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     $               $
25 Reconciliation of net result for the year to net cash
   inflow (outflow) from operating activities

        Net result                                                                            17,829,742    973,500,645

        Non-cash operating items:
           Impairment of receivables and bad debts written off                                     6,340             909
           Depreciation and amortisation                                           8          15,919,507       7,779,655
           Change in restoration provisions expensed to finance costs                             78,320            -
           Interest expense capitalised in QTC loans                                           2,266,452       1,137,954
                                                                                              18,270,619       8,918,518
        Investing and development activities:
            Capital grants, subsidies and contributions                            4          (6,278,627)     (2,358,968)
            Capital income                                                                      (604,515)         (7,228)
            Capital expenses                                                                     900,880         315,945
            Net equity income from investments                                                (3,194,976)     (1,038,745)
            Net gain on restructure of local govenrment                                             -       (972,198,129)
                                                                                              (9,177,238)   (975,287,126)
        Changes in operating assets and liabilities :
           (Increase) decrease in receivables                                                   (191,082)     (2,124,994)
           (Increase) decrease in inventories (excluding land)                                      (613)       (103,425)
           Increase (decrease) in payables                                                       758,379       3,969,228
           Increase (decrease) in provisions                                                    (343,732)     (3,926,236)
           Increase (decrease) in other liabilities                                              338,572          84,406

                                                                                                561,524       (2,101,021)

        Net cash inflow from operating activities                                             27,484,647       5,031,016

26 Operating lease income
    The council has leased properties to various tenants under commercial
    lease arrangements.

      The expected future income is as follows:
            Within One Year                                                                      338,264        300,614
            Within One to Five Years                                                             788,825        503,190
            Greater Than Five Years                                                                 -           -
            Total                                                                              1,127,089        803,804

27 Correction of prior period adjustments
       (a) Assets not previously recognised
       During the financial year Council became aware of some assets in
       property plant and equipment that were not previously recognised.


        Consequently the assets have been recognised retrospectively and
        certain comparative figures have been restated, as disclosed in this
        note.

        Summary details of assets not previously recognised are as follows:
           Road and Bridge Network                                                             1,500,947
           Buildings                                                               13            174,067            -
           Gain from assets not previously recognised                                          1,675,014            -

        (b) Commitments for expenditure - operating leases
        During 2013/14 an error was identified with the prior year calulation of
        contractual commitments for IT operating leases.

        The rental charge was calculated as being a monthly expense as
        opposed to quarterly charge and resulted in an overstatement of
        operating lease commitments of $511,516.

        Consequently, comparative figures have been restated in note 20.

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