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2015-11-16 GC Agenda - Item 3, Attach 1 - Annual Report 2014-15
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Annual Report 2014-15 For the period 1 July 2014 to 30 June 2015 Noosa Council Annual Report 2014/15 Page 1 of 29
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Section 2
© Noosa Council 2015 www.noosa.qld.gov.au General Enquiries: By telephone: (07) 5329 6500 By email: [email protected] Fax: (07) 5329 6501 Street Address: 9 Pelican Street, TEWANTIN Postal address: PO Box 141, TEWANTIN QLD 4565 Endorsed by Noosa Council [date to be inserted]
Section 3
Table of Contents
Our Council ................................................................................................................................... 2
Mayor’s Message .......................................................................................................................... 3
Chief Executive Officer’s Message .............................................................................................. 4
The Year in Review ....................................................................................................................... 5
Reportable Disclosures .............................................................................................................. 10
Information relating to Councillors ............................................................................................. 10
Remuneration ........................................................................................................................ 10
Reportable Council resolutions for the period ........................................................................ 11
Councillors’ expenses and resources provided ...................................................................... 12
Summary of expenses/reimbursements paid to Councillors for the period ............................. 12
Complaints about Councillors ................................................................................................ 14
Overseas travel ......................................................................................................................... 15
Executive remuneration ............................................................................................................. 15
Commitment to equal opportunity employment.......................................................................... 15
Administrative action complaints ............................................................................................... 16
Council registers ....................................................................................................................... 17
Community grants 2014-2015 ................................................................................................... 17
Discretionary funds.................................................................................................................... 21
Beneficial enterprises ................................................................................................................ 21
Business activities ..................................................................................................................... 22
Significant business activity ....................................................................................................... 22
Competitive neutrality ................................................................................................................ 22
Commercial business units........................................................................................................ 23
Services, facilities and activities, for which special rates/charges levied .................................... 23
Summary of concessions for rates and charges ........................................................................ 24
General rate concessions ...................................................................................................... 24
Deferral of general rates ........................................................................................................ 24
Interest charges on deferred rates ......................................................................................... 25
Available pensioner concessions for the period ..................................................................... 25
Invitations to change tenders ..................................................................................................... 26
Audit Committee........................................................................................................................ 26
Internal Audit ............................................................................................................................. 26
Community Financial Report – 2014/15 ..................................................................................... 27
Financial Statements 2014-15 .................................................................................................... 35
Noosa Council Annual Report 2014/15 Page 1
Section 4
Our Council From left to right: Cr Joe Jurisevic, Cr Frank Pardon, Cr Bob Abbot (Deputy Mayor), Mayor Noel Playford, Cr Sandy Bolton, Cr Frank Wilkie, and Cr Tony Wellington. Noosa Council Annual Report 2014/15 Page 2
Section 5
Mayor’s Message During the first 6 months of 2014 following de-amalgamation from the Sunshine Coast Regional Council, the new Noosa Council agreed on a simple Corporate Plan that contained a number of key priorities for the 2014/15 reporting period. Considerable progress has been made in the following key areas: A financially sustainable Council In April this year, Queensland Treasury Corporation’s financial assessment placed Noosa Council amongst the best in the State, despite there being no increase in the general rate. Further, the Queensland Audit Office annual report to Parliament reveals that actual one-off de-amalgamation costs were $4,356,576, much lower than the widely reported estimate of $11,020,000. Community engagement and communication Significantly more resources have been provided for community engagement compared to the previous Noosa Council. As well as introducing a Community Jury for the first time in Queensland, ongoing development of the Council website and social media will extend the ability for two-way communication. Council and Committee Meetings are open to public scrutiny, unlike before de- amalgamation, which reinforces Council’s approach of having “no secrets”. Focus on community assets Noosa Council has responsibility for maintaining almost one billion dollars of community assets – bridges, roads, drainage, buildings, park land, sporting facilities and the like. Work has been continuing on assessment of all assets as the first step in developing comprehensive Asset Management Plans - something that Noosa Council had at the time of amalgamation in 2008. The Budget has allocated sufficient funding for asset renewal equal to the estimated total of the annual depreciation, so our assets remain fit for purpose. Diversification of our economy A number of initiatives totalling millions of dollars were included in the 2014/15 Budget, ranging from significant funding for tourism promotion to small but important initiatives such as helping with the development of an entrepreneurs’ network. With community input, Council also started work to modernise and update the Noosa Economic Plan that was first developed in 2002. Most people appreciate the challenge involved in establishing a new Council at the same time as continuing to deliver and improve services. The majority of the establishment phase was completed in the first 18 months, but significant ongoing work in areas like asset management will take much longer. The Noosa community has been served very well since de-amalgamation by many in the Council organisation who have gone "above and beyond" to get the job done. Far less would have been achieved without their dedication. Noel Playford Mayor Noosa Council Annual Report 2014/15 Page 3
Section 6
Chief Executive Officer’s Message
Noosa Council finished the 2014/15 financial year in a sound financial
position. This was the official assessment by the Queensland Treasury
Corporation who determined our Council’s financial position as “sound with a
positive outlook”. This is a remarkable achievement given that 2014/15 is our
first full financial year following de-amalgamation. “Sound” is a 5 on a 7 point
scale and that result is better than most long-established Councils in
Queensland.
This assessment is a testament to the hard work by the Mayor, Councillors and staff in setting the
foundation blocks for the future success of our Council. Starting a new Council is not easy, but by
applying some key principles our Council has managed to meet the expectations of our community
by delivering quality services whilst keeping rates down. One of the keys to this success was the
use of zero based budgeting. This is a budgeting technique used by some in the private sector to
make sure that every single cost is justified. This budgeting approach takes more work, but it gets
better results. This enabled our Council to adopt its 2014/15 Budget with a 0% general rate rise
while maintaining its services to the community. The same budgeting process was used during the
year to develop the 2015/16 Budget.
During 2014/15, we also finished establishing the building blocks necessary to create a functioning
local government. These building blocks included a new set of local laws, establishing governance
arrangements and adopting a range of relevant policies. All of this occurred while we continued to
provide day-to-day services to our community. Feedback from our community demonstrates that
our parks look the best they have in some years. We have also been focusing on gathering
information about our community assets (like roads, stormwater and community facilities) to ensure
that we have the right plans in place to manage these community assets for future
generations. Our focus will also be on improving the delivery of our capital works program in future
years.
Furthermore, we found time to develop some innovative ideas. We launched Queensland’s first
Community Jury and published the Noosa Design Principles. We have also entered into a
memorandum of agreement with Translink to trial electric buses in Noosa. These innovative
projects will continue in the 2015/16 financial year.
None of this could have been achieved without the efforts of our staff. Those efforts have been
widely recognised as some of our Council staff have received State Awards including Local
Government Finance Professional of the Year, the Government Procurement Professional Award
and also Local Government Managers Australia’s (Qld) Above and Beyond Award.
The challenge now is for us is to keep the momentum going. We got off to a good start, but need
to make sure that we continue to strive to provide excellent service to our Noosa community. If we
keep striving to achieve this service excellence, we will be a Council that our community can be
proud of.
I would like to thank the Mayor, Councillors and all of our staff for their efforts throughout the year.
Brett de Chastel
CEO
Noosa Council Annual Report 2014/15 Page 4
Section 7
The Year in Review
This section of the Annual Report looks at Council’s progress in achieving its Corporate Plan.
Noosa Council adopted its first Corporate Plan on 26 June 2014. That Corporate Plan was
obviously the first Corporate Plan for the Council following de-amalgamation and was designed to
give focus to the first few years of our operations.
With so many competing issues that the new Council faced, it made sense for the Council to set
out its priorities. The Corporate Plan identified 7 key priorities. Those 7 key priorities and the
progress towards achieving them is set out below.
Council’s Operational Plan 2014/15 detailed the major priorities and initiatives that Council
undertook to work towards the implementation of the Corporate Plan. Throughout the year, the
CEO provided the Council with quarterly reports looking at progress of the Operational Plan and
details of Key Performance Indicators.
Corporate Plan Priority 1 - A Financially Sustainable Council
We will make sure that our Council is financially sustainable in both the short and long term. This
will entail a focus on strong Budget control and good long term planning.
Key achievements include:
Council developed the 2014/15 Budget based on a zero based budget methodology which examined
every cost on its merits. The use of the zero based budget methodology allowed Council to apply a 0%
general rate increase in 2014/15.
The 2014/15 financial statements showed that we exceeded our Budget projections. Revenue was
above budget and expenditure was below budget, resulting in a positive financial result for Council.
Details of the financial year result can be found in the audited financial statements which form part of this
Annual Report.
Council adopted a Financial Sustainability Policy on 29 June 2015. This sets the scene for Council to
continue to apply good financial discipline and long-term financial strategies, ensuring that our early
success in meeting prescribed financial ratios is maintained in the longer term.
Council adopted a range of financial policies to improve financial management practices including an
Investment of Council Funds Policy and a Restricted Cash Policy.
Council received a credit assessment from the Queensland Treasury Corporation (QTC) in April 2015
which assessed Noosa Council as “sound” with a positive outlook. “Sound” is a 5 on a 7 point scale. At
the time of assessment of the de-amalgamation proposal in 2012, QTC had assessed a new Noosa
Council as likely to have a “moderate” outlook (4 on a 7 point scale). Clearly this 2015 QTC assessment
was a significant achievement. QTC identified a number of key reasons why Noosa Council achieved a
sound assessment including:
o forecast of surpluses in all future years
o Council on track to achieve its 2014/15 Budget
o low level of borrowings with adequate debt servicing capacity
o high levels of forecast liquidity
o high level of Council-controlled revenue and fiscal flexibility
o capacity to increase net rates and charges
o Council forecasting adequate investment in its asset base, and
o zero based budgeting process.
QTC also noted that Asset Management Plans had not yet been adopted by Noosa Council and that this
was an issue that needed to be managed.
Noosa Council Annual Report 2014/15 Page 5
Section 8
Corporate Plan Priority 2 – Great Customer Service
It goes without saying that our community expects and deserves great customer service. We aim
to increase the number of online services available to our community. We also aim to respond to
our customers as quickly as possible and to provide personal, friendly service.
Key achievements include:
A significant improvement was achieved in the management of our frontline phone interface with our
customers. At the beginning of 2014/15, too many customers were waiting too long to have their phone
calls answered. The introduction of “call back” facilities, better training for frontline customer service
staff, the introduction of better information on answering queries, along with dedicated staff and good
management of the customer service branch has seen a significant improvement in 2014/15. In July
2014 average wait times were above 75 seconds, but by June 2015 they were below 45 seconds.
Council continued to receive outstanding feedback from the community about customer service and
services provided to the community generally. The two areas that received the most positive feedback
were Parks and Gardens, and frontline Customer Service.
“I just wanted to give thanks to the staff who answer the phones at the Council. I've only called a couple
of times with queries, but both times the women answering were direct and helpful. Large companies
could learn a lot from them.”
A Customer called as he wanted Council to know – “how “nice” it is to be connected to a human being
and not an automated message service and for his enquiry to be dealt with within the call time.”
A Customer was impressed with Council’s “quick response to a blocked drain. Request was
acknowledged at 6.29am and staff were knocking on the customer’s door at 8am.”
Corporate Plan Priority 3 – Community Engagement and Communication
We know that our community wants to be kept informed. We need to provide as much information
as possible via local media and also to develop a better online presence. We will involve the
community in decision-making on key issues affecting the future of Noosa.
Key achievements include:
Council commenced a Queensland first for local government with a trial of a Community Jury. The first
Jury has finished its deliberations and provided its report to Council on the topic – “What is the best
option for minimising organic waste sent to landfill?” The second Community Jury will have a focus on
river management.
Council has undertaken a number of meetings across our region to engage with our community. Formal
Council meetings have been held at Peregian Beach and Cooran during 2014/15. Councillors and the
CEO have also held community information night meetings at Kin Kin, Pomona, Tewantin and Sunshine
Beach.
A survey of our community was undertaken to assess how they obtain access to information about
Council. This survey was responded to by over 1,700 people and provided Council with valuable
feedback on how our community wants to be engaged.
An e-newsletter format was developed and published. There is an opportunity to improve this
publication in 2016. Our libraries and galleries have also continued their excellent e-news publication
which has a wide reach.
Council’s website is still a work in progress. A decision was made in 2014 not to establish a completely
new website but to re-focus the existing website. While some work has been done in that regard and the
website is mobile-enabled, the structure and presentation of information is still not particularly user-
friendly. This will be a focus in 2015/16.
Council’s social media presence significantly improved in the 2014/15 year. Council’s Facebook
followers have increased to nearly 2,500 and this medium has been particularly useful during our minor
flooding events. The Noosa Library Service and The J have developed strong social media presences
that further assist in the promotion of their services.
The Your Say Noosa portal on our website became fully operational. This portal provides an avenue to
undertake community consultation on a range of issues.
Noosa Council Annual Report 2014/15 Page 6
Section 9
Corporate Plan Priority 4 – Focus on Community Assets
The Council’s focus will be on maintaining and renewing existing assets rather than building new
assets. In the short term, there will be a strong focus on undertaking condition assessments and
developing long-term Asset Management Plans.
Key achievements include:
The rollout of the 2014/15 Capital Works Program took longer to establish than we had planned. There
were initial delays in finalising detailed designs after the capital program was adopted as part of the
2014/15 Budget. This was probably not unexpected given that we were only 6 months old at the time
and had no historic designs / plans available. But it did take some time to gather traction in the delivery
of the 2014/15 Capital Works Program.
By year-end, when taking into account completed capital works and committals, the Capital Works
Program was 68% complete or, if three major projects carried over into 2015/16 are excluded, then the
completion rate was 82%.
Some of the significant capital works projects achieved in 2014/15 included:
o reseal of Walter Hay Drive
o work on the Daintree Estate, Tewantin flood mitigation project (substantially underway)
o bus stop design and stage 1 rollout
o other road reseals including Gibson Road, Noosaville and David Low Way, Sunrise Beach, and
o Cooran sports field lights.
Council has developed a plant and fleet program to enable it to better plan and manage its future
requirements. This plan includes a three-year injection of funding to bring Council’s fleet and plant up to
standard following the transfer of older items of plant during de-amalgamation. Innovation was also
evident in November 2015 when Council was able to secure a good quality, second-hand John Deere
670 GP Grader. By being able to move quickly to secure this item of plant, substantial savings were
achieved. Other significant items of plant have also been replaced including a new beach cleaner.
Council has adopted a number of policies and actions to assist in better managing community assets.
These include:
o Asset Management Policy, and
o Community Purpose Land and Infrastructure Tenure Policy.
Corporate Plan Priority 5 – Establishing new Policies and Strategies
As a Council, we will need to develop a range of policies and strategies that set the path for future
Noosa Councils. There are a number of strategies and policies to be reviewed and developed that
will set the strategic direction for the future.
Key achievements include:
Council established a new set of local laws and subordinate local laws after undertaking an extensive
community consultation campaign. The new local laws came into effect on 1 July 2015 with a smooth
transition.
The vast majority of policies that required review following the de-amalgamation process were completed
during 2014/15. Many of these were governance-type policies that are important from a governance and
compliance perspective. These include
o Public Interest Disclosure Policy
o Contact with Lobbyists Policy, and
o Public Officials Complaints Policy.
At the same time, all of Council’s delegations were reviewed and updated.
Noosa Council Annual Report 2014/15 Page 7
Section 10
A number of background studies and assessments have been undertaken in preparation for the
development of the next town planning scheme. This includes the Noosa Demographic Profile which
was published in the first half of 2015.
Council undertook a review of its Community Grants Policy and established a process for assessing
community grant applications. Council also adopted a Festive Season Grants Policy and a Street
Performance Policy.
During 2014/15, substantial progress was made on establishing a new Social Plan for Noosa. This
included the establishment of a community reference group and analysis of the Noosa Demographic
Profile. The Social Plan is on track for completion by the end of 2015.
The Noosa Design Principles Document was finalised in 2014/15. This document will help guide future
design in Noosa (both public and private infrastructure) and sets out key principles supporting the "look
and feel" of our Shire.
Corporate Plan Priority 6 – Custodianship of Noosa’s Environment
Noosa has a long and proud environmental record. Our Council will continue to apply best practice
to its custodianship of Noosa’s natural environment aiming to enhance local biodiversity for the
benefit of future generations.
Key achievements include:
Council established new management arrangements for the Noosa Biosphere Reserve Foundation
(NBRF). The NBRF Board has been appointed and the necessary Memorandum of Understanding and
funding arrangements have been put in place. The NBRF has commenced operations from Doonella
House and have employed an Executive Officer. The community-based Incorporated Association has
been established.
Council generated a number of environmental policies in 2014/15. These included:
o Noosa Shire Koala Policy, and
o Tree Management on Public Land Policy.
The Council also adopted an Environment Levy Policy and established an Environment Levy Working
Group to review potential land purchases under the Environment Levy.
Following community consultation, the Council adopted plans to manage environmental issues. These
included:
o Noosa Pest Management Plan, and
o Noosa Bushland Reserve Fire Management Plan.
Council commenced its first Green Army project in early 2015 with a focus on weed removal in bushland
reserve areas.
Council began a program to audit bio-retention basins, both Council owned and privately owned. This
audit will be completed in the 2015/16 financial year.
Council invested in the installation of power correction equipment to reduce electricity consumption at
five major Council sites. As well as saving costs, the equipment reduces electricity consumption thus
resulting in carbon reduction.
The ongoing impact of the bat colony at Wallace Park has continued to be monitored with the number of
bats increasing substantially at times during the year. There has been considerable impact on local
residents but no easy solution appears to be available based on both experience elsewhere and also
scientific evidence. Consultants will be considering options under a management plan in late 2015.
Council jointly funded a number of research projects on the Noosa River with The Thomas Foundation.
The projects are being undertaken by The Nature Conservancy and include an analysis of historic fishing
records and a trial of oyster sites for future oyster regeneration.
Noosa Council Annual Report 2014/15 Page 8
Section 11
Corporate Plan Priority 7 – Diversification of our Economy
While recognising our world-class tourism industry, the Council will also focus on diversifying the
economy with an emphasis on “smart economy” businesses and rural futures.
Key achievements include:
Council commenced the development of the Noosa Local Economic Plan. Public workshops have been
held and a Project Focus Group established. A Noosa Economic Profile has been published.
Council has entered into a two-year funding agreement with Tourism Noosa to guide the management of
the Tourism Levy and to outline roles and responsibilities. During the 2014/15 period, Council continued
to have a very close working relationship with Tourism Noosa.
Council purchased the former Peregian Beach Bowls Club site at Peregian Beach in November 2014.
The site has subsequently been cleared and community consultation undertaken on its future use,
including the option of a digital hub. A design charrette has been completed. This involved the local
community and considered options for future use of the site.
During 2014/15, support has been provided to encourage the ongoing development of the ICT sector in
Noosa. Council was a partner in an innovation networking event and a sponsor of the GovHack event.
We also provided data sets to the GovHack event.
A significant amount of work was undertaken during 2014/15 to establish the Electric Bus Trial
agreement. A MOU was entered into with Translink following a feasibility study, and a trial program was
developed. The trial will be undertaken in 2015/16. The Council continued its free holiday bus program
in 2014/15.
During 2014/15, the Council approved 99% of development applications with the number of applications
showing a steady increase in activity. In the 6 months to 30 June 2015, there were 193 development
applications.
A considerable amount of time has been spent on building strong working relationships with key
business groups. This includes:-
o Councillors working closely with the Country Noosa Group
o support for the Noosa Junction Association, and
o liaison with Cooroy Chamber of Commerce, CCIQ Noosa and the Hastings Street Association.
Noosa Council Annual Report 2014/15 Page 9
Section 12
Reportable Disclosures
Information relating to Councillors
Remuneration
Councillor remuneration is set by the independent Local Government Remuneration and Discipline
Tribunal established under the Local Government Act 2009 (LG Act). The Tribunal determines
remuneration for Mayors, Deputy Mayors and Councillors and releases a report in December each
year which establishes single remuneration levels for the following year.
The Local Government Remuneration and Discipline Tribunal Report 2013 listed Noosa Council as
a Category 4 Council, and prescribed that the annual rate of remuneration for the Mayor and
Councillors for the period 1 July 2014 to 30 June 2015 (the period) as follows:
Mayor - $117,523;
Deputy Mayor - $73,452; and
Councillors - $62,434.
In accordance with s244 (3) of the Local Government Regulation 2012 (LG Regulation), the
remuneration prescribed by the Tribunal cannot include:
any amount for expenses to be paid or facilities to be provided to a Councillor of a local
government under its expenses reimbursement policy, or
any contribution a local government makes for a Councillor to a voluntary superannuation
scheme for Councillors established or taken part in by the local government under s226 of the
LG Act.
The LG Act does however allow a local government to take part in a superannuation scheme for its
Councillors and Council on 20 January 2014 authorised the payment of superannuation
contributions for Councillors of up to 12% of their annual salary on the condition that Councillors:
contribute an amount of up to 6% from their salaries and Council contributes a proportionate
amount of up to 12% to a nominated superannuation fund
make contributions through an arrangement by way of a formal request to Council, and
nominate the preferred superannuation fund, and where no nomination has occurred, the
superannuation payments be made to LG Super.
An overview of the remuneration paid to Councillors for the period is provided in Table 1 on the
following page.
Noosa Council Annual Report 2014/15 Page 10
Section 13
Table 1 – Councillor Remuneration Councillor remuneration for period 1 July 2014 to 30 June 2015 Councillor Salary ($) Superannuation* ($) Total ($) Mayor Noel Playford 117,523 14,103 131,626 Cr Bob Abbot (Deputy) 73,452 8,814 82,266 Cr Joseph Jurisevic 62,434 7,492 69,926 Cr Frank Pardon 62,434 7,492 69,926 Cr Tony Wellington 62,434 7,492 69,926 Cr Frank Wilkie 62,434 7,492 69,926 Cr Sandy Bolton 62,434 7,492 69,926 Notes: 1. Amounts rounded to the nearest whole dollar value. 2. * Superannuation shown is Council’s 12% employer contribution. Reportable Council resolutions for the period Table 2 below indicates that there were no reportable resolutions under the LG Regulation for the period. Table 2 – Reportable Resolutions Local Government Regulation 2012 Resolution adopted Section 250(1) Nil. Section 250(2) Nil. Section 206(2) Nil. Noosa Council Annual Report 2014/15 Page 11
Section 14
Councillors’ expenses and resources provided
The Councillors’ Expenses Reimbursement Policy ensures Councillors are provided a reasonable
level of resources and equipment in order to carry out their duties in an effective and efficient
manner. The Policy remained unchanged from the previous period.
The Policy is compliant with the following principles prescribed by the LG Act:
transparent and effective processes and decision-making in the public interest, and
good governance and legal behaviour of Councillors and local government employees.
The categories of expenses and eligibility for reimbursement as per the Policy include:
mandatory professional development
discretionary professional development
travel as required to represent Council
private vehicle usage
meal costs
hospitality
accommodation
administration tools and access to Council office amenities
safety equipment
home office and telecommunication needs, and
insurance cover1.
Summary of expenses/reimbursements paid to Councillors for the period
The reimbursements that were made to Councillors for the period were for discretionary
professional development, vehicle use, home office and telecommunication, hospitality and travel
expenses incurred whilst on Council business.
For the period:
All claimed expenses were processed and fell within the required limits prescribed by the
Policy.
No Councillors claimed expenses relating to categories of mandatory professional
development, meals or accommodation expenses.
1
Councillors are covered under relevant Council insurance policies while on Council business. Cover includes
public liability, professional indemnity, Councillors’ liability, personal accident and overseas travel.
Noosa Council Annual Report 2014/15 Page 12
Section 15
A summary of expenses/reimbursements to Councillors for the period is outlined in table 3 below.
Table 3 – Councillor Expenses 2014/15
Councillor Discretionary Use of Home office & Hospitality Travel TOTAL ($)
Professional private tele- Expenses as
Development vehicle communication required to
represent
($) (option 1) ($)
Council
($)
Mayor Noel Playford 64 - 2,880 - - 2,944
Cr Bob Abbot 271 5,000 2,880 - - 8,151
Cr Joseph Jurisevic 221 5,000 2,880 - - 8,101
Cr Frank Pardon 144 5,000 2,880 50 - 8,074
Cr Tony Wellington 221 5,000 2,880 - 66 8,167
Cr Frank Wilkie 1,207 5,000 2,880 - - 9,087
Cr Sandy Bolton 737 5,000 2,880 - - 8,617
Note: Amounts rounded to the nearest whole dollar.
The attendance of Councillors at Ordinary meetings, Special meetings and Committees for the
period is outlined in table 4 below.
Table 4 – Meeting Attendance
Council Meetings, Standing and Special Committees attendance for the period
Councillor Ordinary General Planning & Infrastructure Special & Audit Total
meetings Committee Organisation & Services Budgetary Committee
Committee Committee
Mayor Noel Playford 12 13 10 11 2 4 52
Cr Bob Abbot 11 11 N/A 10 2 N/A 34
Cr Sandy Bolton 12 12 N/A 12 2 N/A 38
Cr Joe Jurisevic 12 12 12 N/A 1 N/A 37
Cr Frank Pardon 11 12 N/A 11 2 N/A 36
Cr Tony Wellington 10 12 11 N/A 2 4 39
Cr Frank Wilkie 12 11 11 N/A 2 N/A 36
Note: N/A in the table above indicates that the relevant Councillor is not a representative of the particular
committee.
Noosa Council Annual Report 2014/15 Page 13
Section 16
Complaints about Councillors
Sections 176 to 182 (inclusive) of the LG Act prescribe the requirements for local governments for
dealing with complaints about the conduct and performance of Councillors so as to ensure that:
appropriate standards of conduct and performance are maintained, and
a Councillor who engages in misconduct or inappropriate conduct is disciplined.
The Councillor Code of Conduct Policy endorsed by Council on 13 January 2014 remained
unchanged for the period. The Policy establishes:
the responsibilities of Councillors under the LG Act
the standards of behaviour and ethical obligations expected Councillors in Noosa Shire, and
a clear administrative method for handling and resolving complaints made about the conduct
and performance of Councillors in accordance with Division 6 of the LG Act.
The table 5 below identifies the reportable complaints, orders and recommendations against
Councillors for the period.
Table 5 – Complaints Against Councillors
Reportable information relating to complaints against Councillors: Number of
complaints:
(for the period)
(i) The number of orders and recommendations made under s180 (2) or (4) of the LG Nil
Act.
(ii) The number of orders made under s181 of the LG Act. Nil
(iii) The number of complaints made about the conduct or performance of a Councillor 1
for which no further action was taken under s 176C(2) of the LG Act.
(iv) The number of complaints referred by the Council CEO to the department’s chief Nil
executive under s176C (3)(a)(i) of the LG Act.
(v) The number of complaints referred to the Mayor under s176C (3)(a)(ii) or (b)(i) of Nil
the LG Act.
(vi) The number of complaints referred to the department’s chief executive under s Nil
176C (4)(a) of the LG Act.
(vii) The number of complaints assessed by the Council CEO as being about corrupt Nil
conduct under the Crime and Corruption Act.
(viii) The number of complaints heard by a regional conduct review panel. Nil
(ix) The number of complaints heard by the tribunal. Nil
(x) The number of complaints to which s176C (6) of the LG Act applied. Nil
Noosa Council Annual Report 2014/15 Page 14
Section 17
Overseas travel
No Councillor or Council employee in an official Council capacity made any overseas travel during
the period.
Executive remuneration
Under the LG Act, the annual report of a local government must state the total remuneration
packages that were payable during the reporting period to its senior management, and the number
of employees in senior management who are being paid each of the total remuneration packages.
The senior management of a local government consists of the chief executive officer and all senior
executive employees of the local government. A senior executive employee is an employee who
reports directly to the chief executive officer and whose position would ordinarily be considered to
be a senior position in the corporate structure.
The total of remuneration packages payable to senior management during the period was
$1,017,372.
The annual package bands for Council’s senior management team are outlined in table 6 below.
Table 6 – Executive Remuneration
Package Band Number of senior
management employees
$100,000 - $200,000 4
$200,001 - $300,000 1
Commitment to equal opportunity employment
Council is an equal opportunity employer, which is committed to providing equal employment
opportunities for its current and prospective employees. Council’s employment practices are
aligned to Queensland’s Anti-Discrimination Act 1991 and relevant federal anti-discrimination laws.
Council recognises the importance workforce diversity and promotes a working environment where
people are treated on their merits at every stage of their employment.
At Noosa Council, all staff are encouraged to embrace equity and diversity at all levels within the
organisation. The Noosa Council Employee Code of Conduct reinforces the standards of
behaviours required of employees including non-discriminatory workplace practices.
Council will continue to strive to build a workforce and supporting organisational culture that
reflects the diversity of the greater community and is free of all forms of discrimination and
harassment.
Noosa Council Annual Report 2014/15 Page 15
Section 18
Administrative action complaints
Council is committed to managing customer feedback and ensuring all complaints are dealt with in
a fair, prompt and confidential manner. Council aspires to provide a level of service that does not
attract complaints. However, Council acknowledges the public’s right to provide feedback on
services, including the right to lodge a complaint about a decision or other action Council has
taken, or failed to take, where considered appropriate to do so.
Council’s Administrative Action Complaints Policy has been developed to ensure:
complaints are handled in a structured, timely and professional manner which is fair,
considerate and respectful of privacy
all staff members are aware of their responsibilities regarding the complaints, and
complaints are used to identify problems and to continuously improve the Council’s services.
A copy of the Council’s current Administrative Action Complaint Process Policy can be viewed on
Council’s website.
Table 7 below provides a summary of Administrative Action Complaints for the period. Council
reviews each complaint it receives objectively and aims to ensure that any improvement
opportunities identified by a particular complaint are implemented into operations. Council’s
Governance Team intends to undertake a review of Council’s complaints handling process during
the 2015/16 period.
Table 7 – Administrative Action Complaints
Complaint statistics 30 June 2014 to 30 June
2015
Complaints Complaints Complaints resolved during the Complaints outstanding at
outstanding as at received during the period 30/06/15
30/06/14 period
1 21 20 2
Note: The above statistics relate to formal administrative action complaints, which can be distinguished from
‘a request for service’ by members of the public. An administrative action may include a decision, or a failure
to make a decision, a failure to provide a written statement of reasons for a decision, an act, a failure to do
an act, the formulation of a proposal or intention, or the making of a recommendation.
Noosa Council Annual Report 2014/15 Page 16
Section 19
Council registers
Council is required under the LG Regulation to develop and maintain certain registers. A number of
these registers are available for public inspection at Council’s Tewantin Office or can be viewed on
Council’s website.
Below is a list of the registers kept by Council:
Asset Register
Delegations Register
Complaints Register
Claims Register
General Cost Fees and Commercial Charges
Engineering and Environment Fees and Charges
Planning Fees and Charges
Plumbing Fees and Charges
Other Development Fees and Charges
Local Laws Register
Roads Register
Instrument of Appointments
Noosa Policy Register, and
Registers of Interests.
Community grants 2014-2015
Council’s Community Grants are managed in accordance with Council’s Community Grants Policy,
which was reviewed and endorsed by Council on 15 January 2015. The outcomes of the Policy
include:
providing community organisations and individuals (including under the Regional Arts
Development Fund) with financial support to meet identified community needs
building community skills and resilience
developing and maintaining sustainable community infrastructure
providing opportunities for community organisations to leverage Council’s financial assistance
to obtain funding from other sources.
The table 8 below outlines the funds supplied by Council through community grants for the period.
Table 8 – Community Grants 2014-15
Community Grants Category Funding
Amounts ($)
Regional Arts Development Fund
Inclusive Community Theatre Show Theatre 9,400
Weave Heal Connected – Creating for Landcare Visual Arts 5,000
Datson + Hughes Album Recording Project Audio Art 5,100
Noosa Orchestra Music __2,187
Sub-total $21,687
Annual Operating Expenses Grants
Australian Volunteer Coast Guard Noosa QF5 Emergency Services 3,000
Care Flight (Qld) Limited Emergency Services 10,000
Cooroora Historical Society t/a Noosa Museum Heritage 5,738
Noosa Council Annual Report 2014/15 Page 17
Section 20
Community Grants Category Funding
Amounts ($)
Cooroora Netball Club Inc. Sport and Recreation 589
Lake Cootharaba Sailing Club Inc. Sport and Recreation 4,214
Cooroy Gymnastics Club Inc. Sport and Recreation 2,186
Cooroy Pony Club Sport and Recreation 1,521
Cooroy Tennis Club Inc. Sport and Recreation 1,830
Noosa Cadets Committee Inc. Sport and Recreation 2,828
Noosa Croquet Club Inc. Sport and Recreation 1,714
Noosa District Netball Association Inc. Sport and Recreation 3,000
Pomona Pony Club Inc. Sport and Recreation 1,625
Tewantin Tennis Club Inc. Sport and Recreation 3,398
Flying Fox Rescue Environment
(SCC Community Partnership Funding carry over) 20,534
Friends of Noosa Botanic Gardens Inc. (FNBG) Environment 700
Noosa & District Landcare Group Inc. Environment 25,000
Noosa Integrated Catchment Association Environment 16,770
Wildcare Australia Environment 710
Cooroy Lower Mill Board Economic Development 2,000
The Noosa Longweekend Economic Development 5,000
Noosa Arts and Crafts Assoc Inc. Arts and Culture 2,883
Cooroy-Noosa Genealogical & Historical Research Group Heritage 3,341
Noosa Arts Theatre Inc. Community Development
(SCC Community Partnership Funding carry over) 3,000
Pomona & District Meals on Wheels Community Development 4,776
Pomona Arts Inc. Community Development
(SCC Community Partnership Funding carry over) 15,000
Shine Noosa Community Development
(SCC Community Partnership Funding carry over) 10,000
Sunshine Butterflies Inc. Community Development 3,611
University of the Third Age Inc. Community Development 4,732
Cooroy Community Gardens Community Development _____534
Sub-total: $160,234
Community Halls & Centres Maintenance Grants
Cooran Memorial School of Arts Inc. Community Development 7,073
Federal Memorial Hall & Community Centre Inc. Community Development 4,839
Kin Kin Community Hall Community Development 5,868
Peregian Beach Community House Inc. Community Development 8,980
Pomona & District Community House Inc. Community Development 16,800
Pomona Memorial School of Arts Inc. Community Development 12,017
Ridgewood Community Hall Assoc Inc. Community Development 4,217
Tinbeerwah Hall Inc. Community Development ___2,991
Sub-total: $62,785
Community Pools Program
Cooroy Dolphins Swimming Club (Cooroy Pool) Community Pools 8,580
Carmen Heirath (Pomona Pool) Community Pools 10,000
One Agency Noosa (Tewantin Pool) Community Pools ____5,000
Sub-total: $23,580
Community Projects Grants
Australian Red Cross (Life Skills Noosa) Community Development 2,650
Cooroy Chamber of Commerce (Cooroy Carols) Community Development 5,560
Noosa Council Annual Report 2014/15 Page 18
Section 21
Community Grants Category Funding
Amounts ($)
Noosa Christian Outreach Centre Community Development
(SCC Festive Season Carry Over) 10,712
Noosa Christian Outreach Centre (Street Reach) Community Development 6,590
Peregian Beach Community House Inc. Community Development
(Underfloor Insulation) 4,475
Peregian Beach Community House Inc. Community Development
(Community Family Initiative Event) 1,924
Veggie Village Community Gardens Peregian Beach (Veggie Community Development
Village Extension) 7,470
Global Care (Auspice by Christian Outreach Centre) Community Development
(Great Tucker – Food Connection) 5,950
Noosa Community Garden (Auspice by Slow Food Noosa) Community Development
(Growing Together – purchase of ongoing consumables) 800
Pomona & District Community House Inc. Community Development
(Youth Week “Show it Awesome”) 1,600
Noosa Men’s Shed Inc. (Kitchen Refurbishment & Community Development
Development of Woodworking Facilities) 7,500
Lions Club of Cooroy Pomona Inc. (Wimmers King of the Community Event
Mountain 2015) 10,000
Kin Kin Community Group Inc. Community Event
(Kin Kin Festival of Storytelling) 5,000
Lake Cootharaba Sailing Club (New Year’s Eve@Thelake) Community Event 1,500
Lions Club of Cooroy Pomona Inc. Community Event
(King of the Mountain 2014) 10,000
Lions Club of Peregian Inc. Community Event
(Peregian Beach Food and Fashion Fiesta) 3,300
Noosa A H & I Society Inc. Community Event
(The Celebration of the 105th Noosa Country Show) 10,000
Noosa Chorale Inc. (Twenty + Twenty Event) Community Event 5,000
United Synergies Ltd (Booin Gari Event) Community Event 5,000
Mary River Catchment Coordination Inc. (Noosa Hinterland Environment
Environment Monitoring and Awareness Program) 5,420
Noosa & District Landcare Group Inc. Environment
(Upgrading Water Quality Monitoring Equipment) 8,900
Noosa Integrated Catchment Association Environment
(Fishing Line Recovery Bins) 7,500
Noosa Integrated Catchment Association (Noosa River Environment
Seagrass Monitoring and Community Education) 5,300
Noosa Integrated Catchment Association Environment
(River Education Program) 3,135
Mary River Catchment Inc. (Noosa Festival of Water 2015) Environment 8,000
NICA Inc. (Update of Waste Wise Schools Website) Environment 3,451
Landcare Inc. (Workshops on variety of environment topics) Environment 7,500
Noosa Marina (SCC Festive Season carry over) Economic Development 11,119
Tewantin Noosa Lions Club Inc. Economic Development
(SCC Festive Season carry over) 5,356
Cooroy Chamber of Commerce Inc. Economic Development
(Christmas in Cooroy 2014) 5,000
Cooroy Lower Mill Board Inc. (Cooroy Fusion Festival 2015) Economic Development 4,000
Friends of Noosa Botanic Gardens Inc. Economic Development
(Noosa Botanic Garden Plant Fair) 2,000
Noosa District Rugby League Club Inc. (Upgrading 4 sports Sport and Recreation
field lighting towers and associated lights) 40,000
Noosa Council Annual Report 2014/15 Page 19
Section 22
Community Grants Category Funding
Amounts ($)
Noosa District Rugby Union Club Sport and Recreation
(2014 Noosa International Rugby 7s Festival) 5,000
Noosa Lions Football Club Inc. Sport and Recreation
(Irrigation Field 3 and Safety Fencing) 8,763
Tewantin Tennis Club Inc. (New Courts and Revegetation) Sport and Recreation 4,239
Cooroy Badminton Club Inc. (Re-roofing club house) Sport and Recreation 17,500
Noosa District Softball Inc. Sport and Recreation
(Replace Rusted Storage Facilities) 3,135
Noosa Trialblazers Inc. (Timber Trail Crossing) Sport and Recreation 4,476
Pomona Cooran Amateur Rugby League Football Club Inc. Sport and Recreation
(Lighting Updated) 46,574
Tewantin Noosa Pony Club Inc Sport and Recreation
(Junior Rider’s Arena Upgrade – sand purchase) 700
Noosa National Surfing Reserve Inc. Sport and Rec/
(Noosa National Surfing Reserve Dedication) Economic Development 3,000
Kin Kin Community Group Culture, The Arts
(Kin Kin Community Christmas Celebrations 2014) 1,200
Lions Club of Cooroy Pomona Inc. Culture, The Arts
(Pomona Night of Lights 2014) 1,500
Lions Club of Peregian (Peregian Beach Christmas Carols) Culture, The Arts 3,000
Noosa Jazz Club Inc. (Purchase of Yamaha Grand Piano) Culture, The Arts 3,000
Noosa Jazz Club Inc. Culture, The Arts
(Free Concert at Noosa Jazz Festival 2015) ____2,000
Sub-total: $326,069
Sports Field Maintenance Grants
Cooroora United Football Club Inc. Sport and Recreation 8,370
Cooroy Eumundi Cricket Club Sport and Recreation 8,370
Noosa Australia Football Club Sport and Recreation 16,740
Noosa District Junior Rugby League Club Sport and Recreation 13,950
Noosa District Rugby League Club Sport and Recreation 11,160
Noosa District Rugby Union Club Inc. Sport and Recreation 13,950
Noosa Lions Football Club Inc. Sport and Recreation 15,345
Noosa Little Athletics Sport and Recreation 4,185
Noosa Softball Inc. Sport and Recreation 13,950
Noosa Touch Football Association Sport and Recreation 11,160
Pomona AFL Sport and Recreation 8,370
Pomona-Cooran Rugby League Inc. Sport and Recreation 13,950
Tewantin Noosa Cricket Club Sport and Recreation ___20,925
Sub-total: $160,425
Other
Healthy Waterways Program Contribution Environment __$26,000
Sub-total: $26,000
TOTAL EXPENDITURE FOR THE PERIOD: $780,780
Notes:
1. The Regional Arts Development Fund grants were funded 50/50 between the Queensland Arts Council
and Noosa Council. The above amount is Noosa Council’s contribution.
2. Council’s Community Grants Policy, which was updated and endorsed by Council on 15 January 2015,
is available for perusal from Council’s website.
Noosa Council Annual Report 2014/15 Page 20
Section 23
Discretionary funds
Section 109 of the LG Act, defines discretionary funds as funds in the local government’s
operating fund that are:
budgeted for community purposes, and
allocated by a Councillor at the Councillor’s discretion.
There were no Councillor discretionary funds established during the period.
Beneficial enterprises
Section 39(3) of the LG Act defines a beneficial enterprise as an enterprise that a local
government considers is directed to benefiting, and can reasonably be expected to benefit, the
whole or part of its local government area.
Section 39(4) of the LG Act provides that a local government is conducting a beneficial enterprise if
the local government is engaging in, or helping, the beneficial enterprise.
For the previous period, Council reported Noosa Biosphere Ltd as a beneficial enterprise.
The 2014-15 period saw the finalisation of a long and carefully considered transition to reshape the
Noosa Biosphere Reserve Management arrangements. This began on 20 January 2014 when
Council endorsed the establishment of a working group, consultation with key stakeholders,
workshops, and calling of submissions from the community to review the arrangements.
At the Ordinary Meeting held on 29 May 2014, Council resolved to wind up Noosa Biosphere Ltd
as part of the transition to the new Noosa Biosphere Reserve management model.
The new Noosa Biosphere Reserve management model included the establishment of the Noosa
Biosphere Reserve Trust (NBRT), a public trust approved as a charity with a company limited by
guarantee, the Noosa Biosphere Reserve Foundation Ltd (NBRF), as the Trustee.
As part of the new arrangements Council indicated that it would provide funding for operational
costs together with funding to allow delivery of significant projects that meet the principal objects of
the trust, which include:
1. advancing the protection and enhancement of a significant aspect of the natural environment,
being the natural ecosystems and biodiversity of the Noosa Biosphere Reserve, and
2. advancing research, education and information about a significant aspect of the natural
environment, being the Noosa Biosphere Reserve.
In seeking to achieve the abovementioned principal objects of the Trust, the Trust may, without
limitation:
1. foster economic and human development that is environmentally and socially sustainable and
culturally appropriate
2. develop and implement a management plan for the Noosa Biosphere Reserve that is aligned
with the UNESCO Man and the Biosphere Programme (an Intergovernmental Scientific
Programme that aims to establish a scientific basis for the improvement of relationships
between people and their environments2), and
3. monitor performance of the Noosa Biosphere Reserve and its reporting to UNESCO and the
Noosa Community.
2
United Nations Educational, Scientific and Cultural Organization – Man and the Biosphere Programme.
Noosa Council Annual Report 2014/15 Page 21
Section 24
Under the new arrangements Council does not hold a controlling interest in NBRF or NBRT, and
therefore they are not considered beneficial enterprises as defined under the LG Act.
Council has entered into a funding deed with the NBRF until the end of 2017-18, which for the
2014-15 period, consisted of a $40,000 (excluding GST) contribution for start-up operational
expenses.
Business activities
A business activity is defined in Schedule 4 of the LG Act as “the trading in goods and services
by the local government”.
Council conducted the following business activities during the period:
waste management, and
operations of holiday parks including the Boreen Point Campground, Noosa North Shore
Beachfront Caravan Park and Noosa River Holiday Park.
Significant business activity
In accordance with threshold of expenditure and the methodology prescribed by ss. 19 and 20 of
the LG Regulation, Council’s waste management activity was considered a significant business
activity for the period.
Council confirms that it will undertake a public benefit assessment for waste management during
the 2015-16 period.
Competitive neutrality
By resolution at the ordinary meeting held on 6 March 2014, Council adopted to:
apply the Competitive Neutrality Principle to its waste management business activity for the
remainder of the 2013/14 financial year in accordance with s44(1)(b) of the LG Act, and
apply the Code of Competitive Conduct to the holiday parks business activity for the
remainder of the 2013/14 financial year in accordance with s47 of the LG Act.
Council’s above position remained unchanged for the 2014-15 period and confirms that it is
committed to ongoing compliance with National Competition Policy principles and its legislative
obligations in this area. It is committed to ensuring that its business activities operate on a level
playing field with private businesses in the community.
Council ensures that the pricing practices for each business activity complies with the principles of
full cost pricing such that total revenue, inclusive of identified and measured community service
obligations and net of any advantages and disadvantages of public ownership, should aim to cover
the following elements:
operational and resource costs
administration and overhead costs
depreciation
tax and debt equivalents, and
return on capital / return on cost.
During the period, there were no investigation notices provided to Council relating to competitive
neutrality complaints. Accordingly, The Queensland Competition Authority did not make any
reportable recommendations to Council in relation to a competitive neutrality complaint.
Noosa Council Annual Report 2014/15 Page 22
Section 25
Commercial business units Pursuant to s 27(2) of the LG Regulation, a commercial business unit is a business unit that conducts business in accordance with the prescribed key principles of commercialisation. Council did not nominate any business activities as commercial business units during the period. Services, facilities and activities, for which special rates/charges levied Below is a list of Council levies and special charges for the period: Tourism Levy Noosa Waters Lock and Weir Maintenance Levy Noosa Waters Canal Maintenance Levy Noosa Junction Levy Hastings Street Precinct Maintenance Levy Noosa Main Beach Maintenance Levy Rural Fire Charge Hastings Street Community Safety Program Charge, and Lower Noosa North Shore Electricity Charge. Noosa Council Annual Report 2014/15 Page 23
Section 26
Summary of concessions for rates and charges
General rate concessions
In addition to those classes of land granted a general rate exemption under s93(3) of the LG Act
and s73 of the LG Regulation, Council was able to grant a general rates concession to land
identified in s20(1)(b) of the LG Regulation to the extent that Council was satisfied the land at the
relevant time was owned by an entity whose objects do not include making a profit, or an entity that
provides assistance or encouragement for arts or cultural development and is one of the following:
Boy Scout or Girl Guide Association
Surf Lifesaving or Coastguard organisation
community sporting organisation – not-for-profit organisations without a commercial liquor
licence or a community club liquor licence
community cultural or arts organisation – not-for-profit organisations without a commercial
liquor licence or a community club liquor licence, or
charitable organisation, which is:
(a) a not-for-profit organisation
(b) registered as a charity institution or a public benevolent institution
(c) providing benefits directly to the community
(d) endorsed by the Australian Tax Office - Charity Tax Concession.
The relevant concession for the period for eligible entities was 100% of the general rate.
Deferral of general rates
To assist eligible pensioners who have experienced large increases in the value of their property
as determined by the Department of Natural Resources and Mines, or who have experienced
financial hardship, Council allows deferment of up to 50% of the general rate by way of application.
The deferred rates accumulate as a debt against the property until it is sold or until the death of the
ratepayer.
The deferment of general rates applies only to rates payable with respect to land included in
Differential General Rates Categories 1, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 28 & 30.
To be eligible to defer up to 50% of the general rate the applicant must:
own and occupy the property, and
have no overdue rates and charges on the said property, and
be the holder of a Pension Concession Card issued by Centrelink or the Department of Veteran
Affairs, or
o a Repatriation Health (Gold) Card issued by the Department of Veteran Affairs, or
o a Commonwealth Seniors Health Card, or
o a Queensland Seniors Card issued by the Queensland State Government.
Automatic eligibility applies to those ratepayers currently receiving a Pension Concession on their
rate notice. Eligibility for those ratepayers with a Seniors Card will be assessed accordingly.
Noosa Council Annual Report 2014/15 Page 24
Section 27
Interest charges on deferred rates
In accordance with s122(5) of the LG Regulation, Council is authorised to charge interest, or
request payment of an additional charge, to all deferred general rates for the relevant period.
For the period there was 1 rate payer who applied for a deferral of their general rates.
Available pensioner concessions for the period
Table 9 below provides a summary of available pensioner concessions for the period.
Table 9 – Pensioner Concessions
Pension Rate Sole title to the property Joint title to the property
Maximum level of pension $230 p.a. maximum $180 p.a. maximum
$115 per half year $90 per half year
Not maximum level of pension $115 p.a. maximum $65 p.a. maximum
$57.50 per half year $32.50 per half year
Single owner on the maximum rate of pension
Where the pensioner was in receipt of the maximum level of pension and had sole title to the
property that is their principal place of residence for the period, the concession was 25% of the
general rate up to a maximum amount of $230.00 per annum.
Joint owner on the maximum rate of pension
Where the pensioner was in receipt of the maximum level of pension and owned the property
jointly with one or more people for the period, the concession was 25% of the general rate up to a
maximum amount of $180.00 per annum.
Single owner not on the maximum rate of pension
Where the pensioner was not in receipt of the maximum level of pension and had sole title to the
property that was their principal place of residence for the period, the concession was 25% of the
general rate up to a maximum amount of $115.00 per annum.
Joint owner not on the maximum rate of pension
Where the pensioner was not in receipt of the maximum level of pension and owned the property
jointly with one or more people for the period, the concession was 25% of the general rate up to a
maximum amount of $65.00 per annum.
Noosa Council Annual Report 2014/15 Page 25
Section 28
Invitations to change tenders There were no reportable invitations made by Council to change tenders during the period. Audit Committee Council’s Audit Committee for the period consisted of the Mayor, Cr Wellington and two external members who were appointed via Council appointment at the Ordinary Meeting held on 31 July 2014. During the period, Council’s Audit Committee held four formal committee meetings and played an active role as an advisory committee to Council through the provision of independent comment, advice and counsel on audit and risk management issues covering a wide range of Council operations and projects. In accordance with Council’s Audit Committee Charter, a key duty of the Committee is to provide reasonable assurance to Council that its core business goals and objectives are being achieved in an efficient and economical manner, within an appropriate framework of internal control and risk management. Internal Audit Council recognises the relevance of strengthening governance and control systems through the establishment of an efficient and effective internal audit function. Council’s Internal Audit Plan for each financial year is developed having regard to current operational risks. Council’s internal audits are conducted in accordance with Council’s Internal Audit Terms of Reference and Internal Audit Policy, the objectives of which include providing independent, objective assurance and appropriate services designed to add value and improve Council’s operations. Council’s Internal Audit Plan for each period is reviewed and adopted by the Audit Committee. The Internal Audit activity for the period included an extensive audit of Council’s payroll, overtime and time-in-lieu systems and processes. This Audit was completed by a specialist external provider. Council has in place a number of systems and processes to ensure that recommendations resulting from its internal audits are appropriately actioned and implemented into day-to-day operations. Noosa Council Annual Report 2014/15 Page 26
Section 29
Community Financial Report – 2014/15
Background
This Community Financial Report aims to simplify the financial information required to be prepared
by Council under legislation and accounting standards, and provides a simple summary of our
Council’s financial performance for the financial year just ended.
Council’s financial statements are prepared based on accounting standards, and contain specific
information regarding Council’s financial performance for the relevant period. Financial statements
include a Statement of Comprehensive Income (i.e. profit and loss), a Statement of Financial
Position (i.e. balance sheet), a Statement of Cash Flows as well as a Statement of Changes in
Equity. Collectively, the statements provide a formal picture of the financial strength of an
organisation.
The Community Financial Report consists of five key reporting elements, each of which has a
specific purpose for the measurement and presentation of Council’s finances. The linkages
between the five key elements are shown below:
Statement of
Comprehensive
Income
Statement of
Statement of Financial
Financial
Cash Flows Ratios
Position
Statement of
Changes in
Equity
Noosa Council Annual Report 2014/15 Page 27
Section 30
Highlights and achievements
Council has achieved a strong financial result after the completion of its first 12 month financial
reporting period as a new Council. The following outcomes were achieved during 2014/15:
1. an operating surplus of $6.7 million as a result of revenues being received above those
forecast along with good management of our expenditure, as well as some unspent levy funds
that are required to be held for future use
2. stamp of approval from the Queensland Audit Office with the financial statements audited and
signed-off without any identified issues
3. the state government financial sustainability assessment undertaken in April 2015 determined
Council’s financial position was ‘sound with a positive outlook’ which equates to a score of 5 on
a 7 point scale
4. strong financial performance across a range of financial sustainability ratios.
Where was the Budget spent?
Council spends significant amounts of ratepayer funds providing a range of services to the Noosa
community. A summary of the cost of the services for our major service areas is contained in the
graph below. Spending on these services (including roads, bridges, parks, community facilities and
waste management) makes up a significant component of Council’s annual Budget.
Figure 1 – Operating Cost of Core Council Services 2014/15 ($’000)
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Local Laws
Parks and Reserves
Roads / Bridges / Drainage
Community Engagement
Libraries / Galleries
Community Development
Planning and Environment
Waste / Health
Property / Holiday Parks
Economic Development
Community Facilities
Building / Plumbing
Noosa Council Annual Report 2014/15 Page 28
Section 31
Statement of Comprehensive Income
This statement (also known as the profit and loss) measures how a council performed financially in
relation to funding its operations during the financial year. In simple terms, it illustrates how much
money was received by Council and how much was spent in a particular year.
Table 10 – Expenses Against Revenue
2013/14* 2014/15
($’000) ($’000)
Revenue 42,372 97,032
Expenses 39,331 79,202
Net Result 3,041 17,830
* Only 6 months due to de-amalgamation on 1 January 2014.
The 2014/15 net result as reported in the audited financial statements was a surplus of $17.83
million. The net result includes capital revenue received for capital works (including grants and
subsidies and developer contributions) as well as income and expenses recognised for investment
property valuation changes and asset disposals. The removal of these non-standard operational
items shows Council’s actual operating surplus to be $6.73 million.
Operating revenue – where the money came from
Throughout the financial year Council received a total of $85 million in operating revenues (rates,
fees, operating grants); $6.8 million in capital revenue (developer contributions, capital grants); and
$5.1 million recorded as revenue from our share of investment in Unitywater. The sources of
Council’s operating revenue are shown below.
Figure 2 – Operating Revenue Sources 2014/15
Interest
Revenue Grants & Other
6% Revenue
6%
Fees & Charges
16%
Other Income
2%
Rates & Utility
Charges
70%
The above breakdown in operating revenue confirms that Council has significant control over the
majority of its income sources, and as a result is not reliant on other levels of government or
external agencies to maintain its financial independence.
Noosa Council Annual Report 2014/15 Page 29
Section 32
Key Council revenue sources include:
Rates and Utility charges include general rates, charges for waste collection and disposal,
special rates such as the tourism and transport levy, and other separate and special rates.
Fees and Charges include a range of regulatory fees and charges as well as revenue from
commercial operations such as holiday parks and waste management.
Interest Revenue includes the return from the investment of reserve funds.
Revenue from Other Income includes tax payments from Council’s shareholding in Unitywater.
Operating expenditure – where the money goes
Council expended a total of $78.3 million in operating activities during the financial year. The
following graph shows a breakdown by expenditure type for normal recurrent Council operations.
Figure 3 – Operating Expenses by Function 2014/15
Depreciation
20%
Employee
Finance & Benefits
Other Costs 34%
3%
Materials &
Services
43%
Key Council expenditure sources include:
Employee Benefits includes staff wages, superannuation, fees paid to Councillors and other
employment costs.
Depreciation expenditure records the consumption of community infrastructure assets over
their respective useful lives, and provides an indication of the level of required expenditure on
rehabilitation and renewal of existing assets annually.
Materials and Services includes information communication technology, consultancy services,
contractor services, electricity, external hire, rentals, repairs and maintenance, advertising and
donations.
Noosa Council Annual Report 2014/15 Page 30
Section 33
Statement of Financial Position
The Statement of Financial Position (or balance sheet) measures what Council owns (i.e. its
assets); and what we owe (i.e. liabilities) to determine the total Community Equity (net worth) at the
end of each financial year. Overall, Council’s investment in community capital improved in 2014/15.
Table 11 – Comparative Statement of Financial Position Summary
2013/14 2014/15
($’000) ($’000)
Assets 1,034,753 1,067,563
Liabilities 61,253 60,508
Community Equity 973,500 1,007,054
The graph below shows Council’s cash and debt holdings as at 30 June 2015 compared to the
previous year. Cash levels for Council have increased whilst debt has been reducing, which is
positive for the community.
Figure 4 – Cash and Debt Comparison ($’000)
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
Cash Debt
2013/14 ($,000) 2014/15 ($,000)
Noosa Council Annual Report 2014/15 Page 31
Section 34
Assets – what we own
Current assets are represented by cash, investments, inventories and receivables (money owed to
Council). Council’s current assets as at 30 June 2015 equated to $59.5 million.
Non-current assets of over $1 billion includes property, plant and equipment totalling $887 million,
as well as the value of Council’s investment in Unitywater. Property, plant and equipment
represents community infrastructure including roads, bridges, stormwater and buildings, as well as
other operational assets owned and controlled by Council.
The main non-current asset categories and their respective values are shown in the following
figure.
Figure 5 – Non-Current Assets & Community Infrastructure ($’000)
Other Work in
Land &
Infrastructure, Progress,
Improvements,
$57,292 $7,396
$119,514
Stormwater & Buildings,
Drainage $60,383
Network,
$112,374
Plant &
Intangible Equipment,
Assets, $2,701 $7,519
Road & Bridge
Network,
$522,601
Liabilities – what we owe
Money owed by Council is shown as both current and non-current liabilities in the Statement of
Financial Position. Current liabilities are those amounts that are payable by Council within the next
twelve months, and non-current liabilities are payable beyond the twelve month horizon. The most
significant element is loans raised by Council to fund investment in community infrastructure.
Statement of Changes in Equity
The Statement of Changes in Equity illustrates how the net worth has changed as a result of
Council’s operations through the period. Council’s total community equity as at 30 June 2015 is
$1.08 billion. Community equity is equal to total assets (what we own) less total liabilities (what we
owe) and represents Council’s investment in assets.
Noosa Council Annual Report 2014/15 Page 32
Section 35
Statement of Cash Flows
The Statement of Cash Flows illustrates where Council has generated cash, and where these
funds have been expended. The detailed schedule in the financial statements is summarised
below (columns above the line represent cash flowing into the organisation, and columns below the
line represent cash payments made).
Figure 6 – 2014/15 Net Cash Flow Sources ($’000)
30,000
25,000
20,000
15,000
10,000
5,000
-
(5,000)
(10,000)
(15,000)
Operating Activities Investing Activities Financing Activities Net Movement in Cash
Operating Activities depicts the net of income received from rates, interest, grants, etc. as well
as payments made to suppliers and employees (net increase).
Investing Activities relate to the acquisition and sale/disposal of long-term assets, generally in
the form of roads, bridges, plant and equipment, etc. A negative outcome here represents a net
investment in community infrastructure during the reporting period.
Financing Activities shows the receipt and repayment of Council borrowings.
Net Movement in Cash represents the physical movement of cash, with any accounting
adjustments and accruals removed. The net movement in cash for the year of $12.6 million
represents the net increase in cash on hand, with all significant outlays fully funded within the
period.
Financial Ratios
Ratios are useful tools for getting a snap-shot of the financial status and trends of an organisation.
Ratios can also be useful in comparing Noosa Council to other Councils to gain an understanding
of relative financial strength. This analysis is undertaken annually by the Queensland Treasury
Corporation (QTC) in assessing the financial sustainability of Council. A financial sustainability
review was undertaken by QTC in April 2015 and Council was assessed as having a ‘sound’ rating
with a ‘positive’ outlook. The sound rating reflects Council having operating surpluses forecasted in
our financial model, strong capacity to take on more debt if required, high level of Council
controlled revenue and having good levels of cash resources to fund operations and capital works.
With the implementation of the Local Government Regulation 2012, a number of sustainability
ratios were mandated, including target ranges for each measure. Details of these ratios are shown
below, including actual results for the current reporting period, plus projections over the next 9
years.
Noosa Council Annual Report 2014/15 Page 33
Section 36
Table 12 – Financial ratios (actual and forecast)
Period Ended 30-Jun-15 30-Jun-16 30-Jun-17 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 30-Jun-22 30-Jun-23 30-Jun-24
Sustainability Ratios
Operating Surplus Ratio
Operating Position 7.9% 1.3% 1.5% 1.9% 2.3% 2.6% 1.9% 2.0% 1.9% 2.0%
Local Govt Act upper indicator 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Net Financial Liabilities Ratio
Net Financial Liabilities Ratio 1.2% 12.3% 11.4% 10.2% 8.6% 4.2% 0.7% (3.2)% (7.0)% (9.9)%
Local Govt Act upper indicator 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
Asset Sustainability Ratio
Asset Sustainability Ratio 65.1% 129.5% 99.0% 100.1% 100.6% 100.1% 97.8% 97.1% 96.2% 100.0%
Local Govt Act minimum indicator 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
Notes: Colour Within Moderate Outside
scale range range
Operating Surplus Ratio
This ratio measures the operating surplus achieved for the period and represents the operating
surplus / (deficit) as a percentage of operating revenue. A surplus will be represented by a positive
result.
Councils should be aiming to achieve, as a minimum, a balanced operating position to ensure that
revenues received are sufficient to fund operations and capital replacement works. The 2014/15
operating surplus ratio of 7.9% is a reflection of revenues being received above those forecast
along with good management of our expenditure, as well as some unspent levy funds that are
required to be held for future use.
Net Financial Liabilities Ratio
This ratio represents Council’s net financial liabilities (total liabilities less current assets) expressed
as a percentage of total operating revenue. The target range is less than 60%. A negative
percentage indicates that current assets exceed total liabilities, and this is considered to be a very
strong position.
The position of 1.2% as at 30 June 2015 represents a strong outcome for Council and indicates
that we have capacity to service higher levels of debt if needed, though additional debt funding has
not been included in forward projections.
Asset Sustainability Ratio
This ratio is calculated by measuring the annual expenditure on the renewal and rehabilitation of
Council’s assets against the annual depreciation charge. It is a measure of whether Council is
reinvesting in existing infrastructure assets to hold them in optimal condition. Whilst Council’s
2014/15 ratio of 65.1% did not achieve the minimum target range of 90%, the uncompleted works
will be delivered in the 2015/16 financial year, as reflected in the 2015/16 ratio. Forward projections
highlight Council’s commitment to ensuring appropriate levels of investment in replacing
community infrastructure.
Summary
The financial period ended 30 June 2015 represents an excellent financial result for Council,
reinforces the financial sustainability rating provided by the state government (i.e. QTC), and
provides a firm foundation for future operations. Ongoing innovation and a commitment to strong
financial management through compliance with our Financial Sustainability policy will ensure that
this strong position is maintained into the future.
Noosa Council Annual Report 2014/15 Page 34
Section 37
Financial Statements 2014-15 Noosa Council Annual Report 2014/15 Page 35 Financial Statements 2014-15 Noosa Council Annual Report 2014/15 Page 35
Section 38
NOOSA SHIRE COUNCIL
Financial Statements
For the year ended 30 June 2015
Table of contents
Note
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the financial statements
1 Significantaccountingpolicies
2 Analysisof resultsby function
3 Revenue analysis
4 Grants, subsidies, contributions and donations
5 Gain on restructure of local government
6 Employee benefits
7 Malerials and services
8 Depreciation and amortisation
9 Cash assets and cash equivalents
10 Trade and other receivables
11 Equity investments
12 Investmentproperties
13 Property, plant and equipment
14 Fair value measurements
15 Intangibleassets
16 Trade and other payables
17 Provisions
18 Borrowings
19 Asset revaluationsurplus
20 Commitmentsfor expenditure
21 Events after balance date
22 Contingent liabilities
23 Superannuation
24 Trust funds
25 Reconciliation of net result for the year to net cash inflow (outflow) from operating activities
26 Operating lease income
27 Correction of prior period adjustments
28 Financial Instruments
29 National competition policy
Management Certificate
Independent Audit Report
Other financial statements
Current-year Financial Sustainability Statement
long-Term Financial Sustainability Statement
P:lOP. 1
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Statement of Comprehensive Income
For the year ended 30 Juno 2015
2014
2015 (6 months)
Note $ $
Income
Revenue
Recurrent revenue
Rates and charges 3 (a) 59,388,212 30,470,848
Sale of goods and major services 3 (b) 7,237,712 3,267,009
Fees and charges 3 (e) 4,942,952 2,162,005
Rental and levies 1,130,479 481,667
Inlerest received 3 (d) 5,006,206 2,520,125
Sales of contract and recoverable vvorks 155,170 76,857
Other recurrent income 3 (e) 2,106,355 598,920
Grants, subsidies. contributions and donations 4 (i) 5,068,440 1,890,879
Total recurrent revenue 85,035,526 41,468,310
Capital revenue
Grants. subsidies. contributions and donations 4 (ii) 6,278,627 2,358,968
6,278,627 2,358,968
Total revenue 91,314,153 43,827,278
Capital income 604,515 7,228
91,918,668 43,834,506
Net gain on restructure of local government 5 972,198,129
Equity share of profit (loss) in investment in associate through participation rights 11 5,112,835 1,942,760
Total income 97,031,503 1,017,975,395
Expenses
Recurrent expenses
Employee benefits 6 (26,125,135) (18,264,228)
Materials and services 7 (33,729,424) (16,755,448)
Finance costs (2,526,815) (1,359,476)
Depreciation and amortisation 8 (15,919,507) (7,779,655)
Total recurrent expenses (78,300,881 ) (44,158,807)
Capital expenses
Other capital expenses (900,880) (315,945)
Total expenses (79,201,761) (44,474,752)
Net result 17,829,742 973,500,643
Other comprehensive income
Items that will not be reclassified to net result
Increase in asset revaluation surplus 19 14,334,107
Total other comprehensive income 14,334,107
Total comprehensive income for the period 32,163,849 973,500,643
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
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Statement of Financial Position
As at 30 June 2015
2014
2015 (6 manU,s)
Note $ $
Current Assets
Cash assets and cash equivalents 9 50,891,174 28,893,012
Trade and other receivables 10 (a) 8,526,896 18,806,279
Inventories 104,038 103,425
59,522,108 47,802,716
Non-current Assets
Trade and other receivables 10 (b) 49,217,517 49,217,517
Equity investments 11 65,211,946 62,016,970
Investment properties 12 3,831,234
Property, plant and equipment 13 887,078,567 873,447,519
Intangible assets 15 2,701,457 2,268,600
1,008,040,721 986,950,606
TOTAL ASSETS 1,067,562,829 1,034,753,322
Current liabilities
Trade and other payables 16 7,736,143 6,669,789
Provisions 17 4,114,389 4,358,384
Borrowings 18 2,633,065 2,600,397
Other 1,082,497 831,140
15,566,094 14,459,710
Non-current Liabilities
Provisions 17 8,194,924 8,216,341
Borrowings 18 36,747,480 38,576,628
44,942,404 46,792,969
TOTAL LIABILITIES 60,508,498 61,252,679
NET COMMUNITY ASSETS 1.007,054,331 973,500,643
Community Equity
Asset revaluation surplus 19 14,334,107
Retained surplus (deficiency) 992,720,224 973,500,643
TOTAL COMMUNITY EQUITY 1,007,054,331 973,500,643
The above statement should be read;n conjunction with the accompanying notes and Summary of Significant Accounting Po/icies.
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NOOsA SHIRE COUNCIL
Statement of Changes in Equity
For the year ended 30 June 2015
Total Retained surplus Asset revaluation surplus
(deficit) surplus
Note Note 19
2014 2014 2014
2015 (6 months) 2015 (6 months) 2015 (6 months)
$ $ $ $ $ $
Balance at beginning of period 973,500,643 - 973,500,643 - - -
Corrections to opening balances 1,389,839 - 1.389,839 - - -
Restated opening balances
-- 974,890,482 - 974,890,482 - -
Net result 17,829,742 973,500,643 17,829,742 973,500,643. ----
I-
Other comprehensive income for the period
Revaluations:
Property, plant & equipment 14,334.107 . - . 14,334,107 .
~
Total comprehensive Income 32,163,849 973,500,643 17,829,742 973,500,643 14,334,107 .
Balance at end of period 1 007,054331 973,500,643 992,720224 973,500643 14334,107 .
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Polic;es.
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Statement of Cash Flows
For the year ended 30 June 2015
2014
2015 (6 months)
Note $ $
Cash flows from operating activities:
Receipts
Receipts from customers 78,631,623 36,376,779
Operating grants, subsidies and contributions 5,082,742 1,890,879
Income tax equivalent received 973,222 494,614
Interest received 5,006,206 2,520,125
Income from equity investments 1,917,859 904,015
Payments
Payments to suppliers and employees (64,099,113) (37,024,927)
Interest expense (27,892) (130,469)
Net cash inflow (outflow) from operating activities 25 27,484,647 5,031,016
Cash flows from Investing activities:
Commonwealth government grants 553,610
State Government subsidies & grants 1,679,628 1,058,819
Capital contributions 1,607,275 1,300,149
Inter-entity balance with Sunshine Coast Regional Council (SeRe) 1,021,691 (1,021,691)
Payments for property, plant and equipment (15,339,301 ) (2,740,657)
Payments for intangible assets (683,722) (2,171,862)
Proceeds from sale of property plant and equipment 359,247 10,155
Net cash inflow (outflow) from investing activities (10,801,572) (3,565,087)
Cash flows from financing activities:
Cash collected under an service level agreements (101,517) 101,517
Proceeds from borrowings 18 794,000 2,300,000
Repayment of borrowings 18 (4,856,932) (2,308,977)
Net cash inflow (outflow) from financing activities (4,184,449) 92,540
Net increase (decrease) in cash and cash equivalents held 12,518,626 1,558,469
Cash and cash equivalents at beginning of the financial year 28,893,012
Cash and cash equivalents transferred on de.amalgamation from SCRe 9,479,536 27,334,543
Cash and cash equivalents at end of the financial year 9 50,891,174 28,893,012
The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.
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Notes to the Financial Statements
For the year ended 30 June 2015
Significant accounting policies
1.1 Basis of preparation
These general purpose financial statements are for the period 1 July 2014 to 30 June 2015 and
have been prepared in compliance with the requirements of the Local Government Act 2009 and
the Local Government Regulation 2012. Consequently, these financial statements have been
prepared in accordance with all Australian Accounting Standards, Australian Accounting
Interpretations and other authoritative pronouncements issued by the Australian Accounting
Standards Board.
Comparatives reflect a 6 month reporting period from the 1 January to 30 June 2014,
These financial statements have been prepared under the historical cost convention except for
the revaluation of certain non-current assets.
Council is constituted under the Queensland Local Government Act 2009 and is domiciled in
Australia.
Council uses the Australian dollar as its functional currency and its presentation currency and
amounts have been rounded to the nearest $1.
1.2 Statement of compliance
These general purpose financial statements comply with all accounting standards and
interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to
Council's operations and effective for the current reporting period. Because the Council is a not-
for-profit entity and the Australian Accounting Standards include requirements for not-far-profit
entities which are inconsistent with International Financial Reporting Standards (IFRS), to the
extent these inconsistencies are applied, these financial statements do not comply with IFRS.
The main impacts are the offsetting of revaluation and impairment gains and losses within a class
of assets, and the timing of the recognition of non-reciprocal grant revenue.
Council had an interest in one (1) associate during the year being Unitywater and is included in
note 1.11
1.3 Date of authorisation
The financial statements are authorised for issue on the date it was submitted to the Auditor-
General for final signature .. This is the date the management certificate is signed.
1.4 Adoption of new and revised Accounting Standards
In the current year, Council adopted all of the new and revised Standards and Interpretations
issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations
and effective for the current reporting period. The adoption of the new suite of consolidation
standards resulted in some material changes to Council's accounting policies. These standards
comprised AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12
Disclosure of Interests in Other Entities, AASB 127 (revised 2011) Separate Financial
Statements and AASB 128 (revised 2011) Investments in Associates and Joint Ventures.
1.5 Critical accounting judgements and key sources of estimation uncertainty
In the application of Council's accounting policies, management is required to make judgements,
estimates and assumptions about carrying values of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from
these estimates. The estimates and ongoing assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised
and in future periods as relevant.
Judgements, estimates and assumptions that have a potential significant effect are outlined in the
followinQ financial statement notes:
Pace 6
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Notes to the Financial Statements
For the year ended 30 June 2015
Investment Prope,1y - note 1.12 and note 12
Valuation and depreciation of property, plant and equipment ~ note 1.13 and note 14 Fair value
measurements
Provisions - note 1.18 and note 17
Contingent liabilities ~ note 22
1.6 Revenue
Rates, levies. grants and other revenue are recognised as revenue on receipt of funds or earlier
upon unconditional entitlement to the funds.
1.6 (a) Rates and levies
Where rate monies are received prior to the commencement of the rating/Jevying period, the
amount is recognised as revenue in the period in which they are received, otherwise rates are
recognised at the commencement of rating period.
1.6 (b) Grants and subsidies
Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue
in the year in which Council obtains control over them.
1.6 (c) Cash contributions
Council receives cash contributions from property developers to construct assets such as roads
and footpaths. Where agreements between Council and the developers relating to these
contributions are determined to fall within the scope of AASB Interpretation 18 Transfers of
Assets from Customers these contributions are recognised as revenue when the related service
obligations are fulfilled.
1.6 (d) Interest and dividends
Interest received from term deposits is accrued over the term of the investment. Dividends are
recognised once they are formally declared by the directors of the associated entity.
1.6 (e) Fees and Charges
Fees and charges are recognised upon unconditional entitlement to the funds. Generally this is
upon lodgement of the relevant applications or documents, issuing of the infringement notice or
when the service is provided.
1.7 FInancialassetsand liabilities
Council recognises a financial asset or a financial liability in its Statement of Financial Position
when, and only when, Council becomes a party to the contractual provisions of the instrument.
Noosa Shire Council has categorised and measured the financial assets and financial liabilities
held at balance date as follows:
Financial assets
Cash and cash equivalents (note 1.8)
Receivables - measured at amortised cost (note 1.9)
Financial liabilities
Payables - measured at amortised cost (note 1.15)
Borrowings - measured at amortised cost (note 1.17)
Financial assets and financial liabilities are presented separately from each other and offsetting
has not been applied. All other disclosures relating to the measurement and financial risk
management of financial instruments are included in note 28.
1.8 Cash and cash equivalents
Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not
banked at the year end, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value. and
bank overdrafts.
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Noles to the Financial Statements
For the year ended 30 June 2015
1.9 Receivabl&s
Trade receivables are recognised at the amounts due at the time of sale or service delivery Le.
the agreed purchase price I contract price. Settlement of these amounts is required within 30
days from invoice date.
The collectability of receivables is assessed periodically and if there is objective evidence that
Council will not be able to collect all amounts due, the carrying amount is reduced for impairment.
The loss is recognised in finance costs. The amount of the impairment is the difference between
the asset's carrying amount and the present value of the estimated cash flows discounted at the
effective interest rate.
All known bad debts were written-off at 30 June. Subsequent recoveries of amounts previously
written off in the same period are recognised as finance costs in the Statement of
Comprehensive Income. If an amount is recovered in a subsequent period it is recognised as
revenue.
Because Council is empowered under the provisions of the Local Government Act 2009 to sell
an owner's property to recover outstanding rate debts, Council does not impair any rate
receivables.
1.10 Investments
Term deposits in excess of three months are reported as investments, with deposits of less than
three months being reported as cash equivalents.
1.11 Investment In associate
As at 1 July 2010 a water distribution and retail business called Unitywater was established in
accordance with the South-East Queensland Water (Distribution and Retail Restructuring) Act
2009 to deliver water and waste water services to customers within the local government areas
of Moreton Bay Regional Council, Sunshine Coast Regional Council and the now de-
amalgamated Noosa Shire Council.
Under the Act. governannce arrangements for Unitywater were established in a Participation
Agreement which commenced from 1 July 2010. The agreement provides for participation rights
to be held by the participating Councils. The participating Councils are Noosa Shire Council,
Moreton Bay Regional Council and the Sunshine Coast Regional Council. The Participation
Rights effectively represent an investment in an associate by Noosa Shire Council and are
disclosed in note 11.
Associates are entities over which Noosa Shire Council exerts significant influence. Significant
influence is the power to particpate in the financial and operating policy decisions but is not
control or joint control. Council has detennined that Unitywater is an associate for accounting
disclosure purposes.
1.12 Investment Property
Investment property is property held for the primary purpose of earning rentals and/or capita}
appreciation.
Investment property is measured using the fair value model. This means all investment property
is initially recognised as cost (including transaction costs) and then subsequently revaluled
annually at the reporting date by a registered valuer. Where investment properly is acquired at no
or nominal cost it is recognised at fair value.
Gains or losses arising from changes in the fair value of investment property are recognised as
incomes or expenses respectively for the period in which they arise. Investment property is not
depreciated and is not tested for impairment.
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Notes to the Financial Statements
For the year ended 30 June 2015
1.13 Property, plant and equipment
Each class of property, plant and equipment is carried at cost or fair value less. where applicable,
any accumulated depreciation and accumulated impairment losses. Items of property. plant and
equipment with a total value of less than $5,000, except for land and network assets (which have
a recognition threshold of $1), are treated as an expense in the year of acquisition. All other items
of property, plant and equipment are capitalised.
The classes of property plant and equipment recognised by the council are reported in note 13.
1.13 (a) Acquisition ofassels
Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the
assets given as consideration plus costs incidental to the acquisition, including freight in,
architect's fees and engineering design fees and all other establishment costs.
Property, plant and equipment received in the form of contributions, are recognised as assets and
revenues at fair value by Council valuation where that value exceeds the recognition thresholds
for the respective asset class. Fair value is the price that would be received to sell the asset in an
orderly transaction between market participants at the measurement date.
1.13 (b) Capital and operating expenditure
Direct labour and materials and an appropriate proportion of overheads incurred in the acquisition
or construction of assets are treated as capital expenditure. Assets under construction are not
depreciated until they are completed and commissioned, at which time they are reclassified from
work in progress to the appropriate property, plant and equipment class.
Routine operating maintenance, repair costs and minor renewals to maintain the operational
capacity and useful life of the non~current asset is expensed as incurred, while expenditure that
relates to replacement of a major component of an asset to maintain its selVice potential is
capitalised.
1.13 (e) Valuation
Land, buildings, infrastructure and heritage and cultural assets are measured on the revaluation
basis. at fair value, in accordance with AASB116 Property, Plant and Equipment and AASB 13
Fair Value Measurement. Fair value means the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date.
Non-current physical assets measured at fair value are revalued. where required, so that the
carrying amount of each class of asset does not materially differ from its fair value at the reporting
date. This will be achieved by engaging independent, professionally qualified valuers to
determine the fair value for each class of property, plant and equipment assets at least once
every 3 years. This process involves the valuer physically sighting a representative sample of
Council assets across all asset classes and making their own assessments of the condition of the
assets at the date of inspection.
Council uses internal engineers to assess the condition and cost assumptions associated with all
infrastructure assets, the results of which are considered in combination with the relevant indices
independently published for the Sunshine Coast Region. Together Ihese are used to form the
basis of a management valuation for infrastructure asset classes in each of the intelVening years.
With respect to the valuation of the land and improvements, and buildings classes in the
intervening years, management engage independent, professionally qualified valuers to perform
a "desktop" valuation. A desktop valuation involves management providing updated information
to the valuer regarding additions, deletions and changes in assumptions such as useful life,
residual value and condition rating. The valuer then determines suitable indices which are applied
to each of these asset classes.
On revaluation, accumulated depreciation is restated proportionately with the change in the
carrying amount of the asset and any change in the estimate of remaining useful life.
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Notes to the Financial Statements
For the year ended 30 June 2015
S~parately identmtto cornponents of assets are measur~d on the s&me basis as the assets to
which they relate.
1.13 (d) Capital work in progress
The cost of property, plant and equipment being constructed by the Council includes the cost of
purchased services, materials, direct labour and an appropriate proportion of labour overheads.
1.14 Depreciation
Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant
and equipment assets is calculated on a straight-line basis so as to write-off the net cost or
revalued amount of each depreciable asset. less its estimated residual value. progressively over
its estimated useful life to the Council. Management believe that the straight-line basis
appropriately reflects the pattern of consumption of all Council assets.
Assets are depreciated from the date of acquisition or, in respect of internally constructed assets,
from the time an asset is completed and commissioned ready for use.
Where assets have separately identifiable components that are subject to regular replacement,
these components are assigned useful lives distinct from the asset to which they relate. Any
expenditure that increases the originally assessed capacity or service potential of an asset is
capitalised and the new depreciable amount is depreciated over the remaining useful life of the
asset to the Council.
Major spares purchased specifically for particular assets that are above the asset recognition
threshold are capitalised and depreciated on the same basis as the asset to which they relate.
The depreciable amount of improvements to or on leasehold land is allocated progressively over
the estimated useful lives of the improvements to the Council or the unexpired period of the
lease. whichever is the shorter.
Depreciation methods. estimated useful lives and residual values of property, plant and
equipment assets are reviewed at the end of each reporting period and adjusted where
necessary to reflect any changes in the pattern of consumption, physical wear and tear, technical
or commercial obsolescence, or management intentions. The condition assessments performed
as part of the annual valuation process for assets measured at depreciated current replacement
cost are used to estimate the useful lives of these assets at each reporting date.
Details of the range of estimated useful lives for each class of asset are shown in note 13.
1.15 Payables
Trade creditors are recognised upon receipt of the goods or services ordered and are measured
at the agreed purchase/contract price net of applicable discounts other than contingent discounts.
Amounts owing are unsecured and are generally settled on 30 day terms.
1.16 Liabilities. employee benefits
Liabilities are recognised for employee benefits such as wages and salaries, annual leave and
long service leave in respect of services provided by the employees up to the reporting date.
Liabilities for employee benefits are assessed at each reporting date.
1.16 (a) Salaries and wages
A liability for salaries and wages is recognised and measured as the amount unpaid at the
reporting date at current pay rates in respect of employees' services up to that date. This liability
represents an accrued expense and is included in note 16 as a payable.
Paae 10
Section 48
QAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the Financial Statements
For the year endod 30 June 2015
1.10 lb) long sEuvice leave
A liability for long service leave is measured as the present value of the estimated future cash
outflmvs to be made in resped of services provided by employees up to the reporting date. The
value of the liability is calculated using current pay rates and projected future increases in those
rates and includes related employee on-costs. The estimates are adjusted for the probability of
the employee remaining in the Council's employment or other associated employment which
would result in the Council being required to meet the liability. Adjustments are then made to
allow for the proportion of the benefit earned to dale, and the result is discounted to present
value. The interest rates attaching to Commonwealth Government guaranteed securities at the
reporting date are used to discount the estimated future cash outflows to their present value.
Where employees have met the prerequisite length of service and council does not have an
unconditional right to defer this liability beyond 12 months long service leave is Classified as a
current liabilitv. Otherwise it is classified as non-current.
This liability is reported in note 17 as a provision.
1.16 (e) Annualleavo
A liability for annual leave is recognised. As Council does not have an unconditional right to defer
settlement of the annual leave beyond the 12 months after the reporting date, annual leave is
classified as current, and calculated based on projected future wage and salary levels and related
emplovee on-costs, and discounted to present values.
This liability represents an accrued expense and is reported in note 16 as a payable.
1.17 Borrowings
Loans payable are measured at amortised cost using the effective interest rate method. The
effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial instrument. Borrowing costs, which includes interest
calculated using the effective interest method and administration fees, are expensed in the period
in which they arise. Costs that are not settled in the period in which they arise are added to the
carrying amount of the borrowing.
In accordance with the Local Government Regulation 2012 Council adopts an annual debt policy
that sets out Council's planned borrowings for the next nine years. Council's current policy is to
only borrow for capital projects and for a term no longer than the expected life of the asset.
Council also aims to comply with the Queensland Treasury Corporation's borrowing guidelines
and ensure that sustainability indicators remain within acceptable levels at all times.
All borrowing costs are expensed in the period in which they are incurred. No borrowing costs
are capitalised on Qualifying assets.
Borrowings are dassified as current liabilities unless Council has an unconditional right to defer
settlement of the liability for at least 12 months after the balance date.
1.18 Restoration provision
A provision is made for the cost of rehabiliation of assets and other future restoration costs where
it is probable the Council will be liable, or required. to incur such a cost on the cessation of use of
the facility. This liability is provided in respect of Quarries and Landfill sites.
The provision is measured at the expected cost of the work required discounted to current day
values using an appropriate rate. The current capital market yield bond rate is considered an
appropriate rate with a maturity date corresponding to the anticipated date of restoration.
Council has the following restoration provisions:
Paae 11
Section 49
QAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the Financial Statements
For the year ended 30 June 2015
1.\6 (a) Landfill sites
The provision represents the present value of the anticipated future costs associated with the
closure of the Eumundi Rd landfill sites, decontamination and monitoring of historical residues
and leaching on the site.
The calculation of lhis provision requires assumptions such as application of environmental
legislation, site closure dates, available technologies and engineering cost estimates. These
uncertainties may result in future actual expenditure differing from amounts currently provided.
Because of the long-term nature of the liability, the most significant uncertainty in estimating the
provision is the costs that will be incurred.
The provision recognised for the Eumundi Rd landfill sites is reviewed at least annually and
updated based on the facts and circumstances available at the time. Management estimates that
the site will fully close in 2054 and that site restoration wHl occur progressively over the
subsequent thirty years.
1.18 (b) Quarry sites
The provision represents the present value of the anticipated future costs associated with the
dosure of the Ringtail Creek quarry sites, reclamation and rehabilitation of the site.
The calculation of this provision requires assumptions such as application of environmental
legislation. site closure dates. available technologies and engineering cost estimates. These
uncertainties may result in future actual expenditure differing from amounts currently provided.
Because of the long.tenn nature of the liability, the most significant uncertainty in estimating the
provision is the costs that will be incurred. The provision recognised for quarry sites rehabilitation
is reviewed at least annually and updated based on the facts and circumstances available at the
time.
1.19 National competition policy
The Council has reviewed its activities and has identified 2 activities that are business activities.
Details of these activities can be found in note 29.
1.20 Taxation
Income of local authorities and public authorities is exempt from Commonwealth taxation except
for Fringe Benefits Tax and Goods and Services Tax ('GST). The net amount of GST
recoverable from the Australian Taxation Office (ATO) or payable to the ATO is shown as an
asset or liability respectively.
UnityNater pays Council an income tax equivalent in accordance with the requirements of the
Local Government Act 2009. Where the activity of such an entity is subject to the tax equivalents
regime. the income tax expense is calculated on the operating surplus adjusted for permanent
differences between taxable and accounting income.
Pace 12
Section 50
QAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
2 la) Components of council functions
The activities relating to the Council's components reported on in Note 2 (a) are as follows:
CEO
The goal of the Chief Executive Officer is to provide leadership to the organisation to ensure it meets its strategic
and operational objectrves. as well as to provide executive support to Councillors, the Chief Executive Officer (CEO)
and Council leadership team. Service areas include the CEO's office and internal audit.
Community Services
Community Services goals are to provide facilities and opportunities for residents and visitors to participate in
community, cultural and recreational activities across the shire; protect the health and safety of the Noosa
community; and assist community groups and organisations through the provision of advice and community grants.
Service areas include Cemeteries, Community Development, Ceorey and Noosaville Libraries, Environmental
Health, Local Laws, Noosa Aquatic Centre, Noosa Community Support, Noosa Leisure Centre, Noosa Regional.
Gallery, Pest and Vector Control, the J, and Waste Management
Planning and Infrastructure
The goals of the Planning and Infrastructure department are to provide efficient planning and asset management
services including infrastructure planning and development assessment. The department operates and maintains
infrastructure induding roads and bridges, buildings, canals, parks, stormwater drainage, waterways, beaches and
bushland in the Noosa shire in accordance with established service levels. Service areas include Building and
Plumbing Services, Civil Works, Infrastructure Planning and Design, Parks and Gardens, Planning and
Environment. Disaster Management and Strategic Land Use Planning.
Executive Office
The goal of the Executive office is to provide effective govemance oversight of the organisation, human resource
management support to the organisation, support economic development, support sustainability initiatives, and
ensure Council's customer focus including communication and community engagement processes. Service areas
include the Community Engagement, Customer Service, Executive Office, Economic Development, Sustainability,
Governance and Human Resources.
Corporate Services
The goal of the Corporate Services department is to provide effective support to the organisation to ensure that
Council services are provided in accordance with agreed service levels that ensure Council's ongoing sustainability.
Service areas include Financial Services, Information Communication Technology, Procurement and Fleet, Property
and Facilities and Revenue Services
Section 51
QAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
:! Analysii:> of re:s",lt!> by function
b) Revenue, exoenses and assets have been attributed to the followin!1 functions:
Functions Income Total Total Net Assets
Grants Other income expenses result
for oeriod
2015 2015 2015 2015 2015 2015
S $ $ $ $ $
CEO - - - 536,083 (53~,083) -
_ .QQmmuni!y Services 2,908,539 --:! !.,~67,590 __ ?Q2?6,129 _?!,649,969. _r[,073,~Q) __ E94,249
Planning and Infrastructure 2,238,035 ~,481,346 10,719,381 38,015,343 (27295,962 34 363
Executive Office 1500 4,380,083 4,381,583 7,223,462 (2,841,879) 18,417)
Comorate Services 2120771 67600 439 69721 210 17 338 680 52382.530 1 062 708,913
Total Council 7,268845 98,129458 105,398,303 90,763,537 14,634766 1 063 329,108
Controlled entity net of eliminations 3,194976 3,194,976 - 3194 976 4233721
Total 7,268.845 101,324,434 108.593.279 90,763,537 17,829,742 1,067,562,829
Functions Income Total Total Net Assets
Grants Other income expenses result
- for oeriod
2014 2014 2014 2014 2014 2014
(6 months) (6 months) (6 months) (6 months) (6 months) (6 months)
$ $ S $ $ $
CEO
-- - 12,000 12,000 293,008 1281 008 -
Community Services 1 301192 8024065 9,325,257 11,303,403 --'1,978,146) 518,m
-Planning and Infrastructure 1,038,819 2,748,611 3,787,430 16,272,444 (12,485,014) 75016
Executive Office - 2,194.964 2,194,964 2,664,360 ------'.669,396) 10,436
Camarata Services 589024 28829846 29,418870 13741 535 15677 335 1033110845
Total Council 2,929,035 41,809,486 44,738,521 44,474,750 263,771 1.033,714,576
Controlled entity net of eliminations - 1,038745 1 038745 1 038745 1 038745
Total 2,929,035 42,848,231 45,777.266 44,474,750 1,302,516 1.034.753,321
P:lop.14
Section 52
QAO
certified statements
NOOsA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
2014
2015 (6 months)
Note $ $
3 Revenue analysis
(8) Rates and charges 1.6(a)
General rates 44,865,172 23,340,468
Separate rates 5,044,577 2,527,651
Special rates 1,397,948 839,351
Waste utility charges 10,617,388 5,015,495
Rates and utility charge revenue 61,925,085 31,722,985
Less: Discounts (1,793,041) (889,269)
less: Pensioner remissions (743,832) (362,869)
Net rates and utility charges 59,388,212 30,470,848
(b) Sale of goods and major services
Sale of recyclables 482,992 283,825
Refuse tips and transfer station charges 1,694,792 836,367
Venue hire 390,428 191,774
Retail shop sales 475,090 64,115
Holiday parks fees and charges 2,859,041 1,315,057
Learn to swim 642,894 250,150
Admission fees 692,475 325,722
7,237,712 3,267,009
(e) Fees and charges
Building and development fees 2,288,735 924,707
Permits and licences 753,830 96,365
Fines and penalties 56,591 46,289
Registration fees 168,437 11,331
Parking penalties 547,917 215,726
Other statutory fees 458,153 205,896
User fees and charges 669,289 661,691
4,942,952 2,162,005
(d) Interest received
Investments 1,834,868 958,097
Loan to UnityNater 2,692,198 1,323,951
Over due rates and utility charges 479,140 238,077
5,006,206 2,520,125
(8) Other recurrent income
Unitywater income tax equivalent received 973,222 494,614
Other income 1,133,133 104,306
2,106,355 598,920
4 Grants, subsidies, contributions and donations 1.6(b)
(I) Recurrent. grants, subsidies, contributions
and donations are analysed as follows:
General purpose grants 2,120,771 585,331
Commomwealth subsidies and grants 1,864,477 899,430
State Government subsidies & grants 1,019,746 385,455
Other Non-Government Subsidies 30,612
Donations 32,834 20,663
Total recurrent revenue 5,068,440 1,890,879
Section 53
OAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
2014
2015 (6 months)
Note $ $
4 (i1) Capital. grants, subsidies, and contributions
are analysed as follows:
(a) Monetary revenue designated for capital funding purposes:
Commonwealth government grants 553,610
State Government subsidies & grants 1,679,628 251,000
NDRRA flood grants 807,819
Contributions 1,607,275 1,300,149
3,840,513 2,358,968
(b) Non-monetary revenue received;s analysed as follows: 1.6(c)
Developer assets contributed by developers at fair value 2,438,114
2,438,114
Total capital revenue 6,278,627 2,358,968
5 Gain on restructure of local government
(a) Net result attributable to Council before net assets transferred from abolished Councils
Net result attributable to Council 972,461,900
Less:
Assets and liabilities transferred from abolished councils 13 869,620,179
Accounting policy adjustments 5 (b) 102,577,950
Net gain on restructure of local government 972,198,129
Net result before gain on restructu~eof local government 263,771
(b) Adjustments due to accounting policy alignment
Property, Plant and Equipment 102,577,950
102,577,950
Section 54
QAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
2014
2015 (6 months)
Note $ $
6 Employee benefits
Total staff wages and salaries 20,050,773 15,114,707
Councillors' remuneration 504,974 239,088
Annual, sick and long service leave entitlements 3,222,457 1,722,269
Superannuation 23 2,707,406 1,305,459
26,485,610 18,381,523
Other employee related expenses 1,140,450 344,416
27,626,060 18,725,939
Less: Capitalised employee expenses (1,500,925) (461,711)
26,125,135 18,264,228
Councillor remuneration represents salary, and other allowances paid in respect
of carryin~oul their duties.
Section 55
QAO
cErtified siatement.
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
9 Cash assets and cash equivalents
Cash at bank and on hand
Deposits at call
Term deposits
Lessorc working capital loan facility
Total cash and cash equivalents per cash flow statement
Externally imposed expenditure restrictions at the reporting date relate to the following assets:
Unspentlevy funds 6.247.670 4.202.197
Unspent developer contributions 3,222,716 2.356.092
Unspent government grants and subsidies 116,220 38.926
Unspent carbon tax 635.000 223.000
Unspent loan monies 128.138
Internally imposed expenditure restrictions at the reporting date relate to the following assets:
Natural Disaster Rehabilitation 2.249.000 3.776.581
Plant Replacement
Future asset replacement 5.335.180 5.335.180
Waste Management 3,466.035 2.594.694
Specific purpose recurrent 2.202,431 1.978.395
Total unspent restricted cash held in reserves 23,474,251 20.633.203
Cash and deposits at call are held in the Commonwealth Bank in a normal
business cheque account. On call accounts are also held with OTC.
Deposits at call earned fixed interest over varying terms at interest rates of
between 2.8% and 3.19%.
10 Trade and other receivables 1.9
(a) Current
Rateable revenue and utility charges 4.165,668 4.159.585
Fees and charges 806.010 1.016.774
GST recoverable 457.957 339.407
Other debtors
Inter-entity balance with SeRC 10,501.227
5,429,635 16,016,992
Prepayments 646.006 411.901
Accrued Revenue 2,451,255 2.377,385
8,526.896 18.806,279
(b) Non-current
Loans and advances to associates 1.11 49,217,517 49,217,517
49.217.517 49,217.517
Interest is charged on outstanding rates at a rate of 11% per annum. No interest
is charged on other debtors. There is no concentration of credit risk for rates and
utility charges. fees and other debtors receivable.
A new loan agreement for the subordinated debt was executed on the 21 June
2013. The new interest only loan structure terminates on the 30 June 2033 with
the interest rate set by OTC annually. Applicable interest rate for 2015 was
5.47% (2014 5.38%).
11 Equity investments
Details of the associate is as follow.
Name of Associate ~ Unitvwater
Princioal Activitv - Water and sewerane services
Place of Ooerations - Moreton Bav Sunshine Coast & Noosa R ions
Prooortion of oarticioation - 4.25%
Section 56
OAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
2014
2015 (6 months)
Note $ $
Summarised financial information in respect of the associate is set out below.
Total assets 3,342,905,329 3,268,129,579
T etal liabilities (1,755,520,456) (1,755,920,879)
Net assets 1 ,587,384,873 1,512,208,700
Share of net assets of associate 67,463,857 64,268,870
Total revenue 624,672,829 550,492,752
Total expenses (460,434,453) (431 ,764,972)
Profit before income tax equivalent 164,238,376 118,727,780
Income tax equivalent expense (43,936,099) (34,261,756)
Protit for year 120,302,277 84,466.024
Share of profit of associate 5,112,835 1,942,760
Investment in associate through participation rights 65,211,946 62,016,970
65,211,946 62,016,970
Details of movements in participation rights
Equity investment in associate - Unity Water 62,016,970 60,997,643
Reco9nition of equity share of profit (loss) in the resull for the period 5,112,835 1,942,760
Less distributions paid/payable to Council (1,917,859) (904,015)
Accounting adjustment on de-amalgamation (19,418)
Fair value at end of financial year 65,211,946 62,016,970
Retained Earnings
Balance of beginning of financial year 77,426,926 41,234,855
Net result for the period 120,302,277 84,466,024
Less distribution paid (45,126,105) (48,273,953)
Balance at the end of the financial year 152,603,098 77,426,926
12 Investment properties
Property held for rental income and capital 9roWth 3,831,234
Fair value at end of financial year 3,831,234
Movement in assets during the reporting period:
Property held for rental income and capital growth
Fair value of assets transferred from other asset category 3,226,719
Revaluation adjustment to income statement 604,515
Fair value at end of financial year 3,831,234
All investment property was valued at fair value by AEC Group Limited, an
independent professionally qualmed valuation finn, as at 30 June 2015.
Operating expenses in respect of investment property are shown in note 7.
P""u:> 1Q
Section 57
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
13 Property, plant and equipment
Note Land Buildings Plant and Road and Bridge Storm Water Other Works In Total
Equipment Network Infrastructure progress
Assets
Basis of measurement Valuation Valuation Cost Valuation Valuation Valuation Cost
2015 2015 2015 2015 2015 2015 2015 2015
Asset Values $ $ $ $ $ $ $ $
Opening gross value as at 1 July 2014 120.945.0~ 74,545,960 7,478.085 ~.371J1J2_ -!47,~;J!?96~ 77.379.795 1.522.733 - 1.045.0~9,3.99
Minor correction 10 opening balance 27 174.067 1.500.94!. . - - 1,675,014
Additions at cost 789083 62:~2. ~_ 1,_374~t 3.944.045 15.010 I--- 3,2.\.5.079' ,_-..6.939~31. __ '5,33!1,301
Contributed assets at valuation ~,?5jL901 1..187,113 ___ 2,438.114
:-
Internallransfers from work in progress - - - - 66.~ __ (66.~ -
Disposals - -l~8.802) - - --- - ~~Jl92)
Write-offs (75.4111) - (941.142 - /217,767) - __ (1,234.3~~)
Revaluation adjust to other comprehensive
19
income. CARS.) -M.27.Q.92 - - 12S~30.121 - 18.157.213
Internal transfers to other asset classes (2,479.014) - - - 2,479,014 -
Transfer to investmenl properties /2.220 000 (17698n - - . '3989877
Closing gross value as at 30 June 2015 119514149 75985096 8353584 621 126643 161968.212 82,922.427 7395858 1 077.265.969
Accumulated depreciation and Impairment
Opening balance as at 1 July 2014 15.1~063 243,102 89.680,8jl~ 43,498.670 23,023.238. 171.631,881
Depreciation provided in period 8 1,457.212 622.843 9.128,475 ---',861,015' 2.599,097 15.~~,6";C
Depreciation on disposals - (31.009j - - - - ,
(31,OQ9j
Depreciation on write-offs (25,077) (283.032) - (133:950i (442.059j
Revaluation adjust to other comprehensive
19
income. (ARS.) (111.363) - 4,234.169, - 4.123 ..106
Inlemal transfers 10 other asset classes (141.546) - - 141.546 -
Transfer to investment properties -'763158 - - '763,158
Accumulated depreciation as at 30 June 2015 15602,131 834,936 98526251 49594,154 25,629 931 190187,403
Consolidated wolten down value 30 June 2015 119,514,1491 7,518,648 1 112,374P58 ! 57.292,496 1 7,395,858 1 887.078,567 I
Range of estimated useful life In years Not deorecialed 3 -72 1.50 O. 150 17-100 0- 100
Addition of renewal assets 62.352 1.337.893 3,920,786 10.507 602.281 4,26.7,188 lOg0',OO7
Addition of other assets 789083 - 36,408 1 274,260 1,191616 2612798 1672243 7,576408
Total additions in period 789083 62,352 1,374,301 5,195.046 1 202123 3215079 5939431 17,n7,415
Page 20
Section 58
NOOSA SHIRE COUNCil
Noles to the financial statements
For the year ended 30 June 2015
13 Property, plant and equipment. prior year
Note Land Buildings Plant and Road and Bridge Storm Water Other Works in Total
Equipment Network Infrastructure progress
Basis of measurement Assets
Valuation Valuation Cost Valuation Valuation Valuation Cost
2014 2014 2014 2014 2014 2014 2014 2014
(6months) (Smonths) (6months) (6months) (6months)
Asset Values (6months) (6months) (6months)
$ $ $ $ $
Opening gross value as all July 2013 $ $ $
159859,939 60,480,551 7,397557 550252,152 104,064,222 54,709,289 3,454,92' 940,218,634
Valuation adjustment on de-amalgamation 5 (38,979.94 ! 14,015208 . 64,818,298 43 680 543 21.284,899 (2,241,057- 102577 950
Additions at cost 59389 50,201 83376 587,305 72 083 1503,739 384,564
Intemallransfers from work in progress . 2,740,657
Disposals
5,679 8,121 14,973 46.924 . (75,698) -
(3.003) . . . (3.003)
Write-offs
7966 (300937 ~27 804 (118 131 .
Closing gross value as at 30 June 2014 120945 066 454838
74545 960 7478065 615371792 147835 968 77 379 795 1522733 1045 079 399
Accumulated depreciation and Impairment
Opening balance as at 1 July 2013 . . . . . .
Valuation adjustment on de-amalgamation 5 14.436,757 85310.488 42,599233 21,666226 164,012,705
Depreciation provided in period 8 749306 244,723 4482163 911 182 1 39~,772
Depreciation on disposals . (76 . .
7758:~
. (7~j
Depreciation on write-offs . (1,545) 91843 (11,745) (33,761)
. (138 894
. . .
Accumulated depreciation as at 30 June 2014 15186063 243102 89680808 43,498670 23023238 171631881
Tolal written down value as at 30 June 2014
Range of estimated useful life in years Nol de reciated 30 • 100 3.20 10. 120 80 12.100
Addition of renewal assets . . 489322 72,083
Addition of other assets 1,499,919 409,810 2,471,134
Total additions in period
59389 50201 83376 97983 . 3820 1 188621 1483390
59,389 50201 83376 587,305 72 083 1503,739 1 598,431 3954524
• ARS denotes. Assel Revaluation Surplus
Page 21
Section 59
OAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
14 Fair value measurements
(i) Recognised fair va~ue measurements
Council measures and recognises the following assets at fair value on a recurring basis:
Property, plant and equipment
- Land
- Buildings
- Road and Bridge Network
- Storm Water
- Other Infrastructure Assets
Council does not measure any liabilities at fair value on a recurring basis.
Council has assets and liabilities which are not measured at fair value. but for which fair values are disclosed in
the other notes.
Council borrowings are measured at amortised cost with interest recognised in profit or loss when incurred.
The fair value of borrowings disclosed in note 18 is provided by the Queensland Treasury Corporation (OTC)
and represents the market value to extinguish the debt at balance date. Liquidity risk information on Council's
borrowings is also disclosed in note 28. This infonnation was provided by arc
and represents the contractual
undiscounted cash flows at balance date.
The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values
due to their short-term nature (Level 2).
In accordance with AASB 13 Fair Value Measurements are categorised on the following basis:
Fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
Fair value based on inputs that are directly or indirectly observable for the asset or liability (Level 2)
Fair value based on unobservable inputs for the asset and liability (Level 3)
The fair values of the assets are determined using valuation techniques which maximise the use of observable
data, where it is available. and minimise the use of entity specific estimates. If all significant inputs required to
fair value an asset are observable, the asset is included in level 2. If one or more of the significant inputs is not
based on observable market data, the asset is included in level 3. This is the case for Council infrastructure
assets, which are of a specialist nature for which there is no active market for similar or identical assets.
These assets are valued using a combination of observable and unobservable inputs.
The table below presents all items that are measured and recognised within the Statement of Financial Position
at fair value. In accordance with AASB 13, all fair value measurements are recurrent and categorised as either
Level 2 or Level 3 fair value measurements. Council does not have any assets or liabilities measured at fair
value which meet the criteria for categorisation as Level 1.
Level 2 Level 3
, (significant (significant
unobservable
other
Total
observable inputs)
As at 30 June 2015 inouts\
Property, plant and equipment
- Land 63,883,083 55,631,066 119,514,149
• Buildings 60,382,965 60,382,965
- Road and Bridge Network 522,600,392 522,600,392
- Storm Water 112,374,058 112,374,058
- Other Inhastructure Assets 57,292,496 57,292,496
63883,083 808,280,977
Page 22
Section 60
QAO
certified statements
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
14 Fair value measurements continued
Level 2 Level 3
(significant (significant
other unobservable
Total
observable inputs)
As at 30 June 2014 inputs) ,-,
Property, plant and equipment
- Land 65.314.000 55.631.066 120,945.066
- Buildings 59,359,897 59.359.897
- Road and Bridge Networ1< 525,690.984 525.690,984
- Storm Water 104.337.298 104,337.298
- Other Infrastructure Assets 54,356.557 54.356,557
65.314.000 799,375.802
There were no transfers between level 2 and 3 during the financial year.
Council's policy is to recognise transfers in and out of the fair value hierarchy levels as at the end of the
reporting period.
(i1) Valuation techniques used to value Council assets comprise:
Land (level 2 and 3)
Land fair values were determined by independent valuer, AssetVal Pty Ltd effective 1 January 2014.
Fair values have been derived based on a combination of market approach and direct comparison
by analysing land sales occurring over (he past year within the Noosa Shire Council area,
Where there was an active and liquid market as evidenced by sales transactions of similar property types,
a market approach by way of direct comparison or income methods can be utilised, and are accepted
valuation methodologies under AASB 13. If a market approach is adopted, the valuation is deemed to be
a Level 2 input.
The direct comparison method which is considered a Level 2 input on the fair value hierarchy, involves the
analysis of sales evidence and comparisons with the subject land taking into account matters such as
area, location and other general site characteristics. Direct Comparison approach was utilised in the
assessment for all Council land assets, however, the fair value measurement has been either a Level 2
or 3, depending on the assumptions as to:
Whether the land is subject to restrictions as to use and/or sale:
Whether there is no active market.
If the above assumptions applied to the land as per Queensland Treasury NCAP 3, fair value has been
assessed as a Level 3. However if an active market was established and there are no unreasonable
restrictions as to use and/or sale, measurement was deemed to be a Level 2.
Land that is utilised for footpath or access restriction purposes, land that is a volumetric title, or due to
its general characteristics land that has no observable active market have been assessed as a Level 3.
Buildings (level 3)
For the majority of Council's buildings, there is no active market due to the specialised nature of the assets
and the services they provide. The fair value of buildings were independently valued by registered valuers
Australia Pacific Valuers, effeclive 30 June 2015.
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Notes to the financial statements
For the year ended 30 June 2015
14 Fair value measurements continued
Due to the predominately specialised nature of local government buildings, the valuations have been
undertaken using a cost approach. This is deemed to be a level 3 input.
Under this approach the cost to replace the asset is calculated and then adjusted to take account of
accumulated depreciation. The valuer disaggregated the building into different components and for
each component determined a value based on the interrelationship between a range of factors. These
include asset condition, legal and commercial obsolescence and the determination of key depreciation
related assumptions such as pattern of consumption and future economic benefit.
Inputs to the valuation include the design and construction, average cost of construction, condition and
consumption score for each component. As these are supported by observable evidence obtained via
inspection and market evidence they have been classified as a Level 2 inputs. The unobservable
inputs (such as estimates pattern of consumption and (based on the asset consumption score) its
relationship to the assessed level of remaining service potential of the depreciable amount, required
extensive professional judgement and impacted significantly on the final determination of fair value.
As such these assets were classified as having been valued using level 3 valuation inputs.
The consumption rating scales were based initially on the past experience of the valuation firm and industry
guides and were then updated to take into account the experience and understanding of Noosa Shire
Council's own engineers, asset management and finance staff. The results of the valuation were further
evaluated by confirmation against Noosa Shire Council's own understanding of the assets and the level
of remaining service potential.
The following table provides a summary of the unobservable inputs and an assessment of the sensitivity
of these to the fair value measurement.
..
Unobservable Sensitivity to Unobservable
Asset Amount of Potentlallmnact
Inputs Market InDuts
Lower I UDDer Lower I UDDer
Buildinas (Cost ADoroachl
Relationship
between asset
consumption
Specialised Buildings rali ng scale and
the level of
consumed
service notential. -2.50% 2.50% .$ 1,489,286.00 $ 1,489,286.00
Other Infrastructure Assets (level 3)
Other infrastructure was last comprehensively valued as at 30 June 2012 using the cost approach by
Aurecon Australia Pty Ltd. This approach involved componentising the assets into significant parts
with different useful lives.
Asset values for the period ended 30 June 2015 have been reviewed with reference to relevant cost indices.
This review indicated that there was no evidence to suggest any material changes to fair value had
occurred. As a result of this, no indexation has been applied to this class.
A comprehensive valuation of this class will be undertaken in 2016. The valuation of other infrastructure has
been determined as a Level 3.
Accumulated Depreciation
In determining the level of accumulated depreciation, assets are disaggregated into significant components
which exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that
type of asset.
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Notes to the financial statements
For the year ended 30 June 2015
14 Fair value measurements continued
Infraslructure A.sets (Ieve! 3)
Due to the specialised nature of Council's infrastructure assets and the services they provide, there is
no active measurable market. The fair value of all infrastructure assets is determined on the basis of
replacement of a new asset or modern equivalent.
Current Replacement Cost (CRG) is measured by reference to the lowest cost at which the gross economic
benefits of the asset could be obtained in the normal course of business. Where existing assets were
over designed. had excess capacity or where redundant an adjustment was made so that the resulting
valuation reflected the cost of replacing the existing economic benefits based on an efficient set of
modern equivalent assets to achieve the required level of service output within the Councils planning horizon.
Infrastructure assets are comprehensively revalued every three to five years. based on component unit
rates developed in line with asset renewal methods.
Specific valuation techniques used to value Council infrastructure assets comprise:
Road and Bridge Network • current replacement cost
Roads
Road and bridge infrastructure was comprehensively valued by independent valuer Aurecon Australia Pty ltd
as at 30 June 2014.
The valuation technique used to determine fair value is essentially based on price modelling of the fair
value through 'Level 3' unobservable inputs. These include a variety of sources to obtain the best information
available for each asset type, including actual contract prices or supply quotes for similar assets.
The unit rates were predominantly developed from first principles by estimating the plant, material and labour
required for asset replacement. The base rates were sourced from local suppliers estimates and quotes,
contract schedules for work recently completed and council records. Where costs have not been readily
available then rates were obtained from Aurecon's cost database or the Rawlinson 2014 edition of the
Australian Construction Handbook.
Council uses 3 distinct location factors categorising its road infrastructure into urban, rural and commercial!
industrial. Roads are further categorised as sealed or unsealed and managed in segments. All road
segments are then further componentised into the sub classes of assets that make up each segment, i.e.
Road Surface, Road pavement - base, Road pavement - sub-base, Road shoulder, Formalion, Kerbs, footpaths
etc. Each asset unit rate is determined on cost to construct, material type and useful life to facilitate valuation
and depreciation.
A review of market data obtained from the Australian Bureau of Statistics, Queensland Roads and Bridges
Index rates for the period 30 June 2014 to 30 June 2015 shows no significant material changes and therefore
the values are considered still at fair value. As a result of this, no indexation has been applied to this class.
Accumulated Depreciation
In determining the level of accumulated depreciation, roads are disaggregated into significant components
which exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that
type of asset.
Bridges
A full valuation of bridges assets was undertaken by independent valuers, Aurecon Australia Ply ltd
effective 1 January 2014. All bridges, with exception to 3 major bridges, were valued based on unit rates
developed according to varying material types used for construction, the deck area, size and length.
Construction estimates were determined on a similar basis to roads. Significant bridge structures were
individually assessed by Aurecon Australia Ply Ltd.
A review of market data obtained from the Australian Bureau of Statistics, Queensland Roads and Bridges
Index rates for the period 30 June 2014 to 30 June 2015 shows no significant material changes and therefore
the values are considered still at fair value. As a result of this. no indexation has been applied.
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Notes to the financial statements
For the year ended 30 June 2015
14 Fair value measurements continued
Accumulated Depreciation
In determining the level of accumulated depreciation, bridges are disaggregated into significant components
which exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that
type of asset.
Stormwater
A comprehensive valuation of stormwater infrastructure was undertaken by independent valuers Aurecon
Australia Ply Ltd effective 30 June 2015.
As there is a significant level of professional judgement used in determining the valuation due to the level
of unobservable data, the valuation of drainage assets has been determined as Level 3.
The fair value unit rates were determined using the prevailing market costs for supply and installation
of similar assets or their modern equivalent. The methodology for calculation of unit rates from first
principles consists of breaking down each asset into its cost components such as demolition,
reinstatement, excavation, construction, delivery and installation. The models used to determine the
unit rates included internal selection of variables for asset size, depth, location and soil type.
Accumulated Depreciation
In determining the level of accumulated depreciation. stormwater assets are disaggregated lnto significant
components which exhibit different useful lives. Useful lives are an estimate of the total service capacity
in years for that type of asset.
Sensitivity Analysis ~Roads, Bridge and Stormwater Network
As detailed above Council's road, bridge and stormwater network has been valued using written down current
replacement cost. This method utilises a number of inputs that require judgement and are therefore classed as
unobservable. While these judgements are made with the greatest care, and based upon years of experience,
different judgements could result in a different valuation. The table below summarises the effect that changes
in the most significant unobservable inputs would have on the valuation:
Slgnlllcant Relationship of unobservable
Range of inputs
unobservable Inout inouts to fair value
Number of labour hours 5-100hrsllinear The higher the labour hours, the
metre or sam hiaher the fair value
Standard material usage Varies depending The higher the usage quantities,
quantities upon the type of the higher the fair vaiue
material
Condition rating (useful As specified The higher the condition rating,
life) above - OH/OM the lower the fair value.
(lowest) to 6H16M
(highest)
Remaining useful life 5-100 years The longer the remaining usefuf
life, the hiaher the fair value.
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Notes to the financial statements
For the year ended 3D June 2015
2014
2015 (6 months)
Note $ $
15 Intangible assets
Net carrying value at period end:
Computer Software 2,701 ,457 2,268,600
2,701,457 2,268,600
Computer Software
Opening gross carrying value 2,290,109
Acquired at cost 342,232 2,171,862
Assest transferred from de-amalgamated Council 118,247
2,632,341 2,290,109
Accumulated amortisation
Opening balance 21,509
Amortisation in the period 250,865 21,509
272,374 21 ,509
Net carrying value 2,359,967 2,268,600
Work in progress 341,490
Total carrying value at end of the financial year 2,701,457 2,268,600
Straight line amortisation has been used with no residual value.
Software has a useful life estimated at ten years.
16 Trade and other payables
Current
Accruals 3,497,696 2,054,226
Creditors 1,074,460 1,185,975
Employee related accruals 766,541 835,081
Annual leave 1.16(c) 2,301,569 2,484,788
Other entitlements 95,871 109,720
7,736,143 6,669,789
Employee benefit expenses are calculated at current pay levels and
adjusted for inflation and likely future chal1Qes in salary level.
The non-current portion of annual leave and long service leave is then
discounted to the present value. Further details on employee
entitlements are reported in Note 1.16
17 Provisions
Current
Long service leave 1.16(b) 4,114,389 4,358,384
4,114,389 4,358,384
Non.Current
Long service leave 1.16(b) 347,535 447,272
Property restoration:
(i) Landfill sites 7,797,389 7,719,069
(ii) Quarry sites 50,000 50,000
8,194,924 8,216,341
Details of movements in provisions:
Long service leave
Balance at the beginning of financial year 4,805,656
Transferred from de-amalgamated council 5,751,090
Amount provided for in the period 318,483 258,040
Amount paid in the period (662,215) (1,203,475)
Balance at end of the financial year 4,461,924 4,805,656
(i) Landfill sites
Balance at the beginning of financial year 7,719,069
Transferred from de-amalgamated council 4,598,150
Increase in provision ~due to change in time 78,320
Accounting adjustment on de-amalgamation 3,120,919
Balance at end of the financial year 7,797,389 7,719,069
PJ'ln"?7
Section 65
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certified statements
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 Jur,e 2015
2014
2015 (6 months)
Note $ $
Current portion
Non-current portion 7,797,389 7,719,069
7,797,389 7,719,069
This is the present value of the estimated future cost of restoring the
Noosa landfill under the State Government environmental regulations
at the end of its useful life.
(ii) Quarry sites
Balance at the beginning of financial year 50,000
Transferred from de-amalgamated council 50,000
Balance at end of the financial year 50,000 50,000
Current portion
Non-current portion 50,000 50,000
50,000 50,000
This is the present value of the estimated future cost of restoring the
quarry sites under the State Government environmental regulations at
the end of its useful life.
18 Borrowings 1.17
Unsecured borrowings
Unsecured borrowings are provided by the Queensland Treasury
Corporation.
All borrowings are in AUD denominated amounts and carried at amortised
cost, interest being expensed as it accrues. No interest has been
capitalised during the current or comparative reporting period. Expected
final repayment dates vary from 19 November 2025 to 4 December 2026.
There have been no defaults or breaches of the loan agreement during
the period.
Principal and interest repayments are made quarterly in arrears.
Details of borrowings at balance date are:
Current
Queensland Treasury Corporation 2,633,065 2,600,397
Non Current
Queensland Treasury Corporation 36,747,480 38,576,628
Details of movements in borrowings:
Queensland Treasury Corporation
Balance at the beginning of financial year 41,177,025
Loans raised 794,000 2,300,000
Loans recognised on the de-amalgamation from SCRC 40,048,048
Loan interest capitalised in period 2,266,452 1,137,954
Principal repayments (4,856,932) (2,308,977)
Balance at end of the financial year 39,380,545 41,177,025
Classified as :
Current 2,633,065 2,600,397
Non-current 36,747,480 38,576,628
39,380,545 41,177,025
Paae 28
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Noles to the financial statements
For the year ended 30 June 2015
2014
2015 16months)
Note $ $
The aTC loan market value at the reporting date was $44,938,354.70
This represents the value of the debt if Council repaid it at that date.
As it is the intention of Council to hold the debt for its term, no
orovision is reouired to be made in these accounts.
No assets have been pledged as security by the council for any
liabilities.
Borrowings are all in $A and are underwritten by the Queensland State
Government
19 (I) Asset revaluation surplus
Balance at the beginning of financial year
Buildings 5,638,455
Storm Water 8.695.652
Balance at end of the financial year 14,334,107
20 Commitments for expenditure
Operating leases
Minimum lease payments in relation to non-cancellable operating
leases are as follows:
Within one year 330,919 658.948
Later than 1 year but not later than 5 years 33,726 333,285
Later than 5 years
364,645 992,233
Operating leases are entered into for motor vehicles and IT equipment.
lease payments are generally fixed, but with inflation clauses on
which future rentals are determined.
Contractual Commitments
Contractual commitments at balance date but not recognised
in the financial statements are as follows:
Within one year 13,496,071 5,162,500
One to five years 13,192,800 1,671,416
later than five years
26,688,871 6,833,916
Capital Commitments
Commitment for the construction of the following assets
contracted for at the reporting date but not recognised as liabilities
are as follows:
Roads, Bridges and Stormwater 6,395,227 510,800
Pathways 217,581 514,500
Other 1,446,400 238,700
8,059,208 1,264,000
These expenditures are payable:
Within one year 8,059,208 1,264,000
later than 1 year but not later than 5 years
later than 5 years
8,059,208 1,264,000
21 Events after balance date
There were no material financial adjusting events after balance date.
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Notes to the financial statements
For the year ended 30 June 2015
2014
2015 (6 monthsl
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 satf-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 (Old) (the scheme). The scheme is a Multi-employer Plan as
defined in the Australian Accounting Standard AASB119 Employee
Benefits.
1 he 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 (COB F) 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 CDSF
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 funcled as
they fall due.
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Notes to the financial statements
For the year ended 30 June 2015
2014
2015 (6 months)
Note $ $
To ensure the ongoing solvency of the Regional oSF, 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 the fund is over or under funded would only
affect future benefits and contributions to the Regional OSF, and is not
an asset or liability 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 2012. The actuary indicated thai "the Regional DBF is
currently in a satisfactory but modest financial position and remains
vulnerable to adverse short and medium tenn experience."
Following the previous actuarial assessment in 2009, councils were
advised by the trustee of the scheme, following advice from the
scheme's actuary, that additional contributions may be imposed in the
future at a level necessary to protect the entitlements of Regional OBF
members. In the 2012 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 OBF when the actuary advises such
additional contributions are payable - normally when the assets of the
OBF are insufficient to meet members' benefits.
There are currently 71 councils contributing to the Regional OBF plan
and any changes in contribution rates would apply equally to all 71
councils. Noosa Shire Council made less than 4% of the total
cont~butions to the plan in the 2014-15 financial year.
The next actuarial investigation will be conducted as at 1 July 2015.
The amount of superannuation contributions paid by Noosa Shire Council
to the scheme in this period for the benefit of employees was: 2,707,406 1,305,459
24 Trust funds
Trust funds held for outside parties:
Monies collected or held on behalf of other entities yet
to be paid out to or on behalf of those entities 2,465,751 2,640,702
2,465,751 2,640,702
The Noosa Shire Council performs only a custodial role in respect of
these monies, and because the monies cannot be used for Council
purposes, they are not brought to account in these financial
statements.
Section 69
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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
Depreciationand amortisation 8 15,919,507 7,719,655
Change in restoration provisions expensed to finance costs 78,320
Interest expense capitalised in arc 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.
Section 70
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NOOSA SHIRE COUNCil
Notes to the financial staterr:ents
For the year ended 30 June 2015
28 Financlallnstruments
Noose Shire Council has exposure to the following risks arising from financial instruments:
• credit risk
- liquidity risk
• market risk
This note provides infonnation (both Qualitative and Quantitative) to assist statement users evaluate the significance of financial
instruments on the Council's financial position and financial performance. induding the nature and extent of risks and how
the Council manages these exposures.
Financial risk management
Noosa Shire Council is responsible for the establishment and oversight of the risk management framework, together
with developing and monitoring risk management policies.
Council's management approves policies for overall risk management, as well as specifically for managing credit,
liquidity and market risk.
The Council's risk management policies are established to identIfy and analyse the risks faced, to set appropriate limits
and controls and to monitor these risks and adherence against limits. The Council aims to manage volatility to minimise
potential adverse effects on the financial perfonnance of the Council. Noosa Shire Council does not enter into derivati •.••
es.
Credit Risk
Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contradual obligations.
These obligations arise principally from the Council's investments and receivables from customers.
Exposure to credit risk is managed through regular analysis of credit counterparty ability to meet payment obligations.
The carrying amount of financial assets represents the maximum credit exposure.
Investments in financial instruments are required to be made with Queensland Treasury Corporation (OTC) or similar state
lcommonwealth bodies or financial institutions in Australia, In line with the requirements of the Statutory Bodies Financial
Arrangements Act 1982.
No collateral is held as security relating to the financial assets held by Noosa Shire Council.
The following table represents the maximum exposure to credit risk based on lhe carrying amounts of financial assets at
the end of the reporting period:
Note 2015 2014
Financial Assets $ $
Cash and cash equivalents. Bank 9 175,276 77.994
Cash investments held with - OTC 9 27,742,381 25,118,125
Cash investments held with other
appro •.••
ed deposit taking institutions 9 22.973,517 5,926,935
Equity investments 11 65,211.946 60,978,225
Receivables. rates 10 4,165.668 4,159.585
Receivables. other '0 50,48',484 61,074,924
Other credit exposure
Guarantee 22 290,070 290,070
Total 171.040.342 157.625.858
Cash and cash equivalents
The Council may be exposed to credit risk through its in•••.
estments in the OTC Cash Fund and QTC Working Capital Facility.
The OTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated counterparties.
Deposits with the QTC Cash Fund are capital guaranteed. Working Capital Facility deposits have a duration of one day and
all investments are required to have a minimum credit rating of "A.-, therefore the likelihood of the counterparty having
capacity to meet its financial commitments is strong.
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Notes to the financial statements
For the year ended 30 June 2015
28 Financial instruments ~continued
Other financial assets
Other investments are held with financial institutions, which are rated AAA to AA- based on rating Standard and Poor's
agency ratings, and whilst not capital guaranteed. the likelihood of a credit failure is assessed as remote,
Trade and other receivables
In the case of rate receivables, Council has the power to sell the property to recover any defaulted amounts. In effect this
power protects the Council against credit risk in the case of defaults.
In other cases, Council assesses the credit risk before providing goods or services and applies nannal business credit
protection procedures to minimise the risk.
By the nature of the Councils operations, there is a geographical concentration of risk in the Council's area.
Ageing of past due receivables and the amount of any impairment is disdosed in the following table:
Not past due Past due Less Total
31 to 60 61 to 90 Over 90 Impaired
days days days
$ $ $ S S $
Receivables: 937,636 61,330 25,296 4.411.620 (6,247) 5.429,635
Loans to UnityNater - - 49.217,517 - 49.217.517
2015 937,636 61,330 2S,296 53,629.137 (6,247) 54,647,152
Receivables 10.371.206 138,236 79.163 5.428,367 - 16.016.992
Loans to Unitywater - - - 49,217.517 49,217,517
2014 10.371,206 138,236 79,163 54.645.904 - 65,234,509
Liquidity risk
Liquidity risk is the risk that the Council will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another finandal asset.
Noosa Shire Council is exposed to liquidity risk through its normal course of business and through its borrowings
with aTC and other financial institutions.
The Council manages its exposure to liquidity risk by maintaining sufficient cash deposits and undrawn facilities.
both short and kmg term, to caler for unexpected volatility in cash flows.
These facilities are disclosed in note 18.
The following table sets out thb liquidity risk in relation 10 financial liabilities held by the Council. It represents the
remaining contractual cashflows (principal and interest) of financial liabilities allha end of the reporting period,
excluding the impact of netting agreements:
Consolidated o to 1 year 1 to 5 years Over 5 years Total contractual Carrying
cash flows amount
2015 $ $ $ $ $
Trade and olher payables 5,338,697 - - 5,338,697 5,338,697
arc Loans 4941 800 19754,559 28458148 53 154507 39380545
'0,280,497 19.754,559 28,458,148 58,493,204 44.719242
2014
Trade and other payables 4,075,282 - - 4,075,282 4,075,282
aTC Loans 7113,778 19436191 32049878 58599846 41177025
11,189,060 19436,191 32,049878 62675128 45,252,307
The outflows in the above table are not expected to occur significantly earlier than outlined and are not expected to
be materially different amounts than indicated in the table.
Section 72
QAO
certified statement5
NOOSA SHIRE COUNCIL
Noles to the financial statements
For the year ended 30 June 2015
28 Financiallnstrumenls •.continued
Market risk
Market risk is the risk that changes in market prices, such as interest rates, will affect the Council's income or the value
of its holdings of financial instruments.
Interest rate risk
Noosa Shire Council is exposed to interest rate risk through Investments with OTC and other financial institutions.
The Council has access to a mix of variable and fixed rate funding options through aTe so that interest rate risk
exposure can be minimised.
Sensitivity
Sensitivity to interest rate movements is shown for variable financial assets and liabilities based on the carrying amount
at reporting dale.
The following Interest rate sensitivity analysis depicts what effect a reasonably possible change in interest rates {assumed
to be 1%} would have on the profit and equity, based on the carrying values at the end of the reporting period. The
calculation assumes that the change in interest rates would be held constant over the period.
Consolidated
2015
Net canying Chanae in arefit & Ilass' hom Chance in e uilv hom
Financial assets and liabilities that are amount 1% increase 1% deaease 1% increase 1% deaease
held at variable interest rates total: $ $ $ $ $
arc cash funds 27742381 277424 '277 424 277 424 1277 424
Other investments 6973,517 69735 169735 69,735 169735
loans -OTC 139380545 (3938051 393805 1393805 393805
Net total 14664647 146646' 46646 146646 46646
2014
OTC cash funds 25118125 251 181 1251 181 251181 (251 181
Other investments 5926935 59269 159269 59,269 159269
loans - OTC 141177025 1411,770 411770 1411 770 411,770
Net total 110131 965 (101 320 101 320 1101,320 101 320
In relalion to the aTe loans held by the Council, the following has been applied:
-OTC Generic Debt poor - the generic debt poor products approximate a fixed rate loan. There is a negligible impact
on the interest sensitivity from changes in interest rates for generic debt pool borrowings.
The sensitivity analysis provided by aTe is currently based on a 1% change but this is subject to change.
Fair Value
The fair value of trade and other receivables and payables is assumed to approximate the value of the original transaction.
less any allowance for impairment.
The fair value of borrowings with aTe is based on the market value of debt outstanding. The market value of a debt
obligation is the discounted value of future cash flows based on prevailing market rates and represe;nts the amount required
to be repaid if this was to occur at balance date. The market value of debt is provided by OTC and is discussed below and
disclosed in note 18.
OTC applies a book rate approach in the management of debt and interest rate risk, to limit the impact of market value
movements to clients' cost of funding. The book value represents the carrying value based on amortised cost using the
effective interest method.
Section 73
QAO
certified statement~
NOOSA SHIRE COUNCIL
Notes to the financial statements
For the year ended 30 June 2015
29 National Competition Policy
(a) Business activities to which the code of competitive conduct is applied
This requires the application of full cost pricing, identifying the cost of community service obligations (GSO)
and eliminating the advantages and disadvantages of public ownership within that activity.
The GSa value is determined by Council. and represents an activities cost(s) which would not be incurred if
the primary objective of the activities was to make a profit. The Council provides funding from general revenue
to the business activity to cover the cost of providing non-commercial community services or costs deemed to
be CSO's by the Council.
Council applies full cost pricing to the following business activities:
Waste Management
Holiday Parks
(b) The following activity statements are for activities subject to full cost pricing:
Waste Waste Holiday Parks Holiday Parks
Management Management
2015 2014 2015 2014
(6 months) (6 months)
$ $ $ $
Revenue for services provided to the Council 207,383 91,616
Revenue for services provided to external dients 12,840,616 6,125,809 2,899,448 1,336,427
• Community service obligations 71 578 9,906
13,119,577 6,227,331 2,899,448 1,336,427
less: Expenditure 8,915,451 4,833,436 1,802,458 747,415
Surplus (deficiency) 4,204,126 1,393,895 1,096,990 589,012
(c) Description of eso's provided to. business activities during the reporting period.
Activities CSO descriolion
Waste Manaoement Waste collection and disnosal charnes for charitable omanisations.
Section 74
0/\0
certified statements
NOOSA SHIRE COUNCIL
FINANCIAL STATEMENTS
For the year ended 30 June 2015
MANAGEMENT CERTIFICATE
For the year ended 30 June 2015
These general purpose financial statements have been prepared pursuant to sections 176 and 177 of the
Local Government Regulation 2012 (the Regulation) and other prescribed requirements.
In accordance with section 212(5) of the Regulation we certify that:
(i) the prescribed requirements of the Local Government Act 2009 and Local Government Regulation 2012
for the establishment and keeping of accounts have been complied with in all ma~erialrespects; and
(ii) the general purpose financial statements, as set out on pages 1 to 36, present a true and fair view, in
accordance with Australian Accounting Standards, of the Council's transactions for the financial year
and financial position at the end of the year.
~~
~~ Chief Executive officer
Name:.4f..f.:/c. !?h::f:/.Ci.~2.. Name: .J3&.:!.:C ..J..<:r.. c;.'0.?..if ':: .
Date: _d_2--,~, )..P ).r I Date:~/......!..:!.... ;to ';
Section 75
INDEPENDENT AUDITOR'S REPORT To the Mayor of Noosa Shire Council Report on the Financial Report I have audited the accompanying financial report of Noosa Shire Council, which comprises the statement of financial position as at 30 June 2015, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and certificates given by the Mayor and the Chief Executive Officer. The Council's Responsibility for the Financial Report The Council is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Local Government Act 2009 and Local Government Regulation 2012, including compliance with Australian Accounting Standards. The Council's responsibility also includes such internal control as the Council determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's intemal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion. Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament.
Section 76
The Auditor-General may conduct an audit in any way considered appropriate and is not
subject to direction by any person about the way in which audit powers are to be exercised.
The Auditor-General has for the purposes of conducting an audit, access to all documents and
properly and can report to Parliament matters which in the Auditor-General's opinion are
significant.
Opinion
In accordance with sAO of the Auditor-General Act 2009-
(a) I have received all the information and explanations which I have required; and
(b) in my opinion -
(i) the prescribed requirements in relation to the establishment and keeping of
accounts have been complied with in all material respects; and
(ii) the financial report presents a true and fair view, in accordance with the prescribed
accounting standards, of the financial performance and cash flows of Noosa Shire
Council for the financial year 1 July 2014 to 30 June 2015 and of the financial
position as at the end of that year.
Other Matters - Electronic Presentation of the Audited Financial Report
Those viewing an electronic presentation of these financial statements should note that audit
does not provide assurance on the integrity of the information presented electronically and
does not provide an opinion on any information which may be hyperlinked to or from the
financial statements. If users of the financial statements are concerned with the inherent risks
arising from electronic presentation of information, they are advised to refer to the printed copy
of the audited financial statements to confirm the accuracy of this electronically presented
information. ollEENSLAND
( Z 7 OCT 2015
,0. ;610~~ " AUOIT OFFICI:.
D STOLZ P Queensland Audit Office
(as Delegat the Auditor-General of Queensland) Brisbane
Section 77
OAO
certified st"tements
NOOSA SHIRE COUNCIL
Current.year Financial Sustainabllit~. Statement
For the year ended 30 June 2015
Measures of Financial Sustainabiiity
(I) Operating surptus rallo
Operating surplus (Net result excluding all capital items) divided by total operating revenue (excludes capital revenue)
(ii) Asset sustalnability ratio
Capital expenditure on the replacement of assets (renewals) divided by depreciation expense.
(ill) Net financlaillabllities ratio
Tola/liabilities less current assets divided by total operating revenue
Council's performance at 30 June 2015 against key financial ralios;
Operating surplus Asset Net financial
ratio sustalnabllity liabilities ratio
ratio
Target behoveen 0% and greater than not greater
10% 90% than 60%
Actual 7.92% 65.10% 1.16%
Note 1 • Basis of Preparation
The current year financial sustainability statement is a special purpose statement prepared in accordance with the requirements of
the Local Government Regulation 2012 and the Financial Management (Sustainability) Guideline 2013. The amounts used to
calculate the three reported measures are prepared on an accrual basis and are drawn from the Council's audited general purpose
financial statements for the year ended 30 June 2015.
Certificate of Accuracy
For the year ended 30 June 2015
This current-year financial sustainability statement has been prepared pursuant to Section 178 of the Local Government
Regula/ion 2012 (/he regu/alion).
In accordance with Section 212(5) of the Regulation we certify that this current-year financial sustainability statement
has been accurately calculated.
J
Ma~
~4rif
Chief Executive Officer
Name: .. L.tr.?Y2!f.'~q
/JIf..~ .... Name: liA..t..~..T 4...';'~.':!~rt.
..~ .
Oate: .}- 3 I ,0 I,)-LJ/ )~
Section 78
INDEPENDENT AUDITOR'S REPORT To the Mayor of Noosa Shire Council Report on the Current-Year Financial Sustainability Statement I have audited the accompanying current-year financial sustainability statement, which is a special purpose financial report of Noosa Shire Council for the year ended 30 June 2015, comprising the statement and explanatory notes, and certificates given by the Mayor and Chief Executive Officer. The Council's Responsibility for the Current- Year Financial Sustainability Statement The Council is responsible for the preparation and fair presentation of the current-year financial sustainability statement in accordance with the Local Government Regulation 2012. The Council's responsibility also includes such internal control as the Council determines is necessary to enable the preparation and fair presentation of the statement that is accurately calculated and is free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion on the current-year financial sustainability statement based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Council's preparation and fair presentation of the statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Council's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the statement. My responsibility is to form an opinion as to whether the statement has been accurately calculated based on the Council's general purpose financial report. My responsibility does not extend to forming an opinion on the appropriateness or relevance of the reported ratios, nor on the Council's future sustainability. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Section 79
Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General's opinion are significant. Opinion In accordance with s.212 of the Local Government Regulation 2012, in my OpIniOn, in all material respects, the current-year financial sustainability statement of Noosa Shire Council for the year ended 30 June 2015, has been accurately calculated. Emphasis of Matter - Basis of Accounting Without modifying my opinion, attention is drawn to Note 1 which describes the basis of accounting. The current-year financial sustainability statement has been prepared in accordance with the Financial Management (Sustainability) Guideline 2013 for the purpose of fulfilling the Council's reporting responsibilities under the Local Government Regulation 2012. As a result, the statement may not be suitable for another purpose. Other Matters - Electronic Presentation of the Audited Statement Those viewing an electronic presentation of this special purpose financial report should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information. D.A~ DSTOLZ'JA Queensland Audit Office (as Delegate of the Auditor-General of Queensland) Brisbane
Section 80
NOOSA SHIRE COUNCil
Long. Term Financial Sustain ability Statement
Prepared as at 30 June 2015
Measures of Financial Sustalnabllity
Ii) Operating surplus ralio
Operating surplus (Net result exduding all capital items) divided by total operating revenue (excludes capital revenue)
(ii) Asset sustainabillty ratio
Capital expenditure on the replacement of assets (renewals) divided by depreciation expense.
(Iii) Nel financial liabilities rallo .
Tota/liabilities less current assets divided by lotal operating revenue
Council's performance at 30 June 2015 against key financial ratios:
Operating Asset Net financial
surplus ratio sustainability liabilities
ratio ratio
Target between 0% greater than not grealer
and 10% 90% than 60%
Actuals al30 June 2015 l_ ~_1:.92% 65.10% , 1.16% ,
Projected for 30 June 2016 l_1.30% '
- ,
129.50y,::J •
12.30r,--'1
30 June 2017 I 1.50% --j 99.00% -11.4O%J
30 June 2018 r-'- .,~OO%-- r 100.10% 10.20% -;
30 June 2019 ~ 2.30% --r 100.60% 8.60% j
30 June 2020 L-_ 2.60% j 100.10% :: 14.2oo70-=-~
30 June 2021
30 June 2022
!.. _ ~Q!o
~.OO% -.f-,
j 97.80%
97. jO~_.t-
+- 0.70%
__-3.20% __
J
I
30 June 2023 I 1.90% 96,20% --1.. -7.00% I
30 June 2024 [~jOO%. I 100.00%-! ... :S:9O%:J
Financial Management Strategy
Council measures revenue and expenditure trends over lime as a guide to future requirements and to make decisions about the efficient
allocation of resources to ensure the most effective provision of services. Council ensures that its financial management strategy is
prudent and that its long-term financial forecast shows a sound financial position whilst also being able to meet the community's current
and future needs.
Certificate of Accuracy
For the long-term financial sustalnabllity statement prepared as at 30 June 2015
This long-term financial sustainability statement has been prepared pursuant to Section 178 of the Local Government
Regulation 2012 (the regulation).
In accordance with Section 212(5) of the Regulation we certify that this long-term financial suslainability statement
has been accuralely calculated.
("~ /)
Vi$tA ~11f2T
Chief Executive Officer
Name: .. ~~.~T..d.~ C.b'l!.?r.t.~ .
Date: 2~ I'~ I 7~, 5