2014-01-13 Item 6.3 Appendices 1-5

 Appendix 1—Balance sheet allocation methodology
The following table sets out 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 based on the 1 July 2012 opening balance position prepared by QTC and published with the Queensland Boundaries Commissioner’s Report.
The sum of the balance sheets for the new council and continuing council must equal the balance sheet used for statutory reporting purposes by the existing council as at
30 June 2013 and 31 December 2013.

Item                         As at 30 June 2013                                                              As at 31 December 2013

                             Council to use the opening balance sheet identified as at 1 July 2012 and       Council to use the opening balance sheet identified as at 30 June 2013 and
                             reconstruct the cash flows that would have occurred for the new council and     reconstruct the cash flows that would have occurred for the new council and the
Cash and cash                the continuing council over the period from 1 July 2012 to 30 June 2013.        continuing council over the period from 31 December 2013.
equivalents                  The cash flow reconstruction should take into account movements in all cash     The cash flow reconstruction should take into account movements in all cash flow
                             flow items including but not limited to accounts receivable/payable, grants,    items including accounts receivable/payable, grants, debt draw downs, repayments
                             debt draw downs, repayments and interest payments.                              and interest payments.

                             Based on the opening balance of debt for the new council and the continuing     Based on the opening balance of debt for the new council and continuing council as
                             council as at 30 June 2012,                                                     at 30 June 2013,
                             -    plus new borrowings in proportion to the value of capital expenditure      -    plus new borrowings made by the existing council on behalf of the new council
                                  made by the existing council in the new council and continuing council          and continuing council
Debt                              geographical area (unless more accurate detail known)
                                                                                                             -    less redemptions made by the existing council on behalf of the new council and
                             -    less redemptions made by the existing council in proportion to the value        continuing council
                                  of borrowings held by the new council and continuing council (unless       over the period from 30 June 2013 to 31 December 2013.
                                  more accurate detail known)
                             over the period from amalgamation on 1 July 2012 to 30 June 2013.

                             Based on the actual contribution to receivables by the new council and          Based on the balance of receivables as at 31 December 2013 for the new council
Receivables                  continuing council as at 30 June 2013 (ie, allocated in accordance with the     and continuing council.
                             underlying transaction).

                             Based on where the land is located as at 30 June 2013. The new council          Based on the location of the land or other assets assumed as at 30 June 2013,
Land held for                and continuing council should receive land held for development in their        adjusted for any agreed movements in land or other assets to 31 December 2013.
development                  geographical areas.




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