Financial Statements 30 June 2011 · 2019. 9. 10. · 2011 2010 ASSETS Notes $'000 $'000 Current...

Financial Statements

30 June 2011

Preserving the past, securing the future,

together enhancing our lifestyle.

ALEXANDRINA COUNCIL

General Purpose Financial Reportsfor the year ended 30 June 2011

TABLE OF CONTENTSPage

Council Certificate 1

Principal Financial Statements Statement of Comprehensive Income 2 Balance Sheet 3 Statement of Changes in Equity 4 Cash Flow Statement 5

Notes to, and forming part of, the Principal Financial Statements

Note 1 - Significant Accounting Policies N1Note 2 - Income N7Note 3 - Expenses N10Note 4 - Gain or Loss on Disposal of Assets N12Note 5 - Current Assets N13Note 6 - Non-Current Assets N14Note 7 - Infrastructure, Property, Plant & Equipment & Investment Property N15

Note 8 - Liabilities N18Note 9 - Reserves N19Note 10 - Assets Subject to Restrictions N20Note 11 - Reconciliation of Cash Flow Statement N21Note 12 - Functions N22Note 13 - Financial Instruments N24Note 14 - Expenditure Commitments N26Note 15 - Financial Indicators N27Note 16 - Uniform Presentation of Finances N28Note 17 - Operating Leases N29Note 18 - Superannuation N30Note 19 - Joint Ventures & Associated Entities N31Note 20 - Assets & Liabilities not Recognised N33Note 21 - Events Occurring After Reporting Date N33

Audit ReportCouncil Certificate of Audit IndependenceAudit Certificate of Audit Independence

Alexandrina Council Financial Statements

2011 2010Notes $'000 $'000

INCOMERates 2 24,914 22,700Statutory charges 2 785 806User charges 2 1,770 2,355Grants, subsidies and contributions 2 3,758 2,676Investment income 2 84 72Reimbursements 2 476 1,216Other income 2 730 503Net gain - joint ventures & associates 19 100 23Total Income 32,617 30,351

EXPENSESEmployee costs 3 10,570 10,141Materials, contracts & other expenses 3 12,404 10,559Depreciation, amortisation & impairment 3 8,329 7,518Finance costs 3 1,057 731Total Expenses 32,360 28,949

OPERATING SURPLUS / (DEFICIT) 257 1,402

Asset disposal & fair value adjustments 4 (256) (811)Amounts received specifically for new or upgraded assets 2 1,631 2,231Physical resources received free of charge 2 1,557 1,598NET SURPLUS / (DEFICIT)

transferred to Equity Statement 3,189 4,420

Other Comprehensive IncomeChanges in revaluation surplus - infrastructure, property, plant& equipment

9 7,630 33,441

Total Other Comprehensive Income 7,630 33,441

TOTAL COMPREHENSIVE INCOME 10,819 37,861

This Statement is to be read in conjunction with the attached Notes.

ALEXANDRINA COUNCIL

STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 2011

Alexandrina Council Financial Statements Page 2

2011 2010ASSETS Notes $'000 $'000Current AssetsCash and cash equivalents 5 1,608 1,398Trade & other receivables 5 3,301 2,640Inventories 5 31 40

Total Current Assets 4,940 4,078

Non-current AssetsFinancial Assets 6 339 385Equity accounted investments in Council businesses 6 194 94Infrastructure, Property, Plant & Equipment 7 350,374 336,685Other Non-current Assets 6 5,831 3,937

Total Non-current Assets 356,738 341,101Total Assets 361,678 345,179

LIABILITIESCurrent LiabilitiesTrade & Other Payables 8 4,398 3,293Borrowings 8 1,506 1,632Provisions 8 230 187

Total Current Liabilities 6,134 5,112

Non-current LiabilitiesTrade & Other Payables 8 165 366Borrowings 8 19,263 14,396Provisions 8 1,516 1,524

Total Non-current Liabilities 20,944 16,286Total Liabilities 27,078 21,398NET ASSETS 334,600 323,781

EQUITYAccumulated Surplus 144,232 141,534Asset Revaluation Reserves 9 189,011 181,381Other Reserves 9 1,357 866TOTAL EQUITY 334,600 323,781

This Statement is to be read in conjunction with the attached Notes.

ALEXANDRINA COUNCIL

BALANCE SHEETas at 30 June 2011


ALEXANDRINA COUNCIL

AccumulatedSurplus

AssetRevaluation

Reserve

Available forsale Financial

Assets

OtherReserves

TOTALEQUITY

2011 Notes $'000 $'000 $'000 $'000 $'000

Balance at end of previous reporting period 141,534 181,381 - 866 323,781

Net Surplus / (Deficit) for Year 3,189 3,189Other Comprehensive Income

Gain on revaluation of infrastructure,property, plant & equipment - 7,630 - - 7,630

Transfers between reserves (491) - - 491 -Balance at end of period 144,232 189,011 - 1,357 334,600

2010

Balance at end of previous reporting period 136,400 147,940 - 1,580 285,920

Restated opening balance 136,400 147,940 - 1,580 285,920Net Surplus / (Deficit) for Year 4,420 4,420Other Comprehensive Income

Changes in revaluation surplus -infrastructure, property, plant &equipment

- 33,441 - - 33,441

Transfers between reserves 714 - - (714) -Balance at end of period 141,534 181,381 - 866 323,781

This Statement is to be read in conjunction with the attached Notes

for the year ended 30 June 2011STATEMENT OF CHANGES IN EQUITY


ALEXANDRINA COUNCIL

CASH FLOW STATEMENTfor the year ended 30 June 2011

2011 2010CASH FLOWS FROM OPERATING ACTIVITIES Notes $'000 $'000Receipts Operating receipts 35,143 30,768 Investment receipts 80 78Payments Operating payments to suppliers & employees (25,443) (20,845) Finance payments (1,019) (459)Net Cash provided by (or used in) Operating Activities 11 8,761 9,542

CASH FLOWS FROM INVESTING ACTIVITIESReceipts

Amounts specifically for new or upgraded assets 1,631 2,231Sale of replaced assets 859 912Repayments of loans by community groups 54 51

PaymentsExpenditure on renewal/replacement of assets (5,114) (6,650)Expenditure on new/upgraded assets (10,710) (13,671)Loans made to community groups (12) (45)

Net Cash provided by (or used in) Investing Activities (13,292) (17,172)

CASH FLOWS FROM FINANCING ACTIVITIESReceipts Proceeds from Borrowings 16,012 7,045Payments Repayments of Borrowings (11,271) (1,323)Net Cash provided by (or used in) Financing Activities 4,741 5,722Net Increase (Decrease) in cash held 210 (1,908)

Cash & cash equivalents at beginning of period 11 1,398 3,306Cash & cash equivalents at end of period 11 1,608 1,398

This Statement is to be read in conjunction with the attached Notes


Alexandrina Council Financial Statements Page N1

ALEXANDRINA COUNCIL

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2011

Note 1 - SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below.These policies have been consistently applied to all the years presented, unless otherwise stated.

1 Basis of Preparation1.1 Compliance with Australian Accounting StandardsThis general purpose financial report has been prepared in accordance with Australian AccountingStandards as they apply to not-for-profit entities, other authoritative pronouncements of the AustralianAccounting Standards Board, Interpretations and relevant South Australian legislation.

The financial report was authorised for issue by certificate under regulation 14 of the Local Government(Financial Management) Regulations 2011 dated 28th September 2011.

1.2 Historical Cost ConventionExcept as stated below, these financial statements have been prepared in accordance with the historicalcost convention.

1.3 Critical Accounting EstimatesThe preparation of financial statements in conformity with Australian Accounting Standards requires theuse of certain critical accounting estimates, and requires management to exercise its judgement inapplying Council’s accounting policies. The areas involving a higher degree of judgement or complexity,or areas where assumptions and estimates are significant to the financial statements are specificallyreferred to in the relevant sections of this Note.

1.4 RoundingAll amounts in the financial statements have been rounded to the nearest thousand dollars ($’000).

2 The Local Government Reporting EntityAlexandrina Council is incorporated under the SA Local Government Act 1999 and has its principal placeof business at 11 Cadell Street, GOOLWA. These financial statements include the consolidated fund andall entities through which Council controls resources to carry on its functions. In the process of reportingon the Council as a single unit, all transactions and balances between activity areas and controlled entitieshave been eliminated.

Trust monies and property held by Council but subject to the control of other persons have been excludedfrom these reports. A separate statement of moneys held in the Trust Fund is available for inspection atthe Council Office by any person free of charge.

3 Income recognitionIncome is measured at the fair value of the consideration received or receivable. Income is recognisedwhen the Council obtains control over the assets comprising the income, or when the amount dueconstitutes an enforceable debt, whichever first occurs.

Where grants, contributions and donations recognised as incomes during the reporting period wereobtained on the condition that they be expended in a particular manner or used over a particular period,and those conditions were undischarged as at the reporting date, the amounts subject to thoseundischarged conditions are disclosed in these notes. Also disclosed is the amount of grants,contributions and receivables recognised as incomes in a previous reporting period which were obtainedin respect of the Council's operations for the current reporting period.

ALEXANDRINA COUNCIL


Note 1 - Significant Accounting Policies (cont)


4 Cash, Cash Equivalents and other Financial InstrumentsCash Assets include all amounts readily convertible to cash on hand at Council’s option with aninsignificant risk of changes in value with a maturity of three months or less from the date of acquisition.

Receivables for rates and annual charges are secured over the subject land, and bear interest at ratesdetermined in accordance with the Local Government Act 1999. Other receivables are generallyunsecured and do not bear interest.

All receivables are reviewed as at the reporting date and adequate allowance made for amounts thereceipt of which is considered doubtful.

All financial instruments are recognised at fair value at the date of recognition. A detailed statement of theaccounting policies applied to financial instruments forms part of Note 13.

5 InventoriesInventories held in respect of stores have been valued by using the weighted average cost on a continualbasis, after adjustment for loss of service potential. Inventories held in respect of business undertakingshave been valued at the lower of cost and net realisable value.

6 Infrastructure, Property, Plant & Equipment6.1 Transitional ProvisionsAs at 1 July 2008, Council has elected not to recognise any values for land under roads acquiredbefore the commencement of AASB 1051 Land Under Roads.

All non-current assets purchased or constructed are capitalised as the expenditure is incurred anddepreciated as soon as the asset is held “ready for use”.

6.2 Initial RecognitionAll assets are initially recognised at cost.

All non-current assets purchased or constructed are capitalised as the expenditure is incurred anddepreciated as soon as the asset is held “ready for use”. Cost is determined as the fair value of the assetsgiven as consideration plus costs incidental to the acquisition, including architects' fees and engineeringdesign fees and all other costs incurred. The cost of non-current assets constructed by the Councilincludes the cost of all materials used in construction, direct labour on the project and an appropriateproportion of variable and fixed overhead.

Capital works still in progress at balance date are recognised as other non-current assets and transferredto infrastructure, property, plant & equipment when completed ready for use.

For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date ofacquisition.

6.3 MaterialityAssets with an economic life in excess of one year are only capitalised where the cost of acquisitionexceeds materiality thresholds established by Council for each type of asset. In determining (and inannually reviewing) such thresholds, regard is had to the nature of the asset and its estimated service life.Examples of capitalisation thresholds applied during the year are as follows. No capitalisation threshold isapplied to the acquisition of land or interests in land.

Infrastructure $5,000Land $0,001Land Improvements $5,000Buildings $5,000Furniture & Equipment $3,000Plant $3,000Other $3,000

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6.4 Subsequent RecognitionAll material asset classes are revalued on a regular basis such that the carrying values are not materiallydifferent from fair value. For infrastructure and other asset classes where no active market exists, fairvalue is determined to be the current replacement cost of an asset less, where applicable, accumulateddepreciation calculated on the basis of such cost to reflect the already consumed or expired futureeconomic benefits of the asset. Further detail of existing valuations, methods and valuers are provided atNote 7.

6.5 Depreciation of Non-Current AssetsOther than land, all infrastructure, property, plant and equipment assets recognised are systematicallydepreciated over their useful lives on a straight-line basis which, in the opinion of Council, best reflects theconsumption of the service potential embodied in those assets.

Depreciation is recognised on a straight-line basis. Major depreciation periods for each class of assetare shown below. Depreciation periods for infrastructure assets have been estimated based on thebest information available to Council, but appropriate records covering the entire life cycle of theseassets are not available, and extreme care should be used in interpreting financial information basedon these estimates.

Plant, Furniture & EquipmentOffice Equipment 5 to 10 yearsOffice Furniture & Fittings 10 to 25 yearsOffice Electrical Equipment 4 to 5 yearsComputer Equipment 2 to 5 yearsMinor Equipment 5 to 10 yearsMajor Plant Units of usageMinor Plant 5 to 10 years

Building & Other StructuresBuildings 30 to 75 years

InfrastructureRoad Surfacing – Sprayed Seals 13 to 18 yearsRoad Surfacing – Asphalt 25 to 30 yearsRoad Pavement – Collector Roads 45 to 55 yearsRoad Pavement – Minor & Local Roads 75 to 85 yearsRoad Pavement – Distributor Roads 45 to 55 yearsRoad – Unsealed 12 to 35 yearsBridges 70 to 80 yearsFootpaths – General 12 to 25 yearsFootpaths – Concrete 50 to 55 yearsFootpaths – Block Paved 35 to 45 yearsKerbing 40 to 70 yearsStormwater Drainage 15 to 100 years

Other AssetsLibrary Books 4 to 7 yearsCommon Effluent Treatment Plant Varies per condition rating

6.6 ImpairmentAssets that have an indefinite useful life are not subject to depreciation and are reviewed annually forimpairment. Assets that are subject to depreciation are reviewed for impairment whenever events orchanges in circumstances indicate that the carrying amount may not be recoverable. An impairment lossis recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount (whichis the higher of the present value of future cash outflows or value in use).

For assets whose future economic benefits are not dependent on the ability to generate cash flows, andwhere the future economic benefits would be replaced if Council were deprived thereof, the value in use isthe depreciated replacement cost. In assessing impairment for these assets, a rebuttable assumption ismade that the current replacement cost exceeds the original cost of acquisition.

ALEXANDRINA COUNCIL




6.7 Borrowing CostsBorrowing costs in relation to qualifying assets (net of offsetting investment revenue) have beencapitalised in accordance with AASB 123 “Borrowing Costs”. The amounts of borrowing costs recognisedas an expense or as part of the carrying amount of qualifying assets are disclosed in Note 3, and theamount (if any) of interest revenue offset against borrowing costs in Note 2.

7 Payables7.1 Goods & ServicesCreditors are amounts due to external parties for the supply of goods and services and are recognised asliabilities when the goods and services are received. Creditors are normally paid 30 days after the monthof invoice. No interest is payable on these amounts.

7.2 Payments Received in Advance & DepositsAmounts received from external parties in advance of service delivery, and security deposits held againstpossible damage to Council assets, are recognised as liabilities until the service is delivered or damagereinstated, or the amount is refunded as the case may be.

8 BorrowingsLoans are carried at their principal amounts which represent the present value of future cash flowsassociated with servicing the debt. Interest is accrued over the period to which it relates, and is recordedas part of “Payables”. Interest free loans are carried at their nominal amounts; interest revenues foregoneby the lender effectively being a reduction of interest expense in the period to which it relates.

9 Employee Benefits9.1 Salaries, Wages & Compensated AbsencesLiabilities for employees’ entitlements to salaries, wages and compensated absences expected to be paidor settled within 12 months of reporting date are accrued at nominal amounts (including payroll basedoncosts) measured in accordance with AASB 119.

Liabilities for employee benefits not expected to be paid or settled within 12 months are measured as thepresent value of the estimated future cash outflows (including payroll based oncosts) to be made inrespect of services provided by employees up to the reporting date. Present values are calculated usinggovernment guaranteed securities rates with similar maturity terms.

No accrual is made for sick leave as Council experience indicates that, on average, sick leave taken ineach reporting period is less than the entitlement accruing in that period, and this experience is expectedto recur in future reporting periods. Council does not make payment for untaken sick leave.

9.2 SuperannuationThe Council makes employer superannuation contributions in respect of its employees to the LocalGovernment Superannuation Scheme. The Scheme has two types of membership, each of which isfunded differently. No changes in accounting policy have occurred during either the current or previousreporting periods. Details of the accounting policies applied and Council’s involvement with the schemesare reported in Note 18.

ALEXANDRINA COUNCIL




10 Construction ContractsConstruction works undertaken by Council for third parties are generally on an agency basis where thethird party reimburses Council for actual costs incurred, and usually do not extend beyond the reportingperiod. As there is no profit component, such works are treated as 100% completed. Reimbursementsnot received are recognised as receivables and reimbursements received in advance are recognised as“payments received in advance”.

11 Joint Ventures and Associated EntitiesCouncil participates in cooperative arrangements with other Councils for the provision of services andfacilities.

The Adelaide Hills Region Waste Management Authority is a Local Government Authority Section 43Regional Subsidiary under the control of Adelaide Hills Council, Alexandrina Council, The DistrictCouncil of Mt Barker and Rural City of Murray Bridge, this organisation operates as a regional wastemanagement authority within the combined area.

The Southern and Hills Local Government Association has been created as regional subsidiary torepresent the interest of all Councils in the Southern Hills, Fleurieu Peninsula and Kangaroo Island,within Local Government in SA. The group meet on a monthly basis and discuss Local Governmentpolicy and procedures, and provide advice back to the LGA from a regional perspective.

The Fleurieu Regional Waste Authority is Local Government Authority Section 43 Regional Subsidiaryunder the control of Alexandrina Council, Kangaroo Island Council, Yankalilla Council and the City ofVictor Harbor. This organisation operates as a regional waste management authority within the combinedarea.

12 LeasesLease arrangements have been accounted for in accordance with Australian Accounting Standard AASB117.

In respect of finance leases, where Council substantially carries all of the risks incident to ownership, theleased items are initially recognised as assets and liabilities equal in amount to the present value of theminimum lease payments. The assets are disclosed within the appropriate asset class, and are amortisedto expense over the period during which the Council is expected to benefit from the use of the leasedassets. Lease payments are allocated between interest expense and reduction of the lease liability,according to the interest rate implicit in the lease.

In respect of operating leases, where the lessor substantially retains all of the risks and benefits incident toownership of the leased items, lease payments are charged to expense over the lease term.

13 GST ImplicationsIn accordance with UIG Abstract 1031 “Accounting for the Goods & Services Tax”

Receivables and Creditors include GST receivable and payable. Except in relation to input taxed activities, revenues and operating expenditures exclude

GST receivable and payable. Non-current assets and capital expenditures include GST net of any recoupment. Amounts included in the Statement of Cash Flows are disclosed on a gross basis.

14 Pending Accounting StandardsCertain new accounting standards and UIG interpretations have been published that are not mandatory forthe 30 June 2011 reporting period and have not been used in preparing these reports.

AASB 1 First-time Adoption of Australian Accounting Standards

ALEXANDRINA COUNCIL




AASB 3 Business Combinations AASB 5 Non-current Assets Held for Sale and Discontinued Operations AASB 7 Financial Instruments: Disclosures AASB 8 Operating Segments AASB 9 Financial Instruments AASB 101 Presentation of Financial Statements AASB 107 Statement of Cash Flows AASB 108 Accounting Policies, Changes in Accounting Estimates and

Errors AASB 110 Events after the Reporting Period AASB 118 Revenue AASB 119 Employee Benefits AASB 132 Financial Instruments: Presentation AASB 137 Provisions, Contingent Liabilities and Contingent Assets AASB 139 Financial Instruments: Recognition and Measurement AASB 140 Investment Property AASB 1031 Materiality AASB 2009-11 Amendments to Australian Accounting Standards arising from

AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131,132, 136, 139, 1023 & 1038 and Interpretations 10 & 12]

AASB 2009-12 Amendments to Australian Accounting Standards [AASBs 5, 8,108, 110, 112, 119, 133, 137, 1023 & 1032 and Interpretations 2, 4, 16,1039 &1052]

AASB 2010-4 Further Amendments to Australian Accounting Standards arisingfrom the Annual Improvements Project [AASBs 3. 7, 121, 128, 131, 132 &139]

AASB 2010-5 Amendments to Australian Accounting Standards [AASBs 1, 3, 4,5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 &1038 and Interpretations 112, 115, 127, 132 & 1042]

AASB 2010-6 Amendments to Australian Accounting Standards [AASBs 1 & 7] AASB 2010-7 Amendments to Australian Accounting Standards arising from

AASB 9 [AASBs 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128,131, 132, 136, 137, 139, 1023, & 1038 and Interpretations 2, 5, 10, 12,19, & 127]

Interpretation 14 AASB 119 – The Limit on a Defined Benefit Asset, MinimumFunding Requirements and their Interaction

(Standards not affecting local government have been excluded from the above list.)

Council is of the view that none of the above new standards or interpretations will affect any of theamounts recognised in the financial statements, but that they may impact certain information otherwisedisclosed.

The Australian Accounting Standards Board is currently reviewing AASB 1004 Contributions. It isanticipated that the changes resulting from this review may have a material effect on the timing of therecognition of grants and contributions, but the financial consequences cannot be estimated until a revisedaccounting standard is issued.

15 Full Cost AttributionIn reviewing Council’s allocation of each type of cost and the reliability of that allocation, costs areallocated directly wherever possible. This has resulted in a reduction in the type of costs allocatedindirectly to a function.

for the year ended 30 June 2011

2011 2010Notes $'000 $'000

RATES REVENUESGeneral Rates 21,860 20,056

Less: Mandatory rebates - -Less: Discretionary rebates, remissions & write offs (260) (184)

21,600 19,872Other Rates (including service charges)

Natural Resource Management levy 418 306Water supply 3 3Community wastewater management systems 2,774 2,428

3,195 2,737Other Charges

Penalties for late payment 119 91119 91

24,914 22,700

STATUTORY CHARGESDevelopment Act fees 212 211Town planning fees 196 226Animal registration fees & fines 163 135Health Services 145 170Sundry 69 64

785 806

USER CHARGESCemetery/crematoria fees 136 121Lease/ Rental non -investment property 323 309Hall & equipment hire 85 70Water Supply 21 19CWMS 48 607Waste management fees 697 888Sundry 460 341

1,770 2,355

INVESTMENT INCOMEInterest on investments

Local Government Finance Authority 71 62Banks & other 13 10

84 72

ALEXANDRINA COUNCILNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 2 - INCOME



NOTE 2 - INCOME (continued)2011 2010

Notes $'000 $'000REIMBURSEMENTS

- for roadworks 55 407 - for private works 38 444 - other 383 365

476 1,216

OTHER INCOME

Insurance & other recoupments - infrastructure, property, plant & equipment 59 5Sundry 671 498

730 503

GRANTS, SUBSIDIES, CONTRIBUTIONSAmounts received specifically for new or upgraded assets 1,631 2,231Other grants, subsidies and contributions 3,478 2,420Individually significant item - additional Grants Commission payment

seebelow 280 256

5,389 4,907The functions to which these grants relate are shown in Note 12.

Sources of grantsCommonwealth government 1,587 2,149State government 2,771 1,966Other 1,031 792

5,389 4,907

Individually Significant Item

280 256

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

ALEXANDRINA COUNCIL

On 30 June 2010, Council received payment of the first instalment of the 2010/11Grant Commission (FAG) grant. Similarly, on 27 June 2011 Council receivedpayment of the first instalment of the 2011/12 grant. It is not known when the timingof these grant payments will be restored to normal schedule, but this will materiallyadversely affect Council's operating results as these amounts are recognised asincome upon receipt.



NOTE 2 - INCOME (continued)2011 2010

Notes $'000 $'000Conditions over grants & contributions

Unexpended at the close of the previous reporting period 288 1,086

- (182 )(77 ) (819 )

Subtotal (77 ) (1,001 )

437 203Subtotal 437 203

648 288

360 (798 )

PHYSICAL RESOURCES RECEIVED FREE OF CHARGEInfrastructure - Roads 311 423Infrastructure - Bridges - 118Infrastructure - Stormwater 765 544Infrastructure - CWMS & Water 155 80Infrastructure - Footpaths 118 286Infrastructure - Kerbs 208 147

TOTAL PHYSICAL RESOURCES RECEIVED 1,557 1,598

ALEXANDRINA COUNCILNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Grants and contributions which were obtained on the condition that they be expended for specified purposes or in a futureperiod, but which are not yet expended in accordance with those conditions, are as follows:

Net increase (decrease) in assets subject to conditions in the current reportingperiod

Roads InfrastructureOther Services

Other Services

Less: expended during the current period from revenues recognised in previousreporting periods

Plus: amounts recognised as revenues in this reporting period but not yet expendedin accordance with the conditions

Unexpended at the close of this reporting period


ALEXANDRINA COUNCIL


Note 3 - EXPENSES

2011 2010Notes $'000 $'000

EMPLOYEE COSTSSalaries and Wages 8,467 8,338Employee leave expense 1,203 1,096Superannuation - defined contribution plan contributions 18 535 484Superannuation - defined benefit plan contributions 18 310 323Workers' Compensation Insurance 456 426Accident & Sickness Insuance 138 125Less: Capitalised and distributed costs (539) (651)Total Operating Employee Costs 10,570 10,141

Total Number of Employees 165 154 (Full time equivalent at end of reporting period)

MATERIALS, CONTRACTS & OTHER EXPENSESPrescribed ExpensesAuditor's Remuneration - Auditing the financial reports 12 10Elected members' expenses 514 491Election expenses 68 6Subtotal - Prescribed Expenses 594 507

Other Materials, Contracts & ExpensesContractors 2,853 2,616

Waste Management 1,860 1,106Community Wastewater Management Schemes 201 324Roadside Vegetation 301 376Legal Expenses 162 121Professional services 1,076 609

Energy 1,000 963Levies paid to government - NRM levy 415 310 - Other Levies 109 101Insurance 383 397Sundry 3,450 3,129Subtotal - Other Materials, Contracts & Expenses 11,810 10,052

12,404 10,559


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Note 3 - EXPENSES (cont)2011 2010

Notes $'000 $'000DEPRECIATION, AMORTISATION & IMPAIRMENTDepreciationBuildings & Other Structures 1,013 967Infrastructure Footpaths 230 185 Kerbs 332 312 Bridges & Major Culverts 168 156 Stormwater 577 502 CWMS 823 717 Water 16 17 Roads 3,455 3,199 Rec & Open Space 248 231Plant 599 587Equipment 361 267Furniture & Fittings 90 98Other 28 29Library Bookstock 265 251ImpairmentPlant 124 -

8,329 7,518

FINANCE COSTSInterest on Loans 1,057 731

1,057 731

The impairment of plant assests has been disclosed in Note 7


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Note 4 - ASSET DISPOSAL & FAIR VALUE ADJUSTMENTS

2011 2010Notes $'000 $'000

INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENTAssets renewed or directly replacedProceeds from disposal 859 912Less: Carrying amount of assets sold 1,045 1,723Gain (Loss) on disposal (186) (811)

Assets surplus to requirementsLess: Carrying amount of assets sold 70 -Gain (Loss) on disposal (70) -

NET GAIN (LOSS) ON DISPOSAL OR REVALUATION OFASSETS (256) (811)


ALEXANDRINA COUNCIL


Note 5 - CURRENT ASSETS2011 2010

CASH & EQUIVALENT ASSETS Notes $'000 $'000Cash on Hand and at Bank 507 342Deposits at Call 1,101 1,056

1,608 1,398

TRADE & OTHER RECEIVABLESRates - General & Other 859 746Accrued Revenues 14 10Debtors - general 1,635 1,737Prepayments 759 114Loans to community organisations 48 44Total 3,315 2,651

Less: Allowance for Doubtful Debts 14 113,301 2,640

INVENTORIESStores & Materials 31 40

31 40


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Note 6 - NON-CURRENT ASSETS2011 2010

FINANCIAL ASSETS Notes $'000 $'000ReceivablesLoans to community organisations 324 370Other - Deferred Debtors 15 15TOTAL FINANCIAL ASSETS 339 385

EQUITY ACCOUNTED INVESTMENTS IN COUNCILBUSINESSESAdelaide Hills Regional Waste Management Authority 19 103 89Southern & Hills Local Government Association 19 7 5Fleurieu Regional Waste Authority 19 84 -

194 94

OTHER NON-CURRENT ASSETSCapital Works-in-Progress Stormwater 229 247Capital Works-in-Progress Footpaths 154 1,132Capital Works-in-Progress Roads 2 246Capital Works-in-Progress CWMS 2,068 2,098Capital Works-in-Progress Bridges & Major Culverts - 6Capital Works-in-Progress Buildings 3,378 208

5,831 3,937


ALEXANDRINA COUNCIL


AT FAIRVALUE AT COST

ACCUMDEP'N

CARRYINGAMOUNT

AT FAIRVALUE AT COST

ACCUMDEP'N

CARRYINGAMOUNT

Note 7 - INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

Land 90,628 10 - 90,638 90,574 315 - 90,889Land Improvements - 35 - 35 - 560 - 560Buildings & Other Structures 55,983 4,999 (29,153) 31,829 61,679 377 (30,195) 31,861Infrastructure Footpaths 8,405 770 (1,608) 7,567 8,960 1,624 (1,777) 8,807 Kerbs 21,391 460 (6,813) 15,038 22,535 430 (7,333) 15,632 Bridges & Major Culverts 13,187 205 (7,164) 6,228 13,777 674 (7,527) 6,924 Stormwater 39,224 1,633 (10,743) 30,114 43,036 2,940 (9,641) 36,335 CWMS 38,152 1,817 (8,668) 31,301 41,410 1,440 (11,622) 31,228 Water 1,155 - (493) 662 1,116 - (491) 625 Roads 126,360 7,332 (22,624) 111,068 135,854 3,799 (25,171) 114,482 Rec & Open Space 3,870 1,352 (1,013) 4,209 3,870 2,648 (1,260) 5,258Plant 3,500 3,282 (2,033) 4,749 7,043 1,768 (3,989) 4,822Equipment 2,242 1,358 (2,058) 1,542 2,147 1,560 (2,396) 1,311Furniture & Fittings 1,096 427 (893) 630 1,096 445 (983) 558Other 412 215 (348) 279 412 215 (376) 251Library Bookstock 1,058 520 (782) 796 1,649 - (818) 831

TOTAL INFRASTRUCTURE, PROPERTY,PLANT & EQUIPMENT 406,663 24,415 (94,393) 336,685 435,158 18,795 (103,579) 350,374

Comparatives 369,052 15,926 (94,165) 290,813 406,663 24,415 (94,393) 336,685This Note continues on the following pages.

2010$'000

2011$'000


ALEXANDRINA COUNCIL


2010 2011$'000 $'000

New/Upgrade Renewals

Land 90,638 315 - (64) - - - - 90,889Land Improvements 35 525 - - - - - - 560Buildings & Other Structures 31,829 344 33 (6) (1,013) - - 674 31,861Infrastructure - Footpaths 7,567 1,620 5 - (230) - - (155) 8,807 Kerbs 15,038 429 - - (332) - - 497 15,632 Bridges & Major Culverts 6,228 674 - - (168) - - 190 6,924 Stormwater 30,114 2,939 - - (577) - 2,075 1,784 36,335 CWMS 31,301 1,440 - - (823) - (2,075) 1,385 31,228 Water 662 - - - (16) - - (21) 625 Roads 111,068 1,578 2,221 - (3,455) - - 3,070 114,482 Rec & Open Space 4,209 1,040 257 - (248) - - - 5,258Plant 4,749 1,769 - (973) (599) (124) - - 4,822Equipment 1,542 78 124 (72) (361) - - - 1,311Furniture & Fittings 630 4 14 - (90) - - - 558Other 279 - - - (28) - - - 251Library Bookstock 796 - 94 - (265) - - 206 831

TOTAL INFRASTRUCTURE,PROPERTY, PLANT & EQUIPMENT 336,685 12,755 2,748 (1,115) (8,205) (124) - 7,630 350,374

Comparatives 290,813 17,408 4,260 (1,723) (7,518) - - 33,441 336,685

CARRYINGAMOUNT

Note 7 - INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

CARRYING AMOUNT MOVEMENTS DURING YEAR$'000

CARRYINGAMOUNT

AdditionsDisposals Depreciation Impairment Transfers NetRevaluation



Alexandrina Council


Note 7 (cont) – INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

Valuation of AssetsAt 1 July 2004 upon the transition to AIFRS, Council elected pursuant to AASB 1.19 to retain a previouslyestablished deemed cost under GAAP as its deemed cost for the purposes of AIFRS.

Plant, Furniture & EquipmentThe valuation of these assets was determined by a consultant with Council using an asset listingdetermined from visual inspection as at 1st July 2000, with revaluation on an individual basis using 50% ofpresent day costs, with exception of historical items and the computer network. A revaluation of planteffective 1 July 2010 was carried out in 2010/11 by Maloney’s Field Services, during this process animpairment expense of $124,000 was identified. Additions are recognised at cost.

Land & Land ImprovementsThe freehold land and land over which Council has control, but does not have title, is recognised on thecost basis. No capitalisation threshold is applied to the acquisition of land or interests in land.Council has a community land register from in-house information and has matched this with the valuationfrom the Valuer General as at 30th June 2010. Additions are recognised at cost.

Buildings & Other StructuresMaloney Field Services performed a desktop valuation as at 1st July 2010 of all Council owned Buildings.Assets have been broken up into components and depreciated individually.

InfrastructureCouncil undertook a review of Replacement Cost Unit Rates on CWMS and Water supply assets as at 1July 2010. Aceam Pty Ltd undertook a desktop review of these rates from documentation supplied byCouncil and found the rates to be a reasonable representation of expected unit rates for that class of asset.Replacement Cost Unit Rates for roads, footpaths, stormwater, kerbs and bridges and major culverts wereindexed as recommended by Aceam Pty Ltd by the Local Government Price Index for the June quarter2010 plus the movement between the March and June quarter resulting in an indexation of 3.6%.

The impact on depreciation from the revaluation is an increase of $228,000.

Council has incorporated residual values for: Footpaths 30% (10-30% previously) Road Pavement 30% (25-35% previously)

Additions are reported at cost.

Council plans to undertake condition based assessments of its Infrastructure assets on a four-yearly rollingprogram according to the following schedule in consultation with its external asset managementconsultants.

CWMS and Water Supply 2011/12 Stormwater 2011/12 Bridges and Major Culverts 2012/13 Parks and Open Spaces 2012/13 Roads, Kerbs and Footpaths 2013/14

All other assetsThese assets are recognised on a cost basis. Library books’ and other lending materials’ valuations arebased on unit prices, depreciation periods and residual values determined by the Public Libraries Board.

ALEXANDRINA COUNCIL


Note 8 - LIABILITIES2011 2010$'000 $'000

TRADE & OTHER PAYABLES Notes Current Non-current Current Non-currentGoods & Services 2,763 - 1,940 -Payments received in advance 168 - 176 -Accrued expenses - employee entitlements 980 146 734 323Accrued expenses - other 435 19 373 43Deposits, Retentions & Bonds 52 - 70 -

4,398 165 3,293 366

BORROWINGSLoans 1,506 19,263 1,632 14,396

1,506 19,263 1,632 14,396

PROVISIONSEmployee entitlements (including oncosts) 215 1,245 177 1,249Future reinstatement / restoration, etc 15 271 10 275

230 1,516 187 1,524

Movements in Provisions - 2011 year only(current & non-current)

FutureReinstate-

mentEmployee

EntitlementsOpening Balance 285 1,426 Additional amounts recognised - 200(Less) Payments (15) (230)Add (Less) Remeasurement Adjustments 16 64Closing Balance 286 1,460

All interest bearing liabilities are secured over the future revenues of the Council.All interest bearing liabilities are secured over the future revenues of the Council.All interest bearing liabilities are secured over the future revenues of the Council.All interest bearing liabilities are secured over the future revenues of the Council.All interest bearing liabilities are secured over the future revenues of the Council.All interest bearing liabilities are secured over the future revenues of the Council.All interest bearing liabilities are secured over the future revenues of the Council.All interest bearing liabilities are secured over the future revenues of the Council.


ALEXANDRINA COUNCIL


Note 9 - RESERVES

ASSET REVALUATION RESERVE 1/7/2010 Net Increments(Decrements)Transfers,

Impairments 30/6/2011

Notes $'000 $'000 $'000 $'000Land 70,048 - - 70,048Buildings & Other Structures 9,101 674 - 9,775Infrastructure Footpaths 5,011 (155) - 4,856 Kerbs 7,462 497 - 7,959 Bridges & Major Culverts 2,656 190 - 2,846 Stormwater 26,228 1,784 - 28,012 CWMS 7,304 1,385 - 8,689 Water 573 (21) - 552 Roads 51,827 3,070 - 54,897Equipment 39 - - 39Furniture & Fittings 467 - - 467Library Bookstock 665 206 - 871TOTAL 181,381 7,630 189,011

Comparatives 147,940 33,441 181,381

OTHER RESERVES 1/7/2010Transfers to

ReserveTransfers from

Reserve 30/6/2011

Open Space 133 6 - 139AHRWMA 88 15 - 103S&HLGA 6 1 - 7FRWA - 84 - 84CWMS 59 4,111 (4,108 ) 62Water Supply 47 20 (25 ) 42Boating 111 280 (271 ) 120Library 8 10 (9 ) 9Other 414 1,084 (707) 791TOTAL OTHER RESERVES 866 5,611 (5,120 ) 1,357

Comparatives 1,580 6,095 (6,809 ) 866

PURPOSES OF RESERVES

Council supplies water to Finniss

Friends of Goolwa Library funds held in reserve for Section 41 Committee of Council

Other

Strathalbyn Visitor Information Centre, Strathalbyn Woodshed funds, ACPA Support Committee and Alexandrina Arts Committeeheld in reserve for Section 41 Committee of Council and unspent grants and contributions

Water Supply

BoatingBoating activities funds held in reserve for Section 41 Committee of Council

Library

AHRWMA - Adelaide Hills Regional Waste Management AuthorityAlexandrina Council's interest in the Adelaide Hills Regional Waste Management Authority

CWMS - Community Wastewater Management SchemeIn compliance with s155(6)(a)&(b) of the Local Government Act 1999, Council has created a reserve for Community WastewaterManagement Schemes

Open Space

In compliance with Div 4 s50(10)(a) of the Development Act 1993, Council has created a reserve for Open Space Contributions

Asset Revaluation ReserveThe asset revaluation reserve is used to record increments and decrements arising from changes in fair value of non-currentassets and available-for-sale financial assets. Previously Buildings and Other Structures and Land were reported together, theyare now disclosed separately.


ALEXANDRINA COUNCIL


2011 2010CASH & FINANCIAL ASSETS Notes $'000 $'000Unexpended amounts received from Other Levels of Government 648 203CWMS Contributions 62 60Water Schemes 42 47TOTAL ASSETS SUBJECT TO EXTERNALLY IMPOSEDRESTRICTIONS

752 310

Note 10 - ASSETS SUBJECT TO RESTRICTIONSThe uses of the following assets are restricted, wholly or partially, by legislation or other externally imposed requirements.The assets are required to be utilised for the purposes for which control was transferred to Council, or for which the revenueswere originally obtained.


ALEXANDRINA COUNCIL


Note 11 - RECONCILIATION TO CASH FLOW STATEMENT

(a) Reconciliation of Cash

2011 2010Notes $'000 $'000

Total cash & equivalent assets 5 1,608 1,398Balances per Cash Flow Statement 1,608 1,398

(b) Reconciliation of Change in Net Assets to Cash from Operating ActivitiesNet Surplus (Deficit) 3,189 4,420Non-cash items in Income Statement Depreciation, amortisation & impairment 8,329 7,518 Equity movements in equity accounted investments (increase) decrease (100) (23)

Net increase (decrease) in unpaid employee benefits 103 131 Change in allowances for under-recovery 3 11 Non-cash asset acquisitions (1,557) (1,598) Grants for capital acquisitions treated as Investing Activity (1,631) (2,231) Net (Gain) Loss on Disposals 256 811

8,592 9,039Add (Less): Changes in Net Current Assets Net (increase) decrease in receivables (660) 912 Net (increase) decrease in inventories 9 (8) Net increase (decrease) in trade & other payables 835 (353) Net increase (decrease) in other provisions (15) (48)Net Cash provided by (or used in) operations 8,761 9,542

(c) Non-Cash Financing and Investing Activities

Acquisition of assets by means of: - Physical resources received free of charge 2 1,557 1,598

1,557 1,598

(d) Financing Arrangements

Unrestricted access was available at balance date to the following lines of credit:Bank Overdrafts 1,200 1,200LGFA Cash Advance Facility 20,760 12,340Corporate Credit Cards 49 51

Cash Assets comprise highly liquid investments with short periods to maturity subject to insignificant risk ofchanges of value. Cash at the end of the reporting period as shown in the Cash Flow Statement isreconciled to the related items in the Balance Sheet as follows:

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.Council also has immediate access to a short-term draw-down facility, and variable interest rate borrowingsunder a cash advance facility, both from the Local Government Finance Authority of SA.


ALEXANDRINA COUNCIL


INCOMES, EXPENSES AND ASSETS HAVE BEEN DIRECTLY ATTRIBUTED TO THE FOLLOWING FUNCTIONS & ACTIVITIES

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL2011 2010 2011 2010 2011 2010 2011 2010 2011 2010$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Governance 859 466 2,971 3,613 (2,112) (3,147) 70 1 52,214 51,809Building, Planning & CommunityDevelopment 1,595 1,689 4,664 3,520 (3,069) (1,831) 759 714 668 495

Engineering & Infrastructure 6,016 6,097 18,791 15,453 (12,775) (9,356) 2,140 1,070 300,238 287,098Finance & Cporporate Services 23,691 21,702 4,269 5,223 19,422 16,479 704 657 7,619 5,032Strategy, Environment & EconomicDevelopment 356 374 1,665 1,140 (1,309) (766) 85 234 939 745

TOTALS 32,517 30,328 32,360 28,949 157 1,379 3,758 2,676 361,678 345,179

TOTAL ASSETS HELD(CURRENT &

NON-CURRENT)

Note 12 - FUNCTIONS

INCOME EXPENSES OPERATINGSURPLUS (DEFICIT)

GRANTSINCLUDED IN

INCOME

Excludes net gain (loss) on disposal or revaluation of assets, net gain (loss) from joint ventures & associated entities, amounts received specifically for new or upgraded assets and physicalresources received free of charge.Excludes net gain (loss) on disposal or revaluation of assets, net gain (loss) from joint ventures & associated entities, amounts received specifically for new or upgraded assets and physicalresources received free of charge.



ALEXANDRINA COUNCIL


Note 12 (cont) - COMPONENTS OF FUNCTIONS

The activities relating to Council functions are as follows:

GovernanceElected members, CE's Office and Other Governance, General Administration, Human ResourceManagement, Management of Council Owned Properties (inc Halls, Administration Centres, PublicConveniences, Caravan Parks etc) and Riverport Precinct

Building, Planning & Community DevelopmentCentre for Positive Ageing, Aged/Disabled/Disadvantaged Homes, Goolwa Sports Stadium,Community Bus, Community Aid Services, Fleurieu Families/Family Links, Community ServicesGeneral, Youth Services, Other Sport & Recreation, Cultural Services, Health Services, HealthPrevention Services, Noxious Insects, Development Assessment (Planning & Building), Oscar W,Wooden Boat Festival, Goolwa Visitor Information Centre, Strathalbyn Visitor Centre, RecreationalBoating, General Inspectors (Dog & Cat Management, Impounding Livestock, Parking), Fire Protectionand General Inspection

Engineering & Infrastructure ServicesPublic Conveniences, Street Lighting, Swimming Centres, Parking Off Street, Sport and RecreationFacilities, Caravan Parks, Private Works, Foreshore Protection, Alexandrina Riverfront, Parks andGardens, Playgrounds, Road Reserves, Cemeteries, Water Supply Scheme, Effluent Drainage,Sanitary and Garbage, Street Cleaning, Stormwater Drainage, Traffic Control, Road Maintenance,Resheeting, Footpath/Cycle Tracks, Vandalism, Plant Operations, Works Depot, and TechnicalServices, Infrastructure/Assets/Contracts Management

Finance & Corporate ServicesRate Revenue, Finance General, Rate Processing, Debtors, Payroll and Creditors, Loans &Investments Management, Information Technology, Records Management, Libraries (Goolwa andStrathalbyn) and Customer Services

Strategy, Environment & Economic DevelopmentStrategic Management, Economic Development, Tourism and Events, Signal Point Interpretive Centre,Natural Resources

ALEXANDRINA COUNCIL


Recognised Financial Instruments

Note 13 - FINANCIAL INSTRUMENTS

Terms & conditions: Deposits are returning fixed interest rates between 3.35% and 4.75% (2010:2.75% and 4.5%).

Accounting Policy: Carried at lower of cost and net realiseable value; Interest is recognised whenearned.

Bank, Deposits at Call, Short TermDeposits

Carrying amount: approximates fair value due to the short term to maturity.Receivables - Rates & AssociatedCharges (including legals & penaltiesfor late payment)Note: These receivables do not meetthe definition of "financial instruments"and have been excluded from thefollowing disclosures.

Receivables - Fees & other charges

Accounting Policy: Carried at nominal values less any allowance for doubtful debts. An allowance fordoubtful debts is recognised (and re-assessed annually) when collection in full is no longer probable.

Receivables - other levels ofgovernment

Carrying amount: approximates fair value.

Terms & conditions: Secured over the subject land. Although Council is not materially exposed toany individual debtor, credit risk exposure is concentrated within the Council's boundaries in the State.


Carrying amount: approximates fair value (after deduction of any allowance).

Terms & conditions: Unsecured, and do not bear interest. Although Council is not materiallyexposed to any individual debtor, credit risk exposure is concentrated within the Council's boundaries.

Carrying amount: approximates fair value (after deduction of any allowance).Accounting Policy: Carried at nominal value.Terms & conditions: Amounts due have been calculated in accordance with the terms and conditionsof the respective programs following advice of approvals, and do not bear interest. All amounts aredue by Departments and Agencies of the Governments of the Commonwealth & State.


Receivables - Retirement HomeContributions

Carrying amount: approximates fair value (after deduction of any allowance).

Terms & conditions: Amounts due have been calculated in accordance with the terms and conditionsof the respective legislation.

Carrying amount: approximates fair value.Terms & conditions: Liabilities are normally settled on 30 day terms.

Accounting Policy: Liabilities are recognised for amounts to be paid in the future for goods andservices received, whether or not billed to the Council.

Liabilities - Creditors and Accruals

Liabilities - Finance Leases

Accounting Policy: Carried at the principal amounts. Interest is charged as an expense as it accrues.

Terms & conditions: secured over future revenues, borrowings are repayable by equal sum monthlyinstalments of principal and interest. Interest is charged at fixed rates between 5.70% and 7.20%(2010: 5.70% and 8.10%)Carrying amount: approximates fair value.

Liabilities - Interest BearingBorrowings

Carrying amount: approximates fair value for short tenancies; may be non-materially over-stated forlonger tenancies.

Terms & conditions: Pursuant to Commonwealth legislation certain intending residents are requiredto contribute amounts on an interest free basis. The amounts are subject to certain deductions asprescribed by the legislation, the balance being repaid on termination of tenancy.

Accounting Policy: To avoid inconvenience when complying with the separate audit requirementsimposed by the relevant legislation, amounts are carried at nominal values.

Liabilities - Retirement HomeContributions

Accounting Policy: accounted for in accordance with AASB 117.


Note 13 (cont) - FINANCIAL INSTRUMENTSLiquidity Analysis

Due < 1 year Due > 1 year; 5 yearsTotal

ContractualCash Flows

CarryingValues

Financial Assets $'000 $'000 $'000 $'000 $'000Cash & Equivalents 1,608 - - 1,608 1,608Receivables 2,456 339 - 2,795 2,781

Total 4,064 339 - 4,403 4,389Financial Liabilities

Payables 2,983 - - 2,983 2,983Current Borrowings 1,920 - - 1,920 1,506Non-Current Borrowings - 19,032 2,263 21,295 19,263

Total 4,903 19,032 2,263 26,198 23,752

Due < 1 year Due > 1 year; 5 yearsTotal

ContractualCash Flows

CarryingValues

Financial Assets $'000 $'000 $'000 $'000 $'000Cash & Equivalents 1,398 - - 1,398 1,398Receivables 1,905 385 - 2,290 2,279

Total 3,303 385 - 3,688 3,677Financial Liabilities

Payables 2,186 - - 2,186 2,186Current Borrowings 2,123 - - 2,123 1,632Non-Current Borrowings - 13,470 2,954 16,424 14,396

Total 4,309 13,470 2,954 20,733 18,214

The following interest rates were applicable to Council's borrowings at balance date:

Weighted Average InterestRate Carrying Value

WeightedAverage Interest

Rate Carrying Value

% $'000 % $'000Non Interest Bearing 2,983 2,186Overdraft 6.64 - 6.25 -Other Variable Rates 6.25 14,372 6.00 8,412Fixed Interest Rates 6.38 6,397 6.37 7,616

23,752 18,214

30 June 2011 30 June 2010

2010

2011

ALEXANDRINA COUNCIL


All carrying values approximate fair value for all recognised financial instruments. There is no recognised market for thefinancial assets of the Council.

Risk ExposuresCredit Risk represents the loss that would be recognised if counterparties fail to perform as contracted. The maximum creditrisk on financial assets of the Council is the carrying amount, net of any allowance for doubtful debts. All Council investmentsare made with the SA Local Government Finance Authority and are guaranteed by the SA Government. Except as detailed inNotes 5 & 6 in relation to individual classes of receivables, exposure is concentrated within the Council's boundaries, and thereis no material exposure to any individual debtor.

Market Risk is the risk that fair values of financial assets will fluctuate as a result of changes in market prices. All of Council'sfinancial assets are denominated in Australian dollars and are not traded on any market, and hence neither market risk norcurrency risk apply.

Liquidity Risk is the risk that Council will encounter difficulty in meeting obligations with financial liabilities. In accordance withthe model Treasury Policy (LGA Information Paper 15), liabilities have a range of maturity dates. Council also has available arange of bank overdraft and standby borrowing facilities that it can access.

Interest Rate Risk is the risk that future cash flows will fluctuate because of changes in market interest rates. Council has abalance of both fixed and variable interest rate borrowings and investments. Cash flow fluctuations are managed holistically inseeking to minimise interest costs over the longer term in a risk averse manner.


ALEXANDRINA COUNCIL


2011 2010Notes $'000 $'000

Capital Commitments

Buildings 504 -Infrastructure 759 827Community Wastewater Management Scheme 51 621

1,314 1,448These expenditures are payable:Not later than one year 1,314 1,448

1,314 1,448

Other Expenditure Commitments

Audit Services 48 60Waste Management Services 7,760 -Other 540 597

8,348 657These expenditures are payable:Not later than one year 1,834 199Later than one year and not later than 5 years 6,514 446Later than 5 years - 12

8,348 657

Note 14 - COMMITMENTS FOR EXPENDITURE

Capital expenditure committed for at the reporting date but not recognised in the financial statementsas liabilities:

Other expenditure committed for (excluding inventories) at the reporting date but not recognised in thefinancial statements as liabilities:


ALEXANDRINA COUNCIL


Note 15 - FINANCIAL INDICATORS

2011 2010 2009

Operating Surplus 257 1,402 (148)

Adjusted Operating Surplus 233 1,380 (382)

Operating Surplus RatioOperating Surplus 1% 6% (1%)Rates - general & other less NRM levy

Adjusted Operating Surplus Ratio 1% 6% (2%)

Net Financial Liabilities 21,830 16,975 8,686

Net Financial Liabilities RatioNet Financial Liabilities 68% 56% 30%Total Operating Revenue less NRM levy

Net Interest Expense 3.0% 2.2% 1.4%Total Operating Revenue less NRM levy less InvestmentIncome

Asset Sustainability RatioNet Asset Renewals 51% 76% 49%Depreciation Expense

Asset Consumption RatioCarrying value of depreciable assets 71% 72% 76%Gross value of depreciable assets

Interest Cover Ratio

Net Financial Liabilities are defined as total liabilities less financial assets (excluding equity accounted investments inCouncil businesses.

Net asset renewals expenditure is defined as net capital expenditure on the renewal and replacement of existing assets,and excludes new capital expenditure on the acquisition of additional assets.

Being the operating surplus (deficit) before capital amounts .

This ratio expresses the operating surplus as a percentage of general and other rates, net of NRM levy.

Total carrying value of depreciable assets divided by total reported value of depreciable assets before accumulateddepreciation.

These Financial Indicators have been calculated in accordance with Information Paper 9 - LocalGovernment Financial Indicators prepared as part of the LGA Financial Sustainability Program for the LocalGovernment Association of South Australia. Detailed methods of calculation are set out in the SA ModelStatements.

In each of June 2009, 2010 and 2011 the Commonwealth Government made an advance payment of one quarterly payment of theFinancial Assistance Grant (see Note 2). Accordingly there were five "quarterly" payments in 2009, and four payments in each of2010 and 2011. The Adjusted Operating Surplus and Adjusted Operating Surplus Ratio adjust for this distortion.


ALEXANDRINA COUNCIL


Income 32,617 30,351less Expenses 32,360 28,949Operating Surplus / (Deficit) 257 1,402

less Net Outlays on Existing AssetsCapital Expenditure on renewal and replacementof Existing Assets 5,114 6,650

less Depreciation, Amortisation and Impairment 8,329 7,518

less Proceeds from Sale of Replaced Assets 859 912(4,074) (1,780)

less Net Outlays on New and Upgraded Assets

Capital Expenditure on New and UpgradedAssets(including investment property & real estate developments)

10,710 13,671

less Amounts received specifically for New andUpgraded Assets 1,631 2,231

9,079 11,440

Net Lending / (Borrowing) for Financial Year (4,748) (8,258)

Note 16 - UNIFORM PRESENTATION OF FINANCES

2011$'000

2010$'000

The following is a high level summary of both operating and capital investment activities of theCouncil prepared on a simplified Uniform Presentation Framework basis.

All Councils in South Australia have agreed to summarise annual budgets and long-term financialplans on the same basis.

The arrangements ensure that all Councils provide a common 'core' of financial information, whichenables meaningful comparisons of each Council's finances


ALEXANDRINA COUNCIL


Leases providing revenue to the Council

Note 17 - OPERATING LEASES

Council owns various buildings, plant and other facilities that are available for hire or lease (ona non-cancellable basis whereever practicable) in accordance with the published revenuepolicy. Rentals received from such leases are disclosed as rent and hire of non-investmentproperty in Note 2.



ALEXANDRINA COUNCIL


Note 18 – SUPERANNUATION

The Council makes employer superannuation contributions in respect of its employeesto the Local Government Superannuation Scheme. The Scheme has two types ofmembership, each of which is funded differently. Permanent and contract employeesof the South Australian Local Government sector employed before 25 November 2009have the option to contribute to Marketlink and/or Salarylink. All other employees(including casuals) have all contributions allocated to Marketlink.

Marketlink (Accumulation Fund) MembersMarketlink receives both employer and employee contributions on a progressive basis.Employer contributions are based on a fixed percentage of employee earnings inaccordance with superannuation guarantee legislation (9% in 2010/11 for Marketlinkmembers and 3% for Salarylink members; 9% and 3% respectively in 2009/10). Nofurther liability accrues to the employer as the superannuation benefits accruing toemployees are represented by their share of the net assets of the Fund.

Salarylink (Defined Benefit) MembersSalarylink is a defined benefit scheme where the benefit payable is based on a formuladetermined by the member’s contribution rate, number of years of contribution andfinal average salary. Council makes employer contributions to Salarylink as determinedby the Scheme's Trustee based on advice from the Scheme's Actuary. The rate iscurrently 6.3% (6% in 2009/10) of “superannuation” salary. Given that Employercontributions are based on a fixed percentage of employee earnings in accordancewith superannuation guarantee legislation, the remaining 3% for Salarylink members isallocated to their Marketlink account. Employees also make member contributions tothe Fund. As such, assets accumulate in the Fund to meet the member's benefits, asdefined in the Trust Deed, as they accrue.

The Salarylink Plan is a multi-employer sponsored plan. As the Fund's assets andliabilities are pooled and are not allocated by employer, the Actuary is unable toallocate benefit liabilities, assets and costs between employers. As provided by AASB119.32(b), Council does not use defined benefit accounting for these contributions.

The most recent full actuarial investigation conducted by the Scheme's actuary, L CBrett, BSc., FIA, FIAA, of Brett and Watson Pty Ltd as at 30 June 2008, the Trusteehas determined that the current funding arrangements are adequate for the expectedDefined Benefit Plan liabilities. However, future financial and economic circumstancesmay require changes to Council’s contribution rates at some future time.

An actuarial is being performed by the Scheme’s actuary as at 30 June 2011 which isscheduled to be completed by December 2011 which may result in changes to thefuture required contributions to the scheme by the Council. Any changes to Council’sfuture contributions to the scheme will be disclosed in Council’s 2011/12 financialstatements.

ALEXANDRINA COUNCIL


2011 2010Adelaide Hills Regional Waste Management Authority $'000 $'000Council's respective interests are: - interest in outputs of the joint operation 8% 8% - ownership interest in the joint operation 8% 9%

Movements in Investment in Joint Operation $'000 $'000 Opening Balance 88 67 Share in Operating Result 15 21 Share in Equity of Joint Operation 103 88

Southern & Hills Local Government Association

Movements in Investment in Joint Operation Opening Balance 6 4 Share in Operating Result 1 2 Share in Equity of Joint Operation 7 6

Note 19 - JOINT VENTURES & ASSOCIATED ENTITIES

Southern & Hills Local Government AssociationThe Southern and Hilles Local Government Association has been created as a regional subsidiary to represent the interestsof all Councils in the Southern Hills, Fleurieu Peninsula and Langaroo Island, within Local Government in SA. The groupmeet on a monthly basis and discuss Local Government policy and procedures, and provide advice back to the LGA from aregional perspective.

All joint ventures and associated entities are required to prepare Annual Financial Statements that comply with the SA LocalGovernment Model Financial Statements.

Adelaide Hills Regional Waste Management AuthorityThe Authority is a Local Government Authority Section 43 Regional Subsidiary under the control of Adelaide Hills Council,Alexandrina Council, The District Council of Mount Barker and Rural City of Murray Bridge. This organisation operates as aregional waste management authority within the combined area.


Note 19 (cont) - JOINT VENTURES & ASSOCIATED ENTITIES

2011 2010Fleurieu Regional Waste Authority $'000 $'000Council's respective interests are: - ownership interest in the joint operation 35% 35%

Movements in Investment in Joint Operation Opening Balance - - Share in Operating Result 84 Share in Equity of Joint Operation 84 -

Basham Beach Trust

Movements in Investment in Joint Operation Opening Balance 439 370 Add Port Elliot Caravan Park Lease (55%) 72 71 Interest 21 15

532 456 Less Reimbursed Expenditure 17 17

515 439

ALEXANDRINA COUNCIL


Fleurieu Regional Waste AuthorityThe Authority is a Local Government Authority Section 43 Regional Subsidiary under the control of Victor Harbor,Alexandrina Council, Kangaroo Island Council and Yankalilla District Council. This organistaion operates as a regional wastemanagement authority within the combined area. The Authority did not have any operating activities in the 2009/10 to berecorded in Council's financial statements.

Basham Beach TrustTrust monies and property held by Council but subject to the control of other persons have been excluded from thesereports. Council performs a custodial role in respect of Basham Beach Trust monies, and because the monies cannot beused for Council purposes, they are not brought to account in the financial report, but are disclosed for information purposes.



ALEXANDRINA COUNCIL


Note 20 - CONTINGENCIES & ASSETS & LIABILITIES NOT RECOGNISED INTHE BALANCE SHEET

The following assets and liabilities do not qualify for recognition in the Balance Sheet but knowledge of those items isconsidered relevant to user of the financial report in making and evaluating decisions about the allocation of scarceresources.

1. LAND UNDER ROADSAs reported elsewhere in these Statements, Council is of the opinion that it is not possible to attribute avalue sufficiently reliably for these assets to qualify for recognition, and accordingly land under roads hasnot been recognised in these reports. Land acquired for road purposes during the year is initiallyrecognised at cost, but transferred to fair value at reporting date, effectively writing off the expenditure.

2. POTENTIAL INSURANCE LOSSESCouncil is a multi-purpose organisation providing a large range of building, parks infrastructure,playgrounds and other facilities accessible to the public. At any time, it is likely that claims will havebeen made against Council that remain unsettled.

Council insures against all known insurable risks using a range of insurance policies, each of which issubject to a deductible "insurance excess", the amount of which varies according to the class ofinsurance.

Council has recognised the potential losses arising from claims known at reporting date based onaverage historical net cost (including insurance excess) of similar types of claims. Other potentialclaims not reported to Council may have existed at reporting date.

3. LEGAL EXPENSESCouncil is the planning consent authority for its area under the Development Act 1993 (as amended).Pursuant to that Act, certain persons aggrieved by a planning decision of the Council may appeal. Itis normal practice that parties bear their own legal costs. All known costs have been recognised, butthe amount of further costs cannot be known until the appeals are determined.

Note 21 – EVENTS AFTER THE BALANCE SHEET DATE

Council has no events after the balance sheet date to report.

Financial Statements Cover 1011.pdf

Signed final Statements 06.10.11.pdfStatement comprehensive income.pdfBal Sheet.pdfCash Flow.pdfNote 2.pdfNote 3.pdfNote 4.pdfNote 5.pdfNote 7.pdfNote 7-2.pdfNote07_11.pdfNote 8.pdfNote 9.pdfNote 10.pdfNote 11.pdfNote 12.pdfNote12_11.pdfNote 13.pdfNote 14.pdfNote 16.pdfNote 17.pdf

Financial Statements 30 June 2011 · 2019. 9. 10. · 2011 2010 ASSETS Notes $'000 $'000 Current...

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Transcript of Financial Statements 30 June 2011 · 2019. 9. 10. · 2011 2010 ASSETS Notes $'000 $'000 Current...