2015-10-14 Audit & Risk Committee Meeting - Draft Annual Financial Statements

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 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 2015 the financial statements reported an accumulated surplus and
        it is 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;
        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.


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