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

                                                                                             Financial Statements 2016



 Noosa Shire Council

 Notes to the Financial Statements
 for the year ended 30 June 2016

 Note 20. Superannuation (continued)



The Regional DBF is a defined benefit plan as defined in MSB119. The Council is not able to account for the
Regional DBF as a defined benefit plan in accordance with MSB119 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 liabit:ty 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.

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 pos!tion 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 69 entities contributing to the Regional DBF plan and any changes in contribution rates would
apply equally to all 69 entities. Noosa Shire Council made less than 4% of the total contributions to the plan in the
2015-16 financial year.

The next actuarial investigation will be made no later than 1 July 2018.

                                                                                                   2016               2015
                                                                                   ~ctes          $'000             $'000

The amount of Superannuation Contributions paid by Council to the Scheme
in this Period for the benefit of employees was:                                     5           2,805            2.79?.


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                                                                            363                338
One to five years                                                                                  817                789
Later than five years
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