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MURCHISON REGIONAL VERMIN COUNCIL

AGENDA

ORDINARY MEETING OF COUNCIL

4 SEPTEMBER 2012


Agenda MRVC Ordinary Meeting 4 September 2012 of 96


AGENDA

ORDINARY MEETING OF COUNCIL

4 SEPTEMBER 2012

NOTICE OF MEETING

Dear Elected Member, The next Ordinary Meeting of the Murchison Regional Vermin Council will be held on 4 September 2012 in the Shire of Mount Magnet Council Chambers, Lot 163 Hepburn St, Mount Magnet commencing at 10.00 am. Geoff Brooks CHIEF EXECUTIVE OFFICER 31 August 2012

DISCLAIMER

No responsibility whatsoever is implied or accepted by the MRVC for any act, omission, statement or intimation occurring during this meeting. It is strongly advised that persons do not act on what is heard at this meeting and should only rely on written confirmation of Council’s decision, which will be provided within fourteen (14) days of this meeting.

Agenda MRVC Ordinary Meeting 12 June 2012 of 96

MURCHISON REGIONAL VERMIN COUNCIL Agenda for Ordinary Meeting of Council at Shire of Mount Magnet

Council Chambers, Lot 163 Hepburn St, Mount Magnet, 4 September 2012

TABLE OF CONTENTS

1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS ..................................... 4

2. RECORD OF ATTENDANCE / APOLOGIES / LEAVE OF ABSENCE ................................. 4

3. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ............................ 4

4. PUBLIC QUESTION TIME AND ADDRESS BY MEMBERS OF THE PUBLIC .................... 4 4.1 Public Question Time ................................................................................................. 4 4.2 Address by Members of the Public ............................................................................. 4

5. APPLICATIONS FOR LEAVE OF ABSENCE ....................................................................... 4

6. DEPUTATIONS / PRESENTATIONS / SUBMISSIONS ........................................................ 4

7. CONFIRMATION OF COUNCIL MINUTES OF PREVIOUS MEETING................................. 4 7.1 Minutes of the Ordinary Meeting of Council held on 12 June 2012 ............................. 4

8. ANNOUNCEMENTS BY PRESIDING PERSON WITHOUT DISCUSSION ........................... 5

9. PETITIONS ........................................................................................................................... 5

10. DECLARATIONS OF INTEREST .......................................................................................... 5

11. BUSINESS DEFERRED FROM PREVIOUS MEETING ........................................................ 5

12. REPORTS ............................................................................................................................. 6 12.1 Cash Position Statement ............................................................................................ 6 12.2 Accounts for Payment ................................................................................................ 7 12.3 Debtors .................................................................................................................... 10 12.4 Investment Register ................................................................................................. 11 12.5 Statement of Financial Activity ................................................................................. 14 12.6 Fence Maintenance and Repair ............................................................................... 36 12.7 Tender MRVC07 – Removal and Replacement of 38.5 kilometres of the No.1 Vermin

(Dog) Fence. ............................................................................................................ 47 12.8 Tender MRVC08 – Removal and Replacement of 40.0 kilometres of the No.1 Vermin

(Dog) Fence. ............................................................................................................ 49 12.9 Acceptance of the 2011/2012 Annual Report ........................................................... 51 12.10 Audit Management Letter – Year Ended 30 June 2012 ............................................ 94

13. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN ........................................ 96

14. NOTICE OF MOTIONS FOR THE NEXT MEETING ........................................................... 96

15. CONFIDENTIAL BUSINESS ............................................................................................... 96

16. LATE AGENDA ITEMS ....................................................................................................... 96

17. ELECTED MEMBER MATTERS ......................................................................................... 96

18. NEXT MEETING.................................................................................................................. 96

19. CLOSURE OF MEETING .................................................................................................... 96


1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS

2. RECORD OF ATTENDANCE / APOLOGIES / LEAVE OF ABSENCE

3. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE

4. PUBLIC QUESTION TIME AND ADDRESS BY MEMBERS OF THE PUBLIC 4.1 Public Question Time 4.2 Address by Members of the Public

5. APPLICATIONS FOR LEAVE OF ABSENCE

6. DEPUTATIONS / PRESENTATIONS / SUBMISSIONS 7. CONFIRMATION OF COUNCIL MINUTES OF PREVIOUS MEETING

7.1 Minutes of the Ordinary Meeting of Council held on 12 June 2012

OFFICER RECOMMENDATION Moved: Seconded: That the minutes of the Ordinary Meeting of Council held on 12 June 2012 be confirmed as a true and correct record of proceedings.

CARRIED/LOST


8. ANNOUNCEMENTS BY PRESIDING PERSON WITHOUT DISCUSSION 9. PETITIONS 10. DECLARATIONS OF INTEREST 11. BUSINESS DEFERRED FROM PREVIOUS MEETING


12. REPORTS 12.1 Cash Position Statement File: MRVC Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 4 September 2012 Comment The Cash Position Statement is as stated below:

STATEMENT OF CASH POSITION AS AT 30 JUNE 2012 Balance of Cash Position 01 July 2011 $2,119.51 Plus: Receipts – 01 July 2011 to 30 June 2012 $1,796,354.81 Plus: Receipts – Drawdown Term Deposit $1,052,668.27 Less: Payments – 01 July 2011 to 30 June 2012 $1,098,029.78 Less: CLGF Grant – Term Deposit $1,713,653.70 Less: Bank Fees - 01 July 2011 to 30 June 2012 $83.40 Cash Balance as at 30 June 2012 $39,375.71

STATEMENT OF CASH POSITION AS AT 31 AUGUST 2012

Balance of Cash Position 01 July 2012 $39,375.71 Plus: Receipts – 01 July 2012 to 30 August 2012 $72,556.36 Plus: Receipts – Drawdown Term Deposit $50,000.00 Less: Payments – 01 July 2012 to 30 August 2012 $101,186.41 Less: Bank Fees - 01 July 2012 to 31 August 2012 $15.14 Cash Balance as at 31 August 2012 $60,730.52

Consultation Nil Statutory Environment Nil Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority

OFFICER RECOMMENDATION Moved: Seconded: That the Cash Position Statement as at 30 June 2012 and 31 August 2012 be received. CARRIED/LOST


12.2 Accounts for Payment

File: MRVC Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 4 September 2012 Comment The accounts for payment list for June and July/August 2012 is attached for notation. Consultation Nil Statutory Environment Nil Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority

OFFICER RECOMMENDATION Moved: Seconded: That payments of accounts for June 2012 totalling $726,511.54 and accounts for July/August 2012 totalling $101,201.55 be noted. CARRIED/LOST


Accounts Paid June 2012

Invoice No Date Paid Name Particulars Amount $

01/06/2012 CBA Account Service Fee 5.80

41 06/06/2012 A&A Seivwright Fence Maintenance 7,150.00

4187 15/06/2012 Shire of Mount Magnet Reimbursement – Satellite Phone Account to 14/5/12 70.00


4198 15/06/2012 Shire of Mount Magnet Reimbursement – Advertising March 593.90

4238 15/06/2012 Shire of Mount Magnet Reimbursement – Advertising April 692.11

4186 15/06/2012 Shire of Mount Magnet Reimbursement – Advertising May 1,193.08

9272 18/06/2012 Anderson, Munro & Wyllie Interim Audit Fee for Year Ending 30 June 2012 1,650.00

343 18/06/2012 Murchison Aviation Additional Clearing & Grading 9,735.00

012 18/06/2012 Yoweragabbie Contracting Jorgen Jensen – Project Supervisor 15/04/12 to 08/06/12

12,331.00

130 18/06/2012 H&J Jones & Sons MRVC/02 52,800.00

28/06/2012 Digby Robinson Contracting Pty Ltd MRVC/04 72,000.00

198761 28/06/2012 Southern Wire Pty Ltd Fencing Materials 557,522.01

29/06/2012 H Nicols Meeting Fees Jan-Jun 140.00

29/06/2012 M King Meeting Fees Jan-Jun 140.00

29/06/2012 D Clinch Meeting Fees Jan-Jun 140.00

29/06/2012 T Iturbide Meeting Fees Jan-Jun 280.00

29/06/2012 L Hodder Meeting Fees Jan-Jun 420.00

29/06/2012 C Hodshon Meeting Fees Jan-Jun 420.00

29/06/2012 J Homewood Meeting Fees Jan-Jun 560.00

29/06/2012 G Scott Meeting Fees Jan-Jun 560.00

29/06/2012 M McQuie Presidents Allowance & Meeting Fees Jan-Jun 1,370.00

4251 29/06/2012 Shire of Mount Magnet Secretariat Fees Jan-Jun 6,600.00


4239 29/06/2012 Shire of Mount Magnet Credit - Advertising -146.92

TOTAL PAYABLE $726,511.54


Accounts Paid July & August 2012

Invoice No Date Paid Name Particulars Amount $


481 11/07/2012 NLD Transport Transport – Fencing Materials 20,295.00


4282 27/07/2012 Shire of Mount Magnet Reimbursement – Satellite Phone Account to 14/8/12

98.36

4623 27/07/2012 Midwest Financial Financial Services - Audit 440.00

27/07/2012 Jason Homewood Fence Inspection Expense 1,345.55

4651 27/07/2012 Midwest Financial March/May Reports & 2012/13 Statutory Budget

3,850.00

350 27/07/2012 Murchison Aviation MRVC/03 42,790.00

442198 27/07/2012 Direct Trades Supply Maintenance Materials 2,884.70



013 02/08/2012 Yoweragabbie Contracting

Project Supervisor – Jorgen Jensen 6,277.70

21/08/2012 CBA Audit Fee 60.00


354 29/08/2012 Murchison Aviation Extra Clearing & Grading 7,260.00

4308 29/08/2012 Shire of Mount Magnet Reimbursement – Satellite Phone Account to 14/8/12

70.00

4306 29/08/2012 Shire of Mount Magnet Reimbursement – Freight Maintenance Materials

456.94

4307 29/08/2012 Shire of Mount Magnet Reimbursement – Advertising Meeting Dates

343.16

TOTAL PAYABLE $101,201.55


12.3 Debtors File: MRVC Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 4 September 2012 Comment Details of outstanding debtors are available to Councillors as a separate document.

Outstanding Debtors – As at 31 August 2012 Outstanding Current Annual Subsidy $30,800.00 Fence Rental $6,420.67 Precepts $27,149.00 Outstanding Previous Years Fence Rental $5,315.12 Total Amount Outstanding $69,684.79

Consultation Nil Statutory Environment Nil Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority

OFFICER RECOMMENDATION Moved: Seconded: That the outstanding Debtors Report be received. CARRIED/LOST


12.4 Investment Register File: MRVC Officer: Finance Manager Amended By: Nil Disclosure of Interest: Nil Meeting Date: 4 September 2012 Comment

Commonwealth Bank Term Deposit 36558508

as at 30 June 2012 Funds Invested $1,713,653.70 Interest Earnt $60,158.63 Transfer from Investment $1,052,668.27 Balance $721,144.06

Commonwealth Bank Term Deposit 36558508

as at 31 August 2012 Funds Invested 29 June 2012 $721,144.06 Interest Earnt $8,346.03 Transfer from Investment $50,000.00 Balance $679,490.09

Consultation Jim Dillon – Midwest Financial Statutory Environment Nil Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority

OFFICER RECOMMENDATION Moved: Seconded: That the Investment Registers be received. CARRIED/LOST

36558508 CBA Term Deposit 14.11.11 5.650% 150,000.00 1,414.75 151,414.75 0.00

CBA Term Deposit 14.12.11 5.640% 300,000.00 4,221.57 304,221.57 0.00

Reinvested CBA Term Deposit 13.02.12 5.200% 150,000.00 1,253.52 151,253.52 0.00

Reinvested CBA Term Deposit 30.04.12 5.220% 154,221.57 2,014.01 156,235.58 0.00

Reinvested CBA Term Deposit 29.06.12 3.700% 1,263,653.70 51,254.78 156,235.58 750,000.00 721144.06

TOTALS 1,713,653.70$ 60,158.63$ 1,052,668.27$ 721,144.06$


INVESTMENT REGISTER

Total Investments as at 30 June 2012

Account Institution

Account Type

Maturity Date

Interest Rate

Opening Balance

Interest Earnt to 30.06.12

Transfers to Investments

Transfers from Investments

Closing Balance 30.06.12

36558508 CBA On Call 31.07.12 3.450% 721,144.06 5,827.70 -50,000.00 676971.76

36558508 CBA Term Deposi 31.08.12 4.380% 676,971.76 2,518.33 679490.09

TOTALS 8,346.03$ - 50,000.00-$ 679,490.09$

Transfers to

Investments

Transfers from Investments

Closing Balance 31.08.12


INVESTMENT REGISTER

Total Investments as at 31 August 2012

Account Institution Account Type

Maturity Date

Interest Rate

Opening Balance

Interest Earnt to 31.08.12


12.5 Statement of Financial Activity

File: MRVC Officer: Geoff Brooks - CEO Amended By: Nil Disclosure of Interest: Nil Date: 4 September 2012

Application To review the Statement of Financial Activity to 31 August 2012. Background The attached Statement of Financial Activity to 31 August 2012 has been prepared by Mid West Financial Services. Consultation Mr Jim Dillon – Midwest Financial Services Statutory Environment Nil Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority

OFFICER RECOMMENDATION Moved: Seconded: That the Statement of Financial Activity to 31 August 2012 be adopted. CARRIED/LOST


STATEMENT OF FINANCIAL ACTIVITY

FOR THE PERIOD 1 July 2012 TO 31 AUGUST 2012

MRVC

Aug-12 2013 2012$ Budget $

$REVENUES FROM ORDINARY ACTIVITIESPrecepts 29,998$ 30,000$ 29,644$ Subsidy-Meekathara Rangelands 28,000$ 28,000$ 28,000$ Fees and Charges 5,837$ 4,500$ 5,649$ Interest Earnings 8,346$ 10,000$ 60,167$ Grant Funding -$ -$ 1,557,867$ Council Funding -$ -$ -$

72,181$ 72,500$ 1,681,327$

EXPENSES FROM ORDINARY ACTIVITIESMaterials and Contracts (20,339)$ (65,000)$ (48,223)$ Depreciation -$ (90,000)$ (69,020)$

(20,339)$ (155,000)$ (117,243)$

NET RESULT 51,843$ (82,500)$ 1,564,084$

Aug-12 2013 2012$ Budget $

$REVENUES FROM ORDINARY ACTIVITIESEconomic Services 72,181$ 72,500$ 1,681,327$

72,181$ 72,500$ 1,681,327$

EXPENSES FROM ORDINARY ACTIVITIESEXCLUDING BORROWING COSTS EXPENSEGovernance (712)$ (40,000)$ (13,310)$ Economic Services (19,627)$ (115,000)$ (103,933)$

(20,339)$ (155,000)$ (117,243)$

NET RESULT 51,843$ (82,500)$ 1,564,084$

This statement is to be read in conjunction with the accompanying notes.


INCOME STATEMENT

BY NATURE OR TYPE

FOR THE PERIOD ENDED 31ST AUGUST 2012

INCOME STATEMENT

BY PROGRAM


NOTE Aug-12 2012$

CURRENT ASSETSCash and Cash Equivalents 740,221$ 760,520$ Trade and Other Receivables 67,987$ 73,438$ Inventories 540,014$ 540,014$ TOTAL CURRENT ASSETS 1,348,222$ 1,373,972$

NON-CURRENT ASSETSPlant and Equipment -$ -$ Infrastructure 380,276$ 369,920$ TOTAL NON-CURRENT ASSETS 380,276$ 369,920$

TOTAL ASSETS 1,728,498$ 1,743,893$

CURRENT LIABILITIESTrade and Other Payables 4,000$ 73,081$ TOTAL CURRENT LIABILITIES 4,000$ 73,081$

TOTAL LIABILITIES 4,000$ 73,081$

NET ASSETS 1,724,498$ 1,670,812$

EQUITYEquity 1,724,498$ 1,670,812$ TOTAL EQUITY 1,724,498$ 1,670,812$

BALANCE SHEET



NOTES TO AND FORMING PART OF THE FINANCIAL REPORT

1. SIGNIFICANT ACCOUNTING POLICIESThe significant accounting policies which have been adopted in the preparation of this financialreport are:

(a) Basis of Preparation

The report has also been prepared on the accrual basis and is based on historical costs, modified, whereapplicable, by the measurement at fair value of the selected non-current assets, financial assetsand liabilities.

Critical Accounting Estimates

(b) The Local Government Reporting EntityAll Funds through which the Council controls resources to carry on its functions have beenincluded in the financial statements forming part of this financial report.

In the process of reporting on the local government as a single unit, all transactions and balancesbetween those funds (for example, loans and transfers between Funds) have been eliminated.

(c) Goods and Services TaxIn accordance with recommended practice, revenues, expenses and assets capitalised are stated netof any GST recoverable. Receivables and payables in the statement of financial position are statedinclusive of applicable GST.

(d) Cash and Cash Equivalents

(e) Trade and Other Receivables


Bank overdrafts are shown as short term borrowings in current liabilities on the statement of financial position.

Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that they will not be collectible.


Cash and cash equivalents include cash on hand, cash at bank, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts.

The financial report is a general purpose financial statement which has been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, the local Government Act 1995 and accompanying regulations.

The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances; the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

NOTES TO AND FORMING PART OF THE FINANCIAL REPORTFOR THE PERIOD ENDED 31ST AUGUST 2012

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

(f) Inventories

General

Land Held for ResaleLand purchased for development and/or resale is valued at the lower of cost and net realisablevalue. Cost includes the cost of acquisition, development, borrowing costs and holding costsuntil Finance costs and holding charges incurred after development is completed are expensed.

Revenue arising from the sale of property is recognised in the statement of comprehensive incomeas at the time of signing an unconditional contract of sale.

Land held for resale is classified as current except where it is held as non-current based on Council's intentionto release for sale.

(g) Fixed Assets

Initial Recognition

RevaluationCertain asset classes may be 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.

Those assets carried at a revalued amount, being their fair value at the date of revaluation less anysubsequent accumulated depreciation and accumulated impairment losses, are to be revalued withsufficient regularity to ensure the carrying amount does not differ materially from that determined usingfair value at reporting date.

Any accumulated depreciation at the date of revaluation is eliminated against the gross

Each class of fixed assets is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation or impairment losses.

All assets are initially recognised at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed by the Council includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overhead.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.


Inventories are measured at the lower of cost and net realisable value.

Increases in the carrying amount arising on revaluation of assets are credited to a



(g) Fixed Assets (Continued)

Depreciation of Non-Current Assets (Continued)

Depreciation is recognised on a straight-line basis, using rates which are reviewed each reportingperiod. Major depreciation periods are:

Fencing 50 yearsPlant and Equipment 10 years

Capitalisation Threshold

(h) Financial Instruments

Initial Recognition and Measurement

Classification and Subsequent Measurement

techniques are adopted.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.

Expenditure on items of equipment under $2,000 is not capitalised. Rather, it is recorded on an asset inventory listing.

Financial assets and financial liabilities are recognised when the Council becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Council commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified 'at fair value through profit or loss', in which case transaction costs are expensed to profit or loss immediately.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.


Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method or at cost.

Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation



(h) Financial Instruments (Continued)

Classification and Subsequent Measurement (Continued)

(i) Financial assets at fair value through profit and loss

(ii) Loans and receivables

(iii) Held-to-maturity investments

Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period (classified as

Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or determinable payments and fixed maturities that the Council’s management has the positive intention and ability to hold to maturity.

(b) less principal repayments;

(c) plus or minus the cumulative amortisation of the difference, if any, between the

(b) less any reduction for impairment.

The effective interest rate method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Assets in this category are classified as current assets.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at

Amortised cost is calculated as:


Held-to-maturity financial assets are included in non-current assets, except for those which are expected to mature within 12 months after the end of the reporting period (classified as current assets).

the amount in which the financial asset or financial liability is measured at initial recognit

If the Council were to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and reclassified as available-for-sale.



(h) Financial Instruments (Continued)

Classification and Subsequent Measurement (Continued)(iv) Available-for-sale financial assets

(v) Financial liabilities

Impairment

(i) Estimation of Fair Value

Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Council for similar financial instruments.


The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Council uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs.

Available-for-sale financial assets, are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable.

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

At the end of each reporting period, the Council assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in the

Available-for-sale financial assets are included in non-current assets, except for those which are expected to mature within 12 months after the end of the reporting period (classified as current assets).



(j) ImpairmentIn accordance with Australian Accounting Standards the Council's assets, other than inventories,are assessed at each reporting date to determine whether there is any indication they may be impaired.

Where such an indication exists, an estimate of the recoverable amount of the asset is madein accordance with AASB 136 'Impairment of Assets' and appropriate adjustments made.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unitexceeds its recoverable amount. Impairment losses are recognised in the statement of comprehensive income.

For non-cash generating assets such as roads, drains, public buildings and the like, value in use isrepresented by the depreciated replacement cost of the asset.

(k) Trade and Other PayablesTrade and other payables represent liabilities for goods and services provided to the Councilprior to the end of the financial year that are unpaid and arise when the Council becomesobliged to make future payments in respect of the purchase of these goods and services.The amounts are unsecured and are usually paid within 30 days of recognition.

(l) Employee BenefitsThe provisions for employee benefits relates to amounts expected to be paid for long serviceleave, annual leave, wages and salaries and are calculated as follows:

(i) Wages, Salaries, Annual Leave and Long Service Leave (Short-term Benefits)The provision for employees’ benefits to wages, salaries, annual leave and long service leaveexpected to be settled within 12 months represents the amount the Council has a presentobligation to pay resulting from employees services provided to reporting date. The provision hasbeen calculated at nominal amounts based on remuneration rates the Council expects to payand includes related on-costs.

(ii) Long Service Leave (Long-term Benefits)

(m) Borrowing CostsBorrowing costs are recognised as an expense when incurred except where they are directlyattributable to the acquisition, construction or production of a qualifying asset. Where this isthe case, they are capitalised as part of the cost of the particular asset.


The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match as closely as possible, the estimated future cash outflows. Where the Council does not have the unconditional right to defer settlement beyond 12 months, the liability is recognised as a current liability.



(n) ProvisionsProvisions are recognised when:

a) the Council has a present legal or constructive obligation as a result of past events; b) for which it is probable that an outflow of economic benefits will result to settle the obligation; and c) that outflow can be reliably measured.

Provisions are not recognised for future operating losses.

(o) LeasesLeases of fixed assets, where substantially all the risks and benefits incidental to the ownershipof the asset, but not legal ownership, are transferred to the Council, are classified as financeleases. Finance leases are capitalised recording an asset and a liability equal to the present

Finance leases are capitalised recording an asset and a liability at the lower amounts equal to thefair value of the leased property or the present value of the minimum lease payments, including anyguaranteed residual values. Lease payments are allocated between the reduction of the lease liabilityand the lease interest expense for the period.

Leased assets are depreciated on a straight line basis over the shorter of their estimated useful livesor the lease term.

Lease payments for operating leases, where substantially all the risks and benefits remain with thelessor, are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight linebasis over the life of the lease term.

(p) Joint VentureThe Council does not have any interest in a joint venture.

(q) Rates, Grants, Donations and Other ContributionsRates, grants, donations and other contributions are recognised as revenues when the localgovernment obtains control over the assets comprising the contributions. Control over assetsacquired from rates is obtained at the commencement of the rating period or, where earlier, uponreceipt of the rates.

Where contributions recognised as revenues during the reporting period were obtained on thecondition that they be expended in a particular manner or used over a particular period, and thoseconditions were undischarged as at the reporting date, the nature of and amounts pertaining tothose undischarged conditions are disclosed in Note 2(c). That note also discloses the amountof contributions recognised as revenues in a previous reporting period which were obtained inrespect of the local government's operation for the current reporting period.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.




(r) Superannuation

(s) Current and Non-Current Classification

(t) Rounding Off FiguresAll figures shown in this annual financial report, other than a rate in the dollar, are rounded to thenearest dollar.

(u) Comparative FiguresWhere required, comparative figures have been adjusted to conform with changes in presentationfor the current financial year.

(v) Budget Comparative FiguresUnless otherwise stated, the budget comparative figures shown in this annual financial report relate tothe original budget estimate for the relevant item of disclosure.

The Council contributes to a number of superannuation funds on behalf of employees.

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council’s operational cycle. In the case of liabilities where the Council does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not expected to be realised in the next 12 months except for land held for resale where it is held as non-current based on Council’s intentions to release for sale




(w) New Accounting Standards and Interpretations for Application in Future Periods

Title and Topic Issued Applicable (*) Impact

(i) AASB 9 – Financial Instruments

December 2009 01 January 2013 Nil – The objective of this Standard is to improve and simplify the approach for classification andmeasurement of financial assets compared with the requirements of AASB 139. Given the nature of the financial assets of the Council, it is not anticipated the standard will have any material effect.

(ii) AASB 124 – Related Party Disclosures

December 2009 01 January 2011 Nil – It is not anticipated the Council will have any related parties as defined by the Standard.

(iii) AASB 1053 - Application of Tiers of Australian Accounting Standards

June 2010 01 July 2013Nil - Due to its nature and statutory requirements the Council will be deemed a Tier 1 entity and will continue to prepare general purpose financial statements.

(iv) AASB 2009 -12 Amendments to Australian Accounting Standards [AASB 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052]

December 2009 01 January 2011 Nil – The revisions embodied in this standard relate to standards which do not apply to local government (ie AASB8) or are largely editorial in nature and will have minimal effect (if any) on the accounting practices of the Council.


Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted by the Council for the annual reporting period ending 30 June 2011. Council’s assessment of these new standards and interpretations is set out below:



(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)


(v) AASB 2009– 11 Amendments to Australian Accounting Standards arising from AASB 9

December 2009 01 January 2013 Nil – The revisions embodied in this standard give effect to the consequential changes arising from the issuance of AASB 9 which is not anticipated to have any material effect on the Council (refer (i) above).

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

(vi) AASB 2010 - 2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050, & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052]

June 2010 01 July 2013 Nil - None of these amendments will have any effect on the financial report as the standard does not apply in the case of general purpose financial statements.

(vii) AASB 2010 - 4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, 7, 101, 134, and Interpretation 13]

June 2010 01 January 2011 Nil - The revisions are part of the AASB's annual improvement project to help ensure consistency with presentation, recognition and measurement criteria of IFRSs. It is not anticipated these will have any effect on the Council.






(viii) AASB 2010 - 5 Amendments to Australian Accounting Standards [AASB 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]

October 2010 01 January 2011 Nil - The revisions embodied in this standard are largely editorial in nature or relate to standards not applicable to the Council and will have minimal effect (if any) on the accounting practices of the Council.

(ix) AASB 2010 - 6 Amendments to Australian Accounting Standards - Disclosures on Transfers of Financial Assets [AASB 1 & 7]

November 2010 01 July 2011 Nil - The revisions embodied in this standard amend disclosures required on transfers of financial assets. The Council is not expected to have any qualifying transfers.

(x) AASB 2010 – 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)

December 2010 01 January 2013 Nil – The revisions embodied in this standard give effect to the consequential changes arising from the issuance of AASB 9 which is not anticipated to have any material effect on the Council (refer (i) above).

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

(xi) AASB 2010 - 8 Amendments to Australian Accounting Standards - Deferred Tax: Recovery of Underlying Assets [AASB 1 & 7]

December 2010 01 January 2012 Nil - None of these amendments will have any effect on the financial report as none of the topics are relevant to the operations of the Council.






(xi) (Continued)

AASB 2010 - 9 Amendments to Australian Accounting Standards - Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters [AASB 1]

December 2010 01 July 2011 Nil - None of these amendments will have any effect on the financial report as none of the topics are relevant to the operations of the Council.

AASB 2009– 14 Amendments to Australian Interpretations – Prepayments of a Minimum Funding Requirement [AASB Interpretation 14]

December 2009 01 January 2011

AASB 2010 - 10 Further Amendments to Australian Accounting Standards - Removal of Fixed Dates for First-time Adopters [AASB 2009 - 11 & 2010 - 7]

December 2010 01 January 2013

Notes:

(*) Applicable to reporting periods commencing on or after the given date.




(x) Adoption of New and Revised Accounting Standards

AASB 2009 - 5AASB 2009 - 8AASB 2009 - 10AASB 2009 - 13AASB 2010 - 1AASB 2010 - 3

Interpretation 19

During the current year, the Council adopted all of the new and revised Australian Accounting Standards and Interpretations which became mandatory and which were applicable to its operations.

These new and revised standards were:

The standards adopted had a minimal effect on the accounting and reporting practices of the Council as they were either largely editorial in nature, were revisions to help ensure consistency with presentation, recognition and measurement criteria of IFRSs or related to topics not relevant to operations.


Murchison Regional Vermin CouncilPO BOX 62

MOUNT MAGNET WA6638

Profit & Loss StatementJuly 2012 through August 2012

IncomeGeneral Purpose Funds $28,000.00 Late Fees Collected $0.01 Precepts $29,997.94 Rental Fences $5,836.97 Total Income $63,834.92

Cost of Sales

Gross Profit $63,834.92

ExpensesBank Fees $75.14 Legal Accounting Audit $400.00 Fence Maintenance $19,398.40 Meeting Expenses $311.96 Telephone $153.06 Total Expenses $20,338.56

Operating Profit $43,496.36

Other IncomeInterest Income $8,346.43 Total Other Income $8,346.43

Other Expenses

Net Surplus / (Deficit) $51,842.79


MOUNT MAGNET WA6638

Balance SheetAs of August 2012

AssetsCurrent AssetsCheque Account $60,730.53 Cash Deposit Account $679,490.09 Receivables $69,684.78 Provision for Doubtful Debts ($3,000.00)Inventory $2,955.08 RFR Stock on Hand $537,058.69 Total Current Assets $1,346,919.17 Property & EquipmentPlant and EquipmentPlant and Equipment at Cost $9,119.00 Plant and Equipment Accum Dep ($9,119.00)Total Plant and Equipment $0.00 Fence InfrastructureInfrastructure Assets at Cost $3,127,393.00 Infrastructure Asset Accum Dep ($3,077,854.06)Total Fence Infrastructure $49,538.94 Fence WorksFence Works at Cost $333,973.04 Fence Works Acumm Dep ($3,236.00)Total Property & Equipment $380,275.98 Total Assets $1,727,195.15

LiabilitiesCurrent LiabilitiesAccrued Payments $4,000.00 Tax LiabilitiesGST Collected $183,561.86 GST Paid ($184,864.49)Total Tax Liabilities ($1,302.63)Total Current Liabilities $2,697.37 Total Liabilities $2,697.37

Net Assets $1,724,497.78

EquityRetained Earnings $1,672,654.99 Current Year Surplus/Deficit $51,842.79 Total Equity $1,724,497.78


MOUNT MAGNET WA6638

Balance Sheet [Last Year Analysis]August 2012

This Year Last Year $ DifferenceAssetsCurrent AssetsCheque Account $60,730.53 $1,716,294.60 ($1,655,564.07)Cash Deposit Account $679,490.09 $0.00 $679,490.09 Receivables $69,684.78 $67,493.40 $2,191.38 Provision for Doubtful Debts -$3,000.00 -$3,000.00 $0.00 Inventory $2,955.08 $2,156.03 $799.05 RFR Stock on Hand $537,058.69 $0.00 $537,058.69 Total Current Assets $1,346,919.17 $1,782,944.03 ($436,024.86)Property & EquipmentPlant and EquipmentPlant and Equipment at Cost $9,119.00 $9,119.00 $0.00 Plant and Equipment Accum Dep -$9,119.00 -$9,119.00 $0.00 Total Plant and Equipment $0.00 $0.00 $0.00 Fence InfrastructureInfrastructure Assets at Cost $3,127,393.00 $3,127,393.00 $0.00 Infrastructure Asset Accum Dep -$3,077,854.06 -$3,015,306.06 ($62,548.00)Total Fence Infrastructure $49,538.94 $112,086.94 ($62,548.00)Fence WorksFence Works at Cost $333,973.04 $0.00 $333,973.04 Fence Works Acumm Dep -$3,236.00 $0.00 ($3,236.00)Total Property & Equipment $380,275.98 $112,086.94 $268,189.04 Total Assets $1,727,195.15 $1,895,030.97 ($167,835.82)

LiabilitiesCurrent LiabilitiesTrade Creditors $0.00 $3,026.15 ($3,026.15)Accrued Payments $4,000.00 $0.00 $4,000.00 Tax LiabilitiesGST Collected $183,561.86 $162,441.70 $21,120.16 GST Paid -$184,864.49 -$750.57 ($184,113.92)Total Tax Liabilities -$1,302.63 $161,691.13 ($162,993.76)Total Current Liabilities $2,697.37 $164,717.28 ($162,019.91)Total Liabilities $2,697.37 $164,717.28 ($162,019.91)

Net Assets $1,724,497.78 $1,730,313.69 ($5,815.91)

EquityRetained Earnings $1,672,654.99 $105,335.77 $1,567,319.22 Current Year Surplus/Deficit $51,842.79 $1,624,977.92 ($1,573,135.13)Total Equity $1,724,497.78 $1,730,313.69 ($5,815.91)


MOUNT MAGNET WA6638

GST [Detail - Cash]1/07/2012 To 31/08/2012

Date ID# Name Rate Sale Value Purchase Value Tax Collected Tax PaidFRE GST Free27/07/2012 EFT J Homewood 0.00% $1,345.55 $0.008/01/2012 CR000130 CBA 0.00% $0.40 $0.0029/08/2012 EFT A & A Seivwright 0.00% $10,010.00 $0.00

Total: $0.40 $11,355.55 $0.00 $0.00

GST General7/05/2012 CR000128 Payment; Meeline Station 10.00% $72.22 $6.577/11/2012 EFT NLD Transport 10.00% $20,295.00 $1,845.0027/07/2012 EFT Direct Trade Supplies 10.00% $2,884.70 $262.2527/07/2012 EFT Murchinson Aviation 10.00% $42,790.00 $3,890.0027/07/2012 EFT Midwest Financial 10.00% $3,850.00 $350.0027/07/2012 EFT Midwest Financial 10.00% $440.00 $40.0027/07/2012 EFT Shire of Mount Magnet 10.00% $98.36 $8.948/02/2012 EFT Yowergabbie Contracting 10.00% $4,131.60 $375.608/02/2012 EFT Yowergabbie Contracting 10.00% $2,146.10 $195.1022/08/2012 CR000129 Payment; Shire of Mount Ma 10.00% $5,848.74 $531.7029/08/2012 EFT Shire of Mount Magnet 10.00% $870.10 $79.1029/08/2012 EFT Murchinson Aviation 10.00% $7,260.00 $660.00

Total: $5,920.96 $84,765.86 $538.27 $7,705.99

INP Input Taxed7/02/2012 SC290812 0.00% $8.60 $0.0031/07/2012 GJ000045 Interest Earnt 0.00% ($8,346.03) $0.008/01/2012 SC290812 0.00% $1.70 $0.008/01/2012 SC290812 0.00% $4.84 $0.0021/08/2012 SC290812 aUDIT cERTIFICATE 0.00% $60.00 $0.00

Total: $0.00 ($8,270.89) $0.00 $0.00

N-T Not Reportable7/12/2012 EFT A & A Seivwright 0.00% $5,005.00 $0.0027/07/2012 CR000132 CBA 0.00% $50,000.00 $0.0031/07/2012 GJ000045 Interest Earnt 0.00% $8,346.03 $0.0028/08/2012 CR000131 ATO 0.00% $66,635.00 $0.00

Total: $116,635.00 $13,351.03 $0.00 $0.00

Grand Total: $538.27 $7,705.99


MOUNT MAGNET WA6638

Bank Register1/07/2012 To 31/08/2012

ID# Src Date Memo/Payee Deposit Withdrawal Balance1-1110 Cheque Account

SC290812 CD 2/07/2012 $8.60 $39,367.11 CR000128 CR 5/07/2012 Payment; Meeline Station $72.22 $39,439.33 EFT CD 11/07/2012 NLD Transport $20,295.00 $19,144.33 EFT CD 12/07/2012 A & A Seivwright $5,005.00 $14,139.33 EFT CD 27/07/2012 Shire of Mount Magnet $98.36 $14,040.97 EFT CD 27/07/2012 Midwest Financial $440.00 $13,600.97 EFT CD 27/07/2012 J Homewood $1,345.55 $12,255.42 EFT CD 27/07/2012 Midwest Financial $3,850.00 $8,405.42 EFT CD 27/07/2012 Murchinson Aviation $42,790.00 ($34,384.58)EFT CD 27/07/2012 Direct Trade Supplies $2,884.70 ($37,269.28)CR000132 CR 27/07/2012 CBA $50,000.00 $12,730.72 SC290812 CD 1/08/2012 $4.84 $12,725.88 SC290812 CD 1/08/2012 $1.70 $12,724.18 CR000130 CR 1/08/2012 CBA $0.40 $12,724.58 EFT CD 2/08/2012 Yowergabbie Contracting $6,277.70 $6,446.88 SC290812 CD 21/08/2012 aUDIT cERTIFICATE $60.00 $6,386.88 CR000129 CR 22/08/2012 Payment; Shire of Mount Magnet $5,848.75 $12,235.63 CR000131 CR 28/08/2012 ATO $66,635.00 $78,870.63 EFT CD 29/08/2012 A & A Seivwright $10,010.00 $68,860.63 EFT CD 29/08/2012 Murchinson Aviation $7,260.00 $61,600.63 EFT CD 29/08/2012 Shire of Mount Magnet $870.10 $60,730.53

$122,556.37 $101,201.55


12.6 Fence Maintenance and Repair File: MRVC Officer: Geoff Brooks - CEO Amended By: Nil Disclosure of Interest: Nil Meeting Date: 4 September 2012 Application To note repair work carried out on the No 1 Vermin Fence by Council’s fencing contractor Mr Tony Seivwright and to note progress on fence reconstruction works. Maintenance and Repair The attached reports detail work carried out over a period of fourteen days north of the No 2 Spur Line intersection by the contractor at a rate of $715 per day. Upgrade Works The status of tenders awarded for fence upgrade works is summarised as follows:

TENDER NO. DESCRIPTION STATUS

MRVC/01 Clearing and Grading of No.1 Vermin Fence from the 80 Mile Peg to the Paynes Find/Sandstone Road Intersection

Completed

MRVC/02 Remove and Replace 16 Kilometres of the No.1 Vermin Fence Completed

MRVC/03 Clearing and Grading of No.1 Vermin Fence, from the Paynes Find/Sandstone Road to the No.2 Spur Line

Completed

MRVC/04 Clearing and Grading the northern section of the No.1 Vermin Fence and the No.2 Spur Line

Completed

MRVC/05 Supply of 140 Kilometres of Fencing Materials Completed

MRVC/06 Removal and replacement of 30.2 Kilometres of the No. 1 Vermin Fence In Progress

Consultation Mr Jorgen Jensen – MRVC Project Officer Statutory Environment Nil Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority


OFFICER RECOMMENDATION Moved: Seconded: That Council notes the maintenance and repairs carried out to the No 1 Vermin Fence and the status of the fence upgrade works. CARRIED/LOST


12.7 Tender MRVC07 – Removal and Replacement of 38.5 kilometres of the No.1 Vermin (Dog) Fence. File: MRVC Officer: Geoff Brooks - CEO Amended By: Nil Disclosure of Interest: Nil Meeting Date: 4 September 2012 Application To consider tenders for the removal and replacement of 38.5 kilometres of the No 1 Vermin (Dog) Fence Background On 4 August 2012 tenders were advertised in the Western Australian for removal and replacement of 38.5 kilometres of the No 1 Vermin (Dog) Fence. The following four sections were specified: • Section 1 – South of Camel Camp – 12.0 kilometres • Section 2 – Boodanoo – 13.5 kilometres • Section 3 – Youanmi – 5.0 kilometres • Section 4 – Ankatell – 8.0 kilometres Conditions of tender included supply of fencing materials by the MRVC and a completion date of 15 December 2012 or as negotiated with the Project Officer. At the time of closing on 24 August 2012 the following tenders were received:

TENDERER PRICE (excl. GST)

McMahon Services $702,625.00 Kooringal Co. Pty Ltd $356,125.00 JSB Fencing & Machinery Hire P/L $351,159.14 DBS Fencing $306,075.00 Against All Boundaries Pty Ltd $302,610.00 Tiger Fencing $250,250.00 Murchison Aviation & Machinery Hire $107,500.00 *Abroboa Pty Ltd N/A

* No fixed price submitted, invalid Tender Tender Selection Criteria As indicated in the tender documents the following selection criteria applies: • Best value for money • Compliance Criteria – compliance with conditions of tender, specifications and delivery

date. • Qualitative Criteria – relevant experience (30%), key personnel skills and experience

(15%), tenderers resources (35%), and demonstrated understanding (20%). Assessment of Tenders Opening and assessment of the tenders has been conducted by the MRVC Project Officer, Cr Greg Scott, Council CEO and the Shire of Mount Magnet, Administration Manager.


As indicated the lowest tender price was submitted by Murchison Aviation and Machinery Hire for an amount of $107,500 excluding GST or $2,792.21 per kilometre. The price per kilometre tendered by Murchison Aviation and Machinery Hire is comparable with that submitted the contractor who is currently replacing 30.2 kilometres of fencing under tender MRVC06. Murchison Aviation and Machinery Hire have successfully carried out fence construction projects for the Shire of Mount Magnet (Aerodrome perimeter fence) and Mid West Vanadium Pty Ltd at their Windimurra mine site. Recommended Tender On the basis that Murchison Aviation and Machinery Hire are offering the best value for money and have a demonstrated the capacity to carry out the work, acceptance of their tender is recommended. Consultation Mr Jorgen Jensen, MRVC Project Officer Statutory Environment Local Government (Functions & General) Regulations Part 4 Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority

OFFICER RECOMMENDATION Moved: Seconded: That tender MRVC07 is awarded to Murchison Aviation and Machinery Hire at a tender price of $107,500 excluding GST. CARRIED/LOST


12.8 Tender MRVC08 – Removal and Replacement of 40.0 kilometres of the No.1 Vermin (Dog) Fence.

File: MRVC Officer: Geoff Brooks - CEO Amended By: Nil Disclosure of Interest: Nil Meeting/Date: 4 September 2012 Application To consider tenders for the removal and replacement of 40.0 kilometres of the No 1 Vermin (Dog) Fence Background On 4 August 2012 tenders were advertised in the Western Australian for removal and replacement of 40.0 kilometres of the No 1 Vermin (Dog) Fence. The following four sections were specified: • Section 1 – Barambie – 23 kilometres • Section 2 – Yuono – 3.0 kilometres • Section 3 – Gum Creek Junction – 3.0 kilometres • Section 4 – Noibla – 5.5 kilometres • Section 5 – Wiluna Rail – 1.0 kilometres • Section 6 – Yandil – 3.0 kilometres • Section 7 – Cunyu – 1.5 kilometres Conditions of tender included supply of fencing materials by the MRVC and a completion date of 15 December 2012 or as negotiated with the Project Officer. At the time of closing on 24 August 2012 the following tenders were received:

TENDERER PRICE (excl. GST)

McMahon Services $730,000.00 Kooringal Co. Pty Ltd $370,000.00 JSB Fencing & Machinery Hire P/L $366,803.45 DBS Fencing $318,000.00 Against All Boundaries Pty Ltd $314,400.00 Tiger Fencing $264,000.00 Murchison Aviation & Machinery Hire $185,000.00

Tender Selection Criteria As indicated in the tender documents the following selection criteria applies: • Best value for money • Compliance Criteria – compliance with conditions of tender, specifications and delivery

date. • Qualitative Criteria – relevant experience (30%), key personnel skills and experience

(15%), tenderers resources (35%), and demonstrated understanding (20%). Assessment of Tenders Opening and assessment of the tenders has been conducted by the Cr Jason Homewood, Cr Greg Scott, Council CEO and the Shire of Mount Magnet, Administration Manager.


As indicated the lowest tender price was submitted by Murchison Aviation and Machinery Hire for an amount of $185,500 excluding GST or $4,625 per kilometre. The price per kilometre tendered by Murchison Aviation and Machinery Hire exceeds that tendered by the contractor for MRVC07 presumably as a result of the significantly higher mobilisation distances that are involved. Murchison Aviation and Machinery Hire have successfully carried out fence construction projects for the Shire of Mount Magnet (Aerodrome perimeter fence) and Mid West Vanadium Pty Ltd at their Windimurra mine site. Recommended Tender On the basis that Murchison Aviation and Machinery Hire are offering the best value for money and have a demonstrated the capacity to carry out the work, acceptance of their tender is recommended. Consultation Mr Jorgen Jensen, MRVC Project Officer Statutory Environment Local Government (Functions & General) Regulations Part 4 Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority

OFFICER RECOMMENDATION Moved: Seconded: That tender MRVC08 is awarded to Murchison Aviation and Machinery Hire at a tender price of $185,000 excluding GST. CARRIED/LOST


12.9 Acceptance of the 2011/2012 Annual Report File: MRVC Officer: Geoff Brooks - CEO Amended By: Nil Disclosure of Interest: Nil Meeting Date: 4 September 2012 Application To accept the 2011/2012 Annual Report for the Financial Year ending 30 June 2012, including the Audited Financial Statements. Background The Murchison Regional Vermin Council 2011/2012 Annual Report is attached for consideration. Included is the 2011/2012 Financial Statements audited by Anderson, Munro and Wyllie for the year ended 30 June 2012.

Consultation Jim Dillon – Midwest Financial Auditors – Anderson, Munro and Wyllie Statutory Environment Local Government Act Section 5.53 and 5.54 Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Absolute Majority

OFFICER RECOMMENDATION Moved: Seconded: That Elected Members accept the 2010/2011 Murchison Regional Vermin Council Annual Report and Audited Financial Statements. CARRIED/LOST

Murchison Regional Vermin Council

PO Box 62 Mount Magnet WA 6638

ABN: 28 431 267 089 p: 08 9963-3000 f: 08 9963-4133

ANNUAL REPORT 2011-2012

TABLE OF CONTENTS

SECTION 1 ............................................................................................... 2

GENERAL INFORMATION .......................................................... 2

PRESIDENT’S REPORT ................................................................. 3

CHIEF EXECUTIVE OFFICER’S REPORT ............................... 4

SECTION 2 ............................................................................................... 5

AUDITED FINANCIAL REPORT ................................................. 5

SECTION 1 GENERAL INFORMATION ADMINISTRATION OFFICE Shire of Mount Magnet Address Telephone Lot 163 Hepburn Street 08 9963 3000 MOUNT MAGNET WA 6638 Facsimile Postal Address 08 9963 4133 PO Box 62 MOUNT MAGNET WA 6638 OTHER The Murchison Regional Vermin Council (MRVC) is a statutory organisation which operates under the provisions of the Local Government Act 1995. The MRVC was established in 1963 for the purpose of rehabilitation and maintenance of the No.1 Vermin Fence. The No.1 Vermin Fence was completed in 1907 and at the time was the longest unbroken line of vermin fence in the world. The No.1 Fence runs from Starvation Boat Harbour on the South Coast of Western Australia to a point near Cape Keraudren on the North West Coast. The fence was built in an endeavour to stem the rabbit hordes from eating their way west across from the other side of Australia. Today the fence remains as an important barrier for the pastoralists in the region. Collaborating Councils: Shires of Cue, Sandstone, Meekatharra, Yalgoo and Mount Magnet Fence Area: From the 80 mile peg in the South (Lake Moore), to the 426 mile

peg in the North Wiluna/Neds Creek Road. Members: Two (2) delegates from each of the five (5) councils; total number

of members ten (10). DELEGATES

PRESIDENT Murray McQuie .................... Shire of Sandstone DELEGATES Carol Hodshon ..................... Shire of Sandstone Greg Scott ..................... Shire of Mount Magnet Jason Homewood .......... Shire of Mount Magnet Terry Iturbide ............................. Shire of Yalgoo Laurence Hodder ....................... Shire of Yalgoo Dustin Clinch ..................................Shire of Cue Martin King .....................................Shire of Cue Harvey Nichols ................. Shire of Meekatharra

Operating Revenue: $62,000 Number of Employees: Nil

PRESIDENT’S REPORT

It gives me great pleasure to present the 2011/2012 Annual Report for the Murchison Regional Vermin Council (MRVC). The last twelve months have been very significant thanks to Royalties for Regions program funding of $1.557 Million made available to upgrade sections of the No 1 Vermin Fence and No 2 Spur Line. This is the first time in many years that Council has been in a position to do more than carry out routine maintenance work. The $1.557 Million in funding obtained was achieved as a result of all

member Councils pooling their 2010/2011 Country Local Government Fund (CLGF) group allocations. It is very pleasing that by working cooperatively together such a significant level of funding has been achieved. By the end of this financial year expenditure on the upgrade of both the No 1 Vermin Fence and No 2 Spur Line totalled some $850,000. Work completed to this date included clearing and grading along both fence lines and construction of a trial 16km length of replacement fencing. In addition materials for the replacement of 140km of fence line were purchased for use by fence construction contractors. At the end of the financial year a tender was let for the construction of an additional 30.2km of replacement fencing. It is envisaged in that an additional 80km of new fencing will be required to restore the No 1 Vermin Fence to a dog proof standard with the balance of approximately 30km of replacement fencing to be erected on the No 2 Spur Line. The major future challenge for the MRVC is to obtain additional capital funding to improve the integrity of the No. 1 Vermin Fence and extend the No. 2 Spur Line further west. To my fellow Councillors who serve on the MRVC I offer my thanks for your commitment and wisdom. The practical way the upgrade works are being planned and the input from all is much appreciated. I also offer my thanks to the staff of the Shire of Mount Magnet for their assistance over the last financial year and commend the excellent work carried out by our Project Officer and fence contractors. The 2011/2012 financial year has been a successful year for the MRVC and I believe has laid the foundations for some major improvements in the effectiveness of the No 1 Vermin Fence and No 2 Spur Line.

Murray McQuie PRESIDENT

CHIEF EXECUTIVE OFFICER’S REPORT LOCAL GOVERNMENT ACT AND OTHER STATUTORY REQUIREMENTS During 2011/2012 Council was required to meet certain statutory obligations under the Local Government Act and other Legislation. Council has complied with these requirements, which include-

• Submission of Annual Returns (Financial Disclosures) by Councillors and the Chief Executive Officer

• Annual Financial Statements

• Annual Report on Council’s Activities

• Review of Delegations

• Review/Adoption of Code of Conduct

• Adoption of Budget STRATEGIC COMMUNITY PLAN AND CORPORATE BUSINESS PLAN Under Local Government Integrated Planning and Reporting requirements a Community Strategic Plan and Corporate Business Plan will be prepared for Council’s consideration prior to 30 June 2013. NATIONAL COMPETITION POLICY The Council undertook no activity during the year in which competition neutrality was considered to be an issue. PUBLIC INTEREST DISCLOSURE ACT During 2010/2011 Council received no disclosures or complaints lodged under the Public Interest Disclosure Act 2003. The Shire of Mount Magnet Chief Executive Officer is the designated responsible officer under the Act. STATE RECORDS ACT 2000 Council’s electronic and other record keeping systems are practical, effective and believed to be compliant with the State Records Act 2000. Geoff Brooks CHIEF EXECUTIVE OFFICER

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12.10 Audit Management Letter – Year Ended 30 June 2012 File: MRVC Officer: Geoff Brooks - CEO Amended By: Nil Disclosure of Interest: Nil Date: 4 September 2012 Application To note the Audit Management Letter for the year ended 30 June 2012. Background Auditors Anderson, Munro and Wyllie have completed the audit for the financial year ending 30 June 2012. Attached is their Audit Management Letter dated 31 August 2012 for the information of Elected Members. Comment It is pleasing to note that the letter does not identify any issues requiring attention. Consultation Nil Statutory Environment Local Government (Audit) Regulations Policy Implications Nil Financial Implications Nil Strategic Implications Nil Voting Requirements Simple Majority

OFFICER RECOMMENDATION Moved: Seconded: That Council notes the Audit Management Letter for the year ended 30 June 2012 prepared by Auditors Anderson, Munroe and Wyllie CARRIED/LOST


13. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN

14. NOTICE OF MOTIONS FOR THE NEXT MEETING

15. CONFIDENTIAL BUSINESS

16. LATE AGENDA ITEMS

17. ELECTED MEMBER MATTERS

18. NEXT MEETING

19. CLOSURE OF MEETING

agenda ordinary meeting of council 4 september … · agenda . ordinary meeting of council . 4...

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