2016-11-08 S&O Agenda - Item 3, Attachment 1 - Local Economic Plan

                                                                                            Financial Statements 2016



Noosa Shire Council

Notes to the Financial Statements
fo r the year ended 30 June 2016

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.

Local Government Workcare
Noosa Shire Council is a member of the Queensland locol 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 $387,330 (2015: $290,070).




Note 20. Superannuation

Noosa Shire Council contributes to the Local Government Superannuation Sctleme (Qid) (the schem e). 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 fo r 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.




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