2014-01-13 Deamalgamation Report Attachment

Attachment 9:   Position Paper Profit & Loss Transfer




                                                        Page 55 of 95

Attachment 9:       Position Paper Profit & Loss Transfer

Sunshine Coast Council

De-amalgamation Transfer

Position Paper - Profit and Loss Transfer

Background

Sections 38 and 39 of the Local Government (De-amalgamation Implementation) Regulation 2013 and Section
6.1 of the de-amalgamation transfer methodology requires the transfer committee to decide on the split of
assets and liabilities between the continuing (i.e.SCC) Council and new (i.e.NSC) Council to determine the
opening balance sheet position for both entities as at 31 December 2013.

In addition to the split of assets and liabilities, there are a number of items that appear on the profit and loss
statement that require further clarification. In some instances a decision will need to be made on whether an
interim shared service agreement needs to be put in place.

Profit and Loss

Rates

Position 1: NSC to prepare and run the rate run for the period of the beginning the 1* of Jan 2014.

Payroll

Position 1: NSC to process their own pay run as of the 1 January 2014. SCC to complete an additional pay run
for employees transferring to SCC for hours worked up until the 31 December 2013 in the first week of
January.
Position 2: If NSC advises SCC no later than the October 30", then SCC will process the January pay run on
behalf of NSC for an agreed fee. Further documentation of this process will be written if required.

Expenditure relating to buildings

Any contracted expenditure related to a specific building should move with that building. This covers mail
services, periodicals, electricity, catering, security, levies and licenses, transport and courier services, pest
control, stationery and insurance. The list of contracts being compiled by the transfer committee will assist in
identifying any building related contract expenditure.

Page 1of1                                                                                          v5.0

                                                                                                    Page 55 of 95