Annual Report 2014-15

NOOSA SHIRE COUNCIL

Notes to the financial statements
For the year ended 30 June 2015
                                                                                                          2014
                                                                                          2015          {6 months)
                                                                              Note         $                $
 22 Contingent liabilities
       Details and estimates of maximum amounts of contingent liabilities are as follows:
         Local Government Workcare                                                                                          :
         Noosa Shire Council is a member of the Queensland local government
         workers compensation self-insurance scheme, Local Government                                                           ‘
         Workcare. Under this scheme the Council has provided 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:                          290,070          290,070
         Local Government Mutual
         Noosa Shire Council is a member of the local government mutual liability self-insurance
          pool, LGM Queenstand. 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 2015 the financial statements reported an accumulated surplus and
         itis not anticipated any liability will arise.
 23 Superannuation                                             _
         The Council contributes to the Local Government Superannuation
         Scheme (Qld) (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;
         ahd                                                         \                                                         '
         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 fali due.

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