2014-01-13 Deamalgamation Report Attachment

Page 20 of 95

APPENDIX A

          Balance Sheet Allocation Methodology (Appendix 1 of De-Amalgamation Transfer Methodology)
          Balance Sheet Item      Methodology - 30 June 2013                                    Methodology - 31 December 2013
          Cash and cash           Council to use the opening balance sheet identified as at 1 July Council to use the opening balance sheet identified as at 30 June 2013
         equivalents             2012 and reconstruct the cash flows that would have occurred for and reconstruct the cash flows that would have occurred for the new
                                  the new council and the continuing council over the period from 1 council and the continuing council over the period from 31 December
                                  July 2012 to 30 June 2013                                     2013
                                  The cash flow reconstruction should take into account movements in | The cash flow reconstruction should take into account movements in all
                                  all cash flow items including but not limited to accounts     cash flow items including accounts receivable/payable, grants, debt
                                  receivable/payable, grants, debt draw downs, repayments and   draw downs, repayments and interest payments
                                  interest payments
         Debt                     Based on the opening balance of debt for the new council and the Based on the opening balance of debt for the new council and
                                  continuing council as at 30 June 2012,                        continuing council as at 30 June 2013,
                                  - plus new borrowings in proportion to the value of capital   - plus new borrowings made by the existing council on behalf of the new
                                  expenditure made by the existing council in the new council and council and continuing council
                                  continuing council geographical area (unless more accurate detail
                                 known)                                                         - less redemptions made by the existing council on behalf of the new
                                                                                                council and continuing council
                                  - less redemptions made by the existing council in proportion to the    ;
                                  value of borrowings held by the new council and continuing council | Over the period from 30 June 2013 to 31 December 2013
                                  (unless more accurate detail known)
                                 over the period from amalgamation on 1 July 2012 to 30 June 2013
         Receivables              Based on the actual contribution to receivables by the new council Based on the balance of receivables as at 31 December 2013 for the
                                  and continuing council as at 30 June 2013 (i.e. allocated in  new council and continuing council
                                  accordance with the underlying transaction)
         Land held for           Based on where the land is located as at 30 June 2013. The new Based on the location of the land or other assets assumed as at 30
         development              council and continuing council should receive land held for   June 2013, adjusted for any agreed movements in land or other assets
2                                 development in their geographical areas                       to 31 December 2013
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