Health & SafetyOtherTotal Employee Costsless: Capitalised CostsTOTAL EMPLOYEE COSTS EXPENSED

Number of "Equivalent Full Time" Employees at year end

(b) Borrowing Costs

(i) Interest Bearing Liability CostsInterest on LoansTotal Interest Bearing Liability Costs Expensed

(ii) Other Borrowing CostsInterest applicable on Interest Free (& favourable) Loans to CouncilTotal Other Borrowing CostsTOTAL BORROWING COSTS EXPENSED

(c) Materials & Contracts

Contractor & Consultancy CostsAuditors Remuneration (1)

Legal Expenses: - Legal Expenses: OtherComputer MaintenanceRoads, Parks and Property MaintenanceRecycling ContractWaste Collection and DisposalCommunity Safety, Vandalism and Graffiti programDesign and PlanningTOTAL MATERIALS & CONTRACTS

315

30,899

57

4,432

22,896 21

Actual

53

41

2,811

215

2013

22,304 23

2,907

(591) 31,703

(665)

170 299

31,490

341

32,368

23,800

3,597

283

384

10,679 11,544

953

356

1,303

906 4,736

42

192

315

2014Actual

105

340

1,165

4,317

231

416

3,846

1,301

22,685

5,217

106

1,025

41 41 41

Notes

1,522

496

58

147

375 375


page 35



Note 4. Expenses from Continuing Operations (continued)

$ '000

(c) Materials & Contracts (continued)

1. Auditor Remuneration During the year, the following fees were incurred for services provided by the Council's Auditor (& the Auditors of other Consolidated Entities):

(i) Audit and Other Assurance Services - Audit & review of financial statements: Council's AuditorRemuneration for audit and other assurance services

Total Auditor Remuneration

$ '000

(d) Depreciation, Amortisation & Impairment

Plant and EquipmentOffice EquipmentFurniture & FittingsLand Improvements (depreciable)

Buildings - Non SpecialisedBuildings - SpecialisedOther StructuresInfrastructure: - Roads - Bridges - Footpaths - Stormwater Drainage - Swimming PoolsOther Assets - Library BooksIntangible AssetsTotal Depreciation & Impairment Costsless: Impairments (to)/from ARR [Equity]

TOTAL DEPRECIATION &IMPAIRMENT COSTS EXPENSED

Actual Actual Notes 2014 2013

71

878

Actual

721

Actual 2014

1,397

53

227

5,606

Depreciation/Amortisation

18,786

151 - 1,657 -

1,019

-

42

385

-

53

1,019

70

-

380

18,786

3,766

245

16,674

8,300

9a

-

25

Impairment Costs

-

Notes

-

-

614 2,643

42

610 509

-

- -

886

-

- -

1,350

-

1,756

359

- -

-

-

-

-

Actual

-

1,757

2013

-

55

42

- -

-

-

Actual 2014

-

-

- -

-

-

1,395 (1,395)

- 16,674 424

53

2013


page 36



Note 4. Expenses from Continuing Operations (continued)

$ '000

(e) Other Expenses

Other Expenses for the year include the following:

AdvertisingBad & Doubtful DebtsContributions/Levies to Other Levels of Government - Department of Planning Levy - NSW Fire Brigade LevyCouncillor Expenses - Mayoral FeeCouncillor Expenses - Councillors' FeesCouncillors' Expenses (incl. Mayor) - Other (excluding fees above)

Donations, Contributions & Assistance to other organisations (Section 356)

Election ExpensesElectricity & HeatingExternal Hire ChargesFees and ChargesFood and BeveragesInsuranceMotor Vehicle ExpensesPostagePrinting & StationeryProperty ExpensesRental Contribution and SubsidiesStreet LightingTelephone & CommunicationsOtherTOTAL OTHER EXPENSES

21

224

(260) 212

1,334

2014

502

277

409

63

-

11,750

201

872

340

733

2,013

343

Actual

1,099

37

Actual

1,323

747 -

Notes

271

169 1,277

201

10,274

702

1,314 213

102

173

128 885

2,026

109

330

18

97

1,049

245

286

324

36

188

901

2013

238 252


page 37



Note 5. Gains or Losses from the Disposal of Assets

$ '000

Property (excl. Investment Property)Proceeds from Disposal - Propertyless: Carrying Amount of Property Assets Sold / Written OffNet Gain/(Loss) on Disposal

Plant & EquipmentProceeds from Disposal - Plant & Equipmentless: Carrying Amount of P&E Assets Sold / Written OffNet Gain/(Loss) on Disposal

Financial Assets*Proceeds from Disposal / Redemptions / Maturities - Financial Assetsless: Carrying Amount of Financial Assets Sold / Redeemed / MaturedNet Gain/(Loss) on Disposal

NET GAIN/(LOSS) ON DISPOSAL OF ASSETS

(972)

1,550

11

4,149 (4,149)

2013

- 116

(901)

(136)

147

Actual

(1,403)

836

17

-

9,032

-

116

(9,032)

133

2014

918

NotesActual


page 38



Note 6a. - Cash Assets and Note 6b. - Investments

$ '000

Cash & Cash Equivalents (Note 6a)Cash on Hand and at BankCash-Equivalent Assets1

- Deposits at CallTotal Cash & Cash Equivalents

Investments (Note 6b)- Long Term Deposits- NCD's, FRN's (with Maturities > 3 months)

- Other Long Term Financial AssetsTotal InvestmentsTOTAL CASH ASSETS, CASHEQUIVALENTS & INVESTMENTS

1 Those Investments where time to maturity (from date of purchase) is < 3 mths.

Cash, Cash Equivalents & Investments wereclassified at year end in accordance withAASB 139 as follows:

Cash & Cash Equivalentsa. "At Fair Value through the Profit & Loss"

Investmentsa. "At Fair Value through the Profit & Loss"- "Designated at Fair Value on Initial Recognition"b. "Held to Maturity"Investments

Refer to Note 27 - Fair Value Measurement for information regarding the fair value of investments held.

-

8,009

3,000

6,063

-

- 6,058

-

5

6,063

Non Current

6,063

-

-

-

5,009

52,910

10,080

58,673

20,000 - 6(b-i)

6(b-ii)20,000

20,000

Actual 2013

-

5

6,063

5,009

78,673

20,000

Non Current

8,173

58,673 50,500

-

10,085

Actual 2013

Current Actual

2014

3,000 10,085

-

10,085

63,903

71,912

-

-

-

10,085

8,009

-

-

63,903

10,993

Notes

2014Actual

Current


page 39



Note 6b. Investments (continued)

$ '000

Note 6(b-i)Reconciliation of Investments classified as"At Fair Value through the Profit & Loss"Balance at the Beginning of the YearTransfer to Cash EquivalentRevaluations (through the Income Statement)AdditionsDisposals (sales & redemptions)

Transfers between Current/Non CurrentBalance at End of Year

Comprising:- NCD's, FRN's (with Maturities > 3 months)- Other Long Term Financial Assets

Total

Note 6(b-ii)Reconciliation of Investmentsclassified as "Held to Maturity"Balance at the Beginning of the YearAdditionsDisposals (sales & redemptions)

Balance at End of Year

Comprising:- Long Term Deposits- Other Long Term Financial Assets

Total

6,058

6,063

5

4,000

5,009

234 (149)

2013

-

6,063

-

-

5,016

-

-

-

-

-

-

-

- 10,085

5

- -

5,009

3,000 -

5,009

Non Current Actual Actual

- (3,038)

(3,000)

20,000

-

2014

(6,032)

(9)

19,000

-

20,000

Current

-

20,000

-

Actual

5,009

-

-

1,000

3,000

1,032

3,000

- -

3,000

-

10,080

- 6,063

3,038

-

2013

(4,149)

(33)

6,004

5,000 54

(1,032) 10,085

Actual Non Current

149

2014

Current

3,000 - -


page 40



Note 6c. Restricted Cash, Cash Equivalents & Investments - Details

$ '000

Total Cash, Cash Equivalentsand Investments

attributable to:External Restrictions (refer below)

Internal Restrictions (refer below)

Unrestricted

$ '000

Details of Restrictions

External Restrictions - Included in LiabilitiesNil

External Restrictions - OtherDeveloper Contributions - General (D)Specific Purpose Unexpended Grants (F)Domestic Waste Management (G)Community Safety Levy (G)Infrastructure Levy Reserve (G)Local Area Funds (G)Stormwater Levy (G)LIRS ReserveExternal Restrictions - OtherTotal External Restrictions

D Development contributions which are not yet expended for the provision of services and amenities in accordancewith contributions plans (refer Note 17).

F Grants which are not yet expended for the purposes for which the grants were obtained. (refer Note 1) G Water, Sewerage, Domestic Waste Management (DWM) & other Special Rates/Levies/Charges are externally

restricted assets and must be applied for the purposes for which they were raised.

6,063

Non Current Actual Actual

2014 Closing Transfers from

- 24,294

71,912

6,063

864

Opening

78,673

Non Current

2014Actual

2014

53,554

825

Balance

10,085 78,673 71,912

(14,891)

48,143

Restrictions

-

42,442

Balance

6,063

Restrictions

22,905 -

(25,192)

2,964 372

808

63,639

(1,626)

63,639

387

- (1,655)

(255)

(566) 70

Current

54,206

31,420

3,859

566

1,043

-

34,625

917

54,206

10,406

3,709

2,587

34,625

270 14,146

10,085

- 10,085

14,697

Transfers to

1,826 (2,205) (3,675)

972

2013Actual

3,059

(25,192)

(319) 4,820

11,130

Current

2013


page 41



Note 6c. Restricted Cash, Cash Equivalents & Investments - Details (continued)

$ '000

Internal RestrictionsEmployees Leave EntitlementPlant & EquipmentOffice Equipment & IT ReserveOpen Space and s94 ObligationsCentral LibraryLoan Fund ReserveBexley Pool ComplexPublic Liability ClaimsWorkers CompensationCouncil ElectionCapital Works RevoteStrategic PrioritiesStreet Lighting HardwareBrighton Bath Amenities BuildingArncliffe Youth CentreTotal Internal Restrictions

TOTAL RESTRICTIONS

-

116

Restrictions

59

Restrictions

1,395

- 347

800

2,299 -

265

4,954 -

(842)

2,151 2,280

Balance

2,075

(2,022) -

634 (938)

(144)

-

5,189 323

542

(169)

2014 Closing Balance

Transfers from

116 377

22,905

77,111

10,629 3,000

945

-

- (9,240)

542

(34,432)

-

45,254

2,286 5,364

4,576

2,295

-

2,355

Transfers to

-

139

938

201

634

905

3,000

3,970

Opening

599

842 125 140

-

450

378

224

(980)

(4,145)

-

24,294

-

87,933


page 42



Note 7. Receivables

$ '000

PurposeRates & Annual ChargesInterest & Extra ChargesUser Charges & FeesAccrued Revenues - Interest on InvestmentsGovernment Grants & SubsidiesNet GST ReceivableOther DebtorsTotal

less: Provision for ImpairmentRates & Annual ChargesInterest & Extra ChargesUser Charges & FeesOther DebtorsTotal Provision for Impairment - Receivables

TOTAL NET RECEIVABLES

Externally Restricted ReceivablesDomestic Waste ManagementStormwater Levy - Local Area WasteTotal External RestrictionsInternally Restricted ReceivablesNilUnrestricted ReceivablesTOTAL NET RECEIVABLES

Notes on Debtors above:(i) Rates & Annual Charges Outstanding are secured against the property.

(ii) Doubtful Rates Debtors are provided for where the value of the property is less than the debt outstanding. An allowance for other doubtful debts is made when there is objective evidence that a receivable is impaired.

(iii) Interest was charged on overdue rates & charges at 9.00% (2013 10.00%).Generally all other receivables are non interest bearing.

(iv) Please refer to Note 15 for issues concerning Credit Risk and Fair Value disclosures.

636

2,867

Current

2

-

3

1,649

464

2014Non Current Notes

-

- -

580

47 -

382

-

580

-

-

-

580

-

- - -

-

-

276

4,816

Current Non Current

1,229

480 3,135

-

-

3,927 5,665

-

15 849

42

(53)

6,520

-

260

260

-

4,810

792

-

(4) (45)

883

-

- 815

-

-

(50) (4)

5,665

437

464

(855) (748)

260

260 260

2013

-

580

5,942

-

21

(49)

4,810

(1,132) (1,034)

580

-

-

438

-


page 43



Note 8. Inventories & Other Assets

$ '000

InventoriesStores & MaterialsTotal Inventories

Other AssetsPrepaymentsTotal Other Assets

TOTAL INVENTORIES / OTHER ASSETS

Externally Restricted AssetsThere are no restrictions applicable to the above assets.

Refer to Note 27 - Fair Value Measurement for information regarding the fair value of other assets held.

Non Current

253

2013Non Current

-

Notes

183

Current

81 586

64

81

- 64

650 253

Current

253

102 102

-

2014

-

317

317

317 586



Note 9a. Infrastructure, Property, Plant & Equipment

At At Carrying At At Carrying

$ '000 Cost Fair Value Dep'n Impairment Value Cost Fair Value Dep'n Impairment Value

Capital Work in Progress 7,553 - - - 7,553 11,677 - - - (4,456) - - - 14,774 - - - 14,774 Plant & Equipment - 10,099 4,309 - 5,790 2,394 (901) (1,397) - - - - - - 10,791 4,905 - 5,886 Office Equipment - 1,437 810 - 627 507 - (245) - - - - - - 1,944 1,055 - 889 Furniture & Fittings - 1,598 1,282 - 316 12 - (70) - - - - - - 1,610 1,352 - 258 Land: - Operational Land - 139,746 - - 139,746 751 - - - - - (47,112) 35,622 - 129,007 - - 129,007 - Community Land - 98,830 - - 98,830 - - - - - - - - - 98,830 - - 98,830 Land Improvements - depreciable - 52,994 11,105 - 41,889 - - (1,756) - 494 - - - - 53,488 12,861 - 40,627 Buildings - Non Specialised - 28,031 9,870 - 18,161 4 - (721) - - - (888) - - 26,025 9,469 - 16,556 Buildings - Specialised - 96,274 43,852 - 52,422 - - (2,643) (509) 1,757 (941) - - - 96,184 45,590 509 50,085 Other Structures - 16,446 3,638 - 12,808 - - (610) - 284 - - - - 16,730 4,248 - 12,482 Infrastructure: - Roads - 455,174 217,712 - 237,462 - - (5,606) - 1,508 (56,803) - - - 344,685 168,124 - 176,561 - Bridges - - - - - - - (151) - - 8,294 - - - 18,176 10,033 - 8,143 - Footpaths - - - - - - - (1,657) - 403 48,509 - - - 94,226 46,971 - 47,255 - Bulk Earthworks (non-depreciable) - 125,879 - - 125,879 - - - - - - - - - 125,879 - - 125,879 - Stormwater Drainage - 92,342 42,714 - 49,628 - - (1,019) - 10 - - - - 92,351 43,732 - 48,619 - Swimming Pools - - - - - - - (55) (886) - 941 - - - 1,847 961 886 - Other Assets: - Library Books - 3,782 2,559 - 1,223 365 - (359) - - - - - - 4,148 2,919 - 1,229 TOTAL INFRASTRUCTURE,PROPERTY, PLANT & EQUIP.

Additions to Buildings & Infrastructure Assets are made up of Asset Renewals ($7,014) and New Assets ($4,371).Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets).

Refer to Note 27 - Fair Value Measurement for information regarding the fair value of other Infrastructure, Property, Plant & Equipment.

as at 30/6/2014

Asset Additions

WDVof Asset

Disposals

Depreciation Expense

Revaluation Incrementsto Equity (ARR)

Accumulated

Impairment Loss

(recognisedin Equity)

7,553 1,122,632 337,851 - 792,334

as at 30/6/2013Asset Movements during the Reporting Period

Accumulated

Tfrs from/(to) "Held for

Sale" category

WIPTransfers

Adjustments& Transfers

(48,000) 15,710 (901) (16,289) (1,395) - 35,622

page 44

Financial Statem

ents 2014

14,774 1,115,921 352,220 1,395 - 777,080


page 45



Note 9b. Externally Restricted Infrastructure, Property, Plant & Equipment

Note 9c. Infrastructure, Property, Plant & Equipment - Current Year Impairments

Impairment Losses recognised direct to Equity (ARR):

- Demolition of 444 and 446 Princes Highway for new Library Contruction - Bexley Pool due to new construction projectTotal Impairment Losses

IMPAIRMENT of ASSETS - DIRECT to EQUITY (ARR)

Actual2013

143 324

324

-

Actual

20 (ii)

172

(1,395) -

- 467 143 -

Actual

(1,395) -

(886) -

324 295 - - 467

A/Dep & Carrying ValueCost

AtCarrying Value

AtImpairm'tFair ValueImpairm'tFair Value

467

(509)

467

143 295

$ '000

Class of Asset

Actual

At A/Dep &At2014

Cost

467

Domestic Waste Management

295

- 172

TOTAL RESTRICTED I,PP&E

467 172 Garbage & Recycling

Total DWM-


page 46



Note 10a. Payables, Borrowings & Provisions

$ '000

PayablesGoods & Services - operating expenditurePayments Received In AdvanceAccrued Expenses: - Other Expenditure AccrualsSecurity Bonds, Deposits & RetentionsOtherTotal Payables

BorrowingsLoans - Secured 1

Total Borrowings

ProvisionsEmployee Benefits;Annual LeaveSick LeaveLong Service LeaveGratuitiesSub Total - Aggregate Employee BenefitsPublic Liability Under ExcessTotal Provisions

Total Payables, Borrowings & Provisions

(i) Liabilities relating to Restricted Assets

Externally Restricted AssetsDomestic Waste ManagementLiabilities relating to externally restricted assets

Internally Restricted AssetsNil

Total Liabilities relating to restricted assetsTotal Liabilities relating to Unrestricted AssetsTOTAL PAYABLES, BORROWINGS & PROVISIONS

1. Loans are secured over the General Rating Income of Council Disclosures on Liability Interest Rate Risk Exposures, Fair Value Disclosures & Security can be found in Note 15.

7,047 7,047 22,535

753

-

20,493

1,758 18,735

Non Current

824

-

6,326

414 425

6,856 -

-

243

824

6,856

6,326

- 3,668

-

1,758 753

251

Current

182

- 1,194

-

21,782

753 -

296

2013

20,493 7,047

11,714

Current

710

2014

7,955

163

3,868 -

211

6,856

187

12,106

12,106

22,535

- - 721

6,833

6,146 6,146

296

1,268

- -

11,714

-

- -

2,597 3,887

378 -

Non Current 2014

Current 2013

Non Current Notes

48

Non Current

4,454

3,172

Current

-

1,758

-

-

-

391 1,093

1,096

6,680 - 1,179

9,333

-

-

1,096


page 47



Note 10a. Payables, Borrowings & Provisions (continued)

$ '000

(ii) Current Liabilities not anticipated to be settled within the next 12 months

The following Liabilities, even though classified as current, are not expectedto be settled in the next 12 months.

Provisions - Employees BenefitsPayables - Security Bonds, Deposits & Retentions

Note 10b. Description of and movements in Provisions

a. Employees Leave Entitlements & On-Costs represents those benefits accrued and payable and an estimate of thosethat will become payable in the future as a result of past service.

b. Self Insurance Provisions represent both (i) Claims Incurred but Not reported and (ii) Claims Reported & Estimatedas a result of Council's being a self insurer up to certain levels of Excess.

Additional Provisions

Unused amounts reversed

2014

296 462

(20) (1,833) -

Actual

2014

9,003 2,916

-

ClosingBalance

as at 30/6/14

-

Remeasureme--nt effects due to

Discounting

-

-

11,534

12,816 -

9,275

-

Actual

3,103 (2,722)

Gratuities-

32 -

12,435 Self Insurance - TOTAL

Class of Provision Decrease due to Payments

1,003

OpeningBalance

as at 1/7/13

2,531

-

12,191

- - 430

(869)

2013

296

1,194 3,868 - Annual Leave

Sick Leave 35 Long Service Leave

3,668 1,179

2,033

6,862 -

2013

6,996


page 48



Note 11. Statement of Cash Flows - Additional Information

$ '000

(a) Reconciliation of Cash Assets

Total Cash & Cash Equivalent AssetsLess Bank OverdraftBALANCE as per the STATEMENT of CASH FLOWS

(b) Reconciliation of Net Operating Result to Cash provided from Operating Activities

Net Operating Result from Income StatementAdjust for non cash items:Depreciation & AmortisationNet Losses/(Gains) on Disposal of AssetsLosses/(Gains) recognised on Fair Value Re-measurements through the P&L: - Investments classified as "At Fair Value" or "Held for Trading"Amortisation of Premiums, Discounts & Prior Period Fair Valuations - Interest Exp. on Interest Free Loans received by Council (previously Fair Valued)

Share of Net (Profits) or Losses of Associates/Joint Ventures

+/- Movement in Operating Assets and Liabilities & Other Cash Items:Decrease/(Increase) in ReceivablesIncrease/(Decrease) in Provision for Doubtful DebtsDecrease/(Increase) in InventoriesDecrease/(Increase) in Other AssetsIncrease/(Decrease) in PayablesIncrease/(Decrease) in other accrued Expenses PayableIncrease/(Decrease) in Other LiabilitiesIncrease/(Decrease) in Employee Leave EntitlementsIncrease/(Decrease) in Other ProvisionsNET CASH PROVIDED FROM/(USED IN)OPERATING ACTIVITIES from the STATEMENT of CASH FLOWS

(c) Non-Cash Investing & Financing Activities

Nil

(d) Financing Arrangements

Unrestricted access was available at balance date to thefollowing lines of credit:

Bank Overdraft Facilities (1)

Credit Cards / Purchase CardsTotal Financing Arrangements

1. The Bank overdraft facility may be drawn at any time and may be terminated by the bank without notice. Interest rates on overdrafts are Interest Rates on Loans & Other Payables are disclosed in Note 15.

(45)

16,674 (11)

63,903

(59)

(133)

58,673 -

837

63,903

569

18,786

(38)

-

41

-

-

Notes

(202)

Actual

(4,694)

350

2014Actual

7,370

350

- (277)

58,673

6a

10

(258)

(408)

867

2013

60

25,603

-

41

60

16,125

782

(1,329)

127 2,079

410 410

-

628 - 381


page 49



Note 12. Commitments for Expenditure

$ '000

(a) Capital Commitments (exclusive of GST)

Capital expenditure committed for at the reporting date but notrecognised in the financial statements as liabilities:

Property, Plant & EquipmentBuildingsPlant & EquipmentTotal Commitments

These expenditures are payable as follows:Within the next yearTotal Payable

Sources for Funding of Capital Commitments:Unrestricted General FundsTotal Sources of Funding

Details of Capital CommitmentsPlant & Equipment relates to fleet vehicles whilst Buildings relates to the construction of the new library.

(b) Finance Lease Commitments

Nil

(c) Operating Lease Commitments (Non Cancellable)

Nil

(d) Investment Property Commitments

Nil

2014

13,893 79

2,424

2,759

2,759

13,814

NotesActual

335

Actual

2,759 13,893

2,759 13,893

13,893

2,759

13,893

2013


page 50



Note 13a(i). Statement of Performance Measurement - Indicators (Consolidated)

$ '000

Local Government Industry Indicators - Consolidated

1. Operating Performance RatioTotal continuing operating revenue (1)

(excl. Capital Grants & Contributions) - Operating ExpensesTotal continuing operating revenue (1)

(excl. Capital Grants & Contributions)

2. Own Source Operating Revenue RatioTotal continuing operating revenue (1)

(less ALL Grants & Contributions)

Total continuing operating revenue (1)

3. Unrestricted Current RatioCurrent Assets less all External Restrictions (2)

Current Liabilities less Specific Purpose Liabilities (3, 4)

4. Debt Service Cover RatioOperating Result (1) before capital excluding interestand depreciation / impairment / amortisation (EBITDA)

Principal Repayments (from the Statement of Cash Flows)

+ Borrowing Interest Costs (from the Income Statement)

5. Rates, Annual Charges, Interest & Extra Charges Outstanding PercentageRates, Annual and Extra Charges OutstandingRates, Annual and Extra Charges Collectible

6. Cash Expense Cover RatioCurrent Year's Cash and Cash Equivalentsincluding All Term DepositsPayments from cash flow of operating andfinancing activities

Notes

(1) Excludes fair value adjustments and reversal of revaluation decrements, net gain/(loss) on sale of assets and net share of interests in joint ventures.(2) Refer Notes 6-8 inclusive. Also excludes any Real Estate & Land for resale not expected to be sold in the next 12 months(3) Refer to Note 10(a).(4) Refer to Note 10(a)(ii) - excludes all payables & provisions not expected to be paid in the next 12 months (incl. ELE).

59,422

3.24

-9.72%

2014

5.45

8.14 : 1

Indicator

78,118

5,871

5.43%

9,591

70,744 90,000

9,209 1,465

6.29 8.63

-10.51%

2014 2013

3.94

83.71%78.60%

12.03

86.90%

10.57

6.24%

-16.56%

2012Prior Periods

(7,881)

Amounts

13.40

6.13%

74,986

3,228

x12 78,673


page 51



Note 13a(ii). Local Government Industry Indicators - Graphs (Consolidated)

―― Minimum 0.00%

Source for Benchmark: Code of Accounting Practice and Financial Reporting

―― Minimum 60.00%


―― Minimum 1.50


Commentary on 2013/14 Result

Purpose of Unrestricted Current

Ratio

This ratio measures Council’s

achievement of containing operating expenditure within operating revenue.

This ratio measures fiscal flexibility. It is

the degree of reliance on external funding

sources such as operating grants &

contributions.


To assess the adequacy of working capital and its ability to satisfy obligations in the short term for

the unrestricted activities of Council.


Council's Own Source Operating Revenue Ratio has remained above the benchmark of (>60%) in the last three years. Council

has sufficient level of fiscal flexibility, in the event of being faced with unforseen events.

Purpose of Operating

Performance Ratio

Purpose of Own Source Operating

Revenue Ratio

Council's Unrestricted Current Ratio is above the benchmark of >1.5% and has

been outperforming the benchmark for the past three years. Council's liquidity is good and it can readily pay its debts as they fall

due.

Council's Operating Performance Ratio is in the negative due to Council not funding

depreciation which is a non cash item. Council is working towards getting this ratio

to zero.

2013/14 Ratio 8.14 : 1

2013/14 Ratio 78.60%

2013/14 Ratio -10.51%

3.10 3.24 3.94

8.14

0.01.02.03.04.05.06.07.08.09.0

10.0

2011 2012 2013 2014

Rat

io :

1

3. Unrestricted Current Ratio

-9.72%

-16.56%

-10.51%

-20%

-18%

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%2012 2013 2014

Rat

io %

1. Operating Performance Ratio

86.90% 83.71% 78.60%

0%

20%

40%

60%

80%

100%

2012 2013 2014

Rat

io %

2. Own Source Operating Revenue Ratio


page 52



Note 13a(ii). Local Government Industry Indicators - Graphs (Consolidated)

―― Minimum 2.00

Source for Benchmark: NSW Treasury Corporation

―― Maximum 5.00%

Source for Benchmark: Office of Local Govt - Comparative Information (10/11)

―― Minimum 3.00


Purpose of Cash Expense Cover

Ratio

Commentary on Result

2013/14 Ratio 13.40

This liquidity ratio indicates the number of months a Council can continue paying

for its immediate expenses without

additional cash inflow.

To assess the impact of uncollected rates and annual charges on Council's liquidity and the adequacy of

recovery efforts.

This ratio measures the availability of operating cash to

service debt including interest, principal and

lease payments

The Debt Service Cover Ratio has been above benchmark of 200% for the past

three years. It has fluctuated over the last three years due to fluctuating principal and

interest repayments during the periods.

The percentage of rates and annual charges that are unpaid at the end of the financial year is a measure of how well

Council is managing debt recovery. Council's ratio is slightly above the

benchmark of "less than 5%".

Purpose of Rates & Annual Charges

Outstanding Ratio


2013/14 Ratio 6.29

2013/14 Ratio 5.43%

Council's Cash Expense Cover Ratio is satisfactory and above the benchmark of

"greater than 3 months"


Purpose of Debt Service Cover Ratio

6.13% 6.24% 5.43%

0%

2%

4%

6%

8%

2012 2013 2014

Rat

io %

5. Rates, Annual Charges, Interest & Extra Charges Outstanding Percentage

8.63

5.45 6.29

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2012 2013 2014

Rat

io (

x)

4. Debt Service Cover Ratio

10.57 12.03

13.40

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

2012 2013 2014

Rat

io (

mth

s)

6. Cash Expense Cover Ratio


page 53



Note 14. Investment Properties

$ '000

Council has not classified any Land or Buildings as "Investment Properties"

Note 15. Financial Risk Management

Risk Management

Council's activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity riskand (4) interest rate risk.

The Council's overall risk management program focuses on the unpredictability of financial markets and seeksto minimise potential adverse effects on the financial performance of the Council.

Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreigncurrency risk.

Financial risk management is carried out by Council's Finance Section under policies approved by the Council.

A comparison by category of the carrying amounts and fair values of Council's Financial Assets & FinancialLiabilities recognised in the financial statements is presented below.

Financial AssetsCash and Cash EquivalentsInvestments - "Designated At Fair Value on Initial Recognition" - "Held to Maturity"ReceivablesTotal Financial Assets

Financial LiabilitiesPayablesLoans / AdvancesTotal Financial Liabilities

Fair Value is determined as follows:

- Cash & Cash Equivalents, Receivables, Payables - are estimated to be the carrying value which approximates mkt value.

- Borrowings & Held to Maturity Investments - are based upon estimated future cash flows discounted by the current market interest rates applicable to assets & liabilities with similar risk profiles, unless quoted market prices are available.

- Financial Assets classified (i) "at fair value through profit & loss" or (ii) Available for Sale - are based upon quoted market prices (in active markets for identical investments) at the reporting date or independent valuation.

Refer to Note 27 - Fair Value Measurement for information regarding the fair value of financial assets & liabilities

5,390 94,683

11,072

14,727

8,942 7,242

77,673

2013

10,085 20,000 3,000

20142014

5,390

58,673 63,903

5,925

2014Actual

11,072 10,085

63,903

Fair Value Carrying Value 2013

3,000

Notes

7,150

1,000

16,184 16,184 14,727

7,577 7,242

7,577

83,365 94,683

8,942 7,150

83,365 5,925

Actual 2013


page 54



Note 15. Financial Risk Management (continued)

$ '000

(a) Cash & Cash Equivalents, Financial assets 'at fair value through the profit & Loss' "Available-for-sale" financial assets & "Held-to-maturity" Investments

Council's objective is to maximise its return on cash & investments whilst maintaining an adequate level ofliquidity and preserving capital.

Council's Finance area manages the Cash & Investments portfolio with the assistance of independent advisors.

Council has an Investment Policy which complies with the Local Government Act & Minister's Investment Order.This Policy is regularly reviewed by Council and it's staff and an Investment Report is tabled before Council ona monthly basis setting out the portfolio breakup and its performance.

The risks associated with the investments held are:

- Price Risk - the risk that the capital value of Investments may fluctuate due to changes in market prices, whether there changes are caused by factors specific to individual financial instruments or their issuers or are caused by factors affecting similar instruments traded in a market.

- Interest Rate Risk - the risk that movements in interest rates could affect returns and income.

- Credit Risk - the risk that the investment counterparty) will not complete their obligations particular to a financial instrument, resulting in a financial loss to Council - be it of a capital or income nature.

Council manages these risks (amongst other measures) by diversifying its portfolio and only purchasinginvestments with high credit ratings or capital guarantees.

Council also seeks advice from independent advisers before placing any funds in Cash Equivalents &Investments.

The following represents a summary of the sensitivity of Council's Income Statement and Accumulated Surplus(for the reporting period) due to a change in either the price of a financial asset or the interest rates applicable.

It is assumed that the change in interest rates would have been constant throughout the reporting period.

2014Possible impact of a 10% movement in Market ValuesPossible impact of a 1% movement in Interest Rates

2013Possible impact of a 10% movement in Market ValuesPossible impact of a 1% movement in Interest Rates 669

(1,107)

Decrease of Values/Rates

(1,107) (669)

Increase of Values/Rates

1,107 669 (669)

Profit Equity

(787) (787)

1,107

(1,009) (1,009) 1,009 1,009 787 787

Profit Equity


page 55




$ '000

(b) Receivables

Council's major receivables comprise (i) Rates & Annual charges and (ii) User Charges & Fees.

The major risk associated with these receivables is credit risk - the risk that debts due and payable to Councilmay not be repaid in full.

Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures.It also encourages ratepayers to pay their rates by the due date through incentives.

Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the landrelating to the debts - that is, the land can be sold to recover the debt. Council is also able to charge intereston overdue rates & annual charges at higher than market rates which further encourages the payment of debt.

There are no significant concentrations of credit risk, whether through exposure to individual customers,specific industry sectors and/or regions.

The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored foracceptable collection performance.

Council makes suitable provision for doubtful receivables as required and carries out credit checks on mostnon-rate debtors.

There are no material receivables that have been subjected to a re-negotiation of repayment terms.

A profile of Council's receivables credit risk at balance date follows:

(i) Ageing of Receivables - %Current (not yet overdue)Overdue

(ii) Ageing of Receivables - valueCurrent (not yet overdue)Past due

(iii) Movement in Provision for Impairment of ReceivablesBalance at the beginning of the year+ new provisions recognised during the yearBalance at the end of the year

3,104

2013

1,017

1,132 (277)

2014

1,321

100%

493

1% 61%

2014Rates &

100%

1,586

3,449

230

Annual

39%99%

2014

1%

2,907

2013

99%

Other Rates &

855

3,331

Other

26%

Receivables

74%

511

Annual

2,838

2013

2,432

902

3,615

1,132

100%

Receivables Charges Charges

100%


page 56




$ '000

(c) Payables & Borrowings

Payables & Borrowings are both subject to liquidity risk - the risk that insufficient funds may be on hand tomeet payment obligations as and when they fall due.

Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining anadequate cash buffer.

Payment terms can (in extenuating circumstances) also be extended & overdraft facilities utilised as required.

The contractual undiscounted cash outflows (ie. principal and interest) of Council's Payables & Borrowings areset out in the maturity table below:

$ '000

Trade/Other PayablesLoans & AdvancesTotal Financial Liabilities

Trade/Other PayablesLoans & AdvancesTotal Financial Liabilities

Borrowings are also subject to interest rate risk - the risk that movements in interest rates could adverselyaffect funding costs & debt servicing requirements. Council manages this risk through the diversification ofborrowing types, maturities & interest rate structures.

The following interest rates were applicableto Council's Borrowings at balance date:

Loans & Advances - Fixed Interest Rate

Loan Agreement breachesThere are nil breaches to loan agreements which have occurred during the reporting year.

4-5 Yrs1-2 Yrs Outflows

2014

7,150

7,404

Cash

-

- 4,488

1,205

16,346 1,205

- 8,942

Subjectto no

2013

2014-

1,910

-

-

1,779

Interest RateInterest RateCarrying

2,659

AverageValue

Values

820

941 820

1,425

820

6,267

ActualTotal

8,942

-

748

-

7,242

820

1,205

1,910

> 5 Yrs≤ 1 Year

7,577

-

942

16,184

748

942

941

1,779

Carrying

14,727

Average

2,659

8,829

7,577

7,242 7,242

4.1% 7,150 4.1%

Value

2013Carrying

16,406

-

1,205 -

7,150

3,887

3,887 5,115

1,779

- 3,690

4,454

4,454

2-3 Yrs 3-4 Yrsmaturitypayable in:


page 57



Note 16. Material Budget Variations

$ '000

Council's Original Financial Budget for 13/14 was adopted by the Council on 19 June 2013.

While the Income Statement included in this General Purpose Financial Report must disclose the OriginalBudget adopted by Council, the Local Government Act requires Council to review its Financial Budget on aQuarterly Basis, so that it is able to manage the various variations between actuals versus budget thatinvariably occur throughout the year.

This Note sets out the details of MATERIAL VARIATIONS between Council's Original Budget and its Actualresults for the year as per the Income Statement - even though such variations may have been adjusted forduring each Quarterly Budget Review.

Note that for Variations* of Budget to Actual :Material Variations represent those variances that amount to 10% or more of the original budgeted figure.F = Favourable Budget Variation, U = Unfavourable Budget Variation

$ '000

REVENUESRates & Annual Charges

User Charges & FeesThe favourable variance is mainly associated with an increase in Environment Enforcement fees, Permits and Inspections, and Development and Planning fees. Their was also a higher demand for Commercial Waste Servicesthan originally anticipated.

Interest & Investment Revenue

Other RevenuesThis unfavourable variance is mainly associated with lower than expected payment in lieu of rates from Sydney Airport Corporation as well as subsidies for Community rentals being higher than anticipated.

Operating Grants & ContributionsThis unfavourable variance is mainly associated with the timing of when the Financial Assistance Grant is received.In previous years a prepayment was made, however this year that prepayment was not received. There were alsodecreases in other operational grants.

Capital Grants & ContributionsThis favourable variance is mainly associated with an increase in S94 Developer Contributions received includingamount received for Local Open Space projects such as Wolli Creek, Arncliffe and City Wide.

Net Gains from Disposal of AssetsThis favourable variance is mainly associated with profits on sale of property and plant and equipment.

Share of Net Profits - Joint Ventures & AssociatesThis favourable variance is mainly associated with its share in Metropool and UIP. Council's share varies from yearto years depending on insurance claim activities. For this reason Council does not budget to receive a share ofnet profits.

F

59

U

133 0%

-

(725)

0%

(39)

2014

U

F

6,128

F

(701)

F8,525

-

4,967

133

76%15,014

4,242

(11%)5,427

59

302 9%

(15%)

6,489

17%

55,554

5,371 6,306

Actual

(0%)

F

2014---------- Variance* ----------

U

3,541

55,515

3,239

2014Budget

935


page 58



Note 16. Material Budget Variations (continued)

$ '000

EXPENSESEmployee Benefits & On-Costs

Borrowing CostsThis unfavourable variance is mainly associated with the timing of the draw down of the budgeted loans and thesubsequent scheduled repayments.

Materials & ContractsThis unfavourable variance is mainly associated with a major amount of consultancy work being carried out for theBexley Indoor Pool design, Rockdale Library construction and the Arncliffe Pedestrian Tunnel.

Depreciation & Amortisationthis favourable variance is mainly associated with a change to infrastructure assests in that a residual value wasincluded and therefore reduced the depreciation expense.

Other Expenses

Budget Variations relating to Council's Cash Flow Statement include:Cash Flows from Operating ActivitiesThis favourable variance is mainly associated with higher than expected capial grants received and the increaseduser fees and charges.

Cash Flows from Investing ActivitiesThis favourable variance is mainly associated with a transfer of investments from Bonds to Term Deposits. As thelonger term investments matured they were reinvested into Term Deposits.

Cash Flows from Financing Activities 8.5%

73.0%

51

(17,857) (13,027)

648

18,634 25,603

F47

U(30,884)

4

6,969 F37.4%

6%

23,800

19,181 F16,674

U

10,922 F10,274

13%

(11%)21,470

320 (30%)

2014

F

Budget

32,438

2014

(2,330)

735 31,703

Actual

2,507

---------- Variance* ----------

2%

(96) U416

2014



Note 17. Statement of Developer Contributions

$ '000

Council recovers contributions, raises levies & enters into planning agreements on development works that are subject to a development consent issued by Council.All contributions must be spent/utilised for the specific purpose they were levied and any interest applicable to unspent funds must be attributed to remaining funds.

The following tables detail the receipt, interest and use of the above contributions & levies and the value of all remaining funds which are "restricted" in their future use.

SUMMARY OF CONTRIBUTIONS & LEVIES

Car ParkingDrainage Pollution ControlCommunity FacilitiesOpen SpaceTraffic and Electricity FacilitiesRamsgate Commercial CentreTown Centre ProgramWolli CreekBonar Street PrecinctAdministration

Contributions

-

12,984

825 - 16

841 Non Cash

received during the YearInterest Expenditureearned during

-

(2,200)

(9)

109

56

Cash

28 644 1,250

Year

42

31,414 13,737

902 -

29,478

PURPOSE OpeningBalance

-

7,774 -

111 -

(22) - 31

-

(499)

2

-

-

753

-

-

-

934

(3,326)

-

2,084 108 - 52 (369)

15,751 5,818 155

31,420

6

44

2,776 2,134

-

603 - 3

564

- -

676

- -

22 1,943

Restrictedto/(from)

(149)

-

891

114

-

- -

in Year

(219)

-

(39)

(3,675)

(349)

S94 not under Plans

page 59

1,936

-

-

S94 Contributions - under a Plan

Total S94 Revenue Under Plans

Total Contributions

S94A Levies - under a Plan

958

958

Financial Statem

ents 2014

-

124,328 (234,474) (70,100)

CumulativeProjections

(191)

(11,830) (6,190)

(7)

(34)

(34,096)

(13,049)

114

(31,920)

-

due/(payable)

8 -

Future

-

(50,226)

Exp

still

InternalOver or

-

4,503

Held as

6,150 21,860

-

689

Internal

-

(70,108)

Funding

(4,612)

(6,627)

-

(234,474)

(1,802)

(6)

(12,441)

- 5,463

4,923 Asset

- (68)

Borrowing

7

124,328 40,038

42,434

Borrowings

(5,110)

(under)

(4,490)

(10,764)

43,551

-

204 1,641

2,396

(14,782) 3,522

income

50,810 -

(85,719)

233

-

-

outstanding

-

-

3,999 4,873

-

- 1,875 11,986 (14,582) (721)

42,442 13,739

2

-

- 8

(159) 6

(3,675)



Note 17. Statement of Developer Contributions (continued)

$ '000

S94 CONTRIBUTIONS - UNDER A PLANCar Parking

C West Arncliffe/Turrella Industrial C East Arncliffe Industrial AreaC Rockdale-IndustrialC Rockdale-BusinessC Ramsgate Beach-Business C Bexley-BusinessC Kingsgrove-BusinessC Bexley NorthC Brighton-NewC Rockdale-New

Drainage Pollution Control

D Wolli CreekD Bardwell CreekD Bonnie DoonD Spring StreetD Muddy CreekD Eve StreetD Scarborough PondsD Waradiel CreekD Bado-berong CreekD Goomun CreekD Whole of City

-

in Year

- -

-

Interest

-

2

-

- -

- -

-

Expenditure

-

-

-

-

earned

-

- -

-

22 -

duringearned

-

-

- 4

14

3

-

- -

63 -

-

Restrictedduring

-

Expenditure

- - 1

-

-

- -

644

545 44

-

Total

1

42

9 - -

38 11

171

-

1,250

33

61

106

25

-

79

-

Cash

Contributions

-

-

28

-

- 3 2

- -

-

-

-

5

received during the Year

28

-

- -

2

PURPOSE

-


-

1

2

-

Opening

- -

- -

-

-

78

-

-

58

Non CashBalance

-

-

1

Cash

-

page 60

PURPOSE

-

531

Total

-

(6)

Internal

Interest

-

30 - - 1

Balance

-

-

-

Contributions

-

9 43

101 841

Opening

-

Non Cash in Year

-

-

-

Borrowing

Borrowing

(31,920)

1

-

7

7

34

(32,483)

- 1

26

5

Over orInternal

(7)

-

26

-

709 644 -

-

Future

- -

1

- 175

income

-

(34,096)

-

(34,096)

outstanding-

175 -

-

-

-

-

Borrowings

Borrowings

419

1,260

(7)

- (783)

60

Funding

60

-

-

1,943

-

Held as

-

-

39

income

(6,515)

Over orProjections

still

Cumulative

- -

1

891

due/(payable)

-

-

- 132

outstanding

- -

-

9

Future

-

(2,521) 858

(under)

-

81

109

5

-

Projections

233

9 -

-

-

(12,441)

(946)

-

-

-

due/(payable)

- 27 - - 1,380 233

39 11

Year

Year to/(from)109

Exp

-

31 -

-

Held as

2,111

still

-

- -

-

CumulativeInternal

(1,884)

545

- 132 - - 31

(419)

4,923

80

Exp

- -

-

(under)

81

Restricted

-

- 9

Financial Statem

ents 2014

(6,627)

Asset

1

-

Internal

-

-

34

63

-

(1,252)

(4,404) - -

275 -

Assetto/(from)

(1,102)

11 Funding

-




$ '000

S94 CONTRIBUTIONS - UNDER A PLANCommunity Facilities

C General Community FacilitiesC LibrariesC Child Care

Open Space

O Open Space

Traffic and Electricity Facilities

T Gertrude Street

Ramsgate Commercial Centre

R RamsgateR Sans Soucipage 61

Financial Statem

ents 2014

689 5,463

during

- -

to/(from)Year

86

(499)

(499) (314)

(8,142)

outstanding

InternalBorrowing

21,860 outstandingincome

(under)

stillduring

3,522

Future

6,150 -

Projections

Held asInternal

(13,049)

Exp

21,860

to/(from)(13,049)

Internal

Funding

Held as

Projections

Borrowingto/(from)

114 outstanding

- 114

Restricted Future stillAsset income

(85,719) 50,810

-

(4,815) -

Future

-

Funding

(10,764)

Held as

114

Over or

Funding

-

-

203

during

-

(under)incomeAsset

Exp

(under)

outstandingRestricted

- -

still

-

in Year

486 Year

- 12

114

Internal

-

received during the YearExpenditure

to/(from)

-

109

7,774 15,751

Cash

Total

Total

BalanceOpening earned

3

Interest

(68)

Interest

3

-

Opening

Cash in Year

- -

YearBorrowing

(68) (2,200)

Restricted

231 -

- 603

Borrowingduring

-

Cash

203 (10,764) -

Projections

- (4,612) Total 564

Balance

5,818

PURPOSE

-

Opening

-

- 109

Total

Cash

7,774

PURPOSE

PURPOSE

-

Non Cash

Non Cash

-

155 676

Contributions

in Year

earned

Interest

-


474

(2,200)

-

Expenditurereceived during the Year

Year

43

111 in Year

111

603

PURPOSE

Expenditure

16

15,751

-

Balance

Contributions

4 90

Non Cash

2,375 3,258

592 185

earned

earned

64 5 -

Contributions

InterestContributionsOpening Future still

2,729

Expenditure

-

3,387 -

Held as

Asset

(83)

Exp

3,115

Internal

due/(payable)received during the Year

Balance

- income

AssetRestricted

41

Non Cash

Projections

- 1,107

Borrowings

Borrowings

-

Cumulative

- - -

4,503 (85,719)

(14,782)

(11,781)

Borrowings

-

CumulativeInternal

Cumulative

50,810

(under)Over or

2,532 (3,001)

due/(payable)

4,503

due/(payable)

InternalBorrowings

InternalCumulative

- -

- -

Over or

5,463 due/(payable)

(5,110)

Exp

Funding

Over or




$ '000

S94 CONTRIBUTIONS - UNDER A PLANTown Centre Program

T ArncliffeT BexleyT Bexley NorthT Brighton Le SandsT KogarahT RockdaleT Sans SouciT Wolli CreekT City Wide

Wolli Creek

W Flood and Stormwater ManagementW Roadworks, Traffic and ParkingW Pedestrian/CycleW Administration

page 62

Financial Statem

ents 2014

(400)

still

(927)

(621)

outstanding

to/(from)

(203)

10,630 3,913

(222)

Held as

Borrowing

3,999

(26)

(755)

Internal

- income

(42) Non Cash

Total

Total

-

-

-

Contributions

-

28

Projections

RestrictedExpenditure

(2,065)

6

Year

- 8

-

during

(149)

outstanding

4,034 94

Projections

-

to/(from)

- (441)

Held as

198

-

(305)

(4)

-

(under)

-

Expenditure

-

501

-

(50,226)

(676)

(33,136)

(212)

29,883

Restricted Future (under)Asset

- (2,313)

in Yearduring

(149)

300

-

41

- (10)

Contributionsreceived during the Year earned

(51) -

2,776 204


1,641

6

891

-

6

136

-

(123)

39

895

158

-

4,873

91

-

31

288

-

-

59

Internal

2,138

921

Non Cash

3,168 20 -

Cash

(12,576)

(4,490)

Year

(22)

(168) 1,423 (4,126)

91 (219)

Borrowing

- 43,551

198

(130)

(428) 22

Future

-

- 957

2,134

5

still

(4,292)

10 -

Interest

earnedin Year Asset

3

PURPOSE

PURPOSE

- - -

16 505

income

Exp

17 17

Balance

(200)

934

313 1,064

BalanceOpening

519 293

- 10

-

-

825 -

1

68

-

1 -

Interest

Cash

- 65

4

Opening

6 8

- - -

1

2 - - -

BorrowingsInternal

(2,291)

(897)

1,967 -

Over or

- - -

Internal

Cumulative

Exp

(11,830)

(459)

Funding

5

Funding

(1,176)

24

(661) due/(payable)

-

- -

-

Borrowingsdue/(payable)

Cumulative

(1,802)

Over or

- (3,253)

(364) (313)

(887) (6,190)

(294)

(4,831)




$ '000

S94 CONTRIBUTIONS - UNDER A PLANAdministration

AWhole of city (except Ramsgate)

Bonar Street Precinct

B AdministrationB Local infrastructure

S94A LEVIES - UNDER A PLANS94A

S94A Levies

S94 CONTRIBUTIONS - NOT UNDER A PLAN

Inter-allotment Drainage

during BorrowingBalance

Projections

page 63

Financial Statem

ents 2014

- -

outstanding

ExpFuture

- - 8 8 -

Restricted

- -

earnedincome

8

Over or

- Asset

8

stillFunding

-

Held asInternalExpenditure

to/(from)(under)

2,396 (349)

Non Cashreceived during the Year

Contributions

2

PURPOSE

6

OpeningYearin Year

-

1,936 753 56

Year753 (349)

duringearned

-

56

received during the YearNon Cash in Year

Contributions Expenditure

Cash

Interest

Interest

1,936

Opening

Total 6 - 2

Total

BalancePURPOSE

- -

Cash

earned

RestrictedHeld as

67 Total 2,084

in Year

52 -

Balance6

2,078

(9) BalanceOpening

Total

PURPOSE Opening

PURPOSE

-

Contributions

- 41

Non Cash

(39)

Year income

Projections

48

Restricted

2

Projections

44

Interest Held as

(39)

Expenditure

during

11,986 108 (369)

-

(625) (14,582)

(34)

Internal

Cash

(9) 6 6

Expenditureearned

Year

Internal

to/(from)-

received during the Year during

Asset

Cash to/(from)-

(369)

(159)

-

Future

Borrowing

-

-

Asset(105)

12,091 -

1,827 1

- 1,875 51

Borrowing

outstanding-

Held asProjections

FutureRestrictedFunding

Internal

- to/(from)

BorrowingAsset

Cumulative

income(under)Over or

2,396

Expstill

- -

Internal

-

Borrowingsdue/(payable)

(721) -

Funding(96)

still Borrowings

- - (14,543)

outstanding(39)

Internal

Exp

(under)Exp

due/(payable)

Over or

Funding

Internal

Cumulative

(6)

due/(payable)

Over or

(191) (191)

44

Interest

-

BorrowingsNon Cash in Year

2

still

(159) income

received during the YearContributions

outstanding(6)

Cumulative

(34)

(under)Future

- -

CumulativeInternal

due/(payable)Borrowings


page 64



Note 18. Contingencies & Other Assets/Liabilities Not Recognised

$ '000

The following assets and liabilities do not qualify for (ii) Other Guaranteesrecognition in the Statement of Financial Position, buttheir knowledge & disclosure is considered relevant Council has provided no other Guarantees other thanto the users of Council's Financial Report. those already listed.

LIABILITIES NOT RECOGNISED: 2. Other Liabilities

1. Guarantees (i) Third Party Claims

(i) Defined Benefit Superannuation The Council is involved from time to time in various Contribution Plans claims incidental to the ordinary course of business

including claims for damages relating to its services.Council participates in an employer sponsoredDefined Benefit Superannuation Scheme, and makes Council believes that it is appropriately coveredcontributions as determined by the Superannuation for all claims through its Insurance Coverage andScheme's Trustees. does not expect any material liabilities to eventuate.

Member Councils bear responsibility of ensuring there (ii) S94 Plansare sufficient funds available to pay out the requiredbenefits as they fall due. Council levies Section 94/94A Contributions upon

various development across the Council area throughThe Schemes most recent full actuarial review the required Contributions Plans.indicated that the Net Assets of the Scheme werenot sufficient to meet the accrued benefits of the As part of these Plans, Council has received fundsSchemes Defined Benefit member category with for which it will be required to expend the monies inmember Councils required to make significantly accordance with those Plans.higher contributions in future years.

As well, these Plans indicate proposed futureThe Local Government Superannuation Scheme expenditure to be undertaken by Council, which willhowever is unable to provide Council with an accurate be funded by making levies and receipting funds inestimate of its share of the net deficit and accordingly future years or where a shortfall exists by the use ofCouncil has not recorded any net liability from it's Council's General Funds.Defined Benefit Scheme obligations in accordancewith AASB 119. These future expenses do not yet qualify as liabilities

as of the Reporting Date, but represent CouncilsFuture contributions made to the defined benefit intention to spend funds in the manner and timingscheme to rectify the net deficit position will be set out in those Plans.recognised as an expense when they becomepayable - similar to the accounting for DefinedContributions Plans.


page 65



Note 18. Contingencies & Other Assets/Liabilities Not Recognised (continued)

$ '000

LIABILITIES NOT RECOGNISED (continued): ASSETS NOT RECOGNISED:

(iii) Potential Land Acquisitions due to Planning (i) Land Under Roads Restrictions imposed by Council

As permitted under AASB 1051, Council has electedCouncil has classified a number of privately owned not to bring to account Land Under Roads that itland parcels as Local Open Space or Bushland. owned or controlled up to & including 30/6/08.

As a result, where notified in writing by the various (ii) Infringement Notices/Finesowners, Council will be required to purchase theseland parcels. Fines & Penalty Income, the result of Council issuing

Infringement Notices is followed up and collected byAt reporting date, reliable estimates as to the value the Infringement Processing Bureau.of any potential liability (& subsequent land asset)from such potential acquisitions has not been Councils Revenue Recognition policy for suchpossible. income is to account for it as revenue on receipt.

Accordingly, at Year End, there is a potential assetdue to Council representing issued but unpaidInfringement Notices.

Due to the limited information available on the status,value and duration of outstanding Notices, Council isunable to determine the value of outstanding income.


page 66



Note 19. Controlled Entities, Associated Entities & Interests in Joint Ventures

$ '000

Council's objectives can and in some cases are best met through the use of separate entities & operations.

These operations and entities range from 100% ownership and control through to lower levels of ownershipand control via co-operative arrangements with other Councils, Bodies and other Outside Organisations.

The accounting and reporting for these various entities, operations and arrangements varies in accordancewith accounting standards, depending on the level of Councils (i) interest and (ii) control and the type (form) ofentity/operation, as follows;

Associated Entities & Joint Venture Entities Note 19(a) (i)&(ii)Arrangements in the form of a Separate Entity that deploys the resources of the operation itself.Under Associated Entities, Council significantly influences the operations (but does not controlthem, whilst for JV Entities, Council Jointly Controls the Operations with other parties.

Accounting Recognition:

(ii) Associated Entities and Joint Venture Entities as per Notes 19(a)(i) & (ii) are accounted for using the Equity Accounting Method - and are disclosed as a 1 line entry in both the Income Statement and Statement of Financial Position.

Joint Venture EntitiesTotal

ActualCouncil's Share of Net Assets

59

Council's Share of Net Income Actual

20131,887 1,887

Actual Actual

408 1,946

2013 2014

59

2014408 1,946


page 67



Note 19. Controlled Entities, Associated Entities & Interests in Joint Ventures

$ '000

(a) Associated Entities & Joint Venture Entities

(i) ASSOCIATED ENTITIES

Council has no interest in any Associated Entities.

(ii) JOINT VENTURE ENTITIES

(a) Carrying Amounts

Name of Entity

Total Carrying Amounts - Joint Venture Entities

(b) Relevant Interests

Name of Entity

(c) Movement in Carrying Amounts

Opening BalanceShare in Operating ResultCouncil's Equity Share in the Joint Venture Entity

(d) Share of Joint Ventures Assets & Liabilities

(e) Share of Joint Ventures Revenues, Expenses & Results

19.49%

1,284

2013

1,887

1,491

1,946

1,887

1,946

26

Current

1,887

AssetsNet Assets

LiabilitiesCurrent

59 -

Non Current

1,887

1,491 1,284 1,343 Result

2,218 4,831 730

63 730

Non Current

4,393 4,393

Revenues

545 1,987

Result

59 Totals 1,343 408

1,083 408

Totals 26 545

Expenses2014

1,987

Metro Pool & United Independent Pools

2014

TotalsMetro Pool & United Independent Pools

4,831

ExpensesRevenues1,083 59

2,218 63 1,946

2013Metro Pool & United Independent Pools

1,887

2013


20141,887

4.15%

Voting Power

1,887

201419.49%

Proportion of

19.96%

2013

4.11%


Interest in

2013

2014

4.11%

2013Metro Pool

Insurance & Risk Management 1,946 1,946

Interest inOwnershipOutputs

19.96% 19.49%

United Independent Pools 4.15% 4.15%

2014Principal Activity

4.11%

2014 201319.96%


page 68



Note 20. Equity - Retained Earnings and Revaluation Reserves

$ '000

(a) Retained Earnings

Movements in Retained Earnings were as follows:Balance at beginning of Year (from previous years audited accounts)

a. Correction of Prior Period Errorsb. Net Operating Result for the YearBalance at End of the Reporting Period

(b) Reserves

(i) Reserves are represented by:

- Infrastructure, Property, Plant & Equipment Revaluation ReserveTotal

(ii) Reconciliation of movements in Reserves:

Infrastructure, Property, Plant & Equipment Revaluation Reserve- Opening Balance- Revaluations for the year- (Impairment of revalued assets) / Impairment reversals- Correction of Prior Period Errors- Balance at End of Year

TOTAL VALUE OF RESERVES

(iii) Nature & Purpose of Reserves

Infrastructure, Property, Plant & Equipment Revaluation Reserve- The Infrastructure, Property, Plant & Equipment Revaluation Reserve is used to record increments/decrements of Non Current Asset values due to their revaluation.

410,981 376,754

394,887

34,668 476,190

20(c) -

7,370

(1,395)

446,216

Actual Notes

20 (c)

(4,694)

376,754

-

9(a)

410,981

2014Actual

410,981

410,981

2013

376,754

-

476,190

(31) 9(a),(c)

376,754

483,560

376,754 (18,102) 35,622


page 69



Note 20. Equity - Retained Earnings and Revaluation Reserves (continued)

$ '000

(c) Correction of Error/s relating to a Previous Reporting Period

Council made no correction of errors during the current reporting period.

Correction of errors as disclosed in last year's financial statements:

- Depreciation overstated on Buildings- Assets disposed of in previous years but still in asset register

This adjustment resulted in a net increase / (decrease) in Council'sAccumulated Surplus as at 30/6/12.

In accordance with AASB 108 - Accounting Policies, Changes inAccounting Estimates and Errors, the above Prior Period Errorshave been recognised retrospectively.

These amounted to the following Equity Adjustments:

- Adjustments to Opening Equity - 1/7/12 (relating to adjustments for the 30/6/12 reporting year end and prior periods)

- Adjustments to Closing Equity - 30/6/13 (relating to adjustments for the 30/6/13 year end)

Total Prior Period Adjustments - Prior Period Errors

(d) Voluntary Changes in Accounting Policies

Council made no voluntary changes in any accounting policies during the year.

Note 21. Financial Result & Financial Position by Fund

Council utilises only a General Fund for its operations.

-

-

Notes 20132014Actual Actual

35,101

-

-

(464)

34,637

34,637


page 70



Note 22. "Held for Sale" Non Current Assets & Disposal Groups

$ '000

(i) Non Current Assets & Disposal Group Assets

Non Current Assets "Held for Sale"LandBuildingsTotal Non Current Assets "Held for Sale"

Disposal Group Assets "Held for Sale"None

TOTAL NON CURRENT ASSETSCLASSIFIED AS "HELD FOR SALE"

(ii) Details of Assets & Disposal GroupsCouncil in its meeting 16/4/14 has resolved to offer for sale by way of expression of interest a site known to Councilas Chapel Street. This site is made up of 3 major land parcels and an existing road reserve. The addresses are 15,17-19, 21, and 21A Bay Street, 1, 3, 5, 7, 9, and 11 Chapel Street, 6, 8, 10, and 12 Lister Street, and 1 and 3Chapel Lane.

(iii) Disposal Group Liabilities

Disposal Group Related Liabilities "Held for Sale"Nil

$ '000

(iv) Reconciliation of Non Current Assets "Held for Sale" & Disposal Groups - i.e. Discontinued Operations

Opening Balanceplus New Transfers in:- Assets "Held for Sale"

Closing Balance of "Held for Sale"Non Current Assets & Operations

Refer to Note 27 - Fair Value Measurement for fair value measurement information.

-

Non Current

-

48,000

-

20132014

48,000

-

Current

-

Non Current2014 2013

Current

47,112

2013

48,000

48,000 - -

-

Disposal Groups

-

-

2014Assets "Held for Sale"

-

2014

-

2013

-

888 - -

- -

- - - -


page 71



Note 23. Events occurring after the Reporting Date

$ '000

Events that occur between the end of the reporting period (ending 30 June 2014) and the date when thefinancial statements are "authorised for issue" have been taken into account in preparing these statements.

Council has adopted the date of receipt of the Auditors' Report as the applicable "authorised for issue" daterelating to these General Purpose Financial Statements.

Accordingly, the "authorised for issue" date is 15/10/14.

Events that occur after the Reporting Period represent one of two types:

(i) Events that provide evidence of conditions that existed at the Reporting Period

These financial statements (and the figures therein) incorporate all "adjusting events" that provided evidenceof conditions that existed at 30 June 2014.

(ii) Events that provide evidence of conditions that arose after the Reporting Period

These financial statements (& figures therein) do not incorporate any "non-adjusting events" that haveoccurred after 30 June 2014 and which are only indicative of conditions that arose after 30 June 2014.

Council is unaware of any material or significant "non-adjusting events" that should be disclosed.

Note 24. Discontinued Operations

Council has not classified any of its Operations as "Discontinued".Actual Actual


page 72



Note 25. Intangible Assets

$ '000

Intangible Assets represent identifiable non-monetary asset without physical substance.

Intangible Assets are as follows;

Opening Values:Gross Book Value (1/7)

Accumulated Amortisation (1/7)

Accumulated Impairment (1/7)

Net Book Value - Opening Balance

Movements for the year- Purchases

- Amortisation charges

Closing Values:Gross Book Value (30/6)

Accumulated Amortisation (30/6)

Accumulated Impairment (30/6)

TOTAL INTANGIBLE ASSETS - NET BOOK VALUE 1

1. The Net Book Value of Intangible Assets represent:

- Software development costs

Note 26. Reinstatement, Rehabilitation & Restoration Liabilities

Council has no outstanding obligations to make, restore, rehabilitate or reinstate any of its assets/operations.

5,141

-

(2,969)

Actual Actual 2014 2013

4,900 4,880

- -

(424)

20

1,787

4,900

1,931 1,787

(3,354)

1,931

-

1,931

(385)

1,787 1,931

2,335

(2,545)

241

(2,969)


Rockdale City Council Notes to the Financial Statements for the financial year ended 30 June 2014 Note 27. Fair Value Measurement

page 73

The Council measures the following assets and liabilities at fair value on a recurring basis.

Infrastructure, property, plant and equipment Investment property Financial assets

During the reporting period, the entity has also measured the following assets at fair value on a non-recurring basis:

Non-current assets held for sales

Fair value hierarchy AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a level in the fair value hierarchy as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for the asset or liability. The following table presents all assets and liabilities that have been measured & recognised at Fair Values: The table below shows the assigned level for each asset and liability held at fair value by the Council:

30 June 2014 Note Level 1Active Market

($000’s)

Level 2 ($) Significant observable

inputs ($000’s)

Level 3 Significant

unobservable inputs

($000’s)

Total ($000’s)

Financial Assets 6 - Held for trading 10,085 10,085Assets Held For Sale 22

- Chapel Street Site 48,000 - - 48,000Infrastructure, Property, Plant and Equipment 9

- Operational Land - - 129,007 129,007 - Community Land - - 98,830 98,830

- Buildings (Specialised & non-specialised)

- - 66,640 66,640

- Roads, Bridges, Footpaths

- - 231,959 231,959

- Storm water drainage - - 48,619 48,619 - Plant & Equipment - - 5,886 5,886 - Office Equipment - - 889 889 - Furniture & Fittings - - 258 258 - Land Improvement -

Depreciable - - 40,627 40,627

- Library Books - - 1,230 1,230 - Bulk earthworks - - 125,879 125,879 - Other Structures - - 12,482 12,482 - Work in Progress (at cost) - - 14,774 14,774


Rockdale City Council Notes to the Financial Statements for the financial year ended 30 June 2014 Note 27. Fair Value Measurement (continued)

page 74

Transfers between Level 1 and Level 2 Fair Values Hierarchies During the year, there were no transfers between Level 1 and Level 2 Fair Value hierarchies for recurring fair value measurements. Council’s policy for determining transfers between Fair Value hierarchies is at the end of the reporting period. Fair value measurements using significant unobservable inputs (Level 3) Significant unobservable valuation inputs used (for Level 3 asset classes) and their relationship to fair value. The information presented below on unobservable input has been limited to significant components of the infrastructure assets as it impracticable to provide information for all components. Reconciliation of movements The items classified under level 3 are investment properties and property, plant and equipment (including infrastructure assets). The reconciliation of movements in these assets are presented under note 14 and 9 respectively. Asset / Liability Category Carrying

amount (At fair value)

($000’s)

Key Unobservable inputs

Expected range of inputs

Description of how changes in inputs will affect the fair value

Infrastructure, Property, Plant and Equipment

- Operational land 129,007 Rate per square metre

$60 - $2,502 per square metre

The higher the rate, the higher the fair value. Significant variances in the rate per square metre is reflective of the inherent features of the land such as zoning and useablity,

- Community land 98,830 Rate per square metre

Valuer General’s Value on land value used

The higher the Valuer General’s value, the higher the fair value.

- Buildings (Specialised and non-specialised) 66,640 Rate per square

metre $5,966 per square metre - average

The higher the rate, the higher the fair value. Significant variances in the rate are reflective of the condition of the building, nature of the building and materials used to construct the building.



page 75

Asset / Liability Category Carrying amount

(At fair value) ($000’s)




- Roads, Bridges, Footpaths 231,959 Rate per square metre

Car Parking - $25 - $130 per Square Metre Footpath- $120 per square metre - average Kerb & Gutter - $150 per lineal metre - average Road Pavement - $102 -per square metre - average Road Surface - $25 per square metre – average

The higher the rate, the higher the fair value.

- Storm water drainage 48,619 Rate per lineal metre or unit

Subsoil - $73 average per Lineal Metre Concrete - $243 to $1,446 per lineal Metre Pits - $2,873 to $4,385 per item Junction Pits - $2,419 - $3,876 per item


- Plant & Equipment 5,886 Replacement Cost Various cost of plant & equipment

The higher the cost, the higher the fair value.

- Office Equipment 889 Replacement Cost Various cost of office equipment


- Furniture & Fittings 258 Replacement Cost Various cost of furniture & fitings


- Land Improvement -Depreciable 40,627 Rate per square

metre $17 - $20,000 per square metre


- Library Books 1,230 Replacement Cost Various cost of library books


- Bulk Earthworks - Non depreciable 125,879 Replacement Cost Various cost of

works carried out




page 76

Asset / Liability Category Carrying amount

(At fair value) ($000’s)




- Other Structures 12,482 Rate per square metre

$245 - $30,000 per square metre


- Capital Work in Progress (at cost) 14,774 Replacement Cost Various cost of

materials

The higher the cost, the higher the fair value. When the asset is completed the funds are transferred into the appropriate asset category.

The Valuation Process for Level 3 Fair Value Measurements The Council’s financial assets relates to its investments in term deposits. The information included under 6(b) is considered sufficient to meet the Fair Value disclosures requirements hence additional information is not included under this note. The Council does not have any liabilities which are fair valued. Council’s non-current assets are continually revalued (over a 5 year period) in accordance with the fair valuation policy as mandated by the Division of Local Government. Further details of the revaluations policy is provided under note 1(k). Level 3 measurements Buildings – Specialised & Non- Specialised The Council engages external, independent and qualified valuers to determine the fair value of the Council’s buildings. Buildings were last revalued in the 30 June 2013 financial year and the fair values were determined by AssetVal Pty Ltd. Gross Value of each building, which is obtained by applying a unit rate to a structure or a square metre rate to a building, based on its current replacement cost, which is the lowest cost of replacing the economic benefits of the existing asset using modern technology. The valuation aspects are generally, but not limited to the location, size, condition, style and utility of the asset. Replacement cost, asset condition, remaining useful life and building components are some of the inputs used in fair value determination. The key unobservable input being the rate square metre has been benchmarked to construction costs of similar properties across the industry. This asset class is categorised as Level 3 as some of the above mentioned inputs used in the valuation of these assets require significant professional judgement and are therefore unobservable. Valuation techniques remained the same for this reporting period. Further details relating to the rate per square metre has been provided below. Land - Operational & Community The Council engages external, independent and qualified valuers to determine the fair value of the Council’s Operational Land. Valuations for Community land is performed by the Council’s internal properties team.



page 77

Operational Land The fair value of Operational Land has been determined by referencing it to current prices in an active market for similar properties. Where such information is not available, current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences are considered. Appropriate adjustments are also made for the inherent features of the property such as fire-prone, flood zonings and usability of the land. This assets class is categorised as Level 3 as some of the inputs mentioned above require significant professional judgement and are therefore unobservable. Valuation techniques remained the same for this reporting period. Operational land was last revalued at 30 June 2013. Community Land The fair value for Community Land has been determined using an Unimproved Capital Value, derived from the Valuer General’s valuation performed for rating purposes, and applying to the total area. Given the nature of Community land, comparable sales data is generally not available. As the Valuer General’s valuation considers land in all zoning, average unit derived from Valuer’s General’s valuation is considered the most practicable approach to valuing Community Land. Should Council have an asset in the future for which an Unimproved Capital Value is not provided, replacement cost will be used. Replacement cost will be based on oaverage unit rates for similar properties, land use, land size and shape. This assets class is categorised as Level 3 as some of the inputs mentioned above require significant professional judgement and are therefore unobservable. Valuation techniques remained the same for this reporting period. Community land was last revalued at 30 June 2011. The key unobservable input to the valuation is the rate per square metre, for which, further details have been provided below Infrastructure assets Valuations for infrastructure assets are performed internally by the Council’s internal engineering team. The gross value of the infrastructure assets are determined by unit rate to total volume which is normally square metres, cubic metres or lineal metres. The unit rates, which is a key unobservable input, is determined using rates stipulated in contracts with third party suppliers via tenders, internal service providers and industry publications. Infrastructure assets were last revalued at 30 June 2010. Roads The system adopted has a hierarchical structure in which all Roads are identified by name and number. Each road was then subdivided into a number of sections based on length, geometry and change of structure or traffic. Some roads may have only one section. The components within the road sections are as follows.

Road Pavement - Pavement Structure - Wearing Course

Bridges & Culverts

Footpaths

Kerb & Gutter

Retaining Walls



page 78

Traffic Facilities

Fence & Railings

Carparks

Cycleway Path - Cycleway markings

Street Furniture - Bins - Stainless steel bin covers - Tree guard - Planter box - Bus shelter - Seats - Bollards

Road Pavements, Footpaths, Cycleway and Kerb & Gutter were measured along the centre line and their corresponding width and condition were recorded. Similarly Traffic Facilities, Retaining Wall, Car park measured and determined area in square metres. Fence and Railing measured in linear metres. Street Furniture are considered as single items and valued as such. Road Pavements, Footpaths, Cycleway, Roundabouts and other Traffic Facilities were measured in square metres and the corresponding Current Replacement Cost unit rates were worked out. Bridges and Culverts deck area measured in square metres and unit rates applied to work out Current Replacement Cost. These rates were based on analysis of Councils day labour construction cost and current contract rates. Kerb and Gutter, Fence and Railing were measured in linear metres and unit rates were derived in the same way. Street furniture replacement value is derived from the market buying cost for similar or equivalent item plus installation cost. This assets class is categorised as Level 3 as some of the inputs mentioned above require significant professional judgement and are therefore unobservable. Valuation techniques remained the same for this reporting period. Stormwater Drainage Similar to the roads asset, drainage asset system has a hierarchical structure in which all the drainage catchments have components such as pipes, pits, channels, culverts etc. In addition, Stormwater Quality Improvement Devices (SQID) such as Gross Pollution Traps, Trash racks, Litter baskets, Litter nets, Booms etc. are recorded. Pipes, channels and box culverts are measured in linear metres and pits as an item, Current contract rates were used to work out current replacement cost of the drainage assets. Written Down Replacement Cost is worked out based on condition as well as useful life and remaining lives of assets. For some of the asset types, a factor between 1 and 0 was given to each condition and that factor was multiplied by the useful life to derive remaining life. This assets class is categorised as Level 3 as some of the inputs mentioned above require significant professional judgement and are therefore unobservable. Valuation techniques remained the same for this reporting period. Plant & Equipment, Office Equipment, and Furniture & Fittings This asset category includes: Plant & Equipment – Motor Vehicles, trucks, mowers Office Equipment – Computer equipment Furniture & Fittings – Chairs, desks, cabinets, display systems.



page 79

These assets are valued at cost in Council’s books and reported at Fair Value in the notes due to the nature of the items. The cost of these assets are based on current invocies and contracts, which are based on observable inputs, however the remaining useful life and residual value is based on internal factors which are unobservable in the market therefore placing these assets in Level 3. Valuation techniques remained the same for this reporting period. Library Books This asset category comprises of assets such as library books, journals, magazines, CDs and DVDs. The library books are reported at Fair Value in the notes however, due to the nature of these items they are valued at cost. There are no major variances between the fair value and carrying amount if these assets. The cost of these assets are based on current invoices and contracts, which are based on observable unputs, however the remaining useful life is based on internal factors which are unobservable in the market making it a Level 3 asset. Valuation techniques remain the same for this reporting period. Transfers between levels of the hierarchy There were no transfers of assets and liabilities between the hierarchies. Highest and best use Highest and Best Use All of Council's non financial assets are considered to being utilised for their highest and best use.


page 80



Note 28. Council Information & Contact Details

Principal Place of Business:2 Bryant StreetRockdale NSW 2216

Contact DetailsMailing Address: Opening Hours:PO Box 21 8:30am-4:30pm, Monday to FridayRockdale NSW 2216 9am-1pm, Saturday

Telephone: 02 9562 1666 Internet:Facsimile: 02 9562 1777 Email:

Officers Elected MembersGENERAL MANAGER MAYORMeredith Wallace Councillor Shane O'Brien

RESPONSIBLE ACCOUNTING OFFICER COUNCILLORSAlister Duncan Councillor Andrew Tsounis

Councillor Peter PoulosPUBLIC OFFICER Councillor Mark HannFausto Sut Councillor Tarek Ibrahim

Councillor Nicholas MickovskiAUDITORS Councillor Michael NagiPricewaterhouseCoopers Councillor Petros KalligasDarling Tower 2 Councillor Bill Saravinovski201 Sussex Street Councillor Lydia SedrakSydney NSW 2000 Councillor Liz Barlow

Councillor Paul SedrakCouncillor Joe AwadaCouncillor Ron BezicCouncillor Shane O'BrienCouncillor James Macdonald

Other InformationABN: 66 139 730 052

[email protected]

http://www.rockdale.nsw.gov.au/

mailto:[email protected]

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T +61 2 8266 0000, F +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

The Rockdale City Council Independent auditor’s report to the Council – s417(2) Report on the general purpose financial statements Report on the financial statements We have audited the accompany financial statements of the Rockdale City Council, which comprise the statement of financial position as at 30 June 2014 and the income statement, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, accompanying notes to the financial statements and the Statement by Councillors and Management in the approved form as required by Section 413(2) of the Local Government Act 1993. Councillors’ responsibility for the financial statements The Councillors of the Council are responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Local Government Act 1993 and for such internal control as the Councillors determine is necessary to enable the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Councillors, as well as evaluating the overall presentation of the financial statements. When this audit report is included in an Annual Report, our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial statements. Our audit responsibility does not extend to the Original Budget Figures included in the Income

Statement, Statement of Cash Flows and the Original Budget disclosures in notes 2(a) and 16 and the

Projections disclosed in note 17 to the financial statements, nor the attached Special Schedules, and

accordingly, we express no opinion on them.

page 81

2 of 2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinions.

Auditor’s opinion:

In our opinion:

(a) the Council’s accounting records have been kept in accordance with the requirements of the Local Government Act 1993, Chapter 13 part 3 Division 2 (the Division); and

(b) the financial statements:

(i) have been presented, in all material respects, in accordance with the requirements of this Division

(ii) are consistent with the Council’s accounting records

(iii) present fairly, in all material respects, the Council’s financial position as of 30 June 2014 and its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards

(c) all information relevant to the conduct of the audit has been obtained; and

(d) there are no material deficiencies in the accounting records or financial statements that have come

to light during the course of the audit.

PricewaterhouseCoopers

Peter Buchholz Sydney

Partner 24 October 2014

.......

page 82

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation.

Private & Confidential The Mayor Councillor Shane O’Brien Rockdale City Council DX 25308 ROCKDALE Dear Councillor O’Brien

Report on the conduct of the Audit for year ended 30 June 2014 – Section 417(3) We have completed our audit of the financial reports of the Council for the year ended 30 June 2014, in accordance with Section 415 of the Local Government Act 1993.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the financial reports are free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial reports, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial reports are presented fairly in accordance with Australian Accounting Standards as well as statutory requirements so as to present a view which is consistent with our understanding of the Council’s financial position, the results of its operations and its cash flows.

This report should be read in conjunction with our audit opinion on the general purpose financial statements provided under Section 417(2) of the Local Government Act 1993.

Flowing from our audit, there are a number of comments we wish to raise concerning the trends in Council's finances. These are set out below.

Operating result Council’s operating result improved from a deficit of $5 million in the previous year to a $7 million surplus in the current period. The net operating result before Capital Contributions was a deficit of $7 million against the previous year’s deficit of $11 million.

Cash position Council’s overall cash position improved from $78 million to $89 million during the period under review. The following table highlights the composition of cash.

2014 $m

2013 $m

Externally restricted 64 54

Internally restricted 24 23

Unrestricted 1 1

Total 89 78

page 83

2

Working capital Council’s net current assets improved from $57 million to $110 million during the period under review. The value of net current assets needs to be adjusted in order to establish the available working capital position.

2014 $m

2013 $m

Net current assets 110 57

Less: External restrictions (53) (48)

Internal restrictions (24) (24)

Add: Current liabilities deferred 16 16

Available working capital 49 1

The effective unrestricted or available working capital upon which Council could build its 2015 budget was $49 million.

Performance indicators The financial reports disclose of a number of indicators in Note 13 and these are detailed below:

2014 %

2013 %

Operating Performance Ratio (11) (17)

Own Source Operating Revenue Ratio 79 84

Unrestricted Current Ratio 814 394

Debt Service Cover Ratio 629 545

Rates Outstanding Ratio 5.4 6.2

Cash Expense Cover Ratio 13 12

The Operating Performance Ratio improved but remained below the industry benchmark of 0%.

The Own Source Operating Revenue Ratio declined to 79% but remained above the industry benchmark of 60%.

The Unrestricted Current Ratio improved and remained above the industry benchmark of 150%.

The Debt Service Cover Ratio improved and remained above the industry benchmark of 200%.

The Rates Outstanding Ratio improved but remained above the industry benchmark of 5%.

The Cash Expense Cover Ratio indicated that Council could continue to cover its operating costs for 13 months should cash inflows cease. This compares very favourably with the industry benchmark of 3 months.

Council is considered to be in a sound and stable financial position.

page 84

3

General The books of accounts and records inspected by us have been kept in an accurate and conscientious manner. We thank the General Manager and her staff for the cooperation and courtesy extended to us during the course of our audit.

Yours faithfully PricewaterhouseCoopers P L Buchholz Sydney Partner 24 October 2014

page 85

Rockdale City Council SPECIAL SCHEDULES for the year ended 30 June 2014

One Community, Many Cultures, Endless Opportunity

Special Schedules 2014

page 1


Special Schedules for the financial year ended 30 June 2014

Contents

Special Schedules1

Net Cost of Services

Statement of Long Term Debt (all purposes)

Statement of Internal Loans (Sect. 410(3) LGA 1993)

Water Supply Operations - incl. Income StatementWater Supply - Statement of Financial Position

Sewerage Service Operations - incl. Income StatementSewerage Service - Statement of Financial Position

- Notes to Special Schedules No. 3 & 5

Report on Infrastructure Assets (as at 30 June 2014)

Financial Projections

Permissible Income Calculation

1 Special Schedules are not audited (with the exception of Special Schedule 9).

Background

These Special Schedules have been designed to meet the requirements of special purpose users such as;

the NSW Grants Commissionthe Australian Bureau of Statistics (ABS),the NSW Office of Water (NOW), andthe Office of Local Government (OLG).

The financial data is collected for various uses including;

the allocation of Financial Assistance Grants,the incorporation of Local Government financial figures in national statistics,the monitoring of loan approvals,the allocation of borrowing rights, andthe monitoring of the financial activities of specific services.

5- Special Schedule No. 7

n/a

n/a

(ii)

- Special Schedule No. 8

(i)

- Special Schedule No. 9 12


11

- Special Schedule No. 5 n/a

Page

2

4

n/a


- Special Schedule No. 2(a)n/a


- Special Schedule No. 2(b)

- Special Schedule No. 3n/a


page 2


Special Schedule No. 1 - Net Cost of Services for the financial year ended 30 June 2014

$'000

Governance

Administration

Public Order and Safety

Beach ControlEnforcement of Local Govt. RegulationsAnimal ControlOtherTotal Public Order & Safety

Health

EnvironmentNoxious Plants and Insect/Vermin ControlOther Environmental ProtectionSolid Waste ManagementStreet CleaningDrainageStormwater ManagementTotal Environment

Community Services and EducationAdministration & EducationSocial Protection (Welfare)Aged Persons and DisabledChildren's ServicesTotal Community Services & Education

Housing and Community AmenitiesPublic CemeteriesPublic ConveniencesStreet LightingTown PlanningOther Community AmenitiesTotal Housing and Community Amenities

Expenses from. Continuing. Operations. Non Capital.

3,561

10

- 90

Capital.

Income fromcontinuing operations

4,721

283

662 -

15,257

6,016

16,019

2,085

- -

913

-

-

131 -

-

966

510 6

289

-

390

- (229)

(1,120) (1,738)

7

-

-

1,386

24,535

1,457

7,213

1,285 930 216

- (446)

81

729

214 391

5,881

Function or Activity

10

Fire Service Levy, Fire Protection, Emergency Services

258

58

2,027 2,086

Net Cost.of Services.

1,160 (203)

(1,457)

(2,235)

(4,423) -

1,906 - - (1,906)

(214) - -

(16,409)

45

-

-

583

855

229

448 59

259 259

4,342

-

687 3,220

16,005

21,997 -

-

1,555

36

895 -

- -

(135)

56

(2,697)

(286)

- 214

-

59

-

(158)

-

(748) -

-

- (763)

(677)

660


page 3


Special Schedule No. 1 - Net Cost of Services (continued) for the financial year ended 30 June 2014

$'000

Recreation and CulturePublic LibrariesCommunity Centres and HallsOther Cultural ServicesSporting Grounds and VenuesSwimming PoolsOther Sport and RecreationTotal Recreation and Culture

Transport and CommunicationUrban Roads (UR) - LocalUrban Roads - RegionalParking AreasFootpathsOther Transport & CommunicationTotal Transport and Communication

Economic AffairsOther Economic AffairsTotal Economic Affairs

Totals – FunctionsGeneral Purpose Revenues (2)

NET OPERATING RESULT (1)

(1) As reported in the Income Statement (2) Includes: Rates & Annual Charges (incl. Ex Gratia, excl. Water & Sewer), Non Capital General Purpose Grants, Interest on Investments (excl. Ext. Restricted Assets) & Interest on overdue Rates & Annual Charges

Income fromcontinuing operations

23

382

82,867

-

8,598 267

1,018 1,018

75,223

87

42,210 82,867

87

59

32,954

826

15,014

(101)

427 20 15

-

1,356 310 300

2,768

Function or Activity

169 421

7,791

170 8,553 13,006

5,259 - 1,173

11 -

Non Capital.

Expenses from. Continuing. Operations.

2,922 536

160 149

4

6,921 333

615

10

(513)

(156)

(3,280)

-

Capital.

592 -

-

15,014 7,370

59

(34,899) (105)

(5,563) (914)

(105)

1,350

826

1,451

42,210

3,477 (2,503) 652

5,484

(503)

Net Cost.of Services.

158 (6,167)

(5,089)

Share of interests - joint ventures & associates using the equity method


Special Schedule No. 2(a) - Statement of Long Term Debt (all purpose) for the financial year ended 30 June 2014

$'000

Notes: Excludes (i) Internal Loans & (ii) Principal Inflows/Outflows relating to Loan Re-Financing. This Schedule is prepared using the face value of debt obligations, rather than fair value (which are reported in the GPFS).

Opening and closing values differ to borrowing amount in Note 10a due to the present value of an interest free loan.

page 4

Total Debt 7,334 1,100 1,049 - 787 6,547 1,096 7,385 6,289 375 -

787 6,547 Total Loans-

7,334 Other

- 1,100

- -

1,100

-

- 1,049 - - -

945 - - - -

Treasury Corporation-

-

- -

Public Subscription - -

50 937 987 - -

-

Financial Institutions 733 5,602 6,335

- - - Other State Government - - -

- 100 -

Special S

chedules 2014

Transfers to Sinking

Funds

Principal outstandingInterest

applicable for Year TotalNon

Current

at the end of the year

-

8

- 887 762

4

7,385

- 125

967 5,523 6,490 -

Debt redemption during the year

From Revenue

Sinking Funds

-

1,096 - -

375 -

375 -

6,289 -

-

-

-

Principal outstanding New Loans raised during

the year

at beginning of the year

Classification of DebtCurrent Non

Current Total

Loans (by Source)Commonwealth Government

Current

8 4 4 12 - - 4


Special Schedule No. 7 - Report on Infrastructure Assets as at 30 June 2014

$'000

32,048 14% 45% 0%231,959 951

38%12,407 0%

100 172

1,345

1,354

32 70

2,609

1,170 3,571

-

5%

796

-

184 1%83 85 48 210

0%9%2,043

35%1,781

8%

0.1%

13% 0%

34.4%

0.0%

32

27 25

525

565

0%

19% 0%

5

350 70

66,641 9.0%

133

3,387

Kerb and Gutter

sub total

Sealed Roads Structure

FootpathsCycle ways

46%

14.0%

Other Road Assets

Bridges

36.8%

6,554 0%

4%0%40,088

114

26%1%

48%28%

6%63%

32

3%1,305

34,884 71,463

206

3

27%

11%0% 59%

35% 31%59%

5

2%

Council Public Halls

Other BuildingsSpecialised Buildings

3

Council Works Depot

23%28%

28.0%

1%0%

1,645 381

9%52%

36%33%

Asset Category4

Annual Maintenance Down Value (WDV) (4)-Maintenance

satisfactory 21

2,065

13%23%3%

Asset Class

21%

Council Offices /Administration Centres

to bring up to a Estimated cost

Actual (3)--Required (2)- Written

standard (1)_ 2013/14

340 9

Cultural FacilitiesLibraries

42 158

5,625

366 -

1,245 132 130

656

-

180

20

-

420 542

0.3%

19.7%

0% 57%26%3%

38%

0%

19.6%

12,482 13.0%14% 28% 45%12,482

366 5

Buildings

Sealed Roads Surface Roads

Other Structuressub total

Other Structures

sub total

39%

43%34%

38,166

2%0%

44,868

33.9% 5.9%40.2%

Assets in Condition as a % of WDV (4), (5)

68 13%10%6%

0%8,142

0%0%

2,388

45.0%

72% 19%40%10%29%

31%22% 41%

page 5

Special S

chedules 2014


Special Schedule No. 7 - Report on Infrastructure Assets (continued) as at 30 June 2014

$'000

Notes:(1). Satisfactory is defined as “satisfying expectations or needs, leaving no room for complaint, causing satisfaction, adequate”.

The estimated cost to bring assets to a satisfactory standard is the amount of money that is required to be spent on an asset to ensure that it is in a satisfactory standard.This estimated cost should not include any planned enhancements (ie.to heighten, intensify or improve the facilities).

(2). Required Annual Maintenance is “what should be spent to maintain assets in a satisfactory standard.(3). Actual Maintenance is what has been spent in the current year to maintain the assets.

Actual Maintenance may be higher or lower than the required annual maintenance due to the timing of when the maintenance actually occurs.(4). Written Down Value is in accordance with Note 9 of Council's General Purpose Financial Statements

(5). Infrastructure Asset Condition Assessment "Key"

Excellent No work required (normal maintenance) Condition Description here…Good Only minor maintenance work required Condition Description here…Average Maintenance work required Condition Description here…Poor Renewal required Condition Description here…Very Poor Urgent renewal/upgrading required Condition Description here…

(6). Council has had its methodology in how SS7 has been completed, reviewed by MorrisonLow who are an independent, recognised industry consultant in asset management.

page 6

Asset Class

5

1,151

903 Stormwater

Written

4

21

48,619 sub total 16.7%

3

0%

23.5% 1.0%58.6%31

Asset Category

Annual satisfactory standard (1)_ Maintenance 52013/14

Maintenance

64%- 100 248 25%9%11,220 57%

Down Value

1%

Required (2)-to bring up to a

21 3(WDV) (4)-

1%

Actual (3)--Estimated cost

0.2%450

31 350 19%1%

Special S

chedules 2014

789

Assets in Condition as a % of WDV (4), (5)

4

6

10

Drainage Inlet and Junction PitsStormwater Conduits 23%37,399

TOTAL - ALL ASSETS 10,713 4,234 1,778 359,701 19.1% 36.9% 37.7% 6.0% 0.3%

Special Schedules 2014_

Rockdale City Council Special Schedule No. 7 - Report on Infrastructure Assets (continued) as at 30 June 2014

page 7

Cost To Satisfactory The methodology for determining the Cost To Satisfactory considers the cost at a network level. Taking a network view means the Cost To Satisfactory is an indicative cost required to bring the whole asset portfolio up to a satisfactory standard. Council obtains and records asset condition ratings for its assets under asset inspection regimes. These asset inspection regimes are outlined in Council's Asset Management Strategy. Satisfactory is defined as “satisfying expectations or needs, leaving no room for complaint, causing satisfaction, adequate". The equivalent condition to meet this definition is outlined in Council's Asset Management Strategy is "Condition 3 - Average - Asset showing minor signs of ageing. Maintenance work required". The associated percentage of defects would be in the range of 5 to 20%.

Level Condition Description Rockdale Average % Defects

1 Excellent Asset in brand new condition. No work required (normal maintenance). 0

2 Good Asset still in good condition. Only minor maintenance work required 0 – 5

3 Average Asset showing minor signs of ageing. Maintenance work required 5 – 20

4 Poor Asset becoming unsightly and worn. Renewal required 20 – 50

5 Very poor Asset in very bad condition. Urgent renewal / upgrading required. > 50

The network approach to determining the Cost To Satisfactory considers the cost to move assets in Condition 4 and Condition to Condition 3, as a representative movement between the condition applied as percentage to Current Replacement Cost of the asset network. Condition Score 1 2 3 4 5

Defect % 0% 0 - 5% 5 – 20% 20 – 50% 50 - 100%

Average defect % 0% 2.5% 12.5% 35% 75%

Required Maintenance The methodology for determining the Required Maintenance considers the cost at a network level. Required Maintenance is the amount of funds that should be spent to maintain assets at the satisfactory standard, which is also defined by the term 'Maintenance Expenditure' in the Asset Management Strategy.

Special Schedules 2014_

Rockdale City Council Special Schedule No. 7 - Report on Infrastructure Assets (continued) as at 30 June 2014

page 8

The Required Maintenance is identified as a percentage of the current replacement cost. As Council's asset portfiolio increases this leads to an increase in maintenance liabilities. The percentage values where identified following a benchmarking exercise across other Councils to understand maintenance liabilities. Actual Maintenance Actual Maintenance is the actual funds spent by Council to maintain its assets.


page 9


Special Schedule No. 7 - Report on Infrastructure Assets (continued) for the financial year ended 30 June 2014

$ '000

Infrastructure Asset Performance IndicatorsConsolidated

1. Building and Infrastructure Renewals RatioAsset Renewals (Building and Infrastructure) (1)

Depreciation, Amortisation & Impairment

2. Infrastructure Backlog RatioEstimated Cost to bring Assets to aSatisfactory ConditionTotal value(2) of Infrastructure, Building, Other Structures& depreciable Land Improvement Assets

3. Asset Maintenance RatioActual Asset MaintenanceRequired Asset Maintenance

4. Capital Expenditure RatioAnnual Capital ExpenditureAnnual Depreciation

Notes

(1) Asset Renewals represent the replacement &/or refurbishment of existing assets to an equivalent capacity/performance

as opposed to the acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.

Asset Renewals include building and infrastructure assets only.

(2) Written down value

Amounts Indicator Prior Periods

10,713 0.03 0.11 0.08359,701

2014 2014 2013 2012

7,014 52.95% 27.84% 24.83%13,247

15,710 0.94 0.62 0.4116,674

1,778 0.42 0.44 0.454,234


page 10


Special Schedule No. 7 - Report on Infrastructure Assets (continued) for the financial year ended 30 June 2014

―― Minimum 100.00%Source for Benchmark: TCorp Sustainability Review of NSW Local Govt. (2013)

―― Maximum .02Source for Benchmark: TCorp Sustainability Review of NSW Local Govt. (2013)

―― Minimum 1.00Source for Benchmark: TCorp Sustainability Review of NSW Local Govt. (2013)

―― Minimum 1.10Source for Benchmark: TCorp Sustainability Review of NSW Local Govt. (2013)

Compares actual vs. required annual asset maintenance. A ratio above 1.0 indicates Council is investing

enough funds to stop the Infrastructure Backlog growing.

Council's Asset Maintenance Ratio is significantly lowers than the benchmark.

Council is commited to increase expenditure on asset maintenance in the future to stop the infrastructure backlog

from growing. Council is currently concentrating on asset renewal.

Purpose of Asset Renewals Ratio


2013/14 Ratio 52.95%

To assess the rate at which these assets are being renewed

relative to the rate at which they are depreciating.

Council's Building and Infrastructure Renewals Ratio has improved over the last three years as we further utilise the SRV for

building and infrastructure assets.

Purpose of Infrastructure Backlog Ratio


2013/14 Ratio 0.03 x

This ratio showswhat proportion the backlog is against

the total valueof a Council’s infrastructure.

Council's Infrastructure Backlog Ratio has changed significantly in this financial year as a result of a change in the calculation method of the backlog. The method used has been recommended by MorrisonLow,

an independent, recognised industry consultant in asset management.

Purpose of Asset Maintenance Ratio


2013/14 Ratio 0.42 x

Purpose of Capital Expenditure Ratio


2013/14 Ratio 0.94 x

To assess the extent to which a Council is expanding its asset

base thru capital expenditure on both new assets and the

replacement and renewal of existing

assets.

Council's Capital Expenditure Ratio has been improving over the last three years. It is expected to be above the benchmark in the next financial year and remain there.

0.45 0.44 0.42

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2012 2013 2014

Rat

io (

x)

3. Asset Maintenance Ratio

24.83% 27.84%

52.95%

0%

20%

40%

60%

80%

100%

120%

2012 2013 2014

Rat

io %

1. Building and Infrastructure Renewals Ratio

0.08

0.11

0.03

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

2012 2013 2014

Rat

io (

x)

2. Infrastructure Backlog Ratio

0.41

0.62

0.94

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2012 2013 2014

Rat

io (

x)

4. Capital Expenditure Ratio


Special Schedule No. 8 - Financial Projections as at 30 June 2014

$'000

(i) OPERATING BUDGETIncome from continuing operationsExpenses from continuing operations


(ii) CAPITAL BUDGETNew Capital Works (2)

Replacement/Refurbishment of Existing AssetsTotal Capital Budget

Funded by:– Loans– Asset sales– Reserves– Grants/Contributions– Recurrent revenue– Other

Notes:(1) From 13/14 Income Statement.(2) New Capital Works are major non-recurrent projects, eg new Leisure Centre, new Library, new Swimming pool etc.(3) Financial projections should be in accordance with Council’s Integrated Planning and Reporting framework.

Special S

chedules 2014

page 11

22/23

121,959 116,312

5,647

3,847 14,273

- 18,120

- 17,530 16,960

-

1,190 1,520 1,032

13,891 -

18,733

1,190 1,211

830 11,549

926 12,377

Forecast(3)

1,100 1,100 1,190 1,367 1,416

Forecast(3)

21/22

117,625 112,276

5,349

3,734

18,120

1,100 1,190 1,467

995 13,368

1,190

960 12,864

Forecast(3) Forecast(3)

23/24

126,460 120,500

5,960

3,976 14,757 18,733

1,100

20/21

113,192 108,957

4,235

3,625 13,335 16,960

13,796 17,530

-

1,100

15,880

Forecast(3)

19/20

108,996 104,654

4,342

3,518 12,892 16,410

1,100 1,190 1,317

893 11,910

- 16,410

Forecast(3)

18/19

105,213 101,070

4,143

3,416 12,464 15,880

15,369 15,177 43,420 -

35,340 15,875 - - - -

801 9,071

3,189 822 2,937 4,989

5,899 7,131 2,764

10,868 9,026

20,995 722

6,060 1,190 1,590

10,457 12,051

1,165

15,369

1,600

15,875

3,142

15,177 43,420 35,340

1,100 6,100 14,390 3,200

- 6,430

5,418 3,318

90,237 88,532 91,180

26,558

1,211 3,776

97,631

2,031

94,878

8,336 8,836 8,782

82,867 87,321

7,370 1,081

6,841 34,584

17/18 Forecast(3)Forecast(3)

16/17

96,909 92,261 101,407

13/14 Forecast(3)

15/16 14/15 Forecast(3) Actual(1)


page 12


Special Schedule No. 9 - Permissible Income Calculation for the financial year ended 30 June 2015

$'000

Notional General Income Calculation (1)

Last Year Notional General Income YieldPlus or minus Adjustments (2)

Notional General Income

Permissible Income Calculation

Special variation percentage (3)

less expiring Special variation amountplus Special variation amount

or plus Rate peg amountor plus Crown land adjustment and rate peg amount

sub-total

plus (or minus) last year's Carry Forward Totalless Valuation Objections claimed in the previous yearsub-total

Total Permissible income

less Notional General Income YieldCatch-up or (excess) result

plus Income lost due to valuation objections claimed (4)

less Unused catch-up (5)

Carry forward to next year

Notes1 The Notional General Income will not reconcile with rate income in the financial statements in the

corresponding year. The statements are reported on an accrual accounting basis which include amountsthat relate to prior years' rates income.

2 Adjustments account for changes in the number of assessments and any increase or decrease in landvalue occurring during the year. The adjustments are called "supplementary valuations" as defined in theValuation of Land Act 1916.

3 The Special Variation Percentage is inclusive of the Rate Peg percentage and where applicable crown landadjustment.

4 Valuation objections are unexpected changes in land values as a result of land owners successfullyobjecting to the land value issued by the Valuer-General. Councils can claim the value of the income lostdue to valuation objections in any single year.

5 Unused catch-up amounts will be deducted if they are not caught up within 2 years. Usually councils willhave a nominal carry forward figure. These amounts can be adjusted for in setting the rates in a future year.

p

q = o - p

r

st = q + r - s

b

d

k = (c+g+h+i+j)

j = c x f

i = c x e

h = (c+g) x d

c

lm

n = (l + m)

o = k + n

g

a

(44) 108

Calculation Calculation2013/14 2014/15

- -

(44) 108

- -

42,292 45,002

42,336 44,894

- - 39 (44)

2,542 2,550

39 (44)

- - - -

42,253 45,047

(1,148) -

6.40% 6.00%

40,617 42,336 242 161

40,859 42,497

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

The Rockdale City Council Independent auditor’s report Report on the Special Schedule No. 9 Report on the Special Schedule No. 9 We have audited the accompanying special purpose financial statement comprising the reconciliation of total permissible general income (Special Schedule No. 9) of the Rockdale City Council (“the Council”) for the year ended 30 June 2015. Responsibility of Council for Special Schedule No. 9 The Council is responsible for the preparation and fair presentation of Special Schedule No. 9 in accordance with the Local Government Code of Accounting Practice and Financial Reporting (Guidelines) Update No. 22. This responsibility includes the maintenance of adequate accounting records and internal controls designed to prevent and detect fraud and error; designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of Special Schedule No. 9 that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors’ Responsibility Our responsibility is to express an opinion on Special Schedule No. 9 based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether Special Schedule No. 9 is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in Special Schedule No. 9. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of Special Schedule No. 9, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of Special Schedule No. 9. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with Australian Auditing Standards. In making our risk assessments, we consider internal controls relevant to the entity’s preparation of Special Schedule No. 9 in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements.

page 13

Audit Opinion In our opinion, Special Schedule No. 9 of the Rockdale City Council for the year ended 30 June 2015 is properly drawn up in all material respects in accordance with the requirements of the Office of Local Government and in accordance with the books and records of the Council. Restriction on distribution Without modifying our opinion, we advise that this schedule has been prepared for distribution to the

Office of Local Government for the purposes of confirming that Council’s reconciliation of Council’s

total permissible general income is presented fairly. As a result, the schedule may not be suitable for

another purpose. Our report is intended solely for the council and the Division of Local Government.

PricewaterhouseCoopers

Peter Buchholz Sydney

Partner 24 October 2014

page 14

rockdale city council city council is a body politic of nsw, australia - being constituted as a...

Documents