Annual Report 2018-19

                                                                                                 Financial Statements 2019



Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2019

Note 21. Contingent Liabilities
                                                                                                         Council
Details and estimates of maximum amounts of contingent liabilities are as follows:

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 2018 the financial statements reported an accumulated surplus and it is not anticipated any liability
will arise.

Local Government Workcare
Noosa Shire Council is a member of the Queensland local government worker's compensation self-insurance
scheme, Local Government Workcare. Under this scheme the Council has provided an indemnity towards 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 $800,535, (2018: $656,444).

Note 22. Superannuation

Council contibutes to the LGIAsuper Regional Defined Benefits Fund (the scheme), at the rate of 12% for each
permanent employee who is a defined benefit member. This rate is set in accordance with the LGIAsuper trust
deed and may be varied on the advice of an actuary. The Regional Defined Benefits Fund is a complying
superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation
and is also governed by the Local Government Act 2009 .

The scheme is a defined benefit plan, however Council is not able to account for it as a defined benefit plan in
accordance with AASB119 because LGIAsuper is unable to account for its proportionate share of the defined
benefit obligation, plan assets and costs.

Any amount by which the scheme is over or under funded may affect future benefits and result in a change to the
contribution rate, but has not been recognised as an asset or liability of the Council.

Technically Noosa Shire Council can be liable to the scheme for a portion of another local governments’ obligations
should that local government be unable to meet them. However the risk of this occurring is extremely low and in
accordance with the LGIAsuper trust deed changes to council's obligations will only be made on the advice of an
actuary.

The last completed actuarial assessment of the scheme was undertaken as at 1 July 2018. The actuary indicated
that “At the valuation date of 1 July 2018, the net assets of the scheme exceeded the vested benefits and the
scheme was in a satisfactory financial position as at the valuation date." The Council is not aware of anything
that has happened since that time that indicates the assets of the scheme are not sufficient to meet the vested
benefits, as at the reporting date.




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