2011 - 2012 Coomalie Community Government Council Annual … Report... · 2018. 2. 7. · Coomalie...

Coomalie Community Government Council Annual Report 2011 – 2012 Page | 1

2011 - 2012

Coomalie Community Government Council

Annual Report and Audited Financial Statements


Contents A message from the Shire President ....................................................................................................... 3

A message from the Acting Chief Executive Officer ............................................................................... 6

About Us ................................................................................................................................................. 9

Our Councillors...................................................................................................................................... 11

Our Staff ................................................................................................................................................ 12

Our Organisational Structure ................................................................................................................ 13

Performance against objectives in Shire Plan ....................................................................................... 14

Financial Graphs .................................................................................................................................... 28

Sources of Income 2011/2012 .......................................................................................................... 28

Expenditure by Category 2011/2012 ................................................................................................ 28

Key Performance Indicators .................................................................................................................. 29

Average Rates and Charges per Assessment .................................................................................... 29

Outstanding Rates, Charges and User Fees ...................................................................................... 29

Rates and Charges as a % of Total Revenue ..................................................................................... 30

Total Operating Expenditure per Shire Resident .............................................................................. 30

Expenditure per km of local roads .................................................................................................... 31

Audited Financial Statements 2011/2012 ............................................................................................ 32


A message from the Shire President On behalf of Council, I am pleased to report on the major activities and achievements of the

Coomalie Community Government Council for the 2011/2012 financial year.

I would also like to thank the Council members for the confidence shown in electing me to the

position of President of the Council and would like to thank and congratulate Cr Andrew Turner for

his excellent service to the Community as President for the past 4 years.

Councillors:

The annual election held in March 2012 resulted in six new Councillors being elected. The election

results were as follows:

Adelaide River Rural Ward - Cr Ewan Crook. Retiring member was Cr Robbie Bright. Adelaide River Township Ward - Cr Deidre Pickering and Cr Max Corliss. Retiring members were Cr Tommy Fawcett and Cr Deb Koch.

Batchelor Rural Ward - Cr Sue Bulmer was re-elected. Batchelor Township - Cr Jeff Colver, Cr Bruce Jones and Cr Geoff Morton. Retiring members were Cr Daryl Butler, Cr Linda Douglas. Cr Bruce Jones was re-elected. Coomalie /Tortilla - Cr Andrew Turner was re-elected.

Lake Bennett - Cr Dave Gray. Retiring member was Cr. Trevor Sullivan. On behalf of the Coomalie Community, I congratulate the newly elected Councillors and thank those retiring Councillors for their service to the community.

Cr Bruce Jones was elected to the position of Deputy President and I would like to acknowledge the

wonderful service Cr Jones has given to the Coomalie Community as a member of Council since its

inception in 1991.

Staff

The year under review saw some significant changes in Council’s management team. Councils Chief

Executive Officer Mr John Hughes resigned in January 2012 and Mrs Melissa Kerr has acted in the

capacity of CEO until Council appointed Mr Lee Farrell to the position of CEO in May 2012. I would

like to thank Melissa for the very efficient manner she carried out the positions of Acting

CEO/Finance Manager during the changeover of Chief Executive Officers. Lee Farrell will take up the

CEO position in early July 2012.

Community and Economic development

Council continues to direct considerable effort towards enhancing the lifestyle of the community.

The Shire receives positive support from the Department of Sport and Recreation to allow the

engagement of a community Recreation Officer Ms Marilyn Morris. This enables Council to work

with the community of all ages to bring much needed services and activities to the Coomalie region.

The Anzac Day dawn service at Adelaide River, Adelaide River Show and the Lingalonga festival are

just some of the major events that Marilyn and her community volunteers are able to organise.

These events attract visitors from far and wide and are important events of the district’s social

calendar.


The local tourist groups in Batchelor and Adelaide River continue to actively promote and develop

the tourist attractions in both centres for the benefit of visitors and the local economy. The

Batchelor Museum, under the leadership of Ms Jan Hills has been restored and developed through

volunteer assistance and Government funding. This new Tourist attraction will officially open on 4th

August 2012.

The tourist centres in Batchelor and Adelaide River continue to be manned by volunteers and I

would like to thank each and every one of those community members for their commitment in

providing an excellent tourist service to our visitors.

Citizenship awards were presented on Australia day recognising those who have generously

contributed voluntary time and effort to emergency service organisations, community organisations

and sporting clubs. Council acknowledges the valuable role these volunteers play in sustaining the

lifestyles of the communities of the three centres in the Coomalie region. I would like to

congratulate this year’s winners – Sandra MacLean, Dr Jan Hills, Katrina Brink, Chris Roe, Tyla Bilston,

Leanne Mahaffey and Adelaide River Show.

The Coomalie Council is strategically located on the Stuart Highway and is the gateway to the last

frontier and Litchfield National Park. Councillors, the local committees and Tourism Top End form an

excellent partnership that continues to play an important part in developing policies and projects

that support and further develop tourism in the area.

The subdivision of rural land continues to be very active within the Coomalie area and these

developments will continue to promote and develop the Coomalie region well into the future,

especially in relation to the provision of rural lifestyle accommodation close to the oil and gas

expansion projects in the Darwin area.

Regional Cooperation

The cooperation between Councils in the Top End and in particular LGANT and TOPROC has

continued to assist Council in the development of long term planning and promotion of the area well

into the future. I would like to acknowledge these organisations for their input over the past year.

The Way Forward

The election of a new Council has seen changes and an in-depth study to improve the way Council

undertakes various projects and develops its future. In the short period I have been in the role of

President, Council has initiated and requested that the following be reviewed within the next

financial year. The list includes but is not limited to the following:

Review of all Councils Works and Operations;

Review of Council representation;

Review of the management of the Batchelor Pool;

Implementation of new Asset Management and long term financial planning;

Review of its strategic plan;

Development of a regional waste site;

Review of its Tourism Strategic Planning and operations; and

Removal of Native Title over the Batchelor town site to allow major development to occur.


In conclusion, I would again like to acknowledge the service of past Councillors and staff and thank

them sincerely for their contribution to the development of the Coomalie Community Government

Council and welcome in the “new team” to continue the new challenges we face as a Council and a

Community into the next decade.

Jeff Colver

Shire President, Coomalie Community Government Council

Minister Rob Knight serving up breakfast – Australia Day 2012


A message from the Acting Chief Executive Officer It is with pleasure I present my annual report on the 2011/12 year of operations of the Coomalie

Community Government Council.

Management Staff

In the year under review there were several changes in the management of Council. Mr John

Hughes resigned from the position of Chief Executive Officer in early February 2012 and Mrs Melissa

Kerr acted in this capacity until the new CEO, Mr Lee Farrell was appointed on 9th July 2012. Mr Joey

Taylor resigned from the position of Operations Manager in March 2012 and Mr Robbie Bright was

appointed to this position in April 2012. Mr Gavin Webb resigned from the position of Works

Supervisor in March 2012 and Mr Patrick Atie was appointed to the position in April 2012. The

remainder of Council staff have responded well to the challenges and are a blend of dedicated and

professional staff which has resulted in benefits to the Shire. The Management staff of Council at

30thJune 2012 are:

Acting Chief Executive Officer / Finance Manager Melissa Kerr Administration Manager Jo’Anne Kinter Operations Manager Robbie Bright

Roadwork

Upgrading and maintaining the Councils road network continued to be the principal priority of the

Shire. Some of the larger jobs completed during the year under review comprised of Chinner,

Haynes, Cadogan, Echidna, and Coach Roads. Four kilometres of Solomon Road was reconstructed

and sealed using Roads to Recovery funding of $550,834, total project value $577,586.

Finance

The Council’s financial position at the 30th June 2012 ended with a deficit of $676,431. Cash at bank

at year end was $747,499. The cash at bank contained an amount of $510,183 for grants received in

advance for the 2012/13 financial year. This restricted cash component refers to unspent grants

that will be finalised in the 2012/13 financial year. This was a pleasing result due to Council

experiencing a number of management changes that required out of budget expenditure. The

remainder of the works and services completed were carried out within budget estimates and I

congratulate all staff and Councillors in achieving this excellent result.


Capital Expenditure

In the year under review Council was able to undertake the following capital works/purchases:

Chemical Storage Containers 17,088

Upgrade Rum Jungle Bowling Green 30,130

Plant Trailer 6,000

Commander Phone System 9,150

Administration Server 14,428

Solomon Road Construction and Seal 577,586

Total Capital Works $654,382

Community Recreation Activities

Council’s Community Recreation Officer, Marilyn has been very active during the year in providing

numerous activities to all age groups within the Coomalie Community. Her successes include the

Teddy bears picnic, Lingalonga festival, Australia day, Anzac day, Seniors week, Seniors Christmas

party, Territory day, clean up Australia day, Youth week, Children’s week, Austswim, Fun with food,

school holiday programs and after school activities.

Council would like to acknowledge the NT Department of Sport and Recreation for their continued

financial support of this position.

Batchelor Swimming Pool

For the first time in years the Batchelor pool was closed at the end of the wet season to enable

repairs to be carried out to the filtration and pumping equipment at the pool. This work will be

undertaken over the dry season in readiness for reopening prior to the wet season. Council will also

be reviewing its management policy for the pool as NT Work Safe have requested Council to assess

its current key operating system which does not meet current NT Work Safe standards.

Regional Cooperation

The Shire has become an active member of the Local government Association NT (LGANT) and Top

End Regional Organisation of Council’s (TOPROC) as a means of developing policies that will benefit

the Coomalie Shire and the region as a whole. In the year under review these organisations have

been involved in NT regional issues such as the development of a regional waste site for the NT,

changes to the planning process and requiring more involvement by local government in the

decision making, review of Council amalgamations, local government constitutional recognition and

asset management and planning by Councils.

The Coomalie Council has developed a strong working relationship with the Local Government

Association NT and appreciation is extended to the Board, CEO and staff at the Association for their

continued support and assistance provided to the Council during the changeover of CEO’s.


The year ahead

The Council has a busy year ahead with a number of major planning initiatives including:

Reviewing Council’s Strategic Plan;

Reviewing operational works and services, procedures and costs;

Reviewing current boundaries and sustainability assessment; and

Reviewing planning and administration policies and procedures.

Appreciation

This opportunity is taken to thank Councillors and staff for their assistance throughout the year. This

high level of cohesiveness and cooperation results in consistently good outcomes for the

community. Appreciation is also extended to the many volunteers, health and police personnel who

serve our community so well and help maintain the area as a safe and friendly place in which to live.

Melissa Kerr

Acting Chief Executive Officer

Wildflowers in the Coomalie Region


About Us This financial year 2011 to 2012 is Council’s 21st year of operation. The council was approved by the

NT Government in 1990 and held its first election on 2nd May 1991, and has seen many highs and

lows over the preceding years.

The Coomalie Region is part of the greater Darwin Region and the area encompasses the well

serviced townships of Batchelor and Adelaide River. The region commences 75km south of Darwin

extending either side of the Stuart Highway to the south for 45kms, ending south of the Adelaide

River Township. The area is 1650km2 and has an estimated population of 1,112 residents (Census

2011).

The industry base of the Coomalie Region is increasing in its diversity, having moved from a heavy

reliance on the pastoral and mining sectors to now include tourism, education and horticulture as

major sectors of the local economy. Service industries to these major industry sectors are also

developing within the region.

The Coomalie Region is a significant tourist destination with high visitation rates, Batchelor being the

gateway to Litchfield National Park and Adelaide River the headquarters during WWII after the

bombing of Darwin. The region is steeped in history from early Chinese market gardens, use as a

base during the Second World War, and mining.

The original inhabitants of the Coomalie Region were Aborigines of the Kungarakan, Awara and

Warai groups. The first European activity in the region was recorded in 1860 when members of

George Goyder’s survey expedition undertook extensive surveys in the north of Australia.

The first settlement in the region was at Adelaide River Township in 1870, when a depot was

established for telegraph workers constructing the Overland Telegraph Line. The town expanded

with the construction of the railway line from Darwin to Pine Creek in 1888, then expanded again

when it became a huge military base with the 119 Australian General Hospital and the main

American headquarters, Base Section One during World War II. After the bombing of Darwin on 19

February 1942, it became the centre of military activity. Today the Adelaide River War Cemetery is

the resting place of 54 civilians and 434 service men and women killed in the Top End during WWII,

plus 287 service personnel who were lost in Timor and Northern regions, but who have no known

grave.

At the heart of the Coomalie region lays the Rum Jungle district, named following a bullock wagon

load of rum, destined for construction gangs that was bogged near a patch of jungle on the crocodile

infested East Finniss River and the bullockies set about drinking the rum, having a most glorious

binge. Thereafter the locals enviously named the areas as Rum Jungle.

In 1912 the present town of Batchelor was named and during the war years the area grew again with

the airstrip expansion. The original aerodrome was constructed in 1933 and was upgraded and used

extensively in the war years. In 1949 uranium was discovered at the Rum Jungle Mine and the mine

continued until 1971 when uranium mining came to an end.

Coomalie has a unique character and identity that is a result of the area’s history from WWII, mining

and horticulture.


The vision of the Coomalie Community Government Council is to sustain and nurture the growth of

the lifestyle and quality of life of residents and visitors. This will be achieved through improvements

to economic, cultural and ecological opportunities and will work on creating an involved and

supportive community, promoting investment, ensuring accessibility and capitalising on our natural

advantages with an emphasis on sustainability.

While boundary expansion options are being explored, Coomalie Community Government Council is

currently operating effectively in providing core services to our community.

Three bridges at Adelaide River – low level crossing, new bridge, railway bridge


Our Councillors In March 2012 the Northern Territory Local Government elections were held. Coomalie Council has

six wards and nine elected members. Three elected members from the previous council were re-

elected, Andrew Turner, Sue Bulmer and Bruce Jones. Six new members were elected, Jeff Colver,

Geoff Morton, Diedre Pickering, Ewan Crook, Max Corliss and Dave Gray. Council voted in Jeff Colver

as President and Bruce Jones as Deputy President. This new council has been elected for a term of

four years.

Name Role Ward Telephone Email

Jeff Colver President Batchelor Township

0427 096 879 [email protected]

Bruce Jones Deputy President

Batchelor Township


Geoff Morton Councillor Batchelor Township


Andrew Turner Councillor Coomalie/ Tortilla


Ewan Crook Councillor Adelaide River Rural


Sue Bulmer Councillor Batchelor Rural


Max Corliss Councillor Adelaide River Township


Diedre Pickering

Councillor Adelaide River Township


Dave Gray Councillor Lake Bennett


LGANT 2012 Good Governance Conference – Cr. Bulmer, Cr. Pickering, Melissa Kerr, Cr. Gray

mailto:[email protected]










Our Staff 2011/2012 saw a big change in staff. The year commenced with John Hughes as Chief Executive

Officer, Chrissie Leavy as Administration Manager, Melissa Kerr as Finance Manager and Joey Taylor

as Operations Manager. Our Receptionist was Lola Stephenson and the works crew consisted of Ian

English, Gavin Webb, Pat Atie, Billy Selems, and Rhiannon Compton.

As the year progressed, Ian English retired, Chrissie Leavy resigned and John Hughes and Lola

Stephenson moved interstate early 2012. Joey Taylor and Gavin Webb also resigned in 2012.

The staff who saw us through to the end of June 2012 was Acting Chief Executive Officer Melissa

Kerr, Administration Manager Jo’Anne Kinter and Operations Manager Robbie Bright. We were also

joined by our capable works crew of Pat Atie, Billy Selems and Kylie Turner, Receptionist Stacey

Shooter, Community Recreation Officer Marilyn Morris and part time Finance Officer Hanna

Blokland.

Our casual librarians Prue King and Sue Munro in Batchelor and Pam Donovan in Adelaide River put

in another great year providing our community with well stocked and warm, welcoming libraries.

We have a fantastic group of staff here at Coomalie Council and all are very willing to help out at the

various community events the region holds throughout the year. Thank you to you all for your

enormous contribution to our region, it always looks a picture and the fabulous community events

are enjoyed by all those who attend.

Installing culverts on Solomon Road Reconstruction – Roads to Recovery funding


Our Organisational Structure

Council

Chief Executive Officer

Administration Manager

Administration Officer

Community Recreation

Officer

Batchelor Librarians

Adelaide River Librarians

Operations Manager

Pool Supervisor Animal

Management Officer

Operations Supervisor

Service Officer

Service Officer

Finance Manager


Performance against objectives in Shire Plan PRINCIPAL ACTIVITY: Administration

GOAL: To improve the efficiency and effectiveness of Council’s administration

Strategy Statement of Means Performance Assessment Performance in

2011/2012

Establish

performance

management plan

with staff members

Maintain adequate

employment levels

of appropriately

trained staff

Performance

management plan

Annual performance

appraisal

Training needs addressed

EEO recruitment

practices

Agreed performance

criteria

Performance plan agreed,

performance appraisals

conducted annually and

training provided

Budget allocation

Staff retention levels

Performance

appraisals were

conducted for all

staff in June 2012.

Training needs

were identified and

budgeted in

2012/13.

Staff turnover in

2011/12 was 50%.

Inform constituents

and public about

local issues

Continued production of

Stop Press

Notice board kept up-to-

date

Web site up-dated

monthly

Stop Press published and

distributed

Notice board serviced

weekly

Web site updates

Stop Press, the

notice board and

website were

published and

updated monthly.

Conduct Council

Elections

Assist NTEC with council

elections

Increased number of

residents casting votes

Batchelor Rural

Ward was the only

ward to go to poll

with 65% (81/124)

of electors voting.

Participation in

aged care

Liaise with COTA, monitor

needs, develop scoping

plan, seek guarantee that

land is available for aged

care facility if funding

provided

Monitor age distribution of

population

Land guaranteed

Plans developed

23% of our

population is over

60.

The median age of

residents is 45.

Aged care remains

a council priority if

funds are obtained.


PRINCIPAL ACTIVITY: Public Conveniences

GOAL: To provide adequate and attractive facilities for residents and visitors

Continued

professional

development and

training for

Councillors

External and in house

training provided

Number of training

sessions/number of

Councillors attending

6 councillors and

the CEO attended

the Good

Governance

Training by LGANT

in May 2012.

Keep software and

hardware up to

date

Annual review of IT

assets

Systems up to date and

functioning efficiently

New server

installed, 2 new

machines and 2

new printers in

2011/12.

Explore Boundary

Expansion to join

with

unincorporated

areas

Consultation with

residents of

unincorporated areas

seeking options.

Consultation with

Coomalie residents to

present options.

Funding for consultations

granted. Consultations

successfully completed

and the best option for

boundary expansion

implemented

Boundary

expansion will be

re visited after

Territory elections

in August 2012.

Strategy Statement of Means Performance

Assessment

Performance in

2011/2012

Level of cleanliness Inspection of facilities,

upgrading of facilities

Number of inspections

Number of inspections

requiring action

Toilets inspected

daily by cleaners.

Faults attended to

by works crew

ASAP.

Maintain levels of service

to public conveniences

Budget Allocation

Efficient contractors

engaged

Funds allocated

Contractors work

checked for

inadequacies

Contractors

engaged and

monitored by

Operations

Manager within

budget allocation.


PRINCIPAL ACTIVITY: Sanitation and Garbage

GOAL: To maintain and improve environmental management


Assessment

Performance in

2011/2012


to garbage facilities

Budget Allocation


engaged

Funds allocated

Contractors work

inspected

Garbage

contractor

engaged and

monitored by

Operations

Manager.

Relocate Batchelor tip or

convert to waste transfer

facility

Negotiate with

landholders, seek grant

from government

Identify new site

Possession of new site

New costine to be

dug in 2012/13

for Batchelor tip.

PWC have no

concerns at

present with

Batchelor tip.

Expand capacity Adelaide

River tip

Construct second skip

bay

Monitor volume of

waste in dry season

Skip pick up twice

a week in dry

season.

New costine to be

dug in 2012/13 at

Adelaide River tip.

Expand recycling

(aluminium cans, waste

oil, batteries)

Encourage commercial

operators. Apply for

grants

Number of recycling

stations, volume

recycled

Recycling

constant at both

towns. Increase

community

awareness

2012/13.

Provision of 240 litre

garbage bins

Budget Allocation

Reduce garbage

collection to once per

week

Funds allocated

Decrease in cost of

collection service

Garbage service

delivered to town

areas once a

week for domestic

and twice a week

for commercial

within budget.


PRINCIPAL ACTIVITY: Cemeteries

GOALS: To establish and maintain a facility that satisfies the community’s needs

Coomalie Bush Cemetery Adelaide River

Adopt environmentally

friendly practices

Prevent burning of tips

by signage & fines

Number of reports of

fires

3 reported fires at

tips

Ongoing education

program re what to put in

skip bins and what to put

in dry landfill,

indiscriminate dumping

Notices in Stop Press,

direct approach to

commercial users

Number of

indiscriminate dumping

incidents

Improvement in

dumping practices

Tyres are still an

issue being

indiscriminately

dumped.

Our community

needs more

education on

waste. A

recycling initiative

will be

implemented at

all community

events in

2012/13.


Assessment

Performance in

2011/2012

Maintain watering

system, gardens and

ashes pergola at

Coomalie Bush

Cemetery

Budget Allocation Facility and gardens

maintained

The regions

cemeteries are

maintained to an

excellent standard

and visitors

regularly comment

on this.


PRINCIPAL ACTIVITY: PARKS & GARDENS

GOALS: To create and maintain attractive, sustainable open spaces for public use and enjoyment


Assessment

Performance in

2011/2012

Maintain levels of

service to parks &

gardens

Budget Allocation


engaged

Funds allocated

Contractors work

inspected

Contractors were

utilised to

maintain the

majority of

Council’s parks

and gardens

within budget.

Plant replacement trees

before mature trees die

Replacement forward

planning

Number of replacement

trees planted

No replacement

trees were

planted. Mature

trees were

inspected by

arborists and

maintained

accordingly.

Provision of additional

playground equipment

Budget Allocation Additional equipment

installed/usage

Council were

successful with a

NTG grant to

install playground

equipment at the

Adelaide River

Oval.

Skate ramps in

Batchelor and

Adelaide River

were also installed

with NTG grant

monies.

Clean silt off low level

after flooding

Contact DIPE as

appropriate

Number of days mud

remains

DIPE were

contacted and

mud removed

when necessary.


PRINCIPAL ACTIVITY: Libraries

GOAL: To satisfy the community’s needs for access to information

Norforce Catafalque Party at Bombing of Darwin Ceremony Adelaide River – February 2012


Assessment

Performance in

2011/2012

Maintain and improve

internet access &

equipment at Adelaide

River Library

Monitor equipment and

maintain and replace as

appropriate.

Number of users Both libraries were

well utilised with

an average of well

over 20 users per

session opening.

Continue to provide

staff for Adelaide River

& Batchelor Libraries

Staff employed Number of clients

borrowing books &

using Libraries

Records from the

libraries show high

usage of

borrowings.


PRINCIPAL ACTIVITY: Sports and Recreation Facilities

GOAL: To provide sporting, recreation and leisure facilities to foster the physical and mental wellbeing of residents and the wellbeing of the community.


Assessment

Performance in

2011/2012


to Sports and Recreation

facilities

Budget Allocation

Staff time allocated

Funds allocated

Facilities maintained

Sport and

Recreation

facilities were

maintained in

good working

order.

Promote commercial use

of oval, bowling green,

tennis courts and pool

Advertising locally and

outside the area

Increased usage of

assets

Commercial use of

facilities will be

implemented in

2012/13.

Construction of cycle

ways

Budget allocation,

grant submission

Cycle ways constructed

and level of usage

No cycle ways

were constructed.

Lighting of Batchelor oval Seek design from

PAWA, contact those

who will be affected

Lighting installed and

level of night usage

No lighting was

installed.

Maintain Adelaide River

Access Shed

Funds Allocated Facility maintained

Increased usage

The Access Shed

has had an

enormous increase

in demand with

the gym

equipment and is

maintained in

good working

order.


PRINCIPAL ACTIVITY: Swimming Pool

GOAL: To provide a well maintained and attractive facility that materially adds to lifestyle in the community


Assessment

Performance in

2011/2012

Actively promote

increased usage,

organised activities for

youth and adults

Liaise with community

groups

Attendance figures The pool was well

utilised during the

season by local

schools, outdoor

education, the

Institute and the

community.

Promote commercial use

of pool

Contact commercial

operators

Attendance figures The pool will be

commercialised in

2012/13.

Review usage of pool by

identifying most popular

hours of use

Revise recording of

attendance

Time frame identified Review of hours in

2012/13 in line

with usage.

Continue to maintain

the swimming pool and

surrounds

Maintain data base of

treatment and results

to find optimum

treatment levels

Pool staff to maintain

grounds

Minimal downtime for

swimming pool

Pool and surrounds in

good condition

Funds allocated for

wages and staff training

Appropriate staff

engaged and training

provided

The pool was not

closed during the

year.

The surrounds

were maintained

and appropriate

staff operated the

pool. Relief staff

will be trained in

2012/13.

Continue to maintain

staffing levels at the

swimming pool

Budget allocation

Provision of training for

staff


PRINCIPAL ACTIVITY: Community Recreation

GOAL: To guide the community towards sporting, recreation and leisure pursuits which improve the quality of life for residents and the community as a whole.


Assessment

Performance in

2011/2012

Offer support to

clubs/societies interested

in hosting events

Support organisations

with management

expertise and

manpower

Number of

organisations assisted

Number of events

provided with

assistance

Council assisted

with Australia

Day, Anzac Day,

Territory Day,

Harmony Day,

Seniors Month,

Lingalonga

Festival, Adelaide

River Races,

Adelaide River

Show, School

Holiday Programs,

Clean Up Australia

Day, Batchelor

Museum

Development

Association

Continued employment

of Community Recreation

Officer

Submit funding

application for grant

Funding granted


Performance measures

agreed and

implemented

The Community

Recreation Officer

continued her

employment and

met all agreed

criteria from

funding body.


PRINCIPAL ACTIVITY: Roads

GOAL: To improve the quality of the road network of Coomalie region


Assessment

Performance in

2011/2012

Maintain contact with

DIPE re maintenance

requests for their roads

Arrange visits by DIPE

officers

Operations Manager

monthly reports to

OGM

Number of items

reported

Monthly reports to

Council from OM.

Continual contact with

Dept re road works.

Spray roadsides for

gamba and mission grass

Use contractors

Staff to undertake

remainder

Kilometers of roadside

sprayed

Effectiveness of spray

treatment

100km of roads

sprayed, some twice.

This was effective in

controlling the gamba.

Continue to maintain and

upgrade roads

throughout the region

Program of routine

works

Program of

capital/upgrade works

Routine works carried

out in timely manner

Upgrades/capital works

completed on schedule

and within budget

70km of roads received

maintenance grade.

Solomon Road was

reconstructed and

sealed within budget

from Roads to Recovery

Funding.

Effective use of Roads to

Recovery funding

Carry out works funded

by Roads to Recovery

Works satisfactorily

completed on time and

within budget

Solomon Road was

reconstructed and

sealed within budget

from Roads to Recovery

Funding.

Construct access roads to

rural properties

Lobby for funding

Develop plan to

priortise rural access

roads

Implement plan and

construct rural access

roads over a number of

years

Funding received

Number of access roads

completed

Chin Estate access

roads to be discussed in

2012/13.


PRINCIPAL ACTIVITY: Street Lighting

GOALS: To establish and maintain effective street lighting for the safety of residents

Skate Ramp after Graffiti Art – NTG Grant 2012


Assessment

Performance in

2011/2012

Meet electricity charges

on existing street

lighting and fund the

installation of additional

street lighting

Budget allocation for

electricity charges

Fund new street

lighting as requested

by residents when

funds are available

Budget Allocation

Allocate funds for

additional street lighting

Street lighting was

provided in

Batchelor and

Adelaide River.

Prices increased

dramatically so

budget amended.

Improve lighting on

Adelaide River Bridge

Lobby Power & Water

and DIPE

Lighting installed Lighting will be

improved on

Adelaide River

Bridge with

upgrade to Stuart

Highway in

2012/13.


PRINCIPAL ACTIVITY: Tourism, Parking and Other

GOAL: To encourage development with a view to economic and employment opportunities through fostering sustainable ventures and supporting and contributing to Community Events


Assessment

Performance in

2011/2012

Support Adelaide River

Railway Precinct

Supply letters of support

as required

Contribution to grounds

maintenance by Council

contractor

Letters of support

provided

Area/frequency of

grounds maintenance

by Council contractor

Council

supported the

Adelaide River

railway precinct

and is lobbying

for funding in

2012/13.

Create community profile

by supporting Lingalonga

Festival Committee

Support Lingalonga

Festival held annually;

financial and in-kind

contributions

Funding granted

Attendance figures

Lingalonga

Festival

supported via

Chief Ministers

Grant.

Over 600 people

attended the

festival.

Rationalise signage Liaise with DIPE and

stakeholders re signage

Code developed,

number of signs

eliminated

Signage will be

discussed in 2012

with DIPE.

Walking track (lot 320,

along old rail corridor,

Crater Lake)

Construct and promote Usage No walking track

has been

constructed to

date. Council will

need to apply for

funding.

Support implementation

of Batchelor Tourism

Development Plan


committee

Number of items

implemented

Council are

members of the

Batchelor

Tourism Steering

Committee.


Show Society Show

Financial and in-kind

contributions

Contributions made/

Attendance figures

Donated $1000

to Adelaide River

Show & assisted

setting up.


PRINCIPAL ACTIVITY: Dog Management

GOAL: To ensure responsible ownership of dogs and safety in public places

Support and make

financial contribution to

Community Events


support to: Australia

Day, ANZAC Day,

Territory Day, Seniors

Week, Seniors

Christmas, Clean Up

Australia Day and other

Community Functions

and Events


contributions made

Attendance figures

Council

supported and/or

organised all

events listed.

All were well

attended.


of Adelaide River

Economic Development

Plan


Economic Development

Plan Committee

Number of planned

items implemented

Council have had

discussions with

the AREDP

committee and

will continue in

2012.


Assessment

Performance in

2011/2012

Continue dog control

program


of dog catcher

Enforcement of Dog By-

Laws

Reduction in number of

dogs exceeding two per

household

Number of dogs

impounded

Decrease in reports of

dogs at large

Households with

more than two

dogs were

attended and

complied with

reducing numbers.

24 dogs were

impounded.

Dog complaints still

remain high.

Continue dog de-sexing

program

Funding application

prepared and submitted

Funding received

Number of dogs

de-sexed

No dog desexing

program this year.


PRINCIPAL ACTIVITY: Weeds Management

GOAL: To assist community organisations and residents to access approved chemicals for weed control and to assist residents to control Gamba Grass in order to mitigate fire hazard

Batchelor Swimming Pool – installation of new shade sail


Assessment

Performance in

2011/2012

Provision of glyphosate

at cost price

Purchase glyphosate

for resale to residents

Number of residents

using this service

Over 100 drums of

glyphosate were

sold to residents.

Gamba Grass control Budget allocation Effective control of

Gamba grass

Gamba grass was

controlled by

Council and

residents in most

areas.

Crown,

Government and

Aboriginal Land

remain problem

areas .

Weed Control

Budget allocation Effective control of

weeds on three

waterways

Weeds were

controlled on

Snake Creek,

Adelaide River and

Finniss River.


Financial Graphs

Sources of Income 2011/2012

Expenditure by Category 2011/2012

1250870

51404

576775

257036

51641

Govt Grants

Interest

Rates

Fees and Charges

Other

800246

83947 187207

4944 319022

47670 88925

112417

99043

765197

9049

64840 5455

10496

80568 Administration

Public Conveniences

Sanitation and Garbage

Cemeteries

Parks and Gardens

Libraries

Sport and Recreation

Swimming Pool

Community Recreation

Roads

Streetlighting

Tourism and Other

Dog Management

Glyphosate

Gamba Grass & Weed Management


Key Performance Indicators

Average Rates and Charges per Assessment

Total Rates and Charges

Number of Assessments

2009/2010 2010/2011 2011/2012

$687 $966 $991

Outstanding Rates, Charges and User Fees

Outstanding Rates, Charges and Fees

Annual Revenue Rates, Charges and Fees

2009/2010 2010/2011 2011/2012

25% 19% 22%

0

200

400

600

800

1000

1200

2009/10 2010/11 2011/12

Average rates and charges per assessment

0%

5%

10%

15%

20%

25%

30%

2009/10 2010/11 2011/12

Outstanding Rates, Charges and Fees


Rates and Charges as a % of Total Revenue

Total Rates and Charges

Total Revenue

2009/2010 2010/2011 2011/2012

19% 31% 38%

Total Operating Expenditure per Shire Resident

Total Operating Expenditure before capital expenditure

Estimated resident population for Coomalie Shire

2009/2010 2010/2011 2011/2012

$2011 $1987 $2409

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2009/10 2010/11 2011/12

Rates and Charges as % of Total Revenue

0

500

1000

1500

2000

2500

3000

2009/10 2010/11 2011/12

Total Operational Expenditure per Shire Resident


Expenditure per km of local roads

Total Operational Road Expenditure

Kilometres of local roads

2009/2010 2010/2011 2011/2012

$7210 $3911 $4638

Lingalonga Festival 2012

0

1000

2000

3000

4000

5000

6000

7000

8000

2009/10 2010/11 2011/12

Expenditure per km of local roads


Audited Financial Statements 2011/2012

Page No

Independent Auditor's Report 2 - 3

Chief Executive Officer's Certificate 4

General Purpose Financial Report

Statement of Comprehensive Income 5

Statement of Financial Position 6

Statement of Working Capital 7

Statement of Changes in Equity 8

Statement of Cash Flows 9

Notes to the Financial Statements

Note 1 Summary of Accounting Policies 10 - 21

Note 2a Functions 22

Note 2b Components of Functions 23

Note 3 Operating Revenue 24-26

Note 4 Operating Expenses 27-28

Note 5 Gain or loss on disposal of assets 28

Note 6 Cash and Cash Equivalents 29

Note 7 Trade and Other Receivables 29-30

Note 8 Property, Plant and Equipment 31-32

Note 9 33

Note 10 Accumulated Surplus 33

Note 11 Asset Revaluation Reserve 33

Note 12 Reconciliation to Cash Flow Statement 34

Note 13 Commitments for Expenditure 34

Note 14 Financial Indicators 35

Note 15 Conditions over Grants and Contributions 35

Note 16 Events After Balance Date 35

Note 17 Financial Instruments 36-38

Auditor's Independence Declaration 39

Financial Report for the

financial year ended 30 June 2012

Coomalie Community Government Council

TABLE OF CONTENTS

Trade and Other Payables, Provisions

and Other Liabilities

1

COOMALIE COMMUNITY GOVERNMENT COUNCIL

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2012

2012 2011

$ $

CONTINUING OPERATIONS

OPERATING REVENUE

Rates 3 a 576,775 568,473

Fees and User Charges 3 b 257,036 248,907

Investment Income 3 c 51,404 65,234

Other Income 3 d 51,641 19,377

Grants, Subsidies and Contributions 3 e 1,024,036 1,354,574

TOTAL OPERATING REVENUE 1,960,892 2,256,565

OPERATING EXPENSES

Employee Costs 4 a 863,741 610,855

Materials, Contracts and Other Expenses - General 4 b 478,068 764,400

Materials, Contracts and Other Expenses - Roads 4 c 228,228 239,712

Depreciation and Amortisation 4 d 492,195 492,544

Other Expenses 4 e 616,794 581,365

TOTAL OPERATING EXPENSES 2,679,026 2,688,876

OPERATING DEFICIT FROM CONTINUING OPERATIONS (718,134) (432,311)

Grants provided for Capital Purposes 3 e 226,834 399,434

Net Loss on Disposal or Revaluation of Assets 5 (185,131) 0

NET DEFICIT FOR THE YEAR (676,431) (32,877)

(676,431) (32,877)

Note

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

Notes to and forming part of the financial statements are included on pages 10 to 38

5


STATEMENT OF FINANCIAL POSITION

AS AT THE 30 JUNE 2012

2012 2011

$ $

CURRENT ASSETS

Cash and Cash Equivalents 747,499 1,109,534

Trade and Other Receivables 196,167 201,159

TOTAL CURRENT ASSETS 943,666 1,310,693

NON CURRENT ASSETS

Property,Plant and Equipment 9,237,582 9,216,864

Capital Work in Progress - Roads 72,325 54,799

TOTAL NON CURRENT ASSETS 9,309,907 9,271,663

TOTAL ASSETS 10,253,573 10,582,356

CURRENT LIABILITIES

Trade and Other Payables 71,797 109,091

Provisions 11,339 31,596

Grants Received in Advance 510,183 104,984

TOTAL CURRENT LIABILITIES 593,319 245,671

NET ASSETS 9,660,254 10,336,685

EQUITY

Accumulated Surplus 1,000,043 1,676,474

Asset Revaluation Reserve 8,660,211 8,660,211

TOTAL EQUITY 9,660,254 10,336,685

Note

6

7

8

8

9

9

9

10

11


6


STATEMENT OF WORKING CAPITAL


2012 2011

$ $

CURRENT ASSETS

Cash and Cash Equivalents 747,499 1,109,534

Trade and Other Receivables 196,167 201,159

TOTAL CURRENT ASSETS 943,666 1,310,693

CURRENT LIABILITIES

Trade and Other Payables 71,797 109,091

Provisions 11,339 31,596


TOTAL CURRENT LIABILITIES 593,319 245,671

NET CURRENT ASSETS 350,347 1,065,022

CURRENT RATIO 1.59 5.34

9

Note

6

7

9

9


7


STATEMENT OF CHANGES IN EQUITY


Accumulated

Funds

Asset

Revaluation

Reserve

Total

$ $ $

Balance at 1 July 2010 1,709,351 8,660,211 10,369,562

Deficit for year (32,877) - (32,877)

Balance at 30 June 2011 1,676,474 8,660,211 10,336,685

Deficit for year (676,431) - (676,431)

Balance at 30 June 2012 1,000,043 8,660,211 9,660,254


8


STATEMENT OF CASH FLOWS


Note 2012 2011

$ $

Inflows Inflows

(Outflows) (Outflows)

Receipts

General Rates 549,097 559,086

Fees and User Charges 257,039 248,907

Investment Receipts 51,405 65,234

Grants Utilised for Operating Purposes 1,656,069 1,759,315

Other Operating Receipts 85,336 2,517

Payments

Employee Costs (844,116) (644,231)

Contractual Services and Materials (706,305) (1,004,113)

Other Operating Payments (694,991) (743,147)

Net cash provided by (or used in) operating

activities 12b 353,534 243,568

Payments

Acquisition of property, plant and equipment (698,044) (198,996)

Capital Works in Progress (17,525) (54,799)

Net cash provided by (or used in) investing

activities (715,569) (253,795)

Net Increase/(Decrease) in Cash Held (362,035) (10,227)

Cash at beginning of reporting period 1,109,534 1,119,761

Cash at end of reporting period 12a 747,499 1,109,534

CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES


9


NOTES TO THE FINANCIAL STATEMENTS


1

a The Local Government Reporting Entity

b

c Statement of Compliance

d Adoption of new and revised Accounting Standards

AASB 2

AASB 3

AASB 4

AASB 5

AASB 6

AASB 8

AASB 102

Summary of Accounting Policies

Basis of Accounting

This financial report has been prepared on the basis of historical cost except for the

revaluation of certain non-current assets.

Australian Accounting Standards (AAS) include Australian Equivalents to International

Financial Reporting Standards (AEIFRS). Because the Council is a not-for-profit entity and the

AAS include requirements for not-for-profit entities which are inconsistent with International

Financial Reporting Standards (IFRS), to the extent these inconsistencies are applied, this

report does not comply with IFRS. The main impact is in the offsetting of revaluation and

impairment gains and losses within a class of assets.

Business Combinations

This general purpose financial report has been prepared in accordance with the NT Local

Government Act 2008, NT Local Government (Accounting) Regulations 2008, and applicable

Australian Accounting Standards. Financial statements have been prepared on an accrual

basis.

In the current year, the Council has adopted all of the new and revised standards and

interpretations issued by the Australian Accouting Standards Board (AASB) that are relevant to

their operations and effective for the current annual reporting period.

Non-current Assets Held for Sale and Discontinued Operations

The consolidated fund through which the Council controls resources to carry on its functions

has been included in the financial statements forming part of this report.

A summary of the activities along with their contribution to the operating result and their net

assets is provided in Note 2 a.

Exploration for and Evaluation of Mineral Resources

Operating Segments

Inventories

Council has elected not to value land under roads this financial year 2011-12 as per AASB

1051.

The following Australian Accounting Standards have not been applied for the 2011-12 financial

year as they are not mandatory/applicable to Coomalie Community Government Council.

Share-based Payment

Insurance Contracts

10




1

d Adoption of new and revised Accounting Standards (continued)

AASB 111

AASB 112 Income Taxes

AASB 114 Segment Reporting

AASB 117 Leases

AASB 121

AASB 123 Borrowing Costs

AASB 124 Related Party Disclosures

AASB 127

AASB 128

AASB 129

AASB 131 Interest in Joint Ventures

AASB 133 Earnings per Share

AASB 134 Interim Financial Reporting

AASB 140 Investment Property

AASB 141 Agriculture

AASB 1004 Contributions

AASB 1023

AASB 1038 Life Insurance Contracts

AASB 1050 Administered Items

AASB 1052 Disaggregated Disclosures

e

f

g

h

(i)

General Insurance Contracts

The Coomalie Community Government Council is constituted under the Northern Territory

Local Government Act and is domiciled in Australia.

Changes to Accounting Policies

Unless otherwise stated, accounting policies are the same as for the previous year.

Construction Contracts

The Effects of Changes in Foreign Exchange Rates

Separate Financial Statements

Summary of Accounting Policies (continued)

Investments in Associates and Joint Ventures

Financial Reporting in Hyperinflationary Economies

Where rate monies are received prior to the commencement of the rating period, the

amount is recognised as income in the period in which they were received.

Rates

Rates, Grants and Other Income

Rates, grants and other income are recognised as income on receipt of funds or earlier

unconditional entitlement to the funds.

Currency

The Council uses the Australian dollar as its functional currency and its presentation currency.

Constitution

11




1

i

(ii)

(iii)

(iv)

j Cash and Cash Equivalents

k

Trade receivables, loans, and other receivables that have fixed or determinable payments that

are not quoted in an active market are classified as ‘loans and receivables’. Loans and

receivables are measured at amortised cost using the effective interest rate method less

impairment.

Non-Cash Contributions

Grants and Subsidies

Rates, Grants and Other Income (continued)

Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not

banked at the period end, deposits held at call with financial institutions, other short term,

highly liquid investments with original maturities of twelve months or less that are readily

convertible to known amounts of cash and which are subject to an insignificant risk of changes

in value.

Other Income including Contributions

A financial instrument is recognised if the Council becomes a party to the contractual

provisions of the instrument. Financial assets are recognised at trade date (less impairment).

Financial assets are derecognised if the Council transfers the financial asset to another party

without retaining control or substantially all risks and rewards of the asset. Financial liabilities

are derecognised if the Council’s obligations specified in the contract expire or are discharged

or cancelled.

Financial Instruments

Financial Assets

The Council classifies its financial assets as loans and receivables. The classification depends

on the purpose for which the financial instrument was acquired. The Council determines the

classification of its financial instruments at initial recognition and re evaluates this designation

at each reporting date.

Loans and Receivables


Non-cash contributions in excess of the recognition thresholds set out in Note 1.n. in

value, are recognised as income and as non-current assets. Non-cash contributions

below the thresholds are recorded as income only.

Other income is recognised as a receivable when it is probable that it will be received

and the amount is known, otherwise the amount is recognised on receipt.

Where the Council has an obligation to use a grant or subsidy in a particular manner

the amount is recognised as income on receipt. Unspent funds are recognised as a

liability - grants received in advance until the obligation is satisfied.

12




1

k

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset

and of allocating interest income over the relevant period. The effective interest rate is the rate

that exactly discounts estimated future cash receipts (including all fees on points paid or

received that form an integral part of the effective interest rate, transaction costs and other

premiums or discounts) through the expected life of the financial asset, or, where appropriate,

a shorter period.

Impairment of Financial Assets

Financial assets are assessed for indicators for impairment at each Statement of Financial

Position date. Financial assets are impaired where there is objective evidence that as a result

of one or more events that occurred after the initial recognition of the financial assets the

estimated future cash flows of the investment that that have been impacted.

For financial assets carried at amortised cost, the amount of the impairment is the difference

between the asset’s carrying amount and the present value of the estimated future cash flows,

discounted at the original effective interest rate.

The carrying amount of financial assets including uncollectible trade receivables is reduced by

the impairment loss through the use of an allowance account. Subsequent recoveries of

amounts previously written off are credited against an allowance account. Changes in the

carrying amount of the allowance account are recognised in the statement of comprehensive

income.

If in a subsequent period, the amount of the impairment loss decreases and the decrease can

be related objectively to an event occurring after the impairment was recognised, the

previously recognised impairment loss is reversed through profit or loss to the extent the

carrying amount of the investment at the date the impairment is reversed does not exceed

what the amortised cost would have been had the impairment not been recognised.


Derecognition of Financial Assets

The Council derecognises a financial asset only when the contractual rights to the cash flows

from the asset expire, or it transfers the financial asset and substantially all the risks and

rewards of ownership of the asset to another entity. If the Council neither transfers nor retains

substantially all the risks and rewards of ownership and continues to control the transferred

asset, the Council recognises its retained interest in the asset and an associated liability for

amounts it may have to pay. If the Council retains substantially all the risks and rewards of

ownership of a transferred financial asset, the Council continues to recognise the financial

asset and also recognises a collaterised borrowing for the proceeds received.

Financial Instruments (continued)

13




1

k

l

m

Other financial assets are recognised at cost.

Financial Liabilities

The Council classifies its financial liabilities as other financial liabilities. This classification

pertains to financial liabilities that are not held for trading or not designated as at FVPL (Fair

Value through Profit & Loss) upon inception of the liability. The classification depends on the

purpose for which the financial liability was incurred. The Council determines the classification

of its financial liability at initial recognition and re-evaluates this designation at each reporting

date.

Trade and other payables

These amounts represent liabilities for goods and services provided to the Council prior to the

end of the financial year which remain unpaid. The amounts are unsecured and are usually

paid within 30 days of recognition.

Trade and Other Receivables

Financial Instruments (continued)


Trade receivables are recognised initially at fair value due at the time of sale or service

delivery and settlement of these amounts is required within 30 days from invoice date.

The collectability of receivables is assessed periodically and, if there is objective evidence that

Council will not be able to collect all amounts due, the carrying amount is reduced with

provision being made for doubtful debts. The loss is recognised in other expenses.

All known bad debts were written off against the allowance for doubtful debts at 30 June 2012.

Subsequent recoveries of amounts previously written off are credited against other expenses

in the statement of comprehensive income.

Other Financial Assets

14




1

n Categorisation of Financial Assets and Financial Liabilities

Financial Assets

Cash Cash

Receivables Loans and Receivables (at amortised cost)

Other Financial Assets As applicable

Financial Liabilities

Payables Financial liability (at cost)

o Investments

p Property, Plant and Equipment

Minimum Threshold

$1

$5,000

Other structures $5,000

$5,000

$10,000

$10,000

Office Furniture and Equipment

Buildings

Land

The classes of infrastructure, property, plant and equipment and the minimum threshold value

recognised as an asset by Council are:

Items of infrastructure, property, plant and equipment acquired for a total value of less than the

threshold are treated as an expense in the year of acquisition.

Motor Vehicles and Plant

Road Infrastructure

The Coomalie Community Government Council has categorised the financial assets and

financial liabilities held at balance date as follows:

Categorisation

Financial assets and financial liabilities are presented separately from each other, offsetting

has not been applied.

Financial institution deposits at call and term deposits are treated as cash. Interest revenue is

recognised on an accrual basis.


Class

Each class of infrastructure, property, plant and equipment is stated at cost or fair value less,

where applicable, any accumulated depreciation and accumulated impairment loss.

15




1

p Property, Plant and Equipment (continued)

(i)

(ii)

(iii) Valuation

(iiii) Depreciation

Details of valuers and methods of valuations are disclosed in Note 8.

Land, buildings, other structures and road infrastructure assets are measured on the

revaluation basis, at fair value, in accordance with AASB116 Property, Plant and

Equipment. Motor Vehicles and Plant, Office Furniture and Equipment are measured at

cost.

Wage and materials expenditure incurred for the acquisition or construction of assets

are treated as capital expenditure. Routine operating maintenance, repair costs and

minor renewals to maintain the operational capacity of the non-current asset is

expensed as incurred, while expenditure that relates to replacement of a major

component of an asset to maintain its service potential is capitalised.

Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value

of the assets given as consideration plus costs incidental to the acquisition, including

freight in, architect’s fees and engineering design fees, and all other establishment

costs.

Non-monetary assets received in the form of contributions are recognised as assets

and income at fair value at the date of receipt. Fair value means the amount for which

an asset could be exchanged between knowledgeable, willing parties in an arm’s length

transaction.

All non-current assets having a limited useful life are systematically depreciated over

their useful lives in a manner which reflects the consumption of the service potential

embodied in those assets. Land is not a depreciable asset.

Assets are depreciated from the date of acquisition or, in respect of internally

constructed assets, from the time an asset is completed and commissioned ready for

use.

Acquisition of Assets

Capital and Operating Expenditure

Non-current physical assets measured at fair value are revalued where required so that

the carrying amount of each class of asset does not materially differ from its fair value

at the reporting date. This valuation may involve the application of a suitable index to

the cost elements of each asset, or may involve an independent assessment of the

value.


16




1

(iiii) Depreciation (continued)

Buildings 1.5% to 20%

Other Structures 3.75% and 40%

Motor Vehicles and Plant 9% to 37.5%

Office Furniture and Equipment 11.25% to 40%

Roads - Sealed 2% to 2.5%

Roads - Unsealed Prime cost

(iv) Unfunded depreciation

q

r Capital Works in Progress

Council has no intangible assets.

Prime cost

Diminishing Value

Intangible Assets

The cost of infrastructure, property, plant and equipment constructed by the Council includes

the cost of purchased services, materials, direct labour and an appropriate proportion of labour

overheads.

Only intangible assets which have a cost exceeding $10,000 are recognised as intangible

assets.

5%

Where assets have separately identifiable components that are subject to regular

replacement, these components are assigned useful lives distinct from the asset to

which they relate. Any expenditure that increases the originally assessed capacity or

service potential of an asset is capitalised and the new depreciable amount is

depreciated over the remaining useful life of the asset to the Council.

Prime cost

The depreciation rates and estimated useful lives of infrastructure, property, plant and

equipment are reviewed annually. Details of the depreciation rates for each class of

asset are generally as follows:

Coomalie Community Government Council has elected not to fund depreciation

expenses for assets that will not be replaced or where external funding sources other

than loans will be obtained to fund their replacement.

Diminishing Value

Diminishing Value


17




1

s

t

u

v

The Council had no operating or finance leases during this reporting period.

When an impairment loss subsequently reverses, the carrying amount of the asset is

increased to the revised estimate of its recoverable amount, but so that the increased carrying

amount does not exceed the carrying amount that would have been determined had no

impairment loss been recognised for the asset in prior years, a reversal of an impairment loss

is recognised as income, unless the asset is carried at a revalued amount, in which case the

reversal of an impairment loss is treated as a revaluation increase.

An impairment loss is recognised immediately in the Statement of Comprehensive Income,

unless the asset is carried at a revalued amount, in which case the impairment loss is offset

against the asset revaluation reserve of the relevant class to the extent available.

Leases

The asset's recoverable amount is determined as the higher of the asset's fair value less costs

to sell and depreciated replacement cost.

Impairment of Non Current Assets

Each non-current physical and intangible asset and group of assets is assessed for indication

of impairment annually. If an indicator of possible impairment exists, the Council determines

the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds

the recoverable amount is recorded as an impairment loss.

Leases of plant and equipment under which the Council as lessee assumes substantially all

the risks and benefits incidental to the ownership of the asset, but is not the legal owner, are

classified as finance leases. Other leases, where substantially all the risks and benefits remain

with the lessor, are classified as operating leases.

Liabilities - Employee Benefits


Trade and Other Payables

Trade creditors are recognised upon the receipt of the goods or services ordered and are

measured at the agreed purchase/contract price net of applicable discounts other than

contingent discounts. Amounts owing are unsecured and are generally settled on 30 day

terms.

Employee entitlements are accrued for wages and salaries, annual leave and long service

leave in respect of services provided by employees up to the reporting date. Liabilities for

employee entitlements are assessed at each reporting date. Where it is expected that the

leave will be taken in the next twelve months the liability is treated as a current liability.

Otherwise the liability is treated as non-current.

18




1

v

(i) Salaries and Wages

(ii)

(iii)

(iv)

(v)

w Borrowings

Council had no borrowings during the reporting period.

x Restoration Provision

(i)

(ii)

Long Service Leave

The superannuation expense for the year is the amount of the statutory contribution the

Council makes to the superannuation plan which provides benefits to employees. The

plan is an accumulation fund that is not seen to require additional contributions by the

Council at any one time.

Sick leave taken in the future will be met by future entitlements and hence no

recognition of sick leave has been made in these financial statements.

Sick Leave

A liability for salaries and wages is recognised and measured as the amount unpaid as

at the reporting date at current pay rates in respect of employee's services up to that

date. This liability is treated as a payable and not as a provision.

Annual Leave

A provision is made for the cost of restoration of assets and other future restoration costs

where it is probable the Council will be liable, or required, to incur such a cost on the cessation

of use of the facility. This liability is provided in respect of gravel pits and refuse dumps.

Coomalie Council is of the opinion that major restoration works will not be required at the

Batchelor landfill for the following reasons:

A liability for long service leave is measured as the present value of the estimated

future cash outflows to be made in respect of services provided by employees up to the

reporting date. The value of the liability was calculated using the current pay rates. The

current portion of this liability is relatively certain as to the date and amount of payment

and is treated as a payable. The non-current portion is treated as a provision.

A liability for annual leave is recognised. The current proportion (based on the expected

payment date) is calculated on current wage and salary levels.

Restoration of the landfill is carried out as part of weekly maintenance

As the landfill is sited over the aquifer which supplies Batchelor's water, the site will not

be used for any other purpose once the landfill is closed.

Therefore, no provision has been made for restoration works to the Batchelor landfill.

Superannuation

Liabilities - Employee Benefits


19




1

y Asset Revaluation Reserve

z Reserves

(i)

(ii)

aa Goods and Services Tax

The asset revaluation reserve comprises adjustments relating to changes in value of

infrastructure, property, plant and equipment that do not result from the use of those assets.

Net incremental changes in the carrying value of classes of non-current assets since their

initial recognition are accumulated in this reserve.

Constrained Works Reserve

This reserve represents grants and subsidies received for specific operational projects

which have not been fully spent within the reporting period.

Operational Grants Reserve

This reserve represents grants and subsidies received for capital works or projects

which have not yet been carried out.

The following reserves are cash backed reserves and represent funds that are accumulated

within the Council to meet anticipated futures needs. In each case the amount relates to a

perceived future requirement which is not currently a liability.

Increases and decreases on revaluation are offset within a class of assets. Where a class of

assets is decreased on revaluation, that decrease is offset first against the amount remaining

in the asset revaluation reserve in respect of that class. Any excess is treated as an expense.

When an asset is disposed of, the amount in the reserve in respect of that asset is retained in

the reserve.

Revenues, expenses and assets are recognised net of the amount of goods and services tax

(GST), except:

(i). where the amount of GST incurred is not recoverable from the taxation authority, it is

recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

(ii). for receivables and payables which are recognised inclusive of GST, the net amount

recoverable from, or payable to, the taxation authority is included as part of receivables or

payables.

Cash flows are included in the Statement of Cash Flows on a gross basis. The GST

component of cashflows arising from investing and financing activities, which is recoverable

from or payable to the taxation authority, is classified as operating cash flows.


20




1

bb Accumulated Surplus

cc Rounding and comparatives

Amounts included in the financial statements have been rounded to the nearest $1.

dd Financial Risk Management

ee Taxation

ff Economic Dependence

Details of financial instruments and the associated risks are shown at Note 17.

The Council minimises its exposure to financial risk by not investing in derivatives or other

risky investments. Investments in financial assets are only made when those assets are with a

bank or other financial institution in Australia, and are for a period of less than one year.

Comparative information has been restated where necessary to be consistent with disclosures

in the current reporting period.

This represents the amount of Council's net funds not set aside in reserves to meet specific

future needs. The main part of this amount is not available for Council to spend as it has

already been invested in assets used to provide services.

During the year the Coomalie Community Government Council received grants from

government departments, and the future operation of the council is dependent upon continued

funding from government departments.

Income of the Council is exempt from Commonwealth taxation except for Fringe Benefits Tax

and Goods and Services Tax (GST). The net amount of GST recoverable from the ATO or

payable to the ATO is shown as an asset or liability respectively.


21




2 a FUNCTIONS

Budget

2012

Actual 2012 Actual

2011

Budget

2012

Actual 2012 Actual 2011 Budget

2012

Actual

2012

Actual

2011

FUNCTIONS

Administration 1,201,306 1,165,120 1,205,051 760,936 800,246 698,374 440,370 364,874 506,677

Housing and Community

Services 253,683 253,889 248,924 271,050 276,092 307,448 (17,367) (22,203) (58,524)

Recreation / Cultural

Services 127,643 168,032 220,744 761,065 667,079 569,200 (633,422) (499,047) (348,456)

Transport 573,556 384,223 750,454 1,390,684 765,198 645,309 (817,128) (380,975) 105,145

Public Order & Safety 1,500 838 833 6,400 5,456 4,533 (4,900) (4,618) (3,700)

Economic and Other

Services 30,285 30,493 229,993 195,539 164,955 464,012 (165,254) (134,462) (234,019)

TOTAL FUNCTIONS 2,187,973 2,002,595 2,655,999 3,385,674 2,679,026 2,688,876 (1,197,701) (676,431) (32,877)

Actual

2012

Actual 2011 Actual

2012

Actual

2011

FUNCTIONS

Administration 537,475 573,802 559,307 561,074

Housing and Community

Services 262,571 280,754

Recreation / Cultural

Services 132,352 213,042 716,303 753,770

Transport 566,543 750,322 7,580,872 7,483,038

Public Order & Safety - - 5,573 5,749

Economic and Other

Services 14,500 216,842 112,956 132,479

TOTAL FUNCTIONS 1,250,870 1,754,008 9,237,582 9,216,864

Income, expenses and assets have been directly attributed to the following functions. Details of those functions are

set out in Note 2 b

INCOME EXPENSES OPERATING RESULTS

GRANTS INCLUDED ASSETS HELD

22




2 b COMPONENTS OF FUNCTIONS

The activities relating to council’s functions are:-

(i) Administration

(ii) Housing and Community Service

(iii) Public Order and Safety

(iv) Recreation and Cultural Services

(v) Transport

(vi) Economic and Other Services

This division includes outlays on administration, support, regulation and operation of general

public services. Such services include council’s administration as an elected body and

administration, management, governance and corporate services not allocated to other

functions.

This division includes outlays on administration and operation of services connected with

public order and safety within the scope of local government. Such services includes the

control of domestic animals and livestock.

This division includes outlays on all aspects of servicing and operating the road system,

including maintenance, construction, rehabilitation and transport services. Such services

includes planning, designing, construction, extending and improving roads and highways and

associated structures such as bridges, traffic lights and drainage.

This division includes outlays on administration, operation and management of economic

affairs. Economic affairs include Tourism, Parking, Street Lighting, Fire Mitigation, Gamba

and Weed Control, Bush Care and other organisational support.

This division includes outlays on administration, regulation and provision of housing and

community amenities. Such amenities include public conveniences, garbage collection,

sanitation and cemeteries.

This division includes outlays on the administration, regulation, support and operational

aspects of recreational and cultural services. Such services include facilities and venues,

recreation parks, gardens and reserves, libraries, sport and recreation facilities, swimming

pool and museums.

23




3 OPERATING REVENUE 2012 2011

$ $

a RATES

General rates 576,775 568,473

Total Rates 576,775 568,473

b FEES AND USER CHARGES

User Charges

Waste management service 248,239 244,919

Total User Charges 248,239 244,919

Fees

Rate searches 6,786 1,009

Service charges 2,011 2,979

Total Fees 8,797 3,988

Total Fees and User Charges 257,036 248,907

c INVESTMENT INCOME

Interest on overdue rates & charges 18,444 15,260

Interest on investments 32,924 49,851

Interest on operating account 36 123

Total Investment Income 51,404 65,234

d OTHER INCOME

Donations 4,034 2,004

Hire of equipment 151 276

Sale of goods 15,984 -

Fuel subsidy 679 580

Other income 30,793 16,517

Total Other Income 51,641 19,377

24




3 OPERATING REVENUE (continued) 2012 2011

$ $

e GRANTS, SUBSIDIES & CONTRIBUTIONS

General Purpose Grants

Commonwealth Government 413,274 407,472

NT Government 491,825 528,769

Total General Purpose Grants 905,099 936,241

Other Grants, Subsidies & Contributions

Northern Territory Government

Sports and Community Recreation 33,195 30,178

Bushcare - 25,000

Community Benefit 20,342 6,000

Gamba & Fire Hazard - 10,000

Youth Facility - 58,300

Libraries and museums 47,316 45,595

SPG - 37,386

Commonwealth Government

Gamba Grass & Weed Management Project - 156,364

Total Special Purpose grants 100,853 368,823

Other Grants

NDRAA Flood Grant - 31,332

Commonwealth - Grants for Others 18,084 18,178 Total Other Grants 18,084 49,510

Total Grants, Subsidies and Contributions 1,024,036 1,354,574

GRANTS PROVIDED FOR CAPITAL

PURPOSES

Roads to Recovery 180,834 369,434

SPG Skateramps 46,000 -

Rum Jungle Bowls Club Grant - 30,000

Total Grants provided for Capital Purposes 226,834 399,434

TOTAL GRANTS 1,250,870 1,754,008

25




3 OPERATING REVENUE (continued) 2012 2011

$ $

Individually Significant Item

SOURCES OF GRANTS

Commonwealth Government 594,108 982,780

Northern Territory Government 636,420 771,228

Other 20,342 -

1,250,870 1,754,008

In June 2012 Council received the following grants for the 2012/13 year:

$2,000 Seniors Month, $213,897 Federal Assistance Grant quarter 1 & 2, $239,776

NT Operational Grant and $54,510 SPG Adelaide River Access Shed. This has been

recognised as a liability - Grants received in advance in the Balance Sheet.

26




4 OPERATING EXPENSES 2012 2011

$ $

a EMPLOYEE COSTS

Salaries and wages 770,749 511,744

Employee leave expense (13,369) (11,577)

Superannuation 64,955 58,843

Other expenses 41,406 51,845

Total Employee Costs 863,741 610,855

Total Number of Employees 14 15

b MATERIALS, CONTRACTS & OTHER

EXPENSES - GENERAL

Cleaning and waste collection/management 244,313 289,000

Consultancy fees 27,188 293,682

Stores and materials 11,423 8,934

Repairs and maintenance - general 172,803 159,952

Pool maintenance 7,369 5,183

Printing and stationery 14,972 7,649

Total Materials, Contracts & Other

Expenses - General 478,068 764,400

c MATERIALS, CONTRACTS & OTHER

EXPENSES - ROADS

Repairs and maintenance - roads 80,513 14,999

Specific projects 1,912 71,630

Resheeting 57,553 51,059

Culvert and drainage maintenance 35,089 42,534

Maintenance grading 47,048 55,034

Other 6,113 4,456

Total Materials, Contracts & Other

Expenses - Roads 228,228 239,712

27




4 OPERATING EXPENSES (continued) 2012 2011

$ $

d DEPRECIATION & AMORTISATION

Buildings 58,974 58,204

Other structures 24,607 25,531

Motor vehicles and plant 73,962 70,412

Office furniture and equipment 7,464 7,063

Roads infrastructure 327,188 331,334

Total Depreciation & Amortisation 492,195 492,544

e OTHER EXPENSES

Auditors remuneration 13,874 13,675

Accounting Fees 51,139 13,265

Freight - general 4,384 5,193

Grants for others costs 5,671 21,693

Insurance 72,404 58,081

Internet and computer costs 8,804 9,432

Elected members expenses 86,968 62,807

Power and street lighting 37,101 34,628

Purchase of glyphosate 10,496 -

Rates recovery costs 24,247 10,642

Storm damage repairs 948 3,982

Specific grants expenditure 26,943 172,824

Subscriptions and publications 1,282 618

Telephone 25,792 17,413

Vehicle expenses 60,222 49,004

Water and sewerage 52,174 32,614

Other 134,345 75,494

Total Other Operating Expenses 616,794 581,365

5 GAIN OR LOSS ON DISPOSAL OF ASSET

Proceeds from disposal - -

Less: Carrying value of assets sold (185,131) -

Total Loss on Disposal of Assets (185,131) -

28




6 CASH AND CASH EQUIVALENTS 2012 2011

$ $

Cash on hand 2,000 2,000

Cash at bank 377,467 246,368

Deposits at call 368,032 861,166

Total Cash and Cash Equivalents 747,499 1,109,534

Total Cash consists of:

Current Cash 747,499 1,109,534

Total Cash and Cash Equivalents 747,499 1,109,534

RESTRICTED CASH SUMMARY

Purpose:

External Restrictions

Included in Assets 102,702 547,022

Total External Restrictions 102,702 547,022

Internal Restrictions

Included in liabilities 510,183 104,984

Total Internal Restrictions 510,183 104,984

Total Unrestricted 134,614 457,528

Total Cash Available 747,499 1,109,534

7 TRADE AND OTHER RECEIVABLES 2012 2011

$ $

Rates - General and Other 180,346 152,666

Debtors - General 7,221 40,908

Prepayments 8,600 8,200

Less: Allowance for Doubtful Debts - (615)

Total Trade and Other Receivables 196,167 201,159

Total Trade and Other Receivables consists of:

Current Trade and Other Receivables 196,167 201,159

Total Trade and Other Receivables 196,167 201,159

Cash is held in the Commonwealth Bank in a business cheque account. Short term

deposits are held in a TIO At Call Cash Account and TIO Direct Term Investment

accounts.

29




7 TRADE AND OTHER RECEIVABLES (continued) 2012 2011

a Ageing of Trade Receivables $ $

Trade Receivables are non-interest bearing

and are generally on 30 day terms.

The ageing of Trade Receivables is detailed below:

Not past due 2,609 39,091

Past due 31-60 days 3,639 -

Past due 61-90 days 61 -

Past due 91+ days 912 1,817

Total 7,221 40,908

b Past due but not impaired receivables

As at 30 June 2012 current receivables with a

nominal value of $196,167 (2011 $201,159)

were past due but not impaired. These relate

to a number of customers who are on payment

arrangement plans with Council or who are

deceased and Council is in the process of

selling their properties.

The ageing of these receivables is as follows:

Past due 31-60 days - -

Past due 61-90 days - -

Past due 91+ days 187,567 193,574

Total 187,567 193,574

c Impaired receivables

As at 30 June 2012 receivables with a nominal

value of $0 (2011 $615) were impaired.

d Movement in the allowance for doubtful debts

Balance at beginning of the year 615 615

Impairment losses recognised on receivables

Amounts written off during the year as uncollectable

Impairment losses reversed (615) -

Balance at end of the year - 615

30




8 INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

a Reconciliation of movements in assets

Land Buildings Other

Structure

s

Motor

Vehicles &

Plant

Office

Furniture &

Equipment

Roads at

Cost

Roads at

Valuation

Totals

$ $ $ $ $ $ $ $

Basis of Measurement Valuation Valuation Valuation Cost Cost Cost Valuation

Asset Values

Opening gross value 277,912 1,476,485 541,530 660,566 92,176 2,002,682 7,197,042 12,248,393

Adjustments to opening value - - - - - - - -

Additions/renewals - 17,088 30,131 6,000 23,579 621,246 - 698,044

Disposals - - - - (13,630) - (260,560) (274,190)

Write-offs - - - - - - - -

Revaluation adjustment - - - - - - - -

Internal transfers - - - - - - - -

Closing gross value 277,912 1,493,573 571,661 666,566 102,125 2,623,928 6,936,482 12,672,247

Accumulated Depreciation

Opening balance - 630,922 285,562 254,207 38,724 158,302 1,663,812 3,031,529

Adjustments to opening value - - - - - - - -

Depreciation provided - 58,974 24,607 73,962 7,464 62,612 264,576 492,195

Depreciation on disposals - - - - (10,891) - (78,168) (89,059)

Depreciation on write-offs - - - - - - - -

Revaluation adjustment - - - - - - - -

Internal transfers - - - - - - - -

Accumulated Depreciation at period

end - 689,896 310,169 328,169 35,297 220,914 1,850,220 3,434,665

WDV at 30 June 2012 277,912 803,677 261,492 338,397 66,828 2,403,014 5,086,262 9,237,582

WDV at 30 June 2011 277,912 845,563 255,968 406,359 53,452 1,844,380 5,533,230 9,216,864

Work in Progress at 30 June 2012 - 46,830 25,495 - - - - 72,325

Work in Progress at 30 June 2011 - - - - - 54,799 - 54,799

31




8 INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT (continued)

a Reconciliation of movements in assets (continued)

Land Buildings Other

Structur

es

Motor

Vehicles

& Plant

Office

Furniture &

Equipment

Road

Infrastruct

ure at

Cost

Road

Infrastructu

re at

Valuation

Totals

b Capital expenditure budget

Administration - 17,000 - - 35,000 - - 52,000

Public Order & Safety - - - - - - - -

Housing & Community - - - - - - - -

Recreation & Culture - - 55,000 - - - - 55,000

Transport - - - - - 650,834 - 650,834

Economic & Other Services - - - - - - - -

Total - 17,000 55,000 - 35,000 650,834 - 757,834

Actual 2012 - 17,088 30,131 6,000 23,579 621,246 - 698,044

Capital budget variance - 88 (24,869) 6,000 (11,421) (29,588) - (59,790)

c Valuations

(i) Property

(ii) Roads

Roads are revalued as often as is economically reasonable and were revalued on 30th June 2005.

Some assets have been reclassified to effect a clear distinction between recognised classes of assets. Assets which have been

reclassified and were previously shown at cost are deemed to be at fair value. There is no material financial adjustment to be

made in relation to these transfers.

Property, plant & equipment valuations were determined by reference to the following:

Real Estate holdings in Batchelor were last revalued during 2002/2003 and in Adelaide River during 2003/2004.

32




9 2012 2011

$ $

Goods and Services 32,310 10,308

Accrued expenses - other 40,364 96,105

Other (877) 2,678

Total Trade and Other Payables 71,797 109,091

Provisions

Annual Leave 11,339 24,708

Long Service Leave - 6,888

Total Provisions 11,339 31,596

Grants Received in Advance


Total Grants Received in Advance 510,183 104,984

10 ACCUMULATED SURPLUS

Accumulated surplus 1,676,474 1,709,351

Net result attributable to Council (676,431) (32,877)

Total Accumulated Surplus 1,000,043 1,676,474

11

(i) Movements in the Reserve

Balance at the beginning of the financial year 8,660,211 8,660,211

Total Asset Revaluation Reserve 8,660,211 8,660,211

(ii) Analysis of the Reserve

The closing balance of the asset revaluation

reserve is comprised of the following asset

categories:

Land and buildings 390,873 390,873

Roads infrastructure 8,269,338 8,269,338

Total Asset Revaluation Reserve 8,660,211 8,660,211

ASSET REVALUATION RESERVE

TRADE AND OTHER PAYABLES, PROVISIONS AND

OTHER LIABILITIES

33




12 RECONCILIATION TO CASH FLOW STATEMENT

a

2012 2011

$ $

Cash on hand 2,000 2,000

Cash at bank 377,467 246,368

Deposits at call 368,032 861,166

BALANCES PER CASH FLOW STATEMENT 747,499 1,109,534

b Reconciliation of changes in Net Assets to

Cash from Operating Activities

Net Deficit from continuing operations (676,431) (32,877)

Add

Depreciation and amortisation 492,195 492,544

Decrease in receivables 4,992 -

Loss on sale of assets 185,131 -

Increase in grants in advance 405,199 5,307

1,087,517 497,851

Less

Decrease in creditors and accruals (37,295) (164,608)

Increase in receivables - (26,392)

Decrease in employee provisions (20,257) (30,406)

(57,552) (221,406)

Net Cash provided by (or used in) Operating

Activities 353,534 243,568

13 COMMITMENTS FOR EXPENDITURE

Capital Commitments

Finance/Operating Lease Committments

Council has no lease commitments at the reporting date.

Cash at the end of the reporting period as shown in the Cash Flow Statement is

reconciled to the related items in the Statement of Financial Position as follows:-

Council has no Capital expenditure committed at the reporting date.

34


STATEMENT OF PERFORMANCE MEASUREMENT


14 FINANCIAL INDICATORS 2012 2011

Ratio Ratio

CURRENT RATIO

Current Assets 1.59 5.34

Current Liabilities

RATE COVERAGE PERCENTAGE

Rate Revenue 29% 25%

Total Revenue

RATES & ANNUAL CHARGES OUTSTANDING PERCENTAGE

Rates & Annual charges outstanding 31% 27%

Rates & Annual charges collectable

15 CONDITIONS OVER GRANTS & CONTRIBUTIONS 2012 2011

$ $

Unexpended at the close of the previous

reporting period 547,022 356,694

Less: expended during the current period from

revenues recognised in previous reporting

periods (533,635) (547,658)

Plus: amounts recognised as revenues in this

reporting period but not yet expended in

accordance with the conditions 89,315 737,986

Unexpended at the close of this reporting

period 102,702 547,022

16 EVENTS AFTER THE REPORTING PERIOD

There were no material adjusting events after the reporting period.

Grants and contributions that were obtained on the condition that they be expended on

specified purposes or in a future period but which are not yet expended in accordance

with those conditions are as follows:

35




17 FINANCIAL INSTRUMENTS

a Liquidity Analysis

< 1

year

1 to 5 yrs

2012 % $ $ $ $ $

Financial assets

Cash on hand - - - 2,000 2,000

Cash at bank 0.03% 377,467 377,467

Deposits at call 5.40% 368,032 - - - 368,032

Receivables - Rates 15.00% 180,346 - - - 180,346

Receivables - Debtors 7,221 - - - 7,221

933,066 - - 2,000 935,066

Financial liabilities

Trade and Other

Payables

- - - 71,797 71,797

Grants received in

advance

510,183 510,183

- - - 581,980 581,980

2011

Financial assets

Cash on hand - - - 2,000 2,000

Cash at bank 0.04% 246,368 246,368

Deposits at call 5.60% 861,166 - - - 861,166

Receivables - Rates 15.00% 152,666 - - - 152,666

Receivables - Debtors 40,293 - - - 40,293

1,300,493 - - 2,000 1,302,493

Financial liabilities

Trade and Other

Payables

- - - 109,091 109,091

Grants received in

advance 104,984 104,984

- - - 214,075 214,075

b Financial risk management objectives and policies

Non

interest

bearing

TotalFixed interest rate

maturity

Average

interest

rate

Variable

interest rate

The Council’s principal financial instruments comprise receivables, payables and cash and cash

equivalents.

The Council manages its exposure to financial risks, in accordance with its policies. The objectives of

the policies are to maximise the income to the Council whilst minimising the downside risk.

The Council’s activities expose it to normal commercial financial risk. The main risks the Council is

exposed to through its financial instruments are liquidity risk, credit risk, market risk and interest rate

risk. Risks are considered to be low.

Primary responsibility for the identification and control of financial risks rests with the Councillors and

Senior Management under the authority of the Council Councillors.

36




17 FINANCIAL INSTRUMENTS (continued)

c Categories of financial instruments

Recognised financial

instruments

Balance

Sheet

Notes

i Financial Assets

Cash and cash

equivalents 6

Loans and receivables 7

ii Financial Liabilities

Trade and other

payables9

d Net fair value of financial assets and liabilities

e Liquidity Risk

f Contingent Assets and Contingent Liabilities

Terms and conditions

Interest is earned at the

bank’s benchmark interest

rate.

There are no contingent assets and liabilities at reporting date.

Cash and cash equivalents: The carrying amount approximates fair value because of their short-term

maturity.

Liquidity risk arises from the financial liabilities of the entity and the Council’s subsequent ability to

meet its obligations to repay its financial liabilities as and when they fall due.

The Council reduces its exposure to liquidity risk by monitoring its cash flows closely through rolling

future cash flows and monitoring the ageing of receivables and payables.

As the Council does not have any borrowings, it manages its exposure to liquidity risk by mantaining

short term investments of less than one year to cater for unexpected volatility in cash flows.

Accounting Policies

Details are set out in note 1(c).

Trade Receivables are carried at

nominal amounts due less any

provision for doubtful debts. A

provision for doubtful debts is

recognised when collection of the

full nominal amount is no longer

probable.

Loans are measured at amortised

cost subsequent to initial

recognition, with any adjustments to

the carrying amount going through

the profit and loss.

Liabilities are recognised for

amounts to be paid in the future for

goods and services received,

whether or not billed to the Council.

Credit sales are normally

on 30 day terms or other

negotiated terms.

Loans are settled on

negotiated terms.

Trade liabilities are

normally settled on 30 day

terms or other negotiated

terms.

37




17 FINANCIAL INSTRUMENTS (continued)

g Credit Risk

h Market Risk

i Interest Rate Risk

2012 2011

Financial Assets $ $

Cash and cash equivalents 747,499 1,109,534

j Sensitivity Analysis

Interest rate + 1.00%

Interest rate - 1.00%

The council does not have any significant credit risk exposure to any single entity or group having

similar characteristics. In the case of rate receivables, the Council has the power to sell property to

recover any defaulted amounts. In other cases, the Council assesses the credit risk before providing

goods or services.

Credit risk is the risk of financial loss to the Council if a customer or counterparty to a financial

instrument fails to meet its contractual obligations. Exposure to credit risk is monitored by management

on an ongoing basis. The maximum exposure to credit risk, excluding the value of any collateral or

other security, is limited to the total carrying value of financial assets, net of any provisions for

impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

Market risk is the risk that changes in market prices, such as interest rates and equity prices will affect

the Council’s income or the value of its holdings of financial instruments. The Council does not have

any material market risk exposure.

Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in market interest rates. The Council is exposed to interest rate risk

primarily from its cash surpluses invested in short term interest bearing deposits. The deposits are only

made with reputable financial institutions with maturity dates generally being no more than 30 days.

As at balance date the Council had the following financial instruments exposed to variable interest rate

risk:

At balance sheet date the Council has not entered into any loans or other financial commitments that

present exposure to interest rate risk. Credit cards are the only short term financial instrument used by

the Council and balances are cleared at month end.

The table below details the interest rate sensitivity analysis of the Council at the reporting date holding

all other variables constant. A 100 basis point change is deemed to be reasonably possible and is

used when reporting interest rate risk.

The method used to arrive at the possible risk of 100 basis points was based on both statistical and

non-statistical analysis. The statistical analysis has been based on the Council’s cash rate for the past

years. This information is then revised and adjusted for reasonableness under the current economic

circumstances.

Impact on Profit

Higher/(Lower)

2012

$

Impact on Profit

Higher/(Lower)

2011

$

7,475

(7,475)

11,095

(11,095)

38

2011 - 2012 Coomalie Community Government Council Annual … Report... · 2018. 2. 7. · Coomalie...

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