2014-01-13 Item 6.3 Appendices 1-5

6. Financial matters
6.1. Balance sheet
The transfer committee must decide the split of assets and liabilities between the
continuing and new council to determine the opening balance sheet position of the
new council.

The Queensland Boundaries Commissioner’s de-amalgamation report included a
financial analysis prepared by QTC. As part of this analysis, QTC established an
opening balance sheet position as at 1 July 2012 as a base case for testing.

Considerable effort was undertaken by QTC in constructing these opening balance
sheets, which are based on the actual financial position of each council at
amalgamation in 2008 along with a break up by new and continuing council area
from 16 March 2008 to 30 June 2012.

Due to the significant effort and cost involved in reaching this position, it is
recommended, particularly to determine a starting position for the break up of cash
and debt, that the transfer committee give consideration to using the figures
established by QTC.

Appendix 1 provides the proposed balance sheet allocation methodology, prepared
by QTC, that may be used to determine the separation of balance sheet items
between the continuing and new councils.

Each transfer committee will be provided with QTC financial information relevant to
their council.


6.2. Summary of opening financial position
The transfer manager must also prepare a detailed report outlining the new council’s
opening financial position and short-term financial outlook. This report must be
provided to the new council at its first meeting.




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