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2017-11-07 S&O Agenda - Attachment 1 to Item 10 - Annual Report 2016-17
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Attachment 1 to Item 10
Services & Organisation Committee Agenda
7 November 2017
Annual Report
2016/17
For the period 1 July 2016 to 30 June 2017
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Full text of sections 2 to 83 (of 99)
Section 2
© Noosa Council 2017 www.noosa.qld.gov.au General Enquiries: By telephone: (07) 5329 6500 By email: [email protected] Fax: (07) 5329 6501 Street Address: 9 Pelican Street, TEWANTIN Postal address: PO Box 141, TEWANTIN QLD 4565 Endorsed by Noosa Council [date to be inserted]
Section 3
Contents
INTRODUCTION ............................................................................................................................ 4
Our Council ............................................................................................................................................................ 4
Mayor’s Message................................................................................................................................................... 5
Chief Executive Officer’s Message ........................................................................................................................ 6
THE YEAR IN REVIEW .................................................................................................................. 7
REPORTABLE DISCLOSURES ................................................................................................... 13
Information relating to Councillors ....................................................................................................................... 13
Overseas travel.................................................................................................................................................... 18
Executive remuneration ....................................................................................................................................... 18
Equal opportunity employment ............................................................................................................................ 18
Administrative action complaints ......................................................................................................................... 19
Council registers .................................................................................................................................................. 19
Community grants 2016/17.................................................................................................................................. 20
Discretionary funds .............................................................................................................................................. 25
Beneficial enterprises .......................................................................................................................................... 25
Business activities ............................................................................................................................................... 25
Significant business activity ................................................................................................................................. 25
Competitive neutrality .......................................................................................................................................... 25
Commercial business units .................................................................................................................................. 26
Services, facilities and activities, for which special rates/ charges levied............................................................ 26
Summary of concessions for rates and charges.................................................................................................. 26
Invitations to change tenders ............................................................................................................................... 28
Audit and Risk Committee ................................................................................................................................... 28
Internal Audit........................................................................................................................................................ 28
COMMUNITY FINANCIAL REPORT ............................................................................................ 29
Background.......................................................................................................................................................... 29
Highlights and achievements ............................................................................................................................... 30
Where was the budget spent? ............................................................................................................................. 30
Statement of comprehensive income .................................................................................................................. 31
Operating revenue – where the money came from ............................................................................................. 31
Operating expenditure – where the money goes ................................................................................................. 32
Statement of financial position ............................................................................................................................. 32
Assets – what we own ......................................................................................................................................... 33
Liabilities – what we owe ..................................................................................................................................... 34
Statement of changes in equity ........................................................................................................................... 34
Statement of cash flows....................................................................................................................................... 34
Financial ratios..................................................................................................................................................... 35
Operating surplus ratio ........................................................................................................................................ 35
Net financial liabilities ratio .................................................................................................................................. 35
Asset sustainability ratio ...................................................................................................................................... 36
Summary ............................................................................................................................................................. 36
FINANCIAL STATEMENTS 2016/17 ............................................................................................ 37
Noosa Council | Annual Report 2016 - 2017
Page 3
Section 4
Introduction
Our Council
From left to right: Cr Frank Pardon, Cr Joe Jurisevic, Cr Brian Stockwell, Mayor Tony Wellington,
Cr Ingrid Jackson, Cr Jess Glasgow, and Cr Frank Wilkie (Deputy Mayor).
Noosa Council | Annual Report 2016 - 2017
Page 4
Section 5
Mayor’s Message
Mayor’s Message
The 2016-17 financial year
Of some significance was the new waste
consolidated many of the
contract that allowed us to not only improve
priorities of the current
our regular services, but also roll out a green
Council.
bin service to urban areas. We also undertook
an organisational restructure that, amongst
Of particular note was the
other benefits, allows for a greater corporate
beginning of our journey
emphasis on environmental issues. And
towards zero emissions,
thanks in part to State and LGAQ funding,
with close analysis of the
significant work has occurred on Council’s
organisation’s carbon
climate change adaptation plans.
footprint, and the inclusion
of a dedicated carbon
We have also beefed up our Economic
reduction officer. Already we have achieved a 6%
Development resources; undertaken a range
reduction of our carbon emissions. The next
of community plans with input from residents
couple of years will see even greater
and stakeholders; and provided over $810,000
improvements as we hurtle towards our goal of
in grants to local community groups.
being net zero emissions by 2026.
Looking back, I am amazed at the workload
Transport was another complex matter that
this Council has managed to squeeze into a
Council bravely grappled with. Following
very hectic year. That we could achieve so
considerable consultation with the community,
much is entirely thanks to our committed and
including more than 1250 submissions, plus
passionate workforce. It cannot be overstated
numerous stakeholder sessions and workshops,
just how dedicated our staff are to making
we came up with a workable Transport Strategy.
Noosa Council progressive and exemplary.
Many Council decisions, including budget
priorities and the new planning scheme, are
I’d also like to take this opportunity to thank my
already being tested against the overarching
fellow Councillors for their unswerving
intentions of this important Strategy.
dedication to the Noosa Shire community. I am
extremely blessed to be able to work with a
Speaking of the new planning scheme, drafting of
group of Councillors who are committed to
the document continues apace, with a range of
ensuring that our working environment is
specific studies informing the process now
amicable and constructive. Not all mayors, nor
completed. A final community consultation
local governments, are as fortunate as I am.
process is scheduled to be undertaken in late
2018, after the first State interest review.
Thanks also must go to our highly-engaged
residents who give so much back to their
Meanwhile, our planners are having to deal with
community. They ensure that Noosa Shire truly
an escalating volume of development
is the best place on the planet in which to
applications. Of the 477 planning applications
reside.
decided on last year, Council approved all but 6.
Of those that were refused, four were for removal
of healthy trees, one was for a change of existing
approval conditions, and only one was a town
planning development application.
Tony Wellington
Mayor
Financial stability remains an important hallmark
of Noosa Council, with revenues exceeding costs,
debt levels reducing and Council again investing
significantly in the replacement of key community
infrastructure.
Noosa Council | Annual Report 2016 - 2017
Page 5
Section 6
Chief Executive Officer’s Message
Chief Executive Officer’s Message
An annual report is an However, we also recognise that we cannot rest
important way for our on our laurels. Our community expects great
Council to stay things from its Council and rightly so. Our
accountable to the Noosa community doesn’t want just a good Council, it
community for our wants a Council that it can be proud of.
performance. In reflecting
on the 2016/17 year, I am I would like to thank Mayor Tony Wellington and
once again very proud of our Councillors for their wise leadership
how our Council has been throughout 2016/17. Working well together as a
able to achieve great results for our community team has provided a unified voice and unified
despite being only 3 ½ years old. direction which is important for successful
Councils. I would also like to publically thank all
One of the key highlights for 2016/17, was the of our Council staff. Once again, you have
adoption of Council’s new Corporate Plan. (For excelled. Every day, we have staff:
local governments, a Corporate Plan is the putting out swimming pool lane ropes at
equivalent of a business plan in the private 5.30am for the 245,000 patrons who use the
sector). Our Council has focused on a 20 year Noosa Aquatic Centre annually;
planning horizon in our Corporate Plan. This
helping people at the library by issuing over
demonstrates one of the important
570,000 books in the 2016/17 year
characteristics of Noosa Shire Council –
understanding that long-term planning is fixing roads, maintaining parks and having
important for a community rather than just short- the street sweeper clean over 11,000 km of
term decision-making. roads;
managing waste removal including picking
Our Corporate Plan is crafted around a new up more than 3,000,000 bins during the
vision – “Noosa Shire – different by nature”. year;
Although a short vision statement, there is a lot
helping residents with their queries by
of depth and meaning in the vision which will set
answering over 65,000 front line calls;
the tone for our future planning and thinking.
Our Corporate Plan also sets out our longer and the list goes on……..
term aspirations for the Noosa Shire through a Our community is lucky to have such dedicated
series of 20 year goals across five themes. staff who love to work in Noosa. As I often say to
These themes are: our staff, working for our Council is one of the
Theme 1: The Noosa Environment few jobs I know where you can drive home at
Theme 2: The Noosa Community the end of the work day and see where you
made a difference to the place you live. This
Theme 3: The Noosa Economy
sense of connection between our work role and
Theme 4: Long term planning for Noosa Shire where we live reminds me of a wonderful quote I
Theme 5: Excellence as a Council read recently about the nature of a community.
This is the first Annual Report where we will
report to our community on our progress
towards achieving outcomes in each of these
Brett de Chastel
five themes. By any measure, our Council had a
Chief Executive Officer
great year.
You will see set out in this report a list of
achievements for 2016/17 under each theme.
We are proud of our achievements to date.
“A true community is not just about being
geographically close to someone or part of the
same social web network. It's about feeling
connected and responsible for what happens.”
-
Noosa Council | Annual Report 2016 - 2017
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Section 7
The Year in Review
This section of the Annual Report looks at Council’s progress in achieving the goals set out in its
Corporate Plan. Noosa Council adopted a new Corporate Plan in January 2017. The Corporate Plan
identifies five themes, a series of long term goals and key focus areas for 2017-2022. Council’s
progress towards achieving them are set out below.
Council’s Operational Plan 2016/17 detailed the major priorities and initiatives that Council undertook to
work towards the implementation of the Corporate Plan. Throughout the year, the CEO provided
Council with quarterly reports looking at progress of the Operational Plan and details of Key
Performance Indicators. The CEO also provided a separate report at the end of the financial year to the
Council on the progress towards achieving the Corporate Plan outcomes. Both the quarterly and annual
reports to Council are made available to the public via Council’s website.
Corporate Plan Theme 1: The Noosa Environment
“Our environment is protected, enhanced and valued by the community”
Key achievements as we work towards our long term goal include:
Council committed to a three-year agreement the energy use of 9 of Council’s largest energy
to remain part of the Healthy Waterways producing sites to identify which energy
Program. efficiency projects should be undertaken in the
Council reviewed its management approach to first instance to both reduce costs and
the Noosa River and has committed to refresh emissions.
and rewrite the Noosa River Plan with an Council adopted a new street sweeping
expanded focus on river catchment areas. The contract which has resulted in an increased
revised Noosa River Plan is currently being length of roads being serviced by the street
drafted. sweeper. This reduces the amount of rubbish
Council adopted the Noosa Shire Koala going into drains and waterways.
Conservation Plan in July 2016. Actions to Stage 2 of the Munna Point foreshore
implement the Plan are now being progressed. revitalisation project has been implemented
Council undertook an audit of waste water with the aim of reducing environmental damage
facilities in Cooran. Cooran is not serviced by a to Munna Point from erosion.
sewerage system and accordingly, residential In December 2016, Council adopted the Noosa
properties use on site waste water facilities and Biodiversity Assessment Report. This report is
an audit was undertaken to determine the level an important input into our Council’s new
of compliance from an environmental protection Planning Scheme and also acts as a
and health perspective. benchmark for future assessment of
Council adopted the Noosa Parklands Park biodiversity across the Shire. The report will
Management Plan following significant also be useful as part of the 10 year renewal
consultation with local residents. Staff are application for the Noosa Biosphere Reserve.
currently working to develop a suite of other Council awarded a new waste management
management plans for other bushland reserve contract to Cleanaway for the period 2017 -
areas within the Shire. Those plans are 2024 at an approximate cost of $46 million.
substantially complete. This contract covers the collection, disposal
Council made a submission to the State and recycling operations for the Eumundi Road
government on the green paper on Fisheries Waste Recovery Centre and includes the
Management Reform. Council has also made a introduction of a green waste recycling bin
number of direct representations to the Minister which will reduce green waste being buried in
on this topic. the landfill, thus significantly reducing methane
gas.
Council has adopted its Zero Emissions
Strategy focused on eliminating our Council was successful in receiving a grant
organisation’s emissions by 2026. This was a (managed by the Local Government
major initiative of Mayor Wellington and work Association of Queensland) for the
has been undertaken in 2016/17 to establish development of a Coastal Hazard Adaption
the baseline level of emissions (which have Plan. A Project Officer has been appointed and
been recently re-calculated). A major report has work is currently underway to develop both a
been finalised on Coastal Hazard Adaption Plan (year one) and a
Noosa Council | Annual Report 2016 - 2017
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Section 8
Climate Change Adaption Plan (year two)
Council entered into a Memorandum of Council has addressed a range of significant
Understanding with Healthy Waterways and planning and environment applications during
Catchments for the ongoing “Land for Wildlife” the last 12 months. Council approved 98.7% of
program. This program helps support property planning applications.
owners who care for their land to encourage Council had considerable success in the
environmental protections. Planning and Environment Court with a
Council undertook an environmental clean-up significant victory for our Planning Scheme in
of asbestos which was dumped illegally on the Noosa Civic case. The court supported
Walter Hay Drive. Council’s position that it was inappropriate
A systematic inspection of our industrial areas under the Planning Scheme to expand retail
has been undertaken to identify any issues with operations on that site. During 2016/17, the
run-off etc to local waterways. The detailed appellant in the poultry farm case also withdrew
report has identified some key areas for their appeal as did the appellant in the Service
improvement and the Council will be Station Centre appeal at the Good Shepherd
considering the option of introducing a licencing Lutheran School site on Eumundi Road.
regime under our local laws. In an environmental first, Council has trialled a
The Waste Reduction and Recycling Plan has range of new environmentally friendly asphalt
been rolled out in 2016/17. This included processes in conjunction with our contractor.
significant media coverage and school This has included the introduction of recycled
education sessions. printer cartridges into the asphalt mix and the
use of different temperatures to undertake the
Council has entered into a contract for the planning process. We have also trialled
purchase of Johns Landing (approximately 50 different combinations of recyclable material
ha) in order to undertake the long-term including shredded car tyres and recycled glass
protection of important environmental land on
the Noosa River. Council is also working with
the current owner of the property to assist with
the transition to alternative housing for those
residents living on the current site.
Council has facilitated the approval processes
for a project being funded by the Noosa
Biosphere Reserve Foundation to re-establish
oyster reefs in the Noosa River. This has
entailed obtaining both town planning approval
from Council and environmental approvals from
the State government. In addition, Council also
provided $250,000 to the Noosa Biosphere
Reserve Foundation for projects that advance
the purpose of the Noosa Biosphere Reserve.
Noosa Council | Annual Report 2016 - 2017
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Section 9
Corporate Plan Theme 2: The Noosa Community
“Our community is connected, safe and happy and able to meet their potential”
Key achievements as we work towards our long term goal include:
Council adopted a three-year implementation Council undertook a sports field audit to provide
plan for the Noosa Social Strategy. This includes additional assistance to sporting clubs who have
an annual update to Council on progress for the responsibility of maintaining their sporting
implementation of the Noosa Social Strategy. fields. Council agreed to provide membership to
Included within the Strategy is the establishment the Sports Turf Association of Queensland to 12
of the Noosa Community Round Table which has sporting clubs to assist in increasing expertise
been successfully operating to assist with the within the clubs on field and turf maintenance.
transition process at Johns Landing. Council has commenced a process to review
Staff have been working to develop a Sport and options for the future use of the Noosaville
Active Recreation Plan. This has included initial foreshore. This included an extensive community
community engagement and a draft Plan has engagement process which will be completed in
been developed in preparation for a formal round 2017.
of community consultation. Council has reviewed and updated its
Council has entered into a three-year agreement Community Engagement Policy. Significant
with the Cooroy Futures Group Inc for the community engagement projects in 2016/17
operation of the Cooroy Butter Factory Arts included:
Centre. This agreement was entered into after a o Cooroy Memorial Hall
trial management period following an extensive o Sunshine Beach Skate Park
community engagement process on the future of o Digital Hub, Peregian Beach
the Cooroy Butter Factory. o Noosa Botanic Gardens Masterplan
Council has undertaken two community Council o Noosa Planning Scheme
meetings during 2016/17. In October 2016, we o Noosa Transport Strategy
held a Council meeting at Cooroy and in April o Waste Reduction and Recycling Plan
2017, we held a Council meeting at Boreen
o Corporate Plan
Point.
Council accepted a contract for the restoration
Council commenced the development of a Noosa
and upgrade of the Sunshine Beach Skatepark at
Arts, Culture and Heritage Plan. A Consultative
a cost of $380,000. This is an important facility
Committee has been established and work is
for the younger demographic in our Shire.
well advanced on the development of that Plan.
Council undertook numerous Library and Gallery
Council undertook extensive community
programs to support our community. Our Library
engagement with the Cooroy community
Services have physically issued over 570,000
regarding the future of the Cooroy Community
items to our community during the last year.
Hall. Council agreed to accept trusteeship of the
Deed of Grant in Trust and supported the After considerable work with the local community
establishment of the Cooroy Community Hall including United Synergies and local Rotary
Association Inc. A lease has been provided to Clubs, Tait Duke Cottage was restored and open
the Association in order that they can manage for community use in June 2017. This milestone
the Hall. Council has also agreed to fund 50% of was significant after many years of work to
the restoration costs (capped) with the identify an appropriate site and working in
community funding the remaining 50%. This has partnership with the local community to restore
been an excellent outcome for the Cooroy the building and make it available for ongoing
community. community use.
Council extended the lifeguard services To encourage community interaction, Council
agreement for a five-year term. This agreement has installed chalkboard walls as part of the
enables our community and visitors to safely use International “Before I Die” wall movement. This
our beaches with a high level of safety based on has been successful (particularly at Cooroy) with
our lifeguard services. one of the walls also visiting Noosa Junction and
Peregian Beach.
Council introduced a community support scheme
for those residents living in the vicinity of Wallace Council continued to provide its community grant
Park who were directly affected by large program supporting our community groups.
numbers of flying foxes that came to Wallace During 2016/17, we provided over $810,000 in
Park on an intermittent basis. The scheme grants to local community groups to support
included the provision of cleaning materials, car projects, acquisition of equipment or events.
covers and other tangible support materials to Council staff also facilitated a number of evening
reduce the impact on local residents. Council information sessions for community
Noosa Council | Annual Report 2016 - 2017
Page 9
Section 10
also employed a project officer for a period organisations to help improve their governance
during 2016/17 to help roll out the support items. and grant writing skills.
Corporate Plan Theme 3: The Noosa Economy
“Our economy is diverse and resilient”
Key achievements as we work towards our long term goal include:
The design of the Peregian Beach Digital Hub Council continued to work closely with Regional
was completed and town planning approval Development Australia (Sunshine Coast) on a
obtained. Council was successful in obtaining $1 range of projects including a successful
million of funding from the State Government. entrepreneurship program.
Associated road works and parking in Rufous Council undertook an audit of footpath trading
Street have substantially been completed and across the shire and also provided information to
preparatory works have commenced on the the operators while the audit was being
Digital Hub building. Tenders have been called undertaken.
for the management of the Digital Hub
component of the building. Council worked with the private sector to assist
with the establishment of Innovate Noosa. This
Council appointed an Economic Development is part of a regional program that attracted
Manager who has brought significant experience significant funding from Advance Queensland to
and focus to our economic development develop innovation on the Sunshine Coast.
programs.
Council continues to manage our Holiday Parks
Council undertook a detailed review of the including awarding a new three-year contract for
proposal from CCIQ Noosa for a Noosa the management of the Noosa River Holiday
Convention and Cultural Centre. Council Park. During 2016/17, Council also commenced
recognised that such a proposal could have a process to redevelop the Noosa North Shore
potential economic benefit but identified that the Beachfront Campground including the
cost of construction and operation should not be development of concept designs and sorting out
borne by Noosa ratepayers but rather, Council tenure issues.
expressed a willingness to consider financial
options driven by the market. Council undertook its three yearly review of
commercial high use permits and following a
Council undertook its first Economic tender process, awarded new permits for the
Development Grants Program providing financial operation of commercial activities on Council
support for programs that will support the controlled land in the Hastings Street precinct.
outcomes of the Local Economic Plan.
Council entered into a Memorandum of
Understanding with the Small Business Solutions
section of TAFE Queensland to provide support
for training and development of local small
businesses.
Council continued to work closely with Tourism
Noosa to develop the Noosa Tourism market. In
particular, Council provided significant input into
the development of the Noosa Tourism Strategy
2017 - 2022 adopted by the Tourism Noosa
Board. This strategy included a focus on “value
over volume” in relation to tourism so that the
focus is on yield per visitor rather than simply
more visitor numbers.
Noosa Council | Annual Report 2016 - 2017
Page 10
Section 11
Corporate Plan Theme 4: Long term planning for Noosa Shire
“Noosa Shire is well managed and sustainable”
Key achievements as we work towards our long term goal include:
Council undertook significant work on the Council adopted its new Corporate Plan which
development of the new Planning Scheme during will guide key corporate decision making for the
2016/17. Council adopted the New Noosa Plan next 20 years. The Corporate Plan was
Discussion Paper for the purposes of public developed following a series of Councillor
consultation and undertook an extensive workshops analysing future trends and
community engagement process to seek developed a new vision – “Noosa Shire - different
feedback. Council also finalised a range of by nature”.
studies to support the development of the new Council adopted a Transport Policy and
Planning Scheme including: Transport Strategy following extensive
Resources and Minerals Planning Study community consultation. This was one of the
Study into Agriculture and Agricultural Land in signature long-term pieces of planning for our
Noosa Shire community undertaken in 2016/17. There were
two rounds of community consultation including
On-Site Effluent Disposal Noosa Shire Study targeted consultation with key stakeholders. One
Housing Needs Assessment of the challenges for 2017/18 is the
Council was able to provide significant input into implementation of that Strategy. Also during
the ongoing development of the draft South-East 2016/17, Council successfully delivered its
Queensland Regional Plan which will achieve a Christmas and Easter free holiday bus program.
good outcome for the Noosa community. Council adopted an Asset Management Plan
Council undertook a significant review of our Roadmap in 2016/17. The roadmap sets out the
infrastructure plans to enable us to meet new priorities for developing more robust long-term
legislative requirements for the imposition of asset management plans and ensuring that asset
contributions from developers towards the cost of management becomes more central to our
infrastructure. decision making processes. Converting this
roadmap into action is also one of the challenges
Council has adopted the Noosa Local Disaster for 2017/18.
Management Plan which guides our responses
to natural disasters. Council has also undertaken
considerable work in developing our response to
natural disasters including undertaking disaster
management exercises to train our staff. This
was put to the test with the arrival of the
remnants of Cyclone Debbie in February 2017.
Our management of that response was good and
our Local Disaster Management Plan was able to
deal with that scenario. Council was also
successful in obtaining State funding to install
new flood alert stations at a cost of $206,000.
Noosa Council | Annual Report 2016 - 2017
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Section 12
Corporate Plan Theme 5: Excellence as a Council
“The Noosa Shire community is proud of its Council”
Key achievements as we work towards our long term goal include:
We have had another successful financial year. Council has recently undertaken its first external
Revenues were above budget, expenses were customer service survey. The survey was
below budget, debt levels are lower than at the undertaken by Market Facts to enable us to
beginning of the financial year and cash reserves benchmark with other Queensland local
are higher than at the beginning of the financial governments (LGAQ also use this firm to
year. At the end of 2016/17, Council adopted its undertake state wide customer service surveys).
budget for the 2017/18 financial year with a 2% Our benchmark scores were above state
general rate increase. averages in almost every category.
Council has successfully achieved another Council continued to undertake a series of
unmodified audit from the Queensland Audit service reviews looking in detail at operations to
Office with the 2015/16 financial statements find ways in which we can be more efficient in
being “signed off” by the Queensland Audit delivering services. This included areas such as
Office. the Noosa Leisure Centre, Environmental Health,
Behind the scenes, the Audit and Risk and Building and Plumbing Services. Following
Committee has continued to add value to our these reviews, Council adopted additional staff
compliance and performance for governance and resources in some parts of the organisation to
finance. This has included an oversight of our ensure that appropriate service levels can be
strategic risks, review of key governance and delivered.
financial policies, review of organisational KPI’s, The transformation of our Workplace Health and
development of Business Continuity Planning Safety performance has continued. Significant
etc. Our two external members of the Audit and progress has been made in relation to our
Risk Committee in particular have added documentation, processes and practices for
significantly to our overall governance practices. Workplace Health and Safety. Based on the
Although not high profile, this Committee plays Local Government Workcare Performance
an important role in making sure that Council statistics for category D Councils, we have
“dots the i’s and crosses the t’s” both in transitioned from one of the worst performing
governance and in the management of risk. local governments of our size to one of the best
Council’s Internal Audit Program included performing local governments of our size for Lost
internal audits on Procurement and Council Time Frequency and Lost Time Injury.
investments. A Digital Strategy has been developed for
Council commenced a review of our management to focus on opportunities available
organisational structure at the end of 2016 with with emerging digital technology. This strategy
the new structure being adopted in March 2017. focuses particularly on improving our
Following considerable internal consultation, the organisational efficiency using digital technology
Planning and Infrastructure Department was split as well as improving our interface to our
in two with a new Environment and Sustainable community. During the year, more mobile
Development Department and a new technology was rolled out to our external
Infrastructure Services Department being workforce.
created. Also during 2016/17, Council added We commenced negotiations for a Noosa
additional staff resources to our Infrastructure Council Certified Agreement. These negotiations
Design and Delivery Branch and Asset with unions will continue into the 2017/18
Management Branch to enable them to deliver financial year.
expected outcomes.
We transitioned our ICT systems to the latest
Our enterprise risk management has been version of the Cloud which provided enhanced
further developed with risk management security and stability for our systems which is
practices being further embedded into Council important given the number of cyber-attacks
operations. Council was recognised by Local occurring at the moment. We have also
Government Mutual for our risk management continued to roll out our ICT strategy to enhance
practices. Our comprehensive Business our system capabilities.
Continuity Plans are all but complete and will be
We undertook significant training and
tested in early 2017/18.
development for leadership capabilities within the
Our Noosa Aquatic Centre, Noosa Leisure organisation. This included the continuation of
Centre and The J all had outstanding years. The the Leadership Practices Inventory (LPI) program
Noosa Leisure Centre had its highest ever for our senior management staff (approximately
annual attendance, The J had its highest ever 30 staff leaders)
revenue and the Noosa Aquatic Centre had its
Noosa Council | Annual Report 2016 - 2017
Page 12
Section 13
strongest ever financial performance.
Reportable Disclosures
Information relating to Councillors
Remuneration
Councillor remuneration is set by the independent Local Government Remuneration and Discipline
Tribunal established under the Local Government Act 2009 (LG Act). The Tribunal determines
remuneration for Mayors, Deputy Mayors and Councillors and releases a report in December each year
which establishes single remuneration levels for the following year.
The Local Government Remuneration and Discipline Tribunal Report 2015 listed Noosa Council as a
Category 3 Council, and prescribed that the annual rate of remuneration for the Mayor and Councillors
for the period 1 July 2016 to 30 June 2017 (the period) as follows:
Mayor - $122,631
Deputy Mayor - $76,644
Councillors - $65,147
In accordance with s244 (3) of the Local Government Regulation 2012 (LG Regulation), the
remuneration prescribed by the Tribunal cannot include:
any amount for expenses to be paid or facilities to be provided to a Councillor of a local government
under its expenses reimbursement policy, or
any contribution a local government makes for a Councillor to a voluntary superannuation scheme
for Councillors established or taken part in by the local government under s226 of the LG Act.
The LG Act does however allow a local government to take part in a superannuation scheme for its
Councillors and Council on 20 January 2014 authorised the payment of superannuation contributions
for Councillors of up to 12% of their annual salary on the condition that Councillors:
contribute an amount of up to 6% from their salaries and Council contributes a proportionate
amount of up to 12% to a nominated superannuation fund;
make contributions through an arrangement by way of a formal request to Council, and
nominate the preferred superannuation fund, and where no nomination has occurred, the
superannuation payments be made to LG Super.
An overview of the remuneration paid to Councillors for the period is provided in Table 1.
Table 1 – Councillor Remuneration
Councillor remuneration for period 1 July 2016 to 30 June 2017
Councillor Salary ($) Superannuation* ($) Total ($)
Cr Tony Wellington 122,631 14,716 137,347
(Mayor)
Cr Frank Wilkie 76,644 9,197 85,841
(Deputy Mayor)
Cr Joseph Jurisevic 65,147 7,818 72,965
Cr Frank Pardon 65,147 7,818 72,965
Cr Jess Glasgow 65,147 7,818 72,965
Cr Ingrid Jackson 65,147 7,818 72,965
Cr Brian Stockwell 65,147 7,053 72,200
Noosa Council | Annual Report 2016 - 2017
Page 13
Section 14
Notes:
1. Amounts rounded to the nearest whole dollar value.
2. * Superannuation shown is Council’s 12% employer contribution (as outlined on the previous page), with the
exception of Councillor Stockwell who elected the national standard 9.5% contribution for a portion of the
period.
Noosa Council | Annual Report 2016 - 2017
Page 14
Section 15
Reportable Council resolutions for the period
The table below outlines the reportable resolutions under the LG Regulation for the period.
Table 2 – Reportable Resolutions
Local Government Regulation 2012 Resolution adopted
Section 250(1) Nil.
Section 250(2) Councillors Expense Reimbursement Policy Update
Council note the report by the Governance Advisor to the
Services & Organisation Committee Meeting dated 9 August
2016 and adopt the updated Councillors’ Expenses and
Reimbursement Policy.
(Adopted by Council 18 August 2016).
Section 206(2) Non-Current Asset Accounting Policy
Council note the report by the Financial Accountant to the
Services & Organisation Committee Meeting dated 6 June 2017
and:
A. Adopt the updated Non-Current Asset Accounting Policy;
and
B. Note that for asset accounting purposes; this Policy is to be
applied from 1 July 2016.
(Adopted by Council 15 June 2017)
Councillors’ expenses and resources provided
The Councillors’ Expenses Reimbursement Policy ensures Councillors are provided a reasonable level
of resources and equipment in order to carry out their duties in an effective and efficient manner. Minor
amendments to the Policy were made at Council meeting of 18 August 2016.
The Policy is compliant with the following principles prescribed by the LG Act:
transparent and effective processes and decision-making in the public interest,
good governance of, and by, the local government; and
ethical and legal behaviour of Councillors and local government employees.
The categories of expenses and eligibility for reimbursement as per the Policy for the Period include:
mandatory professional development
professional development & representation (Mandatory and Discretionary)
travel as required to represent Council
meals when travelling for Council business
accommodation
private vehicle usage
hospitality
administration tools and access to Council office amenities
safety equipment
Council vehicle usage
home office and telecommunication needs
insurance cover1.
1
Councillors are covered under relevant Council insurance policies while on Council business. Cover includes
public liability, professional indemnity, Councillors’ liability, personal accident and overseas travel.
Noosa Council | Annual Report 2016 - 2017
Page 15
Section 16
Summary of expenses/reimbursements paid to Councillors for the period
The reimbursements that were made to Councillors for the period were for mandatory and discretionary
professional development, hospitality, vehicle use, home office and telecommunication, and travel
expenses incurred whilst on Council business.
For the period all claimed expenses were processed and fell within the required limits prescribed by the
Policy.
A summary of expenses/reimbursements to Councillors for the period is outlined in table 3 below.
Table 3 – Councillor Expenses 2016/17
Councillor Mandatory Discretionary Use of Home Hospitality Travel TOTAL
Professional Professional private office ($) Expenses as ($)
Development Development vehicle & tele- required to
($) ($) (option 1) comms represent
($)* ($) Council ($)
Mayor Tony Wellington 665 155 5,000 2,880 - 24 8,724
Cr Jess Glasgow 78 146 5,000 2,880 - - 8,104
Cr Ingrid Jackson 78 30 5,000 2,880 66 - 8,054
Cr Joe Jurisevic 0 1,030 5,000 2,880 - - 8,910
Cr Frank Pardon 0 30 5,000 2,880 - - 7,910
Cr Brian Stockwell 0 1,500 5,000 2,880 - 64 9,444
Cr Frank Wilkie 582 750 5,000 2,880 - - 9,212
Note: Amounts rounded to the nearest whole dollar.
*Under the Policy Councillors may elect one of two options regarding use of private vehicle reimbursement. Option
1 – Councillors accept an annual payment of $5,000 as reimbursement for the use of their private vehicle on
Council business.
Councillor meeting attendance
The attendance of Councillors at Ordinary meetings, Special meetings and Committees for the period is
outlined in table 4 below.
Table 4 –Council Meeting Attendance 2016/17
Councillor Ordinary General Planning & Services & Special & Audit & Risk Total
Meeting Committee Environment Organisation Budgetary Committee
Committee Committee
Mayor Tony 11 12 11 11 2 4 51
Wellington
Cr Jess Glasgow 11 10 n/a 10 1 n/a 32
Cr Ingrid Jackson 12 11 10 n/a 1 4 38
Cr Joe Jurisevic 12 11 11 n/a 2 n/a 36
Cr Frank Pardon 10 11 n/a 9 2 n/a 32
Cr Brian Stockwell 12 12 11 n/a 2 n/a 37
Cr Frank Wilkie 11 11 n/a 10 2 n/a 34
Note: n/a in the table above indicates that the relevant Councillor is not a representative of the particular
committee.
Noosa Council | Annual Report 2016 - 2017
Page 16
Section 17
Complaints about Councillors
Sections 176 to 182 (inclusive) of the LG Act prescribe the requirements for local governments for
dealing with complaints about the conduct and performance of Councillors so as to ensure that:
appropriate standards of conduct and performance are maintained, and
a Councillor who engages in misconduct or inappropriate conduct is disciplined.
The Councillor Code of Conduct Policy endorsed by Council on 13 January 2014 remained unchanged
for the period. The Policy establishes:
the responsibilities of Councillors under the LG Act;
the standards of behaviour and ethical obligations expected Councillors in Noosa Shire; and
a clear administrative method for handling and resolving complaints made about the conduct and
performance of Councillors in accordance with Division 6 of the LG Act.
Table 5 identifies the reportable complaints, orders and recommendations against Councillors for the
period.
Table 5 – Complaints Against Councillors
Reportable information relating to complaints against Councillors: Number of
complaints:
(for the period)
(i) The number of orders and recommendations made under s180 (2) or (4) of the LG Nil
Act.
(ii) The number of orders made under s181 of the LG Act. Nil
(iii) The number of complaints made about the conduct or performance of a Councillor Nil
for which no further action was taken under s 176C(2) of the LG Act.
(iv) The number of complaints referred by the Council CEO to the department’s chief Nil
executive under s176C (3)(a)(i) of the LG Act.
(v) The number of complaints referred to the Mayor under s176C (3)(a)(ii) or (b)(i) of Nil
the LG Act.
(vi) The number of complaints referred to the department’s chief executive under s Nil
176C (4)(a) of the LG Act.
(vii) The number of complaints assessed by the Council CEO as being about corrupt Nil
conduct under the Crime and Corruption Act.
(viii) The number of complaints heard by a regional conduct review panel. Nil
(ix) The number of complaints heard by the tribunal. Nil
(x) The number of complaints to which s176C (6) of the LG Act applied. Nil
Noosa Council | Annual Report 2016 - 2017
Page 17
Section 18
Overseas travel
No official overseas travel was undertaken by Councillors or staff during the period.
Executive remuneration
Under the LG Act, the annual report of a local government must state the total remuneration packages
that were payable during the reporting period to its senior management, and the number of employees
in senior management who are being paid each of the total remuneration packages.
The senior management of a local government consists of the chief executive officer and all senior
executive employees of the local government. A senior executive employee is an employee who reports
directly to the chief executive officer and whose position would ordinarily be considered to be a senior
position in the corporate structure.
The total of remuneration packages payable to senior management during the period was $1,077,410.
The annual package bands for Council’s senior management team are outlined in table 6 below.
Table 6 – Executive Remuneration
Package Band Number of senior
management employees
$100,000 - $200,000 3
$200,001 - $300,000 2
Equal opportunity employment
Council is an equal opportunity employer, which is committed to providing equal employment
opportunities for its current and prospective employees. Council’s employment practices are aligned to
Queensland’s Anti-Discrimination Act 1991 and relevant federal anti-discrimination laws.
Council recognises the importance workforce diversity and promotes a working environment where
people are treated on their merits at every stage of their employment.
At Noosa Council, all staff are encouraged to embrace equity and diversity at all levels within the
organisation. The Noosa Council Employee Code of Conduct reinforces the standards of behaviours
required of employees including non-discriminatory workplace practices.
Council will continue to strive to build a workforce and supporting organisational culture that reflects the
diversity of the greater community and is free of all forms of discrimination and harassment.
Noosa Council | Annual Report 2016 - 2017
Page 18
Section 19
Administrative action complaints
Council is committed to managing customer feedback and ensuring all complaints are dealt with in a
fair, prompt and confidential manner. Council aspires to provide a level of service that does not attract
complaints. However, Council acknowledges the public’s right to provide feedback on services,
including the right to lodge a complaint about a decision or other action Council has taken, or failed to
take, where considered appropriate to do so.
Council’s Administrative Action Complaints Policy has been developed to ensure:
complaints are handled in a structured, timely and professional manner which is fair, considerate
and respectful of privacy;
all staff members are aware of their responsibilities regarding the complaints; and
complaints are used to identify problems and to continuously improve the Council’s services.
A copy of the Council’s current Administrative Action Complaint Process Policy can be viewed on
Council’s website.
Table 7 below provides a summary of Administrative Action Complaints for the period. Council reviews
each complaint it receives objectively and aims to ensure that any improvement opportunities identified
by a particular complaint are implemented into operations.
Table 7 – Administrative Action Complaints
Complaint statistics 30 June 2016 to 30 June 2017
Complaints Complaints Complaints resolved during the Complaints outstanding at
outstanding as at received during the period 30/06/17
30/06/16 period
0 23 17 6
Note: The above statistics relate to formal administrative action complaints, which can be distinguished from ‘a
request for service’ by members of the public. An administrative action may include a decision, or a failure to make
a decision, a failure to provide a written statement of reasons for a decision, an act, a failure to do an act, the
formulation of a proposal or intention, or the making of a recommendation.
Council registers
Council is required under the LG Regulation to develop and maintain certain registers. A number of
these registers are available for public inspection at Council’s Tewantin Office or can be viewed on
Council’s website.
Below is a list of the registers kept by Council:
Asset Register Other Development Fees and Charges
Delegations Register Local Laws Register
Complaints Register Roads Register
Claims Register Instrument of Appointments
General Cost Fees and Commercial Charges Noosa Policy Register
Engineering and Environment Fees and Charges Gifts and Benefits Register
Planning and Development Fees and Charges Contracts Register
Building and Plumbing Fees and Charges Registers of Interests
Noosa Council | Annual Report 2016 - 2017
Page 19
Section 20
Community grants 2016/17
Council’s Community Grants for the period were managed in accordance with Council’s Community
Grants Policy as endorsed by Council on December 2016. This Policy is to be read in conjunction with
any supporting guidelines for specific funding programs. This Policy does not apply to sponsorship,
donations, advertising, naming rights and service level agreements.
The outcomes of this policy include:
Providing community organisations and individuals (for Regional Arts Development Funds only) with
financial support to meet identified community needs;
Building community skills and resilience;
Developing and maintaining sustainable community infrastructure;
Providing opportunities for community organisations to leverage Council’s financial assistance to
obtain funding from other sources; and
Providing opportunities for community organisations to deliver on Council’s strategic goals and
identified key initiatives (e.g. Noosa Corporate Plan, Noosa Social Strategy, Local Economic Plan
and Environmental outcomes).
Table 8 outlines the funds supplied by Council through community grants for the period.
Table 8 – Community Grants 2016/17
Community Grant Recipients Type Funding
Amounts ($)
Regional Arts Development Fund
Noosa Shire Arts and Crafts Assn Inc. auspicing Wallace House Quilters - Crafts 1,570
Mixing Modern Wedge Quilt Elements
Noosa Arts Theatre Inc. - 'Still' performed at Noosa Arts Theatre and at Theatre 10,000
Cooran Memorial Hall.
Sub-total: 11,570
Three Year Alliance Agreement
Noosa District Community FM Radio Assn Inc. - operational funding Arts and Culture 7,500
Flying Fox Rescue Release Noosa Inc. - operational funding Environment 7,500
Sunshine Butterflies - operational funding Human Services 7,500
Cooroora Historical Society Inc. t/as Noosa Museum - operational funding Arts and Culture 5,000
Noosa & District Landcare Group Inc. - operational funding Environment 15,500
Noosa Arts Theatre Inc. - operational funding Arts and Culture 7,500
Cooroy-Noosa Genealogical and Historical Research Group Inc. - Recreation 5,000
operational funding
Cooroy Family Support Centre / SunnyKids Inc. - operational funding Human Services 5,000
Noosa Integrated Catchment Association Inc. - operational funding Environment 15,500
The Salvation Army / Shine Program - operational funding Human Services 15,000
Country Noosa Inc. - operational funding Environment 3,000
Noosa Community Biosphere Association Inc. - operational funding Environment 10,500
Sub-total: 104,500
Three Year Alliance Agreement - Emergency Services
Australian Volunteer Coast Guard Association Noosa QF5 - operational Public Safety 10,500
funding
LifeFlight Australia - operational funding Public Safety 10,500
Sub-total: 21,000
Noosa Council | Annual Report 2016 - 2017
Page 20
Section 21
Community Grant Recipients Type Funding
Amounts ($)
Water Rebates
Paid directly to 18 eligible not-for-profit organisations Various 24,298
Paid on behalf of 44 eligible not-for-profit organisations Various 55,221
Sub-total: 79,519
Three Year Halls and Centres Maintenance and Management
Ridgewood Community Hall Assn Inc. - management and maintenance Community 4,280
Development
Pomona & District Community House & Lawson Shed Inc. - management Community 17,052
and maintenance Development
Federal Memorial Hall and Community Centre Inc. - management and Community 4,912
maintenance Development
Tinbeerwah Hall Inc. - management and maintenance Community 3,036
Development
Peregian Beach Community House Inc. - management and maintenance Community 9,115
Development
Cooran Memorial School of Arts Inc. - management and maintenance Community 7,179
Development
Pomona Memorial School of Art Hall Inc. - management and maintenance Community 12,197
Development
Kin Kin Community Group Inc. - management and maintenance Community 5,956
Development
Sub-total: 63,727
Community Project Grants Round 5 & 6
Sunshine Butterflies - Irrigation infrastructure Human Services 4,950
Tewantin Noosa Lions Club Inc. - Storage den concrete apron Community 7,500
Development
Mary River Catchment Coordinating Committee - Find a Frog in February Environment 2,360
(Noosa Shire component)
Noosa Christian Outreach Centre - Safety and health workshops for Community 8,215
vulnerable Development
Borrow and Bring Back Inc. - Sewing machines for making boomerang Environment 2,000
bags
Rotary Club of Noosa Heads Qld Inc. - Two heavy duty marquees Community 1,703
Development
Pomona & District Community House & Lawson Shed - Parenting Community 1,200
workshops Development
Noosa Yacht and Rowing Club under the auspices of the Australian Human Services 2,500
Sports Foundation - 'Sailability Noosa' - sailing for the disadvantaged
Noosa District Rugby Union Club - Sports field lighting upgrade Sport & Active 15,000
Recreation
Noosa District Junior Rugby League Football Club - Violence and abuse Sport & Active 995
preventative workshops for young men Recreation
Suncoast Community Legal Service Inc. - 'Piano Forte' - a community Arts and Culture 5,222
legal education theatre
Friends of Noosa Botanic Gardens Inc. - Noosa Botanic Gardens Plant Community 2,000
Fair Development
Sunshine Coast Sports Aviators Inc. - Teewah Airfield enviro waste water Sport & Active 8,975
treatment Recreation
Noosa Council | Annual Report 2016 - 2017
Page 21
Section 22
Community Grant Recipients Type Funding
Amounts ($)
Noosa International Film Festival Inc. - 2016 Noosa International Film Arts and Culture 5,000
Festival
Noosa Integrated Catchment Association Inc. auspicing 'Friends of Environment 3,655
Kinaba' - Outboard motor for motor boat
Kin Kin Tennis Club Inc. - Tennis court upgrade Sport & Active 8,110
Recreation
National Institute for Socio-economic & Environmental Research (NISER) Community 2,390
Ltd. - Fitout downstairs kitchenette Development
Australian Volunteer Coast Guard Assoc. Inc. - Infra Red search camera Public Safety 10,700
replacement
Australian Skateboarding Federation Ltd. - Noosa Shire skatepark Sport & Active 8,000
activations Recreation
Cooroy Badminton Club Inc. - Drainage and repair of damaged walls Sport & Active 2,989
Recreation
Noosa Open Studios Inc. - 'Noosa Open Studios' event Arts and Culture 6,250
Men's Shed Pomona (Auspiced by Pomona and District Community Community 3,875
House Inc.) - First aid and resuscitation safety equipment Development
Pomona & District Community House Inc. - National Youth Week - Community 939
workshops for 12 - 16 year olds Development
Noosa District Rugby League Club Inc. - 'Legends of League' event Sport & Active 5,000
Recreation
Noosa Triathletes Inc. - 'Women Love to Tri' - 10 week program for 30+ Sport & Active 3,000
women Recreation
Cooroora United Football Club Inc. - Floor covering replacement Sport & Active 2,146
Recreation
Ceramic Centre for Excellence Inc. - 'Smoke on the Water' - Australian Arts and Culture 6,250
Woodfire Ceramics Conference
Cooroy Gymnastics Club Inc. - Landing pit refurbishment Sport & Active 16,829
Recreation
Noosa Outrigger Canoe Club Inc. - Heavy duty covers for 8 x 6 man Sport & Active 3,288
outrigger canoes Recreation
Noosa Malibu Club Inc. - Storage facility Sport & Active 8,196
Recreation
Noosa Heads Jazz Club Inc. - 'Noosa Jazz Picnic' - free public concert Arts and Culture 2,000
Federal Memorial Hall and Community Centre Inc. - Purchase of Community 986
refrigerator Development
Noosa Lions Football Club Inc. - Renovation public areas and provide Community 4,000
spectator seating Development
Alliance Francaise De La Sunshine Coast Inc. - International French Film Arts and Culture 1,000
Festival
Noosa District Junior Rugby League Football Club Inc. - Sports field Sport & Active 30,000
lighting upgrade Recreation
Noosa Branch Little Athletics Centre Inc. - Replace long jump pit covers Sport & Active 1,791
Recreation
Veggie Village Community Gardens Inc. - Upgrade of water-drainage Community 1,450
system Development
Kin Kin Community Group Inc. - Rejuvenate Kin Kin Arboretum - including Environment 5,481
identify and label species
Noosa District Netball Assoc. Inc. - Shaded seating Sport & Active 8,085
Recreation
Orange Sky Laundry Inc. - Contribute to fit out of mobile laundry Human Services 15,000
Noosa Council | Annual Report 2016 - 2017
Page 22
Section 23
Community Grant Recipients Type Funding
Amounts ($)
Anglican Parish of Noosa - Fit out kitchen for school meals for Human Services 7,500
disadvantaged children
Noosa Integrated Catchment Association Inc. -Noosa River water testing, Environment 3,515
water bird surveys and rubbish collection
Tewantin Noosa Lions Club Inc. aupsicing the Noosa Rainbow River Community 1,000
Festival - Noosa Rainbow River Festival Development
Cooroora United Football Club Inc. - Hot Water System Sport & Active 1,221
Recreation
Noosa & District Landcare Group Inc. - Fodder plantation for feeding Environment 5,595
rehabilitating wildlife
Cooroy Eumundi Cricket Club Inc. ' - Field Irrigation of Sel Bonnell Oval Sport & Active 4,972
Recreation
121 Care Inc. - Noosa Come Together event Human Services 2,000
Noosa & District Landcare Group Inc. - Noosa Catchment Biopassage Environment 15,575
Assessment
United Synergies Ltd. - Celebrating Safe Families event Human Services 2,000
Sunshine Coast Health Network Limited trading as Healthy Towns - Human Services 1,000
Healthy Towns Awards Program
United Synergies Ltd. - Project Management for the renovation of Tait- Community 13,500
Duke Community Cottage Development
Sub-total: 286,908
Three Year Sports Field Maintenance - Year 2
Noosa District Softball Association Inc. - sports field maintenance Sport & Active 14,159
Recreation
Noosa District Rugby Union Club - sports field maintenance Sport & Active 14,159
Recreation
Noosa Touch Association - sports field maintenance Sport & Active 11,327
Recreation
Noosa Australian Football Club Inc. - sports field maintenance Sport & Active 16,991
Recreation
Tewantin Noosa Cricket Club - sports field maintenance Sport & Active 21,239
Recreation
Pomona Cooroy and District Australian Football Club Inc. - sports field Sport & Active 8,496
maintenance Recreation
Noosa Lions Football Club Inc. - sports field maintenance Sport & Active 19,823
Recreation
Cooroy Eumundi Cricket Club Inc. - sports field maintenance Sport & Active 8,496
Recreation
Pomona & Cooran Amateur Rugby League Football Club Inc. - sports field Sport & Active 14,159
maintenance Recreation
Cooroora United Football Club Inc. - sports field maintenance Sport & Active 8,496
Recreation
Noosa District Junior Rugby League Football Club - sports field Sport & Active 14,159
maintenance Recreation
Noosa District Rugby League Club Inc. - sports field maintenance Sport & Active 11,327
Recreation
Sub-total: 162,831
Noosa Council | Annual Report 2016 - 2017
Page 23
Section 24
Community Grant Recipients Type Funding
Amounts ($)
Festive Season Event Grants - Year 1
Lake Cootharaba Sailing Club Inc. - New Years Eve@ the Lake Arts and Culture 3,000
Cooroy Pomona Lions Club Inc. - Pomona Night of Lights Arts and Culture 2,400
Tewantin Noosa Sub Branch Inc. - 21st Gala Christmas Carnival Arts and Culture 3,500
Tewantin Noosa Lions Club Inc. - Australia Day event Arts and Culture 10,000
Cooroy Chamber of Commerce Inc. - Christmas in Cooroy Arts and Culture 7,000
Christian Outreach Centre - Noosa Carols on the River 2016 Arts and Culture 8,000
Noosa Marina - New Year's Eve laser and music show Arts and Culture 5,000
East Coast Originals - Peregian Beach Christmas Carols Arts and Culture 3,500
Sub-total: 42,400
Three Year Signature Community Event Grants - Year 1
Mary River Catchment Coordination Association Inc. - Noosa Festival of Environment 8,500
Water
Noosa A H & I Society Inc. - Noosa Country Show Arts and Culture 10,500
Noosa Long Weekend Inc. - Noosa Alive Festival Arts and Culture 10,500
Cooroy Pomona Lions Club Inc. - King of the Mountain Festival Sport & Active 10,000
Recreation
United Synergies Ltd. - Booin Gari Festival Arts and Culture 7,500
Cooroy Future Group Inc. - Cooroy Fusion Festival Arts and Culture 7,000
Sub-total: 54,000
Economic Development Grant
Noosa Chamber of Commerce and Industry Inc. - Business success 1,728
workshops
Noosa Chamber of Commerce and Industry Inc. auspicing The Trashy 12,500
Artisan Cooperative Ltd. - Noosa Creative Business and Upcycling
Collective
Noosa Chamber of Commerce and Industry Inc. auspicing The 10,000
Powerhouse Co-Op - Fit out 'The Powerhouse Co-Op' - a co-working
space for entrepreneurial mothers.
Sub-total: 24,228
Other
3 grant repayments (13,819)
TOTAL EXPENDITURE FOR THE PERIOD: 836,864
Notes:
1. The Regional Arts Development Fund grants were funded 50/50 between the Queensland Arts Council and
Noosa Council. The above amount is Noosa Council’s contribution.
2. Grant repayments relate to funds returned to Council relating to previous grant rounds that were not acquitted.
Noosa Council | Annual Report 2016 - 2017
Page 24
Section 25
Discretionary funds
Section 109 of the LG Act, defines discretionary funds as funds in the local government’s operating
fund that are:
budgeted for community purposes, and
allocated by a Councillor at the Councillor’s discretion.
There were no Councillor discretionary funds established during the period.
Beneficial enterprises
Section 39(3) of the LG Act defines a beneficial enterprise as an enterprise that a local government
considers is directed to benefiting, and can reasonably be expected to benefit, the whole or part of its
local government area.
Section 39(4) of the LG Act provides that a local government is conducting a beneficial enterprise if the
local government is engaging in, or helping, the beneficial enterprise.
Council did not engage in any beneficial enterprises during the period.
Business activities
A business activity is defined in Schedule 4 of the LG Act as “the trading in goods and services by the
local government”.
Council conducted the following business activities during the period:
waste management, and
holiday parks including the Boreen Point Campground, Noosa North Shore Beachfront Caravan
Park and Noosa River Holiday Park.
Significant business activity
In accordance with threshold of expenditure and the methodology prescribed by ss. 19 and 20 of the
LG Regulation, Council’s waste management activity was considered a significant business activity
for the period.
Competitive neutrality
Council’s is committed to ongoing compliance with National Competition Policy principles and its
legislative obligations in this area. It is committed to ensuring that its business activities operate on a
level playing field with private businesses in the community.
Council ensures that the pricing practices for each business activity complies with the principles of full
cost pricing such that total revenue, inclusive of identified and measured community service obligations
and net of any advantages and disadvantages of public ownership, should aim to cover the following
elements:
Operational and resource costs;
Administration and overhead costs;
Depreciation;
Tax and debt equivalents; and
Return on capital / return on cost.
During the period, there were no investigation notices provided to Council relating to competitive
neutrality complaints. Accordingly, The Queensland Competition Authority did not make any reportable
recommendations to Council in relation to a competitive neutrality complaint.
Noosa Council | Annual Report 2016 - 2017
Page 25
Section 26
Commercial business units
Pursuant to s 27(2) of the LG Regulation, a commercial business unit is a business unit that conducts
business in accordance with the prescribed key principles of commercialisation.
Council did not nominate any business activities as commercial business units during the period.
Services, facilities and activities, for which special rates/ charges
levied
Below is a list of Council levies and special charges for the period:
Tourism and Economic Levy
Noosa Waters Lock and Weir Maintenance Levy
Noosa Waters Canal Maintenance Levy
Noosa Junction Levy
Hastings Street Precinct Maintenance Levy
Noosa Main Beach Maintenance Levy
Rural Fire Charge
Hastings Street Community Safety Program Charge
Lower Noosa North Shore Electricity Charge
Summary of concessions for rates and charges
General rate concessions
In addition to those classes of land granted a general rate exemption under s93(3) of the LG Act and
s73 of the LG Regulation, Council was able to grant a general rates concession to land identified in
s20(1)(b) of the LG Regulation to the extent that Council was satisfied the land at the relevant time was
owned by an entity whose objects do not include making a profit, or an entity that provides assistance
or encouragement for arts or cultural development and is one of the following:
Boy Scout or Girl Guide Association;
Surf Lifesaving or Coastguard organisation;
community sporting organisation – not-for-profit organisations without a commercial liquor licence;
community cultural or arts organisation – not-for-profit organisations without a commercial liquor
licence; or
charitable organisation, which is:
(a) a not-for-profit organisation
(b) registered as a charity institution or a public benevolent institution
(c) providing benefits directly to the community
(d) endorsed by the Australian Tax Office - Charity Tax Concession.
The relevant concession for the period for eligible entities was 100% of the general rate.
Noosa Council | Annual Report 2016 - 2017
Page 26
Section 27
Deferral of general rates
To assist eligible pensioners who have experienced large increases in the value of their property as
determined by the Department of Natural Resources and Mines, or who have experienced financial
hardship, Council allows deferment of up to 50% of the general rate by way of application.
The deferred rates accumulate as a debt against the property until it is sold or until the death of the
ratepayer.
The deferment of general rates applies only to rates payable with respect to land included in Differential
General Rates Categories 1, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 28 & 30.
To be eligible to defer up to 50% of the general rate the applicant must:
own and occupy the property, and
have no overdue rates and charges on the said property, and
be the holder of a Pension Concession Card issued by Centrelink or the Department of Veteran
Affairs, or
o a Repatriation Health (Gold) Card issued by the Department of Veteran Affairs, or
o a Commonwealth Seniors Health Card, or
o a Queensland Seniors Card issued by the Queensland State Government.
Automatic eligibility applies to those ratepayers currently receiving a Pension Concession on their rate
notice. Eligibility for those ratepayers with a Seniors Card will be assessed accordingly.
Interest charges on deferred rates
In accordance with s122(5) of the LG Regulation, Council is authorised to charge interest, or request
payment of an additional charge, to all deferred general rates for the relevant period.
For the period there was one rate payer who had their general rates deferred for the relevant period.
Available pensioner concessions for the period
Table 9 below provides a summary of available pensioner concessions for the period.
Table 9 – Pensioner Concessions
Pension Rate Sole title to the property Joint title to the property
Maximum level of pension $230 p.a. maximum $180 p.a. maximum
$115 per half year $90 per half year
Not maximum level of pension $115 p.a. maximum $65 p.a. maximum
$57.50 per half year $32.50 per half year
Single owner on the maximum rate of pension
Where the pensioner was in receipt of the maximum level of pension and had sole title to the property
that is their principal place of residence for the period, the concession was 25% of the general rate up
to a maximum amount of $230.00 per annum.
Joint owner on the maximum rate of pension
Where the pensioner was in receipt of the maximum level of pension and owned the property jointly
with one or more people for the period, the concession was 25% of the general rate up to a maximum
amount of $180.00 per annum.
Noosa Council | Annual Report 2016 - 2017
Page 27
Section 28
Single owner not on the maximum rate of pension
Where the pensioner was not in receipt of the maximum level of pension and had sole title to the
property that was their principal place of residence for the period, the concession was 25% of the
general rate up to a maximum amount of $115.00 per annum.
Joint owner not on the maximum rate of pension
Where the pensioner was not in receipt of the maximum level of pension and owned the property jointly
with one or more people for the period, the concession was 25% of the general rate up to a maximum
amount of $65.00 per annum.
Invitations to change tenders
There was one reportable invitation made by Council to change tenders during the period for contract -
1617T047 Kinmond Creek Road. This tender was withdrawn completely to take into consideration
specification changes and a change in the implementation timing requirements of Council’s Capital
Works Executive. The contract was later incorporated within tender 1617T112.
Audit and Risk Committee
During the period, Council’s Audit and Risk Committee, which consists of two Councillor members and
two expert independent external members, held four formal committee meetings and played an active
role as an advisory committee to Council through the provision of independent comment, advice and
counsel on audit and risk management issues covering a wide range of Council operations and
projects.
In accordance with Council’s Audit and Risk Committee Charter, a key duty of the Committee is to
provide reasonable assurance to Council that its core business goals and objectives are being achieved
in an efficient and economical manner, within an appropriate framework of internal control and risk
management.
The Audit and Risk Committee observed the terms of its Charter for the period and conducted an
annual assessment of its performance.
Internal Audit
Council recognises the relevance of strengthening governance and control systems through the
establishment of an efficient and effective internal audit function.
Council’s Internal Audit Plan for each financial year is developed having regard to current operational
risks. Council’s internal audits are conducted in accordance with Council’s Internal Audit Terms of
Reference and Internal Audit Policy, the objectives of which include providing independent, objective
assurance and appropriate services designed to add value and improve Council’s operations. Council’s
Internal Audit Plan for each period is reviewed and adopted by the Audit and Risk Committee.
The Internal Audit activities for the period included a review of the following:
Procure to Pay Processes; and
Investment of Surplus Funds.
The above Audits were completed by specialist external providers. Council has in place a number of
systems and processes to ensure that recommendations resulting from its internal audits are
appropriately actioned and implemented into day-to-day operations.
Noosa Council | Annual Report 2016 - 2017
Page 28
Section 29
Community Financial Report
Background
This report aims to simplify the financial information that Council is required to prepare under legislation
and provides a simple summary of Council financial performance for the 2016/17 year just ended (1
July 2016 through to 30 June 2017).
Council’s annual financial statements are prepared to comply with Australian Accounting Standards,
and contain specific information regarding financial performance. Financial statements include a
statement of comprehensive income (i.e. profit and loss), a statement of financial position (i.e. balance
sheet), a statement of cash flows as well as a statement of changes in equity. Collectively, the
statements provide a formal picture of the financial strength of an organisation.
The Community Financial Report (CFR) consists of five key reporting elements, each of which has a
specific purpose for the measurement and presentation of Council’s finances. The linkages between the
five key elements are shown in the figure below.
Figure 1 – Financial Reporting Elements
Statement of
Comprehensive
Income
Statement of Cash Financial Statement of
Flows Ratios Financial Position
Statement of
Changes in Equity
Noosa Council | Annual Report 2016 - 2017
Page 29
Section 30
Highlights and achievements
In line with previous years, Council has achieved a strong financial result for the 2016/17 year. The
following key outcomes were achieved during the period:
1. An operating surplus of $3.1 million as a result of strong revenue growth and good expenditure
management, as well as some unspent levy funds that are required to be held for future use.
2. An increase in cash holdings and a decrease in debt levels required to be repaid.
3. No significant issues identified in the annual audit of Council’s finances by the Queensland
Government.
Where was the budget spent?
Council spends significant amounts of ratepayer funds providing a range of services to the Noosa
community. A summary of the cost of the services for our major service areas is provided in the graph
below. Spending on these services (including roads, bridges, parks, community facilities and waste
management) makes up a significant component of Council’s annual budget.
Figure 2 – Operating Cost of Core Council Services 2016/17 ($’000)
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Local Laws
Community Engagement
Parks and Reserves
Libraries / Galleries
Property / Holiday Parks
Roads / Bridges / Drainage
Waste / Health
Building / Plumbing
Planning and Environment
Economic Development
Community Development
Community Facilities
Noosa Council | Annual Report 2016 - 2017
Page 30
Section 31
Statement of comprehensive income
This statement (also known as the profit and loss) measures how Council performed financially in
relation to funding its operations during the financial year. In simple terms, it summarises how much
money was received by Council and how much was spent in a particular year. The following table
summarises Council’s 2016/17 financial performance.
Figure 3 – Council Financial Performance 2016/17 ($’000)
2015/16 2016/17
($’000) ($’000)
Revenue 103,991 106,999
Expenses 84,944 89,875
Net Result 19,047 17,124
The 2016/17 net result of $17.1 million includes revenue received specifically to fund capital
expenditure (including grants and subsidies and developer contributions) as well as income and
expenses recognised for investment property valuation changes, movement in the provision for future
landfill rehabilitation costs, and asset disposals. The removal of the $14 million of non-operational items
shows Council’s actual operating surplus to be $3.1 million.
Operating revenue – where the money came from
Throughout the financial year, Council received a total of $91.4 million in operating revenues (rates,
fees, operating grants), $9.8 million in capital revenues (developer contributions, capital grants) and
$5.8 million recorded as revenue from Council’s share of investment in Unitywater.
The following graph outlines the sources of Council’s $91.5 million in operating revenue received in
2016/17.
Figure 4 – Operating Revenue Sources 2016/17
Grants & Other
Interest Revenue
Revenue 7%
5%
Fees &
Charges
16%
Other Income
4%
Rates & Utility
Charges
68%
The above breakdown in operating revenue confirms that Council has significant control over the
majority of its income sources, and as a result is not reliant on other levels of government or external
agencies to maintain its financial independence. Key Council revenue sources include:
Rates and utility charges include general rates, charges for waste collection and disposal, special
rates such as the tourism and transport levy as well as other separate and special rates.
Fees and charges include a range of regulatory fees and charges as well as revenue from
commercial operations such as holiday parks and waste management.
Interest revenue includes the return from the investment of available cash.
Revenue from other income includes tax payments from Council’s shareholding in Unitywater.
Noosa Council | Annual Report 2016 - 2017
Page 31
Section 32
Operating expenditure – where the money goes
Council expended a total of $88.3 million in undertaking operating activities during the financial year.
The following graph presents a breakdown by expenditure type for normal operating expenditure
incurred during 2016/17.
Figure 5 – Operating Expenses by Function 2016/17
Depreciation
20%
Employee
Benefits
33%
Finance & Other
Costs
5%
Materials &
Services
42%
Key Council expenditure sources include:
Employee benefits - includes staff wages, superannuation, fees paid to Councillors and other
employment costs.
Depreciation expenditure – records the consumption of community infrastructure assets over their
respective useful lives, and provides an indication of the level of required expenditure on the
rehabilitation and renewal of existing assets annually.
Materials and services – includes information communication technology, consultancy services,
contractor services, electricity, external hire, rentals, repairs and maintenance, and advertising and
donations.
Statement of financial position
The statement of financial position (or balance sheet) measures what Council owns (i.e. its assets), and
what we owe (i.e. liabilities) to determine the total community equity (net worth) at the end of each
financial year. Overall, Council’s investment in community capital continues to grow strongly.
Figure 6 – Comparative Statement of Financial Position 2016/17 ($’000)
2015/16 2016/17
($’000) ($’000)
Assets 1,095,126 1,119,295
Liabilities 58,502 64,418
Community Equity 1,036,624 1,054,877
Noosa Council | Annual Report 2016 - 2017
Page 32
Section 33
The graph below shows Council’s cash and debt holdings as at 30 June 2017 compared to the previous
year. Cash levels have increased despite the investment in a large capital program undertaken during
2016/17. Debt levels have marginally decreased as Council continues to minimise its debt position.
Figure 7 – Cash and Debt Comparison 2016/17 ($’000)
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
Cash Debt
2015/16 2016/17
Assets – what we own
Current assets are represented by cash, investments, inventories and receivables (money owed to
Council). Council’s current assets as at 30 June 2017 equated to $75.7 million.
Non-current assets of over $1 billion, includes property, plant and equipment totalling $913 million, as
well as the value of Council’s investment in Unitywater. Property, Plant and Equipment represents
community infrastructure which includes roads, bridges, stormwater, buildings, land and other
operational assets owned and controlled by Council. The main non-current asset categories and their
respective values are shown in the following figure.
Figure 8 – Non-Current Assets and Community Infrastructure 2016/17 ($’000)
Work in Progress,
$18,059
Other Infrastructure, Land &
$53,887 Improvements,
Stormwater & $130,109
Drainage, $115,511
Buildings, $60,393
Intangible Assets,
$3,497 Plant & Equipment,
$9,613
Roads & Bridges,
$525,579
Noosa Council | Annual Report 2016 - 2017
Page 33
Section 34
Liabilities – what we owe
Money owed by Council is presented as both current and non-current liabilities in the statement of
financial position. Current liabilities are those amounts that are payable by Council within the next
twelve months, and non-current liabilities are payable beyond the twelve month horizon.
The most significant element is loans raised by Council to fund the investment in community
infrastructure. During 2016/17, Council’s total loan borrowings decreased slightly due to repayments for
the year being greater than the value of new borrowings.
Statement of changes in equity
The statement of changes in equity illustrates how the net worth of Council has changed as a result of
activities undertaken during the period. Council’s total community equity as at 30 June 2017 is $1.1
billion. Community equity is equal to total assets (what we own) less total liabilities (what we owe) and
represents Council’s net investment in assets.
Statement of cash flows
The statement of cash flows shows where Council has generated cash and where these funds have
been expended. The detailed schedule in the financial statements is summarised in the following graph
(columns above the line represent cash flowing into the organisation, and columns below the line
represent cash payments made).
Figure 9 –Net Cash Flow Sources 2016/17 ($’000)
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$-
-$5,000
-$10,000
-$15,000
-$20,000
Operating Activities Investing Activities Financing Activities Net Movement in Cash
Key elements to Council’s annual cash flow include:
Operating activities depicts the net of income received from rates, interest, grants, etc. and
payments made to suppliers and employees (net increase).
Investing activities relate to the acquisition and sale/disposal of long-term assets, generally in the
form of roads, bridges, plant and equipment, etc. A negative outcome here represents a net
investment in community infrastructure during the reporting period.
Financing activities shows the receipt and repayment of Council borrowings. A negative outcome
here represents that Council has repaid more loans compared to new borrowings raised.
Net movement in cash represents the physical movement of cash, with any accounting adjustments
and accruals removed. The net movement in cash for the year of $12.8 million represents the net
increase in cash on hand, with all significant outlays fully funded within the period.
Noosa Council | Annual Report 2016 - 2017
Page 34
Section 35
Financial ratios
Ratios are useful tools for getting a snap-shot of the financial status and trends of an organisation.
Ratios can also be useful in comparing Noosa Council to other Councils to gain an understanding of
relative financial strength. This analysis is undertaken periodically by the Queensland Treasury
Corporation (QTC) in assessing the financial sustainability of Council.
A number of sustainability ratios are mandated under the Local Government Regulation 2012, including
target ranges for each measure. Details of these ratios are shown in the table below, including actual
results for the current reporting period plus projections over the next 9 years.
Figure 10 – Financial Ratios 2016/17 (Actual) to 2025/26 (Forecast)
Period Ended 30 June 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Sustainability Ratios
Operating Surplus Ratio
Operating Position 9.2% 0.0% 0.2% 0.2% 0.6% 0.6% 0.6% 0.5% 0.3% 0.3%
Local Govt Act upper indicator 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Net Financial Liabilities Ratio
Net Financial Liabilities Ratio (11.6)% (8.3)% (13.5)% (11.9)% (12.3)% (7.0)% (3.7)% (1.2)% 0.1% 1.9%
Local Govt Act upper indicator 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
Asset Sustainability Ratio (not audited)
Asset Sustainability Ratio 90.6% 109.5% 105.3% 75.6% 78.5% 85.1% 93.5% 90.2% 86.9% 92.4%
Local Govt Act minimum indicator 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
Colour Scale: Within Moderate Outside
range range
Note: The asset sustainability ratio calculation includes both infrastructure asset renewal and plant asset renewal.
Operating surplus ratio
This ratio measures the operating surplus achieved for the period and represents the operating surplus
/ (deficit) as a percentage of operating revenue. A surplus will be represented by a positive result.
Council’s should be aiming to achieve as a minimum a balanced operating position to ensure that
revenues received are sufficient to fund operations and capital replacement works. The 2016/17
operating surplus ratio of 9.2% is a reflection of strong revenue growth along with good management of
our expenditure, as well as some unspent levy funds that are required to be held for future use. The
forecast also shows Council’s ongoing commitment to strong financial management.
Net financial liabilities ratio
This ratio represents Council’s net financial liabilities (total liabilities less current assets) expressed as a
percentage of total operating revenue. The target range is less than 60%. A negative percentage
indicates that current assets exceed total liabilities, and is considered a very strong position.
The strong position of (11.6%) as at 30 June 2017 indicates that Council has capacity to service higher
levels of debt if needed, though additional debt funding has not been included in forward projections.
Noosa Council | Annual Report 2016 - 2017
Page 35
Section 36
Asset sustainability ratio
This ratio is calculated by measuring the annual expenditure on the renewal and rehabilitation of
Council’s assets against the annual depreciation charge. It is a measure of whether Council is
reinvesting in existing assets to ensure that they meet required levels of service for the community.
Asset Sustainability Ratio – infrastructure assets (audited)
This is the ratio audited by the Queensland Government and specifically excludes the replacement of
non-infrastructure assets such as Council plant and fleet. During 2016/17 Council achieved a ratio of
82%. This ratio is reflective of the efficient delivery of the capital program during the year, including an
investment of $13.5 million in the replacement of infrastructure such as roads, bridges and buildings.
Asset Sustainability ratio – all assets (not audited)
When considering the replacement of all assets when measuring asset sustainability, Council achieved
a ratio of 90.6% for the 2016/17 financial year. This is considered an excellent result and reflects
Council’s continued investment in asset replacement and implementation of the recently developed
asset management roadmap.
Summary
The financial period ended 30 June 2017 represents an excellent financial result for Council, and
provides a firm foundation for future operations. Ongoing innovation and a commitment to strong
financial management through compliance with our Financial Sustainability policy will ensure that this
position is maintained into the future.
Noosa Council | Annual Report 2016 - 2017
Page 36
Section 37
Financial Statements 2016/17
Noosa Council | Annual Report 2016 - 2017
Page 37
Financial Statements 2016/17Section 38
FINANCIAL STATEMENTS
for the year ended 30 June 2017
I
'NOOSA COUNCIL
FINANCIAL STATEMENTS
for the year ended 30 June 2017
ae
ENO ReeLeNetESection 39
Noosa Shire Council
Financial Statements
for the year ended 30 June 2017
Table of Contents Page
1. Primary Financial Statements:
Statement of Comprehensive Income 2
Statement of Financial Position 3
Statement of Changes in Equity 4
Statement of Cash Flows 5
2. Notes to the Financial Statements
1 Summary of Significant Accounting Policies 6
2(a) Council Functions- Component Descriptions 8
2(b) Council Functions- Analysis of Results by Function 9
3 Revenue Analysis 10
4 Grants, Subsidies, Contributions and Donations 12
5 Employee Benefits 13
6 Materials and Services 13
7 Depreciation and Amortisation 14
8 Cash and Cash Equivalents 14
9 Trade and Other Receivables 15
10 Investment Property 16
11 Property, Plant and Equipment 17
12 Fair Value Measurements 21
13 Intangible Assets 27
14 Trade and Other Payables 27
15 Borrowings 28
16 Provisions 29
17 Asset Revaluation Surplus 31
18 Commitments for Expenditure 32
19 Contingent Liabilities 33
20 Superannuation 34
21 Operating Lease Income 35
22 Equity Investments 36
23 Trust Funds 38
Reconciliation of Net Result for the year to Net Cash
24 38
Inflow (Outflow) from Operating Activities
25 Restated Balances 39
26 Events Occurring After Balance Sheet Date 41
27 Financial Instruments 41
28 National Competition Policy 46
29 Transactions with Related Parties 47
3. Management Certificate 50
4. Independent Auditor's Report 51
5. Current Year Financial Sustainability Statement 53
Certificate of Accuracy- Current Year Financial Sustainability Statement 55
Independent Auditor's Report- Current Year Financial Sustainability Statement 56
6. Long Term Financial Sustainability Statement 58
Certificate of Accuracy- Long Term Financial Sustainability Statement 60
page 1
Section 40
Noosa Shire Council
Statement of Comprehensive Income
for the year ended 30 June 2017
Restated
2017 2016
Notes $'000 $'000
Income
Revenue
Recurrent Revenue
Rates, Levies and Charges 3a 62,531 60,665
Fees and Charges 3b 5,494 5,701
Rental Income 1,337 1,227
Interest and Investment Revenue 3c 4,831 4,908
Sales Revenue 3d 8,604 8,049
Other Income 2,371 2,406
Grants, Subsidies, Contributions and Donations 4a 6,287 5,205
Total Recurrent Revenue 91,455 88,161
Capital Revenue
Grants, Subsidies, Contributions and Donations 4b 9,530 9,718 *
Total Revenue 100,985 97,879 *
Capital Income 255 319
Equity share of profit (loss) in investment in associate through participation
rights 22 5,759 5,793
Total Income - 106,999 103,991 *
Expenses
RecurtentExpenses
Employee Benefits 5 28,849 27,822
Materials and Services 6 37,418 35,671
Finance Costs 4,374 3,275
Depreciation and Amortisation 7 17,671 16,973
Total Recurrent Expenses 88,312 83,741
Capital Expenses 1,563 1,203
Total Expenses 89,875 84,944
Net Result 17,124 19,047 *
Other Comprehensive Income
Items that will not be reclassified to Net Result
~rease/(decrease) in Asset Revaluation Surplus 17 2,375 10,183
Total Other Comprehensive Income 2,375 _ _ 10,183
Total Comprehensive Income for the period 19,499 29,230 *
* Comparative figures have been restated. Refer to Note 25 for details.
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 2
Section 41
Noosa Shire Council
Statement of Financial Position
as at 30 June 2017
Restated
2017 2016
Notes $'000 $'000
ASSETS
Current Assets
Cash and Cash Equivalents 8 65,463 52,586
Trade and Other Receivables g 9,899 8,572
Inventories 330 156
- ---
Total Current Assets 75,692 61,314
Non-Current Assets
Trade and Other Receivables 9 49,218 49,218
Equity Investments 22 73,332 69,141
Investment Property 10 4,405 4,150
Property, Plant and Equipment 11 913,151 908,689 *
Intangible A~se~ 13 3,49,7 ·- ?,61-:l
Total Non-Current Assets 1,043,603 1,033,812 *
TOTAL ASSETS 1::\1~J~2.~ - ..~!.0~9-:5~ 1_2.6- *
LIABILITIES
Current Liabilities
Trade and Other Payables 14 11,818 7,888
Borrowings 15 3,745 2,932
Provisions 4,349 4,329
Other Liabilities 645 538
- - - - --
Total Current Liabilities 20,557 15,687
Non-Current Liabilities
Borrowings 1·- 34,291 35,186
Provisions
--- 9,?!P - ~.?2.~.
Total Non-Current Liabilities 43,861 42,815
TOTAL LIABILITIES 6~_,4J_~ .. -. ~~ 2_81.~0~~ -
Net Community Assets 1,054,877 1,036,624 *
COMMUNITY EQUITY
Asset Revaluation Surplus 17 26,892 24,517
Retained Surplus/(Deficiency) 1)~~!.!~~. j ,Q1_~. 107 *
Total Community Equity 1,054,877 1,036,624 *
* Comparative figures have been restated. Refer to Note 25 for details.
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 3
Section 42
Noosa Shire Council
Statement of Changes in Equity
for the year ended 30 June 2017
Asset
Revaluation Retained Total
Surplus Surplus Equity
Note~ $'000 $'000 $'000
2017
Opening Balance 24,517 1,012,107 1,036,624 *
.!: Correction to O~l]in9 balance (~ .~46) (1 !.246)
Opening Balance (as at 1/7/16) (Restated) • 24,517 1,010,861 1,035,378 *
b. Net Operating Surplus for the Year 17,124 17,124
c. Other Comprehensive Income
Revaluations: Pro~ef!y.!. ~~~-nt. ~!=qu!P· Asset R~valuation Surplu ~ 17 _b37~ -~!~?._5
Other Comprehensive Income 2,375 2,375
Total Comprehensive Income 17,124 19,499
Equity Balance as at 30 June 2017 26,892 1,027,985 1,054,877
=
Asset
Revaluation Retained Total
Surplus Surplus Equity
$'000 $'000 $'000
2016
Opening Balance 14,334 992,720 1,007,054
_!: Correction to op~ ning balance 340 340
Revised Opening Balance (as at 1/7/15) 14,334 993,060 1,007,394
b. Net Operating Surplus for the Year 19,047 19,047 *
c. Other Comprehensive Income
Revaluations: Pro~~!iY!, ~la~! .~ .E.9~~e.: Asset Revaluation Surplus 17 10 ~ 183 '1~,,1 ~.~-
Other Comprehensive Income 10,183 10,183
- - - -
Total Comprehensive Income 10,183 19,047 29,230 *
Equity Balance as at 30 June 2016 (Restated) 24,517 1,012,107 1,036,624 *
* Comparative figures have been restated. Refer to Note 25 for details.
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page4
Section 43
Noosa Shire Council
Statement of Cash Flows
for the year ended 30 June 2017
2017 2016
NotE-s $'000 $'000
Cash Flows from Operating Activities
Receipts from Customers 81,498 81,274
Payments to Suppliers and Employees - _J~~J~~ _ . _(69,327)
13,709 11,947
Receipts:
Investment and Interest Revenue Received 4,831 4,908
Rental Income 1,337 1,227
Non Capital Grants and Contributions 6,287 5,205
Income Tax Equivalent Received 1,456 1,144
Income from Equity Investments 1,568 1,864
Payments:
Interest Expense (122) (105)
Net Cash lnflow/(Outflow) from Operating Activities 24 29,066 26,190
Cash Flows from Investing Activities
Recei pts:
Proceeds of Sale of Property, Plant and Equipment 259 452
Grants, Subsidies, Contributions and Donations 6,314 7,696
Payments:
Payments of Property, Plant and Equipment (19,317) (28,858)
Payments for Intangible Assets (1,176) (202)
Net Cash Inflow/( Outflow) from Investing Activities (13,920) (20,912)_
Cash Flows from Financing Activities
Receipts :
Proceeds from Borrowings 2,697 1,360
Payments:
Repayment of Borrowings (4,966) (4,943)
Net Cash lnflow/(Outflow) from Financing Activities (2,269) (3,583)
Net lncrease/(Decrease) in Cash and Cash Equivalents held 12,877 1,695
Cash and Cash Equivalents at the beginning of the financial year 52,586 50,891
Cash and Cash Equivalents at the end of the financial year 65,463 52,586
-
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 5
Section 44
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 1. Summary of Significant Accounting Policies
(1.a) Basis of preparation (1.c) Date of Authorisation
These general purpose financial statements are for The financial statements were authorised for issue on
the period 1 July 2016 to 30 June 2017 and have the date they were submitted to the Auditor-General
been prepared in compliance with the requirements for final signature. This is the date the management
of the Local Government Act 2009 and the Local certificate is signed.
Government Regulation 2012. Consequently, these
financial statements have been prepared in (1.d) Adoption of New and Revised
accordance with all Australian Accounting Accounting Standards
Standards, Australian Accounting Interpretations and
other authoritative pronouncements issued by the In the current year, Council adopted all of the new and
Australian Accounting Standards Board. revised Standards and Interpretations issued by the
Australian Accounting Standards Board (AASB) that
These financial statements have been prepared are relevant to its operations and effective for the
under the historical cost convention except for the current reporting period. The adoption of the new and
following: revised Standards and Interpretations has not
resulted in any material changes to Council's
• Financial assets and liabilities, certain classes of accounting policies.
property, plant and equipment and investment
property which are measured at fair value; Noosa Shire Council has not applied any Australian
Accounting Standards and Interpretations that have
Council is constituted under the Queensland Local been issued but are not yet effective.
Government Act 2009 and .is domiciled in Australia.
AASB 124 Related Party Disclosures is applicable
Council uses the Australian dollar as its functional from 1 July 2016. This year Council has applied
currency and its presentation currency. AASB 124 Related Party Disclosures for the first time.
This information is presented in Note 29.
Amounts included in the financial statements have
been rounded to the nearest $1,000 unless Other amended Australian Accounting Standards and
otherwise indicated. Interpretations which were issued at the date of
authorisation of the financial report, but have future
Comparative information has been restated where commencement dates are not likely to have a material
necessary to be consistent with disclosures in the impact on the financial statements.
current reporting period.
As at the date of authorisation of the financial
(1.b) Statement of Compliance statements, the standards and interpretations listed
below were in issue but not yet effective.
These general purpose financial statements comply
with all accounting standards and interpretations Effective for annual reporting periods beginning
issued by the Australian Accounting Standards on or after 1 January 2018
Board (AASB) that are relevant to Council's
operations and effective for the current reporting AASB 9 Financial Instruments (December 2009). Is
period. Because the Council is a not-for-profit entity applicable from 1 July 2018 and replaces AASB 139
and the Australian Accounting Standards include Financial Instruments: Recognition and Measurement
requirements for not-for-profit entities which are and changes the classification, measurement and
inconsistent with International Financial Reporting disclosure of financial assets. This change will
Standards (IFRS), to the extent these require Council to measure all financial ass~ts at fair
inconsistencies are applied, these financial value or amortised cost rather than at cost. The
statements do not comply with IFRS. The main impact is expected to be immaterial.
impacts are the offsetting of revaluation and
impairment gains and losses within a class of AASB 15 Revenue from Contracts with Customers is
assets, and the timing of the recognition of non- applicable from 1 January 2018 and will replace
reciprocal grant revenue. AASB 118 Revenue, AASB 111 Construction
page 6
Section 45
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 1. Summary of Significant Accounting Policies (continued)
Contracts and a number of Interpretations. It Noosa Shire Council has categorised and measured
contains a comprehensive framework for the the financial assets and financial liabilities held at
recognition, measurement and disclosure of revenue balance date as follows:
from contracts with customers. Council is reviewing
the way revenue is measured and recognised to Financial assets
identify whether AASB 15 will have a material
impact. • Cash and cash equivalents. Note 8.
• Receivables - measured at amortised cost. Note
AASB 16 Leases is applicable from 1 July 2019 and 9.
will require the recognition of all leases on the
balance sheet. A lease liability will be initially Financial liabilities
measured at the present value of the lease
payments to be made over the lease term. A • Payables- measured at amortised cost.
corresponding right-of-use asset will also be Note 14.
recognised to record the right to use the leased item • Borrowings - measured at amortised cost. Note
over the lease term. The overall impact of this 15.
standard is yet to be quantified and Council will
review over the next reporting period. Financial assets and financial liabilities are presented
separately from each other and offsetting has not
(1.e) Critical accounting judgements and been applied. All other disclosures relating to the
key sources of estimation uncertainty measurement and financial risk management of
financial instruments are included in note 27.
In the application of Council's accounting policies,
management is required to make judgements, (1.g) Taxation
estimates and assumptions about carrying values of
assets and liabilities that are not readily apparent Income of local authorities and public authorities is
from other sources. The estimates and associated exempt from Commonwealth taxation except for
assumptions ate based on historical experience and Fringe Benefits Tax and Goods and Services Tax
other factors that are considered to be relevant. ('GST'). The net amount of GST recoverable from the
Actual results may differ from these estimates. The A TO or payable to the ATO is shown as an asset or
estimates and ongoing assumptions are reviewed on liability respectively.
an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the Unitywater pays Council an income tax equivalent in
estimate is revised and in future periods as relevant. accordance with the requirements of the Local
Government Act 2009. Where the activity of such an
Judgements, estimates and assumptions that have a entity is subject to the tax equivalents regime, the
potential significant effect are outlined in the income tax expense is calculated on the operating
following financial statement notes: surplus adjusted for permanent differences between
taxable and accounting income.
• Investment Property - Note 10
• Valuation and depreciation of Property,
Plant & Equipment - Note 11
• Provisions - Note 16
• Contingent Liabilities - Note 19.
(1.f) Financial assets and financial
liabilities
Council recognises a financial asset or a financial
liability in its Statement of Financial Position when,
and only when, · Council becomes a party to the
contractual provisions of the instrument.
page 7
Section 46
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 2(a). Council Functions- Component Descriptions
Details relating to the Council's functions I activities as reported in Note 2(b) are as follows:
CEO
The goal of the Chief Executive Officer function is to provide leadership to the organisation to ensure it meets its
strategic and operational objectives, as well as to provide executive support to Councillors, the Chief Executive
Officer (CEO) and Council leadership team. Service areas include the CEO's office and internal audit.
COMMUNITY SERVICES
Community Services goals are to provide facilities and opportunities for residents and visitors to participate in
community, cultural and recreational activities across the shire; protect the health and safety of the Noosa
community; and assist community groups and organisations through the provision of advice and community grants.
Service areas include Cemeteries, Community Development, Cooroy and Noosaville Libraries, Environmental
Health, Local Laws, Noosa Aquatic Centre, Noosa Community Support, Noosa Leisure Centre, Noosa Regional
Gallery, Pest and Vector Control, the J, and Waste Management.
PLANNING AND INFRASTRUCTURE
The goals of the Planning and Infrastructure department are to provide efficient planning and asset management
services including infrastructure planning and development assessment. The department operates and maintains
infrastructure including roads and bridges, buildings,. canals, parks, storm water drainage, waterways, beaches and
bushland in the Noosa shire in accordance with established service levels. Service areas include Building and
Plumbing Services, Civil Works, Infrastructure Planning and Design, Parks and Gardens, Planning and
Environment, Disaster Management and Strategic Land Use Planning.
EXECUTIVE OFFICE
The goal of the Executive office is to provide effective governance oversight of the organisation, human resource
management support to the organisation, support economic development, support sustainability initiatives, and
ensure Council's customer focus including communication and community engagement processes. Service areas
include the Community Engagement, Customer Service, Executive Office, Economic Development, Sustainability,
Governance and Human Resources.
CORPORATE SERVICES
The goal of the Corporate Services department is to provide effective support to the organisation to ensure that
Council services are provided in accordance with agreed service levels that ensure Council's ongoing sustainability.
Service areas include Financial Services, Information Communication Technology, Procurement and Fleet,
Property and Facilities and Revenue Services
page 8
Section 47
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 2(b ). Analysis of Results by Function
Gross Program Elimination· Gross , Elimination;
I '
Functions f--- lncom~ - 1 of ln~er-: Total E~p~ses_ of ln~er-; Total Net Total Assets.
, Functloni Income T t Funct1oni Expenses Result
0 1
2017
CEO
f-
Grants ' Other
·$--;ooo"'f -_ ~~·~~Of
Activities!
-t§o~ F ~ _t~~~- -=-~- --$~~~):--_ ·vo~r
a Activities:
: : s;~~~=s;~~~)l --s-o~
Community Services 3,211 20,590 {884)~ I
22,917 {33,713) I 6,384 {27,329) {4,412) 1,115
Planning and Infrastructure 2,984 13,524 {2,709)j 13,799 {45,158) · 7,155 {38,003) {24,204) 308
Executive Office 4 7,901 {3,253)~ 4,652 {8,670) 1,213 1 {7,457) {2,805) -
.fEfP.5_>rate Se_rvice§'_ _ _ _ - 1--- ?.?1~. - - 68.r~8.§!_ (!!h4741:. 6_:1 ,440 - -~086}. .;..?,526_ - __(16,5§.Q) _ _ _4_~.§~8.9 .. ~ .-...!!.105,51_~-
Total Council 9,42~_· _ 1_1o,r~!. {17,3~~lL ,~~J!I08_ _ <!~7_.!95J.. 17,3~ {89,875) _ _ .:t_~,9. 33 ;_ 1,1os,941 ~
:controlled Entity Net of Eliminations - 4,191 4,191 - ' - - 4,191 12,354 .
~ Total ~ --~---·.. -- 9,424 114,895 (17~326) , .., . 1o6;999_L (107,195) · 1· 7,32o~ - (89,875) - -1·7~1'f4 ---=i-:-119,295_.,
Gros; Program Elimination• ~ Gros s - Elimination :
!:Functions _,l~~~e __ of ln~er-~ Total . -~X.P~.':"~~~ ; of ln~er- : Total Net Total Assets ~·
Recurrmg Funct1on; Income R . . Funct1on l Expenses Result
. .. ecurrmg 1 A . .. '
Gran t s Oth er A ct 1v1t1es·1 i ct1v1t1es· _
2016 $'ooo.. ~ $~ooo ~~oQ"~ - =- j~·~~o_": ·- -~ Vooo -~ -~f~!!!>~ t ·- - ~-~·o·oa · ~!§Q_~ 1-· --$;ooiJ
CEO I {699) i • {699) {699)
Community Services 2,930 18,986 {315) ; 21,601 {29,789) 1 5,543 1 (24,246) {2,645) 811 1
Planning and Infrastructure 5,307 10,656 {922)1 15,041 (42,280) 7,008 {35,272) (20,231) 94 l
Executive Office 13 r 4,472 - 4,485 (8,121) 317 (7,804) (3,319) {2)1
: Corporate Services
' T~ti'l Councif - - - - -
. 2! 1~~ ' -~ ~~4'!? ; (12}~~)),· ~~~5- -- {!7,92~)_
1
--~ l.O.Q~U.. - _(.1~.9~3) - __1?P~1.?.. 1,086,061 I
~_o_,~!3 -~ - _ ~ P~~~.?l.: (~3lJ68_).;_ _1 ~~Q~~- _ J!!~,_8!~> J 3_,~68 .:. ___ (84,9~ ~-!.~1.1.~-- r- 1,086,964 :
~..g_~!~,?lled En~~ty}'!et of Elill_1inations · 3,929 " • I 3,929 • •: • 3,929 8,162 l
:I;Total 10,373 107~486" (13,868) - 103,991- .- (98,812) 13,86tf ~ (84,944) - 19,047 ·- 1,095,126
page 9
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 2(b). Analysis of Results by Function
Gross Program Elimination Gross: Elimination; “| T iY
Functi Income_ of Inter-1 Total Expenses of Inter-: Total Net, Total A tl
Sea Function! Income Total Function, Expenses. Result oo
Grants i Other Activities! _ f+ Activitios}
2017 _ sooo; $000. $000; $000 $000 F000! F000} F000 F000
CEO . . . . (568)! 42 | (526) (526), 2]
Community Services 3,211 20,590 (884); 22,917 (33,71 3), 6,384 (27,329) (4,412), 1,115
Planning and Infrastructure 2,984 13,524 (2,709); 13,799 (45,158): 7,155 (38,003) (24,204), 308 |
Executive Office 4 7,901 (3,253)! 4,652 (8,670) 1,213 (7,457) (2,805)! z
Corporate Services = 3,225 _ 68,689 _(10,474)| 61,440 (19,086), _2,526| (16,560) 44,880 1,105,518 |
Total Council aE 9,424 110,704 _(17,320)|__ 102,808 (107,195), 17,320; _(89,875)_—*12,933|__4,106,941
Controlled Entity Net of Eliminations - 4,194 - we 4,191 res -| __. 4,194] 12,354
Total 9,424 114,895 (17,320); 106,999 (107,195) 17,320) = (89,875)) 17,124) 1,119,295
Gross Program Elimination: Gross. Elimination: T= - |
‘ a _ Income of Inter-: Total Expenses’ of Inter-, Total Net.
Functions Recurring Function! Income Recurvinal Function, Expenses: Result. Total Cer
Grants Other Activities! UNG, activities,
2016 s000 $1000) S000: $00. HHO, 000 | —Ft0a" F400 ; ——— F000 |
CEO - - -! - (699), - (699) (699) -
Community Services 2,930 18,986 (315), 21,601 (29,789): 5,543| (24,246), (2,645), 811
Planning and Infrastructure 5,307 10,656 (922)} 15,041 (42,280) 7,008 (35,272), (20,231) 94
Executive Office 13 | 4,472 - 4,485 (8,121) 317 (7,804) (3,319) (2))
Corporate Services 2,123 69,443. (12,631) 58,935 (17,923) __1,000' —_(16,923),_—_-42,012, 1,086,061 |
TotalCouncil : 10,373; 103,557 (13,868); 100,062 (98,812) 13,868: __—(84,944)) 15,118 1,088,964 |
Controlled Entity Net of Eliminations _-, 3920) it 3,829 : 2} =| 3820] 862
Total 10,373 107,486 (13,868) 103,991 (98,812) 13,868 ' (84,944) 19,047/| 1,095,126 |
page 9Section 48
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 3. Revenue Analysis
2017 2016
$'000 $'000
Rates, levies, grants and other revenue are recognised as revenue on receipt of funds
or earlier upon unconditional entitlements to the funds.
(a). Rates, Levies and Charges
Where rates monies are received prior to the commencement of the rating/levying
period, the amount is recognised as revenue in the period in which they are received,
otherwise rates are recognised at the commencement of rating period.
General Rates 46,988 45,418
Separate Rates 5,301 5,136
Special Rates 1,560 1,444
.w~s,te Utility Charg~s 11. ~3 11,226
Total rates and utility charge revenue 65,150 63,224
Less: Discounts (1 ,850) (1 ,802)
Less: Pensioner remissions (769) (757)
TOTAL RATES. LEVIES AND CHARGES 62,531 60,665
=
(b). Fees and Charges
Fees and charges are recognised upon unconditional entitlement to the funds.
Generally this is upon lodgement of the relevant applications or documents, issuing
of the infringement notice or when the service is provided.
Building and Development Fees 2,524 2,819
Perm its and Licences 745 808
Fines and Penalties 179 47
Registration Fees 293 292
Parking Penalties 587 612
User Fees and Charges 594 567
Other Statutory Fees 572 556
TOTAL FEES AND CHARGES _5,494 5,701
- -
(c). Interest and Investment Revenue
Interest received from term deposits is accrued over the term of the investment.
Dividends are recognised once they are formally declared by the directors of the
associated entities.
Investments 1,704 1,786
Interest from Overdue Rates and Utility Charges 504 484
Loan to Unitywater 2,623 2,638
TOTAL INTEREST AND INVESTMENT REVENUE 4,831._ 4,908
- -
page 10
Section 49
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 3. Revenue Analysis (continued)
2017 2016
$'000 $'000
(d). Sales Revenue
The amount recognised as revenue for contract revenue during the financial year is
the amount receivable in respect of invoices issued during the period .
Sale of services
Contract and Recoverable Works 18 5
.Refuse Tips and Transfer Station Charges 2,116 2,096
Venue Hire 368 362
Holiday Parks Fees and Charges 3,113 3,120
Learn to Swim 690 604
Admission Fees 1,013 870
Total Sale of Services 7,318 7,057
Sale of goods
Sale of Recyclables 633 431
Retail Shop Sales 653 561
Total Sale of Goods 1,286 992
TOTAL SALES REVENUE 8,604 8,049
There are no contracts in progress at the year end. The contract work carried out
is not subject to retentions.
page 11
Section 50
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 4. Grants, Subsidies, Contributions and Donations
2017 2016
$'000 $'000
Grants & Subsidies
Grants,subsidies and contributions that are non-reciprocal in nature are recognised as
revenue in the year in which Council gains control over them.
Where grants are received that are reciprocal in nature, revenue is recognised as the
various performance obligations are fulfilled under the funding agreement. Council
does not currently have any reciprocal grants.
Non-cash contributions
Non-cash contributions with a value in excess of the recognition thresholds, are
recognised as revenue and as non-current assets. Non-cash contributions below the
thresholds are recorded as revenue and expenses.
Physical assets contributed to Council by developers in the form of road works,
stormwater, infrastructure and park equipment are recognised as revenue when the
development becomes "on maintenance" (i.e. the Council obtains control of the assets
and becomes liable for any ongoing maintenance) and there is sufficient data in the
form of drawings and plans to determine the approximate specifications and values of
such assets. All non-cash contributions are recognised at the fair value of the
contribution received on the date of acquisition.
Cash contributions
Council receives cash contributions from property developers to construct assets such
as roads and footpaths. Where agreements between Council and the developers
relating to these contributions are determined to fall within the scope of AASB
Interpretation 18 Transfers of Assets from Customers, these contributions are
recognised as revenue when the related service obligations are fulfilled.
(a) Recurrent
General Purpose Grants 3,191 2,107
State Government Subsidies and Grants 1,188 1,158
Commonwealth Government Subsidies and Grants 1,820 1,876
Donations 53 38
Contributions 20 8
Other Non-Government Subsidies 15 18
TOTAL RECURRENT GRANTS. SUBSIDIES.
CONTRIBUTIONS AND DONATIONS 6,287 5,205
(b) Capital
State Government Subsidies and Grants 1,909 3,333
Commonwealth Government Subsidies and Grants 1,298 1,880
Contributions 3,106 2,483
Non-Monetary - Developer Assets contributed by Developers at Fair Value 3,217 2,022 *
TOTAL CAPITAL GRANTS . SUBSIDIES,
CONTRIBUTIONS AND DONATIONS 9,530 9,718
*Comparative figures have been restated. Refer to Note 25 for details
page 12
Section 51
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 5. Employee Benefits
2017 2016
Notes $'000 $'000
Wages and Salaries 22,613 21 '111
Annual, Sick and Long Service Leave Entitlements 3,674 3,581
Superannuation 20 2,943 2,805
Councillors Remuneration 527 514
-·- -
29,757 28,011
Other Employee Related Expenses 1_.~~~ _1. §§6
31,212 29,567
Less: Capitalised Employee Expenses (2,363) (1 ,745)
TOTAL EMPLOYEE BENEFITS
:..
28,849 27,822
Councillor remuneration represents salary, and other allowances paid in respect of
carrying out their duties.
Additional information:
Total Employees at year end :
Administration Staff 255 248
Depot and Outdoors Staff 97 97
Total full time equivalent employees 352 345
Total Elected members 7 7
Note 6. Materials and Services
Administration Supplies and Consumables 1,300 926
Audit Services* 147 139
Communications and IT 618 616
Consultancy Services 688 243
Contract Services 20,140 18,540
Commission Paid 622 583
Donations and Prizes 3,442 3,976
Electricity 1,773 1,739
Fleet Operating Costs 1,481 1,221
Grants Paid to Community Organisations 848 810
Insurance 452 507
Legal Expenses 1,045 789
Operating Leases - Rentals 283 551
Software and Maintenance 844 873
Water and Sewerage Costs 876 862
Other Materials and Services 3,391 3,413
Less: Capitalised Internal Expenses (532) (117)
-
TOTAL MATERIALS AND SERVICES 37,418 35,671
-
*Total audit fees quoted by the Queensland Audit Office relating to the 2016-17 financial statements
are $110,000 (2016: $108,000)
page 13
Section 52
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 7. Depreciation and Amortisation
2017 2016
No tee.- $'000 $'000
Depreciation/Amortisation of Non Current Assets
Buildings 1,338 1,341
Plant and Equipment 919 712
Road and Bridge Network 9,985 9,648
Storm Water 2,104 2,042
Other Infrastructure Assets }.!.Q~2 2,940
Total Depreciation of Non Current Assets 11 17,3~8 16,683
Amortisation of Intangible Assets
Software 293 290
-
Total Amortisation of Intangible Assets .: 293 290
TOTAL DEPRECIATION AND AMORTISATION 17,671 16,973
Note 8. Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, all cash and cheques receipted but
not banked at the year end, 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 which are subject to an insignificant risk
of changes in value, and bank overdrafts.
Cash at Bank and on Hand 148 391
Cash Equivalent Assets
-Deposits at Call 47,315 38,195
- Term Deposits 1~,000 14,9.9~.
TOTAL CASH ASSETS AND CASH EQUIVALENTS 65,463 52,586
Restricted Cash and Cash Equivalents
Council's Cash and Cash Equivalents are subject to a number of Internal and
External Restrictions that limit amounts available for discretionary of future use.
These include:
Externally imposed Expenditure Restrictions at the reporting date relate to the
following cash assets:
Unspent Government Grants and Subsidies 602 144
Unspent Levy Funds 6,378 5,006
Unspent Developer Contributions 8,470 5,465
Unspent Carbon Tax 502 969
l:J_n_spe!Jt Loan Monies 598
Total External Restrictions 16,550 11,584
page 14
Section 53
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 8. Cash and Cash Equivalents (continued)
2017 2016
$'000 $'000
Restricted Cash and Cash Equivalents (continued)
Internally imposed Expenditure Restrictions at the reporting date relate to the
following assets:
Future Asset Replacement 8,461 7,364
Natural Disaster Rehabilitation 2,343 2,271
Waste Management 3,512 3,616
Specific Purpose Recurrent 1,941 1,874
Total Internal Restrictions 16,257 15,125
Total Unspent Restricted Cash and Cash Equivalents 32,807 26,709
Cash and deposits at call are held in the Commonwealth Bank in a normal business cheque account.
On call accounts are also held with QTC. Deposits at call earned variable interest over varying terms at interest
rates of between 2.44% and 2.96%.
Investments
Term deposits in excess of three months are reported as investments, with deposits of less than three months
being reported as cash equivalents.
Note 9. Trade and Other Receivables
Receivables
Trade receivables are recognised at the amounts due at the time of sale or service delivery i.e. the agreed
purchase price I contract price. Settlement of these amounts is required within 30 days from invoice date.
The collectability of receivables is assessed periodically and if there is objective evidence that Council will not be
able to collect all amounts due, the carrying amount is reduced for impairment. The loss is recognised in finance
costs. The amount of the impairment is the difference between the asset's carrying amount and the present value
of the estimated cash flows discounted at the effective interest rate.
All known bad debts were written-off at 30 June 2017. Subsequent recoveries of amounts previously written off in
the same period are recognised as finance costs in the Statement of Comprehensive Income. If an amount is
recovered in a subsequent period it is recognised as revenue.
Because Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property
to recover outstanding rate debts, Council does not impair any rate receivables.
page 15
Section 54
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 9. Trade and Other Receivables (continued)
2017 2016
$'000 $'000
Current
Rateable Revenue and Utility Charges 4,431 4,337
Other Debtors 25 63
GST Recoverable 1,053 561
Accrued Revenue 2,415 2,172
Prepayments 382 457
Fees and Charges 1,59_3 982
TOTAL CURRENT TRADE AND OTHER RECEIVABLES 9,899 8,572
-
Non-Current
Loans and Advances to Associates _1_~.2.!8__ -
TOTAL NON-CURRENT TRADE AND OTHER RECEIVABLES 49,218
Interest is charged on outstanding rates at a rate of 11% per annum. There is no
concentration of credit risk for rates and utility charges, fees and other debtors
receivable. All known bad debts were written-off at 30 June.
A new loan agreement for the subordinated debt was executed on the 21 June 2013.
The new interest only loan structure terminates on the 30 June 2033 with the interest
rate set by QTC annually. Applicable interest rate for 2017 was 5.33% (2016: 5.36%).
Note 10. Investment Property
Investment property is property held for the primary purpose of earning rentals and/or
capital appreciation.
Investment property is measured using the fair value model. This means all
investment property is initially recognised at cost (including transaction costs) and then
subsequently revalued annually at the balance date.
Gains or losses arising from changes in the fair value of investment property are
recognised as incomes or expenses respectively for the period in which they arise.
Investment property is not depreciated and is not tested for impairment.
Fair value at Beginning of Financial Year 4,150 3,831
Revaluation adjustment to the Income Account 255 319
TOTAL INVESTMENT PROPERTY 4,405 4,150
Operating expenses in respect of investment property are shown in note 6.
page 16
Section 55
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 11. Property, Plant and Equipment
Recognition
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and accumulated impairment losses. Items of property, plant and equipment with a total value of less
than $5,000, $1,000 for computer equipment and $15,000 for Buildings, except for land and network assets (which
have a recognition threshold of $1) are treated as an expense in the year of acquisition. All other items of property,
plant and equipment are capitalised.
The classes of property, plant and equipment recognised by Council are reported in the table below.
Acquisition of assets
Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as
consideration plus costs incidental to the acquisition, including freight in, architect's fees and engineering design
fees and all other establishment costs.
Property, plant and equipment received in the form of contributions, are recognised as assets and revenues at fair
value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair
value is the price that would be received to sell the asset in an orderly transaction between market participants at
the measurement date.
Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity and useful life
of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major
component of an asset to maintain its service potential is capitalised.
Valuation
Land and improvements, buildings, major plant and all infrastructure assets are measured on the revaluation basis,
at fair value, in accordance with AASB 116 Property, Plant & Equipment and AASB 13 Fair Value requirements.
Other plant and equipment and work in progress are measured at cost.
Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of
each class of asset does not materially differ from its fair value at the reporting date. This is achieved by engaging
independent, professionally qualified valuers to determine the fair value for each class of property, plant and
equipment assets at least once every 3 years. This process involves the valuer physically sighting a representative
sample of Council assets across all asset classes and making their own assessments of the condition of the assets
at the date of inspection.
Council uses internal engineers to assess the condition and cost assumptions associated with all infrastructure
assets, the results of which are considered in combination with the relevant indices independently published for the
Sunshine Coast Region. Together these are used to form the basis of a management valuation for infrastructure
asset classes in each of the intervening years. With respect to the valuation of the land and improvements, and
buildings classes in the intervening years, management engage independent, professionally qualified valuers to
perform a "desktop" valuation. A desktop valuation involves management providing updated information to the
valuer regarding additions, deletions and changes in assumptions such as useful life, residual value and condition
rating. The valuer then determines suitable indices which are applied to each of these asset classes.
page 17
Section 56
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 11. Property, Plant and Equipment (continued)
Capital work in progress
The cost of property, plant and equipment being constructed by the Council includes the cost of purchased
services, materials, direct labour and an appropriate proportion of labour overheads.
Depreciation
Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment
assets is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable
asset, less its estimated residual value, progressively over its estimated useful life to the Council. Management
believe that the straight-line basis appropriately reflects the pattern of consumption of all Council assets.
Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an
asset is completed and commissioned ready for use.
Where assets have separately identifiable components that are subject to regular replacement, these components
are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally
assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated
over the remaining useful life of the asset to the Council.
The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated
useful lives of the improvements to the Council or the unexpired period of the lease, whichever is the shorter.
Depreciation methods, estimated useful lives and residual values of property, plant and equipment assets are
reviewed at the end of each reporting period and adjusted where necessary to reflect any changes in the pattern of
consumption, physical wear and tear, technical or commercial obsolescence, or management intentions. The
condition assessments performed as part of the annual valuation process for assets measured at depreciated
current replacement cost are used to estimate the useful lives of these assets at each reporting date. Road
formation has an unlimited life and is not subject to depreciation. Details of the range of estimated useful lives for
each class of asset are shown in the Table below.
page 18
Section 57
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 11. Property, Plant and Equipment (continued)
30 June 2017 Capital Work in
Land Buildings
Plant and Road and Bridge
Storm Water
Other Infrastructure
Total
Progress Equipment Network Assets
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Measurement Basis Note Cost Fair Value Fair Value Cost Fair Value Fair Value Fair Value
Opening Gross Balance - at Cost 8,879 - - 10,308 - - - 19,187
Opening Gross Balance - at Fair Value - 130,109 76,397 - 636,269 167,285 87,327 1,097,387
Opening Gross Balance as at 1 July 2016 (Restated) 8,879 130,109 76,397 10,308 636,269 167,285 87,327 1,116,574
Correction to Opening Balances 25 (1,246) - - - - - - (1,246)
Additions* 19,319 - 262 2,117 5,923 29 561 28,211
Contributed Assets - - - - 1,098 2,119 - 3,217
Disposals 5,10 - - - (341) - - - (341)
Write-offs 5,10 - - (128) - (2,845) (170) (101) (3,244)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 17 - - 3,114 - - - - 3,114
Work in Progress Transfers (8,893) - - - - - - (8,893)
Internal Transfers to Other Asset Classes - - - - - - (599) (599)
Internal Transfers from Other Asset Classes - - - - 599 - - 599
Total Gross Value of Property, Plant and Equipment - at Cost as at 30 June 2017 18,059 - - 12,084 - - - 30,143
Total Gross Value of Property, Plant and Equipment - at Fair Value as at 30 June 2017 - 130,109 79,645 - 641,043 169,262 87,188 1,107,247
Total Gross Value of Property, Plant and Equipment as at 30 June 2017 18,059 130,109 79,645 12,084 641,043 169,262 87,188 1,137,390
Opening Accumulated Depreciation as at 1 July 2016 - - 17,189 1,638 106,929 51,682 30,447 207,885
Depreciation Provided in the Period 7 - - 1,338 919 9,985 2,104 3,032 17,378
Depreciation on Disposals 5,10 - - - (86) - - - (86)
Depreciation on Write-offs 5,10 - - (14) - (1,587) (35) (43) (1,679)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 17 - - 739 - - - - 739
Internal Transfers to Other Asset Classes - - - - - - (136) (136)
Internal Transfers from Other Asset Classes - - - - 136 - - 136
Total Accumulated Depreciation of Property, Plant and Equipment as at 30 June 2017 - - 19,252 2,471 115,464 53,751 33,301 224,239
Consolidated Book Value as at 30 June 2017 18,059 130,109 60,393 9,613 525,579 115,511 53,887 913,151
Financial Statements 2015
Other Information
Range of Estimated Useful Life (in years) - - 3 - 120 1 - 50 3-120 17 - 100 2-120
*Asset Additions Comprise
Asset Renewals 881 2,261 10,490 1,174 943 15,749
page xx
Other Additions 202 812 14 1,726 33 759 3,546
Total Asset Additions - 202 1,693 2,275 12,216 1,207 1,702 19,295
page 19
Section 58
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 11. Property, Plant and Equipment (continued)
30 June 2016 (Restated) Capital Work in
Land Buildings
Plant and Road and Bridge
Storm Water
Other Infrastructure
Total
Progress Equipment Network Assets
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Measurement Basis Note Cost Fair Value Fair Value Cost Fair Value Fair Value Fair Value
Opening Gross Balance - at Cost 7,396 - - 8,354 - - - 15,750
Opening Gross Balance - at Fair Value - 119,514 75,985 - 621,126 161,968 82,922 1,061,515
Opening Gross Balance as at 1 July 2015 7,396 119,514 75,985 8,354 621,126 161,968 82,922 1,077,265
Correction to Opening Balances 25 - - (1,289) - - - (18) (1,307)
Additions* 28,949 3,780 20 2,207 16,912 4,020 436 56,324
Contributed Assets (Restated) ** - - - - 1,193 829 - 2,022
Disposals 5,10 - - - (758) - - - (758)
Write-offs 5,10 - - - - (2,107) - (131) (2,238)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 17 - 6,815 1,783 - - - 4,134 12,732
Work in Progress Transfers (27,381) - - - - - - (27,381)
Adjustments and Other Transfers (85) - - - - - - (85)
Internal Transfers to Other Asset Classes - - (102) 505 (855) 468 (16) -
Total Gross Value of Property, Plant and Equipment - at Cost as at 30 June 2016 8,879 - - 10,308 - - - 19,187
Total Gross Value of Property, Plant and Equipment - at Fair Value as at 30 June 2016 - 130,109 76,397 - 636,269 167,285 87,327 1,097,387
Total Gross Value of Property, Plant and Equipment as at 30 June 2016 (Restated)** 8,879 130,109 76,397 10,308 636,269 167,285 87,327 1,116,574
Opening Accumulated Depreciation as at 1 July 2015 - - 15,602 835 98,527 49,594 25,630 190,188
Correction to Opening Balances 25 - - (177) - - - (17) (194)
Depreciation Expense 7 - - 1,341 712 9,648 2,042 2,940 16,683
Disposals 5,10 - - - (151) - - - (151)
Write-offs 5,10 - - - - (1,128) - (63) (1,191)
Revaluation Adjustment to Other Comprehensive Income (Asset Revaluation Surplus) 17 - - 448 - - - 2,101 2,549
Internal Transfers to Other Asset Classes - - (25) 242 (118) 46 (144) 1
Total Accumulated Depreciation of Property, Plant and Equipment as at 30 June 2016 - - 17,189 1,638 106,929 51,682 30,447 207,885
Consolidated Book Value as at 30 June 2016 (Restated) ** 8,879 130,109 59,208 8,670 529,340 115,603 56,880 908,689
Other Information
Financial Statements 2015
Range of Estimated Useful Life (in years) - - 3 - 120 1 - 50 3-120 17 - 100 2-120
*Asset Additions Comprise
Asset Renewals 1,484 - - 2,114 10,762 340 297 14,997
Other Additions - 3,780 20 94 6,150 3,680 138 13,862
page xx
Total Asset Additions 1,484 3,780 20 2,208 16,912 4,020 435 28,859
** Note previously recognised adjustments as disclosed in Note 25
page 20
Section 59
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements
(i) Recognised fair value measurements
Council measures and recognises the following assets at fair value on a recurring basis:
- Investment Property
- Land
- Buildings
- Road and Bridge Network
- Storm Water
- Other Infrastructure Assets
Council does not measure any liabilities at fair value on a recurring basis.
Council has assets and liabilities which are not measured at fair value, but for which fair values are disclosed in the other
notes.
Council borrowings are measured at amortised cost with interest recognised in profit or loss when incurred.
The fair value of borrowings disclosed in Note 15 is provided by the Queensland Treasury Corporation {QTC) and
represents the market value to extinguish the debt at balance date. This information was provided by QTC and represents
the contractual undiscounted cash flows at balance date. Liquidity risk information on Council's borrowings is also
disclosed in Note 27.
The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to
their short-term nature (Level 2).
In accordance with AASB 13 Fair Value Measurements are categorised on the following basis:
- Level 1 - Fair value based on quoted prices in active markets for the asset or liability
- Level 2- Fair value based on inputs that are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices).
- Level 3- Fair value based on unobservable inputs for the asset and liability.
The fair values of the assets are determined using valuation techniques which maximise the use of observable data,
where it is available, and minimise the use of entity specific estimates. If all significant inputs required to fair value an
asset are observable, the asset is included in level 2. If one or more of the significant inputs is not based on observable
market data, the asset is included in level 3. This is the case for Council infrastructure assets, which are of a specialist
nature for which there is no active market for similar or identical assets. These assets are valued using a combination of
observable and unobservable inputs.
The table below presents all items that are measured and recognised within the Statement of Financial Position at fair
value. In accordance with AASB 13, all fair value measurements are recurrent and categorised as either Level 2 or Level
3 fair value measurements. Council does not have any assets or liabilities measured at fair value which meet the criteria
for categorisation as Level 1.
page 21
Section 60
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
(1) The following table presents all assets and liabilities that have been measured and recognised at
fair values:
Fair Value
Measurement using:
Level2 Level3 Total
D Significant Significant
observable unobservable
inputs inputs
2017 $'000 $'000 $'000
Property, Plant and Equipment
-Land 68,769 61,340 130,109
-Buildings 60,393 60,393
- Road and Bridge Network 525,579 525,579
- Storm Water 5 115,511 115,511
- Other Infrastructure Assets 6 53,887 53,887
- Investment Property 4,405 4,405
Total Property, Plant and Equipment 73,174 816,710 889,884
2016
Property, Plant and Equipment
-Land 68,769 61,340 130,109
-Buildings 59,208 59,208
- Road and Bridge Network 30:06/1·~ 529,340 529,340
- Storm Water 115,603 115,603
-Other Infrastructure Assets 56,880 56,880
- Investment Property 4,150 4,150
Total Property, Plant and Equipment 72,919 822,371 895,290
(2) Transfers between Level1 and Level2 Fair Value Hierarchies
During the year, there were no transfers between Level 2 and Level 3 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.
page 22
Section 61
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
(3) Valuation techniques used to derive Level2 and Level 3 Fair Values
Where Council is unable to derive Fair Valuations using quoted market prices of identical assets
(ie. Level1 inputs) Council instead utilises a spread of both observable inputs (Level 2 inputs) and
unobservable inputs (Level 3 inputs).
The Fair Valuation techniques Council has employed while utilising Level 2 and Level 3 inputs are as follows:
Infrastructure, Property, Plant arid Equipment
Land (Level 2 and 3)
Land fair values were determined by independent valuer, AssetVal Pty Ltd effective 1 January 2014. Fair values have
been derived based on a combination of market approach and direct comparison by analysing land sales occurring over
the past year within the Noosa Shire Council area. A full comprehensive valuation is scheduled for the 2017-2018
financial year.
Where there was an active and liquid market as evidenced by sales transactions of similar property types, a market
approach by way of direct comparison or income methods can be utilised, and are accepted valuation methodologies
under AASB 13. If a market approach is adopted, the valuation is deemed to be a Level 2 input.
The direct comparison method which is considered.a Level 2 input on the fair value hierarchy, involves the analysis of
sales evidence and comparisons with the subject land taking into account matters such as area, location and other
general site characteristics. Direct Comparison approach was utilised in the assessment for all Council land assets,
however, the fair value measurement has been either a Level 2 or 3, depending on the assumptions as to:
- Whether the land is subject to restrictions as to use and/or sale;
- Whether there is no active market.
Land that is utilised for footpath or access restriction purposes, land that is a volumetric title, or due to its general
characteristics land that has no observable active market have been assessed as a Level 3.
There was no material movement in the fair value of land assets and subsequently no indexation was undertaken for land
for the period 1 July 2016 to 30 June 2017
page 23
Section 62
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
Buildings (Level 3)
For the majority of Council's buildings, there is no active market due to the specialised nature of the assets and the
services they provide. The fair value of buildings were independently valued by registered valuers Australia Pacific
Valuers, effeclive 30 June 2015.
Due to the predominately specialised nature of local government buildings, the valuations have been undertaken using a
cost approach. This is deemed to be a level 3 input.
Under this approach the cost to replace the asset is calculated and then adjusted to take account of accumulated
depreciation. The valuer disaggregated the building into different components and for each component determined a
value based on the interrelationship between a range of factors. These include asset condition, legal and commercial
obsolescence and the determination of key depreciation related assumptions such as pattern of consumption and future
economic benefit.
Inputs to the valuation include the design and construction, average cost of construction, condition and consumption
score for each component. Where these are supported by observable evidence obtained via inspection and market
evidence they have been classified as a Level 2 inputs. The unobservable inputs (such as estimates pattern of
consumption and (based on the asset consumption score) its relationship to the assessed level of remaining service
potential of the depreciable amount, required extensive professional judgement and impacted significantly on the final
determination of fair value. As these inputs are significant to the valuation the overall valuation has been classified as
level3.
The consumption rating scales were based initially on the past experience of the valuation firm and industry guides and
were then updated to take into account the experience and understanding of Noosa Shire Council's own engineers, asset
management and finance staff. The results of the valuation were further evaluated by confirmation against Noosa Shire
Council's own understanding of the assets and the level of remaining service potential.
Council applied an index rate of 4.0% to the value of Buildings for the period 1 July 2016 to 31 March 2017.
Other Infrastructure Assets (Level 3)
Other Infrastructure was last comprehensively valued as at 30 June 2016 by Aurecon Australia Pty Ltd.
The valuation technique used to determine fair value is essentially based on price modelling of the fair value through
'Level 3' unobservable inputs. These include a variety of sources to obtain the best information available for each asset
type, including actual contract prices or supply quotes for similar assets.
The unit rates were predominantly developed from first principles by estimating the plant, material and labour required for
asset replacement. The base rates were sourced from local suppliers estimates and quotes, contract schedules for work
recently completed and council records. Where costs have not been readily available then rates were obtained from
Aurecon's cost database or the Rawlinson 2014 edition of the Australian Construction Handbook.
Other Infrastructure index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and
therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation, assets are disaggregated into significant components which exhibit
different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
page 24
Section 63
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
Infrastructure Assets (level 3)
Due to the specialised nature of Council's infrastructure assets and the services they provide, there is no active
measurable market. The fair value of all infrastructure assets is determined on the basis of replacement of a new asset or
modern equivalent.
Current Replacement Cost (CRC) is measured by reference to the lowest cost at which the gross economic benefits of
the asset could be obtained in the normal course of business. Where existing assets were over designed, had excess
capacity or where redundant an adjustment was made so that the resulting valuation reflected the cost of replacing the
existing economic benefits based on an efficient set of modern equivalent assets to achieve the required level of service
output within the Council's planning horizon.
Infrastructure assets are comprehensively revalued every three to five years, based on component unit rates developed in
line with asset renewal methods.
Specific Valuation Techniques used to value Council Infrastructure Assets comprise:
Road and Bridge Network - current replacement cost
Roads (Level 3)
Road and bridge infrastructure was comprehensively valued by independent valuer Aurecon Australia Pty Ltd as at 30
June 2014. The next comprehensive valuation is to be undertaken in the 2017 -18 financial year.
The valuation technique used to determine fair value is essentially based on price modelling of the fair value through
'Level 3' unobservable inputs. These include a variety of sources to obtain the best information available for each asset
type, including actual contract prices or supply quotes for similar assets.
The unit rates were predominantly developed from first principles by estimating the plant, material and labour required for
asset replacement. The base rates were sourced from local suppliers estimates and quotes, contract schedules for work
recently completed and council records. Where costs have not been readily available then rates were obtained from
Aurecon's cost database or the Rawlinson 2014 edition of the Australian Construction Handbook.
Council uses 3 distinct location factors categorising its road infrastructure into urban, rural and commercial/industrial.
Roads are further categorised as sealed or unsealed and managed in segments. All road segments are then further
componeritised into the sub classes of assets that make up each segment, i.e. Road Surface, Road pavement- base,
Road pavement - sub-base, Road shoulder, Formation, Kerbs, footpaths etc. Each asset unit rate is determined on cost
to construct, material type and useful life to facilitate valuation and depreciation.
Roads and Bridges index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and
therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation, roads are disaggregated into significant components which exhibit
different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
page 25
Section 64
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 12. Fair Value Measurements (continued)
Bridges (Level 3)
A full valuation of bridges assets was undertaken by independent valuers, Aurecon Australia Pty Ltd effective 1 January
2014. All bridges, with exception to 3 major bridges, were valued based on unit rates developed according to varying
material types used for construction, the deck area, size and length. Construction estimates were determined on a similar
basis to roads. Significant bridge structures were individually assessed by Aurecon Australia Ply Ltd.
Roads and Bridges index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and
therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation, bridges are disaggregated into significant components which exhibit
different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
Stormwater (Level 3)
A comprehensive valuation of stormwater infrastructure was undertaken by independent valuers Aurecon Australia Pty
Ltd effective 30 June 2015. As there is a significant level of professional judgement used in determining the valuation due
to the level of unobservable data, the valuation of drainage assets has been determined as Level 3.
The fair value unit rates were determined using the prevailing market costs for supply and installation of similar assets or
their modern equivalent. The methodology for calculation of unit rates from first principles consists of breaking down each
asset into its cost components such as demolition, reinstatement, excavation, construction, delivery and installation. The
models used to determine the unit rates included internal selection of variables for asset size, depth, location and soil
type.
Stormwater index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and therefore
the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation. stormwater assets are disaggregated into significant components
which exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.
Investment Property
Investment Property was valued at fair value by AEC Group Limited, an independent professionally qualified vauation
firm, as at 30 June 2017.
A market-based approach was applied to determine the fair value of investment property. The two calculation
methodologie.s underpinning this approach by the valuation firm are the capitalisation rate valuation approach and the
discounted cashflow valuation approach.
page 26
Section 65
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 13. Intangible Assets
2017 2016
Notes $'000 $'000
Intangible Assets are as follows;
Com_puter Software
Opening Gross Carrying Value 2,836 2,632
Acquired at Cost 204
Disposals - ---····-(2)_
Closing Carrying Value . -~.8~1 ·- - ~~~~~.
Work In Progress .1.• ?17 340
Closing Gross Carrying Value 4J~~~- - ·~,1~6-
Opening Accumulated Amortisation Balance (562) (272)
Amortisation in the period 7 (f.93) _ (290)
Closing Accumulated Amortisation Balance .J~~~J _(~6_?).
Net Book Value 3,497 2,614
TOTAL INTANGIBLE ASSETS- NET BOOK VALUE 3,497 2,614
Software assets have a finite life estimated at 10 years .
Straight line amortisation has been used with no residual value.
Note 14. Trade and Other Payables
Payables
Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed
purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are
unsecured and are generally settled on 30 day terms.
Liabilities- Employee Benefits
Employee related accruals comprise annual leave, long service leave and accrued salaries and wages in
respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are
assessed at each reporting date. Where it is expected that the leave will be paid in the next twelve months the
liability is treated as a current liability. Otherwise the liability is treated as non-current.
Annual leave
A liability for annual leave is recognised. Amounts expected to be settled within 12 months are calculated on
current wage and salary levels and includes related employee on-costs. Amounts not expected to be settled
within 12 months are calculated on projected future wage and salary levels and related employee on-costs,
and are di~counted to present values. This liability represents an accrued expense. As council does not have
an unconditional right to defer this liability beyond 12 months annual leave is classified as a current liability.
page 27
Section 66
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 14. Trade and Other Payables (continued)
2017 2016
$'000 $'000
Current
ATO - Net GST Payable 106 85
Accruals 3,688 2,940
Creditors 4,498 1,720
Employee Related Accruals 1,228 960
Annual Leave 2,207 2,094
Other Entitlements 91 89
TOTAL CURRENT TRADE AND OTHER PAYABLES 11,818 7,888
Note 15. Borrowings
Loans payable are measured at amortised cost using the effective interest rate
method. The effective interest rate is the rate that exactly discounts estimated future
cash payments or receipts through the expected life of the financial instrument.
Borrowing costs, which includes interest calculated using the effective interest method
and administration fees, are expensed in the period in which they arise. Costs that are
not settled in the period in which they arise are added to the carrying amount of the
borrowing.
All borrowing costs are expensed in the period in which they are incurred.
Borrowings are classified as current liabilities unless Council has an unconditional right
to defer settlement of the liability for at least 12 months after the balance date.
Current
Loans - Queensland Treasury Corporation 3,745 2,932
TOTAL CURRENT BORROWINGS 3,745 2,932
Non-current
Loans - Queensland Treasury Corporation 34,291 35,186
TOTAL NON-CURRENT BORROWINGS 34,291 35,186
page 28
Section 67
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 15. Borrowings (continued)
2017 2016
$'000 $'000
Reconciliation of Loan Movements for the year
Loans - Queensland Treasury Corporation
Opening balance at beginning of financial year 38,118 39,381
Loans Raised 2,697 1,360
Loan Interest Capitalised in Period 2,188 2,319
Principal Repayments .0. ~~?1 _(4.._9_1~)_
Book value at end of financial year 38,036 38,118
The QTC loan market value at the reporting date was $42,885,207 (2016: $44,927,084). This represents the
value of the debt if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no
provision is required to be made in these accounts. No assets have been pledged as security by the council for
any liabilities.
Borrowings are all in $A and are underwritten by the Queensland State Government.
Note 16. Provisions
Long service leave
Long service leave liability is measured as the present value of the estimated future cash outflows to be made
in respect of services provided by employees up to the reporting date. The value of the liability is calculated
using current pay rates and projected future increases in those rates and includes related employee on-costs.
The estimates are adjusted for the probability of the employee remaining in the Council's employment or other
associated employment which would result in the Council being required to meet the liability. Adjustments are
then made to allow for the proportion of the benefit earned to date, and the result is discounted to present
value. The interest rates attaching to Commonwealth Government guaranteed securities at the reporting date
are used to discount the estimated future cash outflows to their present value.
Where employees have met the prerequisite length of service and council does not have an unconditional right
to defer this liability beyond 12 months long service leave is classified as a current liability. Otherwise it is
classified as non-current.
Restoration Provisions
A provision is made for the cost of rehabilitation of assets and other future restoration costs where it is
probable the Council will be liable, or required, to incur such a cost on the cessation of use of the facility. This
liability is provided in respect of Quarries and Landfill sites.
The provision is measured at the expected cost of the work required discounted to current day values using an
appropriate rate. The current capital market yield bond rate is considered an appropriate rate with a maturity
date corresponding to the anticipated date of restoration.
page 29
Section 68
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 16. Provisions (continued)
Council has the following restoration provisions:
Landfill sites
The provision represents the present value of the anticipated future costs associated with the closure of the
Eumundi Rd landfill sites, decontamination and monitoring of historical residues and leaching on the site.
The calculation of this provision requires assumptions such as application of environmental legislation, site
closure dates, available technologies and engineering cost estimates. These uncertainties may result in future
actual expenditure differing from amounts currently provided. Because of the long-term nature of the liability,
the most significant uncertainty in estimating the provision is the costs that will be incurred.
The provision recognised for the Eumundi Rd landfill sites is reviewed at least annually and updated based on
the facts and circumstances available at the time. Management estimates that the site will fully close in 2070
and that site restoration will occur progressively over the subsequent thirty years. The provision recognises the
costs associated with closure and rehabilitation of historical and existing cells as well as the rehabilitation of
the site following full closure in 2070. The 2015/16 provision has been restated to reflect the exclusion of costs
associated with future stages due on the uncertainty and need of this future obligation.
Quarry Sites
The provision represents the present value of the anticipated future costs associated with the closure of the
Ringtail Creek quarry sites, reclamation and rehabilitation of the site.
The calculation of this provision requires assumptions such as application of environmental legislation, site
closure dates, available technologies and engineering cost estimates. These uncertainties may result in future
actual expenditure differing from amounts currently provided. Because of the long-term nature of the liability,
the most significant uncertainty in estimating the provision is the costs that will be incurred. The provision
recognised for quarry sites rehabilitation is reviewed at least annually and updated based on the facts and
circumstances available at the time.
2017 2016
$'000 $'000
Current
Long Service Leave 4,076 4,329
Landfill Sites 273
TOTAL CURRENT PROVISIONS 4,349 4,329
Non-current
Long Service Leave 534 385
Quarry Rehabilitation 50 50
Landfill Sites 8,986 7,194
TOTAL NON-CURRENT PROVISIONS 9,sr_o 7,629
- -
page 30
Section 69
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 16. Provisions (continued)
2017 2016
$'000 $'000
Details of movements in Provisions:
Long Service Leave
Balance at beginning of financial year 4,714 4,462
Amount provided for in the period 579 1,119
Amount paid in the period ···- .(~~~). _,(~67}.
Balance at end of financial year 4,6_10 4,714.
Quarry Rehabilitation
Balance at beginning of financial year 50 50
Balance at end of financial year 50 50
This is the present value of the estimated future cost of restoring the quarry site under
the State Government environmental regulations at the end of its useful life.
Landfill Sites
Balance at beginning of financial year 7,194 6,343 *
Remeasurement due to discount rate 2,585 1,272
Unwinding of provision over time ·- (§29)_ _(~?J )_
Balance at end of financial year 9.~~~. 7,194
This is the present value of the estimated cost of restoring the Noosa landfill under
the State Government environmental regulations at the end of its useful life.
*Comparative figures have been restated. Refer to Note 25 for details
Note 17. Asset Revaluation Surplus
Movements in the asset revaluation surplus:
The asset revaluation surplus comprises adjustments relating to changes in value
of property, plant and equipment that do not result from the use of those assets.
Net incremental changes in the carrying value of classes of non-current assets
since initial recognition are accumulated in the asset revaluation surplus. Increases
and decreases on revaluation are offset within a class of assets.
Where a class of assets is decreased on revaluation, that decrease is offset first
against the amount remaining in the asset revaluation surplus in respect of that
class. Any excess is treated as an expense. When an asset is disposed of, the
amount in respect of that asset is retained in the asset revaluation surplus and not
transferred to retained surplus.
page 31
Section 70
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 17. Asset Revaluation Surplus (continued)
Balance at Balance at
beginning end of
of year Movements year
$'000 $'000 $'000
Movements in the asset revaluation surplus:
2017
Land 6,815 6,815
Buildings 6,973 2,375 9,348
Storm water 8,696 8,696
Other Infrastructure Assets 2,.,033 ?._9_~~--
24,517 2,375 26,892_
-
2016
Land 6,815 6,815
Buildings 5,638 1,335 6,973
Stormwater 8,696 8,696
Other Infrastructure Assets _6Q3.~ 2 . 9]~ ..
~ 4,334 10,183 24,517
=- -
Note 18. Commitments for Expenditure
2017 2016
$'000 $'000
(a) Capital Contractual Commitments
Capital expenditure committed for at the reporting date but not recognised in
the financial statements as liabilities:
Property, Plant and Equipment
Roads, Bridges and Stormwater 6,844 1,919
Pathways 54 674
Other 5,019 1,295
Total Commitments 11 ,917 3,888
These expenditures are payable as follows:
Within the next year 11,917 3,888
Later than one year and not later than 5 years
Late_! th~JJ_?_Y.ears
Total Payable 11,917 3,888
page 32
Section 71
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 18. Commitments for Expenditure (continued)
2017 2016
$'000 $'000
(b) Operating Leases (Non Cancellable)
Minimum lease payments in relation to non-cancellable operating
leases are as follows:
Within one year 190 101
One to five years 60 56
Later than five years
250 157
IT equipment Lease payments are generally fixed, but with inflation clauses on which
future rentals are determined.
(c) Operational Contractual Commitments
Contractual commitments at end of financial year but not recognised in the
financial statements are as follows:
Within one year 7,855 14,204
One to five years 27,961 5,727
Later than five years 14,2~8
50,054 19,931
Council commenced its new waste collection contract on the 1st September 2017. These amounts
did not form part of the comparatives for 2015/16.
Note 19. Contingent Liabilities
Details and estimates of maximum amounts of contingent liabilities are as follows:
Local Government Mutual
Noosa Shire Council is a member of the local government mutual liability self-insurance pool, LGM Queensland.
In the event of the pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules
provide that any accumulated deficit will be met by the individual pool members in the same proportion as their
contribution is to the total pool contributions in respect to any year that a deficit arises.
As at 30 June 2016 the financial statements reported an accumulated surplus and it is not anticipated any liability
will arise.
page 33
Section 72
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 19. Contingent Liabilities (continued)
Local Government Workcare
Noosa Shire Council is a member of the Queensland local government worker's compensation self-insurance
scheme, Local Government Workcare. Under this scheme the Council has provided an indemnity towards a bank
guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was
insufficient funds available to cover outstanding liabilities. Only the Queensland Government's workers
compensation authority may call on any part of the guarantee should the above circumstances arise. The
Council's maximum exposure to the bank guarantee is $512,634 (2016: $387,330).
Note 20. Superannuation
Noosa Shire Council contributes to the Local Government Superannuation Scheme (Qid) (the scheme). The
scheme is a Multi-employer Plan as defined in the Australian Accounting Standard AASB119 Employee Benefits .
The Queensland Local Government Superannuation Board, the trustee of the scheme, advised that the local
government superannuation scheme was a complying superannuation scheme for the purpose of the
Commonwealth Superannuation Industry (Supervision) legislation.
The Scheme has three elements referred to as:
- The City Defined Benefits Fund (CDBF) which covers former members of the City Super Defined Benefits Fund
- The Regional Defined Benefits Fund (Regional DBF) which covers defined benefit fund members working for
regional local governments; and
- The Accumulation Benefits Fund (ABF)
The ABF is a defined contribution Scheme as defined in AASB 119. Council has no liability to or interest in the
ABF other than the payment of the statutory contributions as required by the Local Government Act 2009.
Council does not have any employees who are members of the CDBF and, therefore, is not exposed to the
obligations, assets or costs associated with this fund.
The Regional DBF is a defined benefit plan as defined in AASB119. The Council is not able to account for the
Regional DBF as a defined benefit plan in accordance with AASB119 because the scheme is unable to account
to the Council for its proportionate share of the defined benefit obligation, plan assets and costs. The funding
policy adopted in respect of the Regional DBF is directed at ensuring that the benefits accruing to members and
beneficiaries are fully funded as they fall due.
To ensure the ongoing solvency of the Regional DBF, the scheme's trustee can vary the rate of contributions from
relevant local government employers subject to advice from the scheme's actuary. As at the reporting date, no
changes had been made to prescribed employer contributions which remain at 12% of employee assets and there
are no known requirements to change the rate of contributions.
Any amount by which either fund is over or under funded would only affect future benefits and contributions to the
Regional DBF, and is not an asset or liability of the Council. Accordingly there is no recognition in the financial
statements of any over or under funding of the scheme.
As at the reporting date, the assets of the scheme are sufficient to meet the vested benefits.
page 34
Section 73
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 20. Superannuation (continued)
The most recent actuarial assessment of the scheme was undertaken as at 1 July 2015. The actuary indicated
that "At the valuation date of 1 July 2015, the net assets of the scheme exceeded the vested benefits and the
scheme was in a satisfactory financial position as at the valuation date."
In the 2015 actuarial report the actuary has recommended no change to the employer contribution levels at this
time.
Under the Local Government Act 2009, the trustee of the scheme has the power.to levy additional contributions
on councils which have employees in the Regional DBF when the actuary advises such additional contributions
are payable- normally when the assets of the DBF are insufficient to meet members' benefits.
There are currently 65 entities contributing to the Regional DBF plan and any changes in contribution rates would
apply equally to all 65 entities. Noosa Shire Council made less than 4% ( 4% 2016) of the total contributions
to the plan in the 2016-17 financial year.
The next actuarial investigation will be made no later than 1 July 2018.
2017 2016
Nctes $'000 $'000
The amount of Superannuation Contributions paid by Council to the Scheme
in this Period for the benefit of employees was: 2,943 2,805
Note 21. Operating Lease Income
The Council has leased properties to various tenants under commercial
lease arrangements.
The minimum lease receipts are as follows:
Not later than one year 357 363
One to five years 484 817
Later than five years
841 1'180
page 35
Section 74
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 22. Equity Investments
Accounting Recognition:
As at 1 July 201 0 a water distribution and retail business called Unitywater was established in accordance with the
South-East Queensland Water (Distribution and Retail Restructuring) Act 2009 to deliver water and waste water
services to customers within the local government areas of Moreton Bay Regional Council, Sunshine Coast
Regional Council and Noosa Shire Council.
Under the Act, governance arrangements for Unitywater were established in a Participation Agreement which
commenced from 1 July 2010. The agreement provides for participation rights to be held by the participating
Councils. The participating Councils are Noosa Shire Council, Moreton Bay Regional Council and the Sunshine
Coast Regional Council. The Participation Rights effectively represent an investment in an associate by Noosa
Shire Council.
Accounting Recognition:
Investment in Associates are accounted for using the Equity Accounting Method- and are disclosed as a one
line entry in both the Income Statement and Statement of Financial Position.
Council's Share of Net Income Council's Share of Net Assets
2017 2016 2017 2016
$'000 $'000 $~00 $~00
Investment in Associate 5,?59 5,793 76,515 72,324
Total 5,759 5,793 76,515 72,324
Associates
Council has incorporated the following Associate into its Financial Statements.
(a} Net Carrying Amounts -Council's Share
Nature of Measurement 2017 2016
Name of Entity Relationship Method $'000 $'000
Unitywater Associate Eq_~~~- _ _}~~~31- ~~~1~1...
Total Carrying Amounts 73,332 69,1_41
(b) Details
Place of
Name of Entity Principal Activity Business
Moreton Bay,
Sunshine
Unitywater Water and Sewerage Services Coast &
Noosa
Regions
(c) Relevant Interests and Fair Values Proportion of
Participation
Name of Entity 2017 2016
Unitywater 4.25% 4.25%
page 36
Section 75
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 22. Equity Investments (continued)
(d) Summarised financial information for associate is set out below
Summarised Statement of Financial Position - Councils Share Unitywater
2017 2016
$'000 $'000
Assets _1_ ~~!§3J .. ~_!±~.69i
Total Assets 153,831 148,694
Liabilities __?_?_, 31_~ __ 76,37_9
Total Liabilities 77,316 76,370
Net Assets 76,515 72,324
Reconciliation of the Carrying Amount of Participation Rights
Opening Net Assets (1 July) 69,141 65,212
ProfiU(Loss) for the period 5,759 5,793
.qiv!~~'!9~ J,~Y.a_ble _(1 .?~?) t1!.~64}_
Closing Participation Rights 73,332 69,141
Council's share in% 4.25% 4.25%
Council's share in $ 76,515 72,324
Summarised Statement of Comprehensive Income - Councils Share Unitywater
2017 2016
$'000 $'000
Income 28,455 27,642
Income Tax Expense (1 ,905) (2,080)
Total Expenses (20,_791) (19~769)
Profit/(Loss) for Period 5,759 5,793
Total Comprehensive Income 5,759 5,793
Dividends received by Council 1,567 1,864
page 37
Section 76
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 23. Trust Funds
2017 2016
Notes $'000 $'000
Trust funds held for outside parties
Monies collected or held on behalf of other entities yet to be paid out to or on
behalf of those entities 3,372 2,~70
3,372 2,670
Noosa Shire Council performs only a custodial role in respect of these monies. As
these funds cannot be used for Council purposes, they are not brought to account
in these financial statements.
Note 24. Reconciliation of Net Result for the year to Net
Cash Inflow/( Outflow) from Operating Activities
Net operating result from Income Statement 17,124 19,047
Non-cash items
Depreciation and amortisation 17,671 16,973
Non cash capital contributions (3,217) (2,022) *
Impairment of receivables and bad debts written off 17 1
Interest expense capitalised in QTC loans 2,188 ,. ,~!3.1g_.
16,659 - 17,272
Losses/( Gains) recognised on fair value re-measurements through the P&L
Investment properties (255) (319)
Unwinding of Discount Rates on Reinstatement Provisions f.,_9Es __ 850
1,810 531
Investing and development activities
Loss on write-off and disposal of assets 1,563 1,203
Capital grants and contributions (6,313) (7,696)
Share of net (profits )/losses of Associates (5,?59) (5,793)
(1 0,509) (12,286)
Changes in operating assets and liabilities:
(lncrease)/Decrease in receivables (1 ,327) (45)
(lncrease)/Decrease in inventories (174) (52)
lncrease/(Decrease) in other assets 1,568 1,864
lncrease/(Decrease) in payables and accruals 3,525 88
lncrease/(Decrease) in other liabilities 511 (481)
lncrease/(Decrease) in Employee Leave Entitlements (104) 252
lncrease/(Decrease) in other provisions .,(!!)
3,982 1,626
Net cash inflow from Operating Activities 29,066 26,190
*Comparative figures have been restated. Refer to Note 25 for details
page 38
Section 77
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 25. Restated Balances
Council has adjusted the 2015/16 comparatives in the Statement of Comprehensive Income, Statement of Financial
Position, Statement of Changes in Equity and notes where indicated for the following:
(a) Contributed assets not previously recognised
During the 2016/17 financial year Council became aware of some contributed assets in property, plant and equipment
that should have been previously recognised in the prior reporting period. Consequently the.assets have been
recognised retrospectively and certain comparative figures have been restated. Details of the assets not previously
recognised are as follows:
- Road and Bridge Network increased by $1.193 million
- Stormwater increased by $0.829 million
To correct the impact of the prior year error, Council has adjusted the 2015/16 comparative in the Statement of
Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and notes where indicated.
There is no material impact to the depreciation expense in 2015/16 and accordingly this balance has not been
adjusted.
(b) Provision Landfill"adjustment
During the 2016/17 fnancial year Council identified that an adjustment of $1.454 million was necessary to the opening
equity balance for 1 July 2015, to reflect a change in the assumptions used in the calculation of the provision for
the restoration of the landfill site. Accordingly, the adjustment has been recognised retrospectively and comparative
figures have been restated.
Details of the impact of the above adjustment to the financial statement line items is provided in the 'Reconciliation of
Restated Balances' table below.
page 39
Section 78
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 25. Restated Balances (continued)
Actual Adjustment Restated
2016 Actual2016
Notes $'000 $'000 $'000
Reconciliation of Restated Comparatives
Financial Report Line Item I Balance affected
Statement of Comprehensive Income (Extract)
Capital Revenue
Grants, subsidies, contributions and donations 4\b) 2,022 2,022
Total Revenue 95,857 2,022 97,879
Total Income 101,969 2,022 103,99~
Net Result 17,025
---
2,022 19,047
Total Comprehensive Income 27,208 2,022 29,230
Statement of Financial Position (Extract)
Property, plant and equipment 906,66~ 2,022 908,689
Total Non-Current Assets 1,031,790 2,022 1,033,812
Total Assets 1,093,104 2,022 1,095,126
Non-current provisions 16 9,0?3 (1 .~54) 7,629
Total Non-Current Liabilities 44,269 (1,454) 42,815
TOTAL LIABILITES 59,956 (1 ,454) 58,502_
Net Community Assets 1,033,148 3,476 1,036,624
Community Equity
Retained Surplus
- 1,_00~,631 3!~7?. \012,107
Total Community Equity 1,033,148 3,476 1,036,624
Statement of Changes in Equity (Extract)
Retained Surplus
Revised Opening Balance as at 1 July 2015 991,606 1,454 993,060
Net Operating Surplus for the Year 17,025 2,022 19,047
Total Comprehensive Income 27,208 3,476 29,230
Equity Balance as at 30 June 2016 1,033,148 3,476 1,036,624
page 40
Section 79
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 26. Events Occurring After Balance Sheet Date
There were no material financial adjusting events after balance date.
Note 27. Financial Instruments
Noosa Shire Council has exposure to the following risks arising from financial instruments; (i) market risk,
(ii) credit risk, and (iii) liquidity risk.
This note provides information (both qualitative and quantitative) to assist statement users evaluate the significance
of financial instruments on the Council's financial position and financial performance, including the nature and extent
of risks and how the Council manages these exposures.
Financial Risk Management
Council is responsible for the establishment and oversight of the risk management framework, together with
developing and monitoring risk management policies.
Council's management approves policies for overall risk management, as well as
specifically for managing credit, liquidity and market risk.
The Council's risk management policies are established to identify and analyse the risks faced, to set appropriate
limits and controls and to monitor these risks and adherence against limits. The Council aims to manage volatility to
minimise potential adverse effects on the financial performance of the Council.
Noosa Shire Council does not enter into derivatives.
Credit Risk Exposure
Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contractual
obligations. These obligations arise principally from the Council's investments and receivables from customers.
Exposure to credit risk is managed through regular analysis of credit counterparty ability to meet payment
obligations. The carrying amount of financial assets represents the maximum credit exposure.
Investments in financial instruments are required to be made with Queensland Treasury Corporation (QTC) or
similar State/Commonwealth bodies or financial institutions in Australia, in line with the requirements of the
Statutory Bodies Financial Arrangements Act 1982.
No collateral is held as security relating to the financial assets held by Noosa Shire Council.
page 41
Section 80
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 27. Financial Instruments (continued)
2017 2016
l\lotes $'000 $'000
The following table represents the maximum exposure to credit risk based
on the carrying amounts of financial assets at the end of the reporting period:
Financial Assets
Cash and Cash Equivalents 8 65,463 52,586
Receivables - Rates 9 4,431 4,337
Receivables - Other g 51,889 50,824
Equity Investments .?~.3}2 6~...14!.._
195,115 176,888
Other Credit Exposures
Guarantee 513 387
513 387
Total - 195,628 177,275
=
Cash and Cash Equivalents
The Council may be exposed to credit risk through its investments in the QTC Cash Fund and QTC Working Capital
Facility. The QTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated
counterparties. Deposits with the QTC Cash Fund are capital guaranteed. Working Capital Facility deposits have
a duration of one day and all investments are required to have a minimum credit rating of "A-", therefore the
likelihood of the counterparty having capacity to meet its financial commitments is strong.
Other Financial Assets
Other investments are held with financial institutions, which are rated AAA to AA- based on rating agency
Standard and Poor's ratings, and whilst not capital guaranteed, the likelihood of a credit failure is assessed
as remote (if applicable).
Trade and Other Receivables
In the case of rate receivables, the Council has the power to sell the property to recover any defaulted amounts.
In effect this power protects the Council against credit risk in the case of defaults.
In other cases, the Council assesses the credit risk before providing goods or services and applies normal business
credit protection procedures to minimise the risk.
By the nature of the Councils operations, there is a geographical concentration of risk in the Council's area.
page 42
Section 81
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 27. Financial Instruments (continued)
2017 2016
!'Jotes $'000 $'000
Ageing of past due receivables and the amount of any impairment is disclosed in the following table:
Receivables
Fully Performing 1,942 1,003
Past due:
- 31 to 60 days overdue 109 149
-61 to 90 days overdue 28 19
- Greater than 90 days overdue 4,931 4,696
- Loans and Advances to Associates 49,218 49,218
-Impaired (15) (7)
Total 9 56,213 55,078
Liquidity Risk
Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations associated
with financial liabilities that are settled by delivering cash or another financial asset. Noosa Shire Council is
exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland
Treasury Corporation for capital works or borrowings from other financial institutions.
Council manages its exposure to liquidity risk by maintaining sufficient cash deposits and undrawn facilities, both
short and long term, to cater for unexpected volatility in cash flows. These facilities are disclosed in Note 15.
The following table sets out the liquidity risk in relation to financial liabilities held by the Council. It represents the
remaining contractual cashflows (principal and interest) of financial liabilities at the end of the reporting period,
excluding the impact of netting agreements:
Total
Contractual Carrying
0 to 1 year 1 to 5 years Over 5 years Cash Flows Amount
$'000 $'000 $'000 $'000
2017
Trade and Other Payables 9,412 3 9,415 9,520
Loans- QTC .,~ . !~~-- - ~20,7~£._ _ _ 23,456 _,.:~~~~~? _3~!..0.3§...
14,576 20,765 23,456 58,797 47,556
2016
Trade and Other Payables 5,620 5,620 5,705
Loans- QTC ·----~~67_ 19,917 25,900 ---·~~ 7~1._ - 38,118
10,587 19,917 25,900 56,404 43,823
The outflows in the above table are not expected to occur significantly earlier and are not expected to be for
significantly different amounts than indicated in the table.
page 43
Section 82
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 27. Financial Instruments (continued)
Market Risk
Market risk is the risk that changes in market prices, such as interest rates, will affect the Council's income or the
value of its holdings of financial instruments.
Interest Rate Risk
Noosa Shire Council is exposed to interest rate risk through investments and borrowings with Queensland Treasury
and/or other financial institutions.
It also has access to a mix of variable and fixed rate funding options through QTC so that interest rate
risk exposure can be minimised.
Sensitivity
Sensitivity to interest rate movements is shown for variable financial assets and liabilities based on the carrying
amount at reporting date.
The following interest rate sensitivity analysis depicts what effect a reasonably possible change in interest rates
(assumed to be 1%) would have on the profit and equity, based on the carrying values at the end of the reporting
period. The calculation assumes that the change in interest rates would be held constant over the period.
Net Carrying Net Result Equity
Amount 1% increase 1% decrease 1% increase 1% decrease
$'000 $'000 $'000 $'000 $'000
2017
QTC Cash Fund 34,896 349 (349) 349 (349)
Other Investments 12,419 124 (124) 124 (124)
Loans- QTC ...(38,q3_?). ~~9). 380 - ___ (~~9>. 380
Net Total 9,280 93 (93) 93 (93)
2016
QTC Cash Fund 28,165 282 (282) 282 (282)
Other Investments 10,303 100 (100) 100 (100)
Loans- QTC ,(~~~~ ~.9)_ (~~1). 381 (3.8.1) 381
Net Total 349 1 (1) 1 - - (1)
In relation to the QTC loans held by the Council, the following has been applied:
QTC Generic. Debt Pool- the generic debt pool products approximate a fixed rate loan. There is a negligible impact
on interest sensitivity from changes in interest rates for generic debt pool borrowings.
page 44
Section 83
Financial Statements 2017
Noosa Shire Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 27. Financial Instruments (continued)
Fair Value
The fair value of trade and other receivables and payables is assumed to approximate the value of the original
transaction, less any allowance for impairment.
The fair value of borrowings with QTC is based on the market value of debt outstanding. The market value of a debt
obligation is the discounted value of future cash flows based on prevailing market rates and represents the amount
required to be repaid if this was to occur at balance date. The market value of debt is provided by QTC and
disclosed in Note 15.
QTC applies a book rate approach in the management of debt and interest rate risk, to limit the impact of market
value movements to clients' cost of funding. The book value represents the carrying value based on amortised cost
using the effective interest method.
page 45
The text continues on section 84.