annual report ye 30 june 2016 - mtr.sa.gov.au · 6/30/2016 · the district namely the mount...

Remarkable Experience

2015/2016 Annual Report

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OUR 2020 VISION

OUR ORGANISATION

A financially sustainable, proactive and responsive customer focused organisation which meets and exceeds the diverse needs and expectations of our stakeholders in an efficient and effective manner. Through team work, co-operation and continuous improvement, and by fostering creativity and developing our valued employees, we will grasp the challenges and capture the opportunities for the benefit of all, to ensure our respected position at the leading edge of our industry is maintained.

OUR COUNCIL

A dynamic, skilled and representative elected body, respected and recognised at the local, regional, state and national levels for its advocacy and positive leadership of all sectors of its Communities, with a strategic focus on policy and effective decision making.

OUR COMMUNITIES

With enviable facilities and services, growing populations and thriving and sustainable economies, our vibrant and diverse Communities are safe, secure, friendly and welcoming to all. Community spirit, co-operation and a sense of belonging are fostered by our determined, hard working people with positive vision and initiative, to make our Communities exceptional places to live, visit, work and do business.

OUR MISSION

Council will accept the challenges of, and excel in the provision of, Local Government services to our district, enhancing and preserving the unique character of our communities, maintaining a safe and secure environment for our residents, whilst retaining and promoting the quality lifestyle and amenity of country living. Council will continually promote open communication, accountability, and efficient and effective leadership, governance and service delivery by:

acting as a representative, informed and responsible decision maker; providing and coordinating services, facilities and programs that are adequate, appropriate and equitably accessed; developing the Community, its resources and its infrastructure in a socially just and sustainable manner; ensuring that Council resources are used fairly, effectively and efficiently; encouraging and developing initiatives within the Community for improving the quality of life and amenity of the Community; managing, developing and protecting the environment in an ecologically sustainable manner; planning at the local and regional level for the development and future requirements of the Community; promoting the area and providing an attractive climate and location for the development of business, commerce, industry

and tourism; ensuring a proper balance between economic, social, environmental and cultural considerations within the Community; developing its capacity and professionalism to undertake a growing range of leadership, advocacy and service delivery

challenges; and exercising, performing and discharging the power, functions and duties of the Local Government and other Acts

OUR VALUES

As a results oriented organisation, Council is committed to its core values of: pro-active and effective communication honesty and transparency accepting and pursuing challenges creative, positive and energetic workforce and leadership


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COUNCIL PROFILE

Administration Office 3 Stuart Street PO Box 94, Melrose SA 5483 Tel: (08) 8666 2014 1300 726 252 Fax: (08) 8666 2169 Email: [email protected] Website: mtr.sa.gov.au Facebook: facebook.com/mountremarkable/

Works Depot 5 Giles Street, Melrose SA 5483 Tel: (08) 8666 2014 Fax: (08) 8666 2297

The area of the District Council of Mount Remarkable is located in the Southern Flinders Ranges of South Australia. The Council Office is situated in the township of Melrose, which is at the foot of Mount Remarkable and is 380m above sea level. The Council borders the upper reaches of the Spencer Gulf, and is predominantly agricultural including mixed farming

Council has a population of 3,027 people and is 3,413 sq. kilometres in area. The major townships within the area are Booleroo Centre, Melrose, Port Germein, Wilmington and Wirrabara. Additionally, smaller towns and settlements are located throughout the Council area, including Appila, Bangor, Baroota, Booleroo Whim, Bruce, Hammond, Mambray Creek, Moockra, Murraytown, Nectar Brook, Weeroona Island, Telowie, Terka, Willowie, Winninowie, Wongyarra & Yandiah.

Much of the area north and east of Wilmington consists of large pastoral holdings. There are also small pockets of apiarists, orchards, market gardens, wineries and an intensive forestry area in the southern portion of the Council district around Wirrabara. There are two National Park properties in the district namely the Mount Remarkable National Park (16,149ha) and Telowie Gorge Conservation Reserve (1,946ha). The jetty at Port Germein is also a significant item of State history and heritage.

If you require any further information on the facilities and services within the area of the District Council of Mount Remarkable, please do not hesitate to call in at the District Council Office, Stuart Street Melrose or contact 8666 2014 or 1300 726 252 during normal office hours, the Tourist Information Office (Melrose Caravan Park, 8.00 am - 8.00 pm), Telephone 8666 2060 or on the Council website mtr.sa.gov.au . You can also follow us on Facebook facebook.com/mountremarkable/

ROLES AND OBJECTIVES OF COUNCIL

The Local Government Act 1999 specifies the roles and objectives of Council. The Mission Statement within Council’s Strategic Management Plan substantially mirrors these and reads:

Council will accept the challenges of, and excel in the provision of, Local Government services to our district, enhancing and preserving the unique character of our communities, maintaining a safe and secure environment for our residents, whilst retaining and promoting the quality lifestyle and amenity of country living. Council will continually promote open communication, accountability, and efficient and effective leadership, governance and service delivery by:

• acting as a representative, informed and responsible decision maker;• providing and co-ordinating services, facilities and programs that are adequate,

appropriate and equitably accessed;• developing the Community, its resources and its infrastructure in a socially just

and sustainable manner;• ensuring that Council resources are used fairly, effectively and efficiently;• encouraging and developing initiatives within the Community for improving the

quality of life and amenity of the Community;• managing, developing and protecting the environment in an ecologically

sustainable manner;


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• planning at the local and regional level for the development and futurerequirements of the Community;

• promoting the area and providing an attractive climate and location for thedevelopment of business, commerce, industry and tourism;

• ensuring a proper balance between economic, social, environmental and culturalconsiderations within the Community;

• developing its capacity and professionalism to undertake a growing range ofleadership, advocacy and service delivery challenges; and

• exercising, performing and discharging the power, functions and duties of theLocal Government and other Acts.

COUNCIL REPRESENTATION

As at 30 June 2016 there were 2,167 House of Assembly electors, this provides an elector representation of 309 electors per Council Member.

In comparison, the representations in neighboring Councils are: 102 in Orroroo/Carrieton; 128 in Flinders Ranges; 140 in Peterborough; 379 in Northern Areas; 949 in Port Augusta; and 1,267 in Port Pirie. [Source: LGA Representation Quotas 2015-2016, derived from information provided by the Electoral Commission of SA at 29/02/2016]

COUNCIL COMPOSITION AND WARD STRUCTURE

The District Council of Mount Remarkable is divided into two (2) Wards. The Council currently comprises seven (7) Council Members or Councillors elected by the electors of the respective Wards [Willochra Ward has 4 Councillors and Telowie Ward has 3 Councillors]. The members of the Council from amongst their own number choose the Principal Member or Chairperson, whom they have determined to have the title of Mayor. Council meets on the third Tuesday of every month at 9.30 am in Melrose.


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COUNCIL MEMBERS - (as at 30 June 2016)

Councillors are part of the incorporated body handling the responsibility for carrying out the duties and exercising the powers conferred on the Council by the Local Government Act 1999 and other relevant State legislation. The Act specifies that Council members:

Represent the interests of ratepayers and residents; Provide community leadership and guidance; and Facilitate communication between the community and the Council.

The role of a Council member involves: Participating in the deliberations and civic activities of the Council; Keeping the Council’s objectives and policies under review so as to ensure that they are

appropriate and effective; and Keeping the Council’s resource allocation, expenditure and activities, and the effectiveness

and efficiency of its service delivery, under review.

Mayor Cr Sandra Wauchope

Telowie Ward

Cr Lyall Arthur Willochra Ward

Cr Peter Blieschke Willochra Ward

Cr Phillip Heaslip Telowie Ward

Cr Vicki Morley Telowie Ward

Cr Jan Woolford Willochra Ward

Deputy Chairperson Cr Colin Nottle Willochra Ward


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COUNCIL COMMITTEES (AS AT 30 JUNE 2016) Melrose Caravan Park Management Advisory Committee Booleroo & District Community Airstrip Management Committee Northern Passenger Transport Network Management Committee Audit Committee Flinders Regional Development Assessment Panel Building Fire Safety Committee Workplace Health & Safety Committee Community Facilities Committees (various)

These committees meet on an as needs basis to make recommendations to Council on issues in their respective policy areas.

OTHER COMMITTEES & OUTSIDE BODIES (AS AT 30 JUNE 2016)

Other committees and outside bodies with which Council is involved include: Mount Remarkable CFS Group Local Government Association of SA Central Local Government Region of SA Local Government Finance Authority of SA Flinders Mobile Library (Sec 41 Committee Northern Areas Council) Zone Emergency Management Committee Mount Remarkable Community Road Safety Committee FYMN Regional Bushfire Management Committee

MEETING ATTENDANCES The following table provides a summary of the attendances of Council Members at various Council and Committee Meetings during the financial year ending 30 June 2016:

P A Ab

Cr W

oolford

Cr M

orley

Totals

Cr W

acuhope

Elected MembersCouncil & Committee Meeting Attendances2015/2016 Financial Year

Cr A

rthur

Cr B

lieschke

Cr H

easlip

Cr N

ottle

Ordinary Meetings of Council21 July 2015 P P P P P P N/A 6 0 0

18 August 2015 P P P A P P N/A 5 1 0

15 September 2015 P P P A P A P 5 2 0

20 October 2015 P P P P P P P 7 0 0

17 November P P P P P P P 7 0 0

15 December 2015 P P P P P P P 7 0 0

19 January 2016 P P P P P P P 7 0 0

16 February 2016 P P P P P P P 7 0 0

15 March 2016 P P P P P P P 7 0 0

19 April 2016 P P P P P P P 7 0 0

17 May 2016 P P A P P P P 6 1 0

14 June 2016 P P P P P P P 7 0 0

P Present 12 12 11 10 12 11 10 78A Apology 0 0 1 2 0 1 0 4Ab Absent no apology 0 0 0 0 0 0 0 0

12 12 12 12 12 12 10


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P A Ab

Cr W

oolford

Cr M

orley

Totals

Cr W

acuhope


Cr A

rthur

Cr B

lieschke

Cr H

easlip

Cr N

ottle

Special Meetings of Council14 July 2015 P P P P P P N/A 6 0 0

7 October 2015 P P P P P P P 7 0 0

24 November 2015 P P P P P P P 7 0 0


3 3 3 3 3 3 2

Melrose Caravan Park Management Committee16 February 2016 P P 2 0 0

12 April 2016 P P 2 0 0


0 2 0 0 2 0 0

Southern Flinders Regional Tourism Authority24 June 2015 P 1 0 0

26 August 2015 P 1 0 0

14 October 2015 A 0 1 0

16 December 2015 P 1 0 0

27 April 2016 P 1 0 0

22 June 2016 P 1 0 0


0 0 0 0 0 6 0

Northern Passenger Transport Network Management CommitteeSeptember 2015 A P 1 1 0

December 2015 A P 1 1 0

March 2016 A P 1 1 0

June 2016 P P 2 0 0


4 0 0 0 4 0 0

Airstrip Committee31 May 2016 P 1 0 0

0 0 0


1 0 0 0 0 0 0


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COUNCIL MEMBERS ALLOWANCES

Allowances are determined pursuant to Section 76 of the Local Government Act 1999 and the Local Government (Members Allowances and Benefits) Regulations 2010. The level of allowances (minimum and maximum amounts) are determined by the Remuneration Tribunal which is appointed by the State Government and outside of the control of Council. Allowances are set prior to each periodic election (2014) and are indexed annually. Allowances as at 30 June 2016 were:

Mayor $23,060 per annum Deputy Chairperson $ 7,206 per annum Councillor $ 5,765 per annum Audit Committee Independent $ 250 per meeting (plus travel when required)

Members are also reimbursed for prescribed out-of-pocket expenses incurred whilst representing Council on official duties.

P A Ab

Cr W

oolford

Cr M

orley

Totals

Cr W

acuhope


Cr A

rthur

Cr B

lieschke

Cr H

easlip

Cr N

ottle

Council Statuatory Committee MeetingsRegional Development Assessment Panel

23 September 2015 P 1 0 0

23 November 2015 P 1 0 0

11 April 2016 P 1 0 0

24 June 2016 P 1 0 0


0 0 0 4 0 0 0

Building Fire Safety Committee


0 0 0 0 0 0 0

Audit Committee20 July 2015 P P N/A 2 0 0

17 November 2015 P P P 3 0 0

16 May 2016 P P P 3 0 0

9 June 2016 P P P 3 0 0


0 4 0 0 4 3 0

Overall Attendance Summary

Total Meetings Eligible 20 22 15 23 25 28 12 1450 0 0 0 0 0 0

P Present 17 22 14 21 25 24 12 135A Apology 3 0 1 2 0 4 0 10Ab Absent no apology 0As Percentages %P Present 85% 100% 93% 91% 100% 86% 100%A Apology 15% 0% 7% 9% 0% 14% 0%Ab Absent no apology 0 0 0 0 0 0 0 0


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COUNCIL MEMBERS’ TRAINING & DEVELOPMENT

Pursuant to the provisions of Section 80A of the Local Government Act 1999, Council has in place an Elected Members Training and Development Policy which is available for inspection or purchase by the public from the Council office. During the course of the 2015/2016 financial year, Council Members undertook various mandated and in-house training. All Councillors have completed all mandated training modules.

SENIOR OFFICER REMUNERATION (AS AT 30 JUNE 2015) Chief Executive Officer (WA Hart) - Contract Position LG Super Scheme 9.5% of salary, Provision of personal computer and Internet, Mobile Telephone, Telephone Rental, Private use of vehicle.

Deputy Chief Executive Officer (JR White) - Contract Position LG Super Scheme 9.5% of salary, Provision of Mobile Telephone and Laptop, Subsidised Telephone Rental, Subsidised Internet Access, Private use of vehicle.

Manager Works & Technical Services (J Hadley) - Contract Position LG Super Scheme 9.5% of salary, Provision of Mobile Telephone and Laptop, Subsidised Telephone Rental, Subsidised Internet Access, Private use of vehicle.

Manager Passenger Transport (LK Forster) - Contract Position LG Super Scheme 9.5% of salary, Provision of Mobile Telephone

STRATEGIES AND PERFORMANCE

FINANCIAL RATIOS

Council is committed to ensuring its long term financial sustainability. Council’s financial sustainability is dependent on ensuring that, on average over time, its expenses are at least matched by its revenue. In addition, capital expenditure on existing infrastructure and other assets should be optimised (in accordance with the Infrastructure and Asset Management Plan so as to minimise the whole-of-life-cycle costs of assets. The following measurements strongly indicate that Council are working towards achieving it financial sustainability.

OPERATING SURPLUS RATIO

The Operating Surplus Ratio expresses the operating surplus (deficit) as a percentage of total operating income. Council to made a small percentage surplus for the year ending 30 June 2016 of 6%, (i.e. a slightly better than breakeven result, based on the revised methods for ratio calculations). This offset part of the draw down for the accelerated capital works program.

‐100%

‐50%

0%

50%

100%

150%

200%

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

Financial Indicators by Ratio

Operating Surplus Ratio Net Financial Liabilities Ratio Asset Sustainability Ratio


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NET FINANCIAL LIABILITIES & NET FINANCIAL LIABILITIES RATIO

Net Financial Liabilities is a comprehensive measure of the indebtedness of the Council as it includes items such as employee long-service leave entitlements and other amounts payable as well as taking account of the level of Council's available cash and investments. Specifically, Net Financial Liabilities equals total liabilities less financial assets, where financial assets for this purpose are current cash and cash equivalents, current trade and other receivables, current other financial assets and non-current financial assets, but excludes equity held in Council businesses.

The negative result, -40%, indicates that Council is in a net financial assets position and has sufficient capacity to continue its operational and accelerated capital expenditure programs and allows for any major project contingency.

ASSET SUSTAINABILITY RATIO

The Asset Sustainability Ratio indicates whether the Council is renewing or replacing existing non-financial assets at the same rate as its overall stock of assets is wearing out. The ratio is calculated by measuring capital expenditure on renewal and replacement of assets relative to its Infrastructure and Asset Management Plans (IAMP). Council attained a result of 103% for the year ending 30 June 2016. This means that Council is spending more than the IAMPs expenses on asset renewal, reflecting the continued commitment of the last 3 years to an accelerated capital works program.

FINANCIAL PERFORMANCE

The following graphs show the Council’s financial performance over the past five years.

$‐

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000 $6,658,638 $7,391,957

$8,216,000$6,914,374 $6,930,488

Operating Income

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

$6,599,514 $6,599,745

$7,002,463

$6,846,178

$6,494,973

$6,200,000

$6,400,000

$6,600,000

$6,800,000

$7,000,000

$7,200,000

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Operating Expenditure

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016


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EXPENDITURE BY FUNCTIONS

Council is responsible for delivering a large range of functions (detailed in other sections of the Annual Report). The following graph shows the 2015/16 financial expenditure per function.

DEVELOPMENT

The following table illustrates the number and value of development approvals by category for the 2014/2015 and 2015/2016 financial years, with the graph showing activity over the past five years.

2014 / 2015 2015/2016

Type of Development Number Value Number Value

New Work 73 $2,456,116 30 $7,930,221

Alterations/Additions 14 $556,152 67 $2,005,540

Total 87 $3,012,268 97 $9,935,761

$‐

$500,000

$1,000,000

$1,500,000

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

Operating Surplus

Business Undertakings9% Community Services

8%

Culture 2%

Ecomnomic Development

1%

Environment11%

Recreation7%

Regulatory Services1%

Transport 24%

Plant & Depot21%

Council Administration16%

Expenditure by Council Function

Business Undertakings Community Services Culture 2%

Ecomnomic Development Environment Recreation

Regulatory Services Transport Plant & Depot


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TARGETS AND OUTCOMES - 2015/2016 MEASURES

The following table shows the 2015/2016 non-financial performance measure targets and outcomes for the financial year ended 30 June 2016:

2015/2016 Target 2015/2016 Outcome Resheet 19.8kms of category 1 unsealed roads 21.6 Kms Completed:

Pine Creek Road 6.2 km. Hammond Road 6 km Morchard Road 4.6 km Gunyah Road 4.8 km

Resheet 11.2kms category 2 unsealed roads 12.3 Kms Completed: Borgas Road 3 km Collins Road 6 km Perroomba Road 3.3 km

Resurface works to unsealed roads 6 Kms Completed: Pine Creek 6 kms

Continue working with government to finalise flood damage claims

Completed - Minister has approved flood damage claim and agreed Council contribution

Implement a new operational grading program Completed - Council adopted new methodology for Patrol Grading

Finalise the current bitumen reseal program in Booleroo Centre, Port Germein, Melrose and Wilmington and develop new 10 year program

Completed: Edwin Street Booleroo Centre High Street Port Germein (edge reseal

and 1 section) Cottage Road Port Germein White Well Road (3 sections) Mount Street Melrose Spear Creek Road Wilmington Arthur Street Booleroo Centre (Rain

delayed )Develop a plan for the construction and seal of all remaining township streets

Completed

Construct and seal roadwork’s in Wilmington and Wirrabara

Oval, Tuckwell & Dignan - Completed Callistemon (awaiting completion of rain

delayed CWMS)Instigate Stage 1 of the Wilmington drainage works and investigate further options

Works commenced. (Rain delayed)

Continue Drainage works on Weeroona Island Tender Awarded, works in late 2016 (weather dependent)

Reline the Melrose CWMS to progress water reuse at oval

Tender finalised – Works to be carried out in 2016/2017 (weather dependent)

Continue with plans for the introduction of a Wirrabara CWMS

Near Completion – Rain delayed, handover late 2016.

Continue working with government, the community and others for the redevelopment of Wirrabara Forest.

Council agreed not to proceed with binding EOI but to instead concentrate on a proposed Caravan Park in Wirrabara


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REGISTERS & CODES OF CONDUCT & PRACTICE

REGISTERS

Members Register of Interest Member Register of Allowances and Benefits Officers Register Salaries Officers Register of Interest Fees and Charges Community Land Public Roads By-Laws Register of Internments Register of Internment Rights Campaign Donation Returns Development Applications Gifts and Benefits

CODES

Code of Conduct for Council Members Access to Council Meetings, Council Committees and Council Documents Code of Conduct for Council Employees

POLICIES

Prudential Policy Procurement Policy Public Consultation Policy Elected Members Allowances and Support Policy Elected Members Training & Development Policy Internal Financial Control Policy Road Naming Policy Protocol – Ombudsman Enquiry Procedure Fraud and Corruption Prevention Policy Whistleblowers Protection Policy Selection of Road Names and Public Places Policy Caretaker Policy Complaints Handling Policy and Procedures Request for Services Policy and Procedures Internal Review of Council Decisions Rating Policy (within the Annual Business Plan) Freedom of Information Procedure Risk Management Policy Enforcement Policy Rates Remission and Hardship Policy Community Wastewater Management Scheme and Water Supply Hardship Policy Order Making Policy Various Other Council Policies included in the Policy Manual Various Other Work Health & Safety Policies and Procedures

OTHER COUNCIL DOCUMENTS

Freedom of Information Statement Assessment Records Voters Roll Strategic Plan


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CONFIDENTIALITY PROVISIONS

During the 2015/2016 financial year the Council utilised the confidentiality provisions Section 90(2) of the Local Government Act 1999 on a total fifteen (15) occasions, namely:

14/07/2015 Legal Advice 14/07/2015 Legal Advice 15/09/2015 Legal Advice 15/09/2015 NBN Co. Limited – Lease negotiations 07/10/2015 Wirrabara Community Wastewater Management Scheme - Tender 07/10/2015 Flood Damage Repairs - Tender 17/11/2015 Legal Advice 15/12/2015 Citizen of the Year Awards 15/03/2016 Chief Executive Officer Annual Performance Review 19/04/2016 Weeroona Island Boat Launching Faculty - Contract 17/05/2016 Weeroona Island Boat Launching Faculty – Variation 17/05/2016 Premiers Circular 114 - Port Germein School 14/06/2016 Melrose Community Wastewater Management Scheme - Tender 14/06/2016 Confidential Advice 14/06/2016 Confidential Report; and

Consisting of: Section 90(3)(a) – 2 occasions Section 90(3)(b) – 7 occasions Section 90(3)(g) – 1 occasion Section 90(3)(h) – 4 occasions Section 90(3)(j) – 1 occasion

During the 2015/2016 financial year the Council made orders pursuant to Section 91(7) on the same date, on all fifteen matters listed above.

During the 2015/2016 financial year fourteen Orders expired, ceased to apply or were revoked.

As at 30 June 2016, four orders only remained operative, namely: 17/11/2015 Legal Advice 17/05/2016 Premiers Circular 114 - Port Germein School 14/06/2016 Confidential Advice 14/06/2016 Confidential Report

COMPETITIVE TENDER ARRANGEMENTS

Council has prepared and adopted a ‘Procurement Policy’ in accordance with Section 49 of the Local Government Act 1999. Copies of this document are available for inspection or purchase at the Council Office during normal business hours.


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COMMUNITY LAND MANAGEMENT PLANS

All land, except roads, held as at 1st January 2000 is classified as ‘community land’ unless Council resolved to exclude it from that classification. The intention behind the legislation is that Council, in consultation with the community, should determine which land should or should not be classified as community land. Where the land is under the care, control and management of a Council, but is not owned by the Council, the Council cannot resolve to exclude the land from classification as community land without the approval of the relevant Minister.

Management Plans are required for land that is, or is to be, occupied under a lease or licence or land that has been, or is to be, specifically modified or adapted for the benefit or enjoyment of the community. Such plans were required to be prepared for land held as at 1st January 2000, and land acquired after 1st January 2000, as soon as practicable after the requirement for the plan arises. A person must not use community land for a business purpose unless the use is approved by Council. The Council cannot approve the use of community land for a business purpose contrary to the provisions of the management plan.

Copies of the Council’s Community Land Management Plans are available for inspection or purchase at the Council Office during normal business hours.

COUNCIL AUDITOR

Section 128(9) of the Local Government Act 1999 requires Council to disclose, as part of its Annual Report, the remuneration payable for the annual audit. During the 2015/2016 financial year, Council’s outgoing auditor, Ian G McDonald, was paid a total amount of $8,500 (excluding GST) for work performed and Council’s incoming auditor, Galpins Accountants Auditors and Business Consultants, was paid a total of $9,000 (excluding GST). These amounts were entirely in relation to the annual audit of Council’s financial statements.

REVIEW OF COUNCIL DECISIONS

Section 270 of the Local Government Act 1999 requires that Council must establish grievance procedures for the review of decisions of the Council, employees of the Council and other persons acting on behalf of the Council. Council has a formal Policy Document in this respect entitled “Internal Review of Council Decisions” which is available for inspection or purchase by the public from the Council office and on Council’s website.

RATES

In 2015/2016 Council had a five (5) per cent increase in general rate revenue and a $13.10 increase in the fixed charge.


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PUBLIC & ENVIRONMENTAL HEALTH

The District Council of Mount Remarkable employs an Environmental Health Officer for health inspections, safe water testing, a raft of regulatory functions and community health training as required throughout the year. The compliance workload on local government has increased markedly with the introduction and changes to various legislation such as the South Australian Public Health Act in 2011, Safe Drinking Water Act 2011 and Food Act 2001. Inspections of food handling and preparation premises are undertaken with the overall aim to ensure that all such premises are operating to the required standards, along with water, legionella and other testing regimes.

COMMUNITY LIBRARY Council financially supports the Flinders Mobile Library, a truck that services 16 towns once each fortnight. Costs are shared between the Northern Areas Council, the Port Pirie Regional Council and the District Council of Mount Remarkable. The door count for Mount Remarkable was 11,723 for the financial year.

SPORT & RECREATION

Council’s policy is to assist sporting clubs with the provision of Council reserves at a minimal lease fee with an expectation that the club or community group maintain the facility as best they can. Council assists with sponsor costs and in-kind support in grant application to improve sport and recreation facilities. Council has in recent years been a strong advocate for cycling throughout the various communities. Council jointly employs a STARCLUB Field Officer with neighboring Councils and the State Government. The Officer provides assistance to schools, clubs and other organisations in various recreation and sport matters.

WASTE MANAGEMENT

Council presently operates a major landfill facility at Willowie and two smaller transfer sites in Port Germein and Wirrabara. All former landfill facilities have been closed in recent years and the process continues to rehabilitate those sites over the next 2 years. As part of its overall Waste Management Strategy, Council constructed a new intermediatory holding area at the Willowie Landfill.

NATURAL RESOURCE MANAGEMENT

Council is within the Northern and Yorke Natural Resources Management Region. For more information visit the Board’s website at www.naturalresources.sa.gov.au/ northernandyorke.


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COMPETITIVE NEUTRALITY

The primary objective of the ‘National Competition Policy’ is to ensure that local businesses gain an opportunity to compete for the provision of Local Government business. Complaints must be received in writing detailing the nature of the complaint and how they believe such activity by the Council is disadvantaging the complainant. The complaint will be processed in accordance with Council’s Complaint Handling Policy. Copies of this document are available for inspection or purchase at the Council Office during normal business hours.

Council is required to include in its Annual Report, specific information related to significant business activities, competitive neutrality, by-laws and complaints. In relation to this:

Council has three significant business activities in the form of the Melrose Caravan Park, theMelrose Post Office and the Weeroona Island Water Supply.

There has been no change in the application of competitive neutrality since the last return. Council presently has no by-laws in force that would restrict competition, and none have been

repealed in the past 12 months. No complaints about competitive neutrality were received during the preceding 12 months.

EEO & HUMAN RESOURCE MANAGEMENT

The Council has a responsibility to all members of its community to create an employment environment which is free of discrimination and which reflects the diversity and needs of the community it serves. The Council is firmly committed to the principle of equal opportunity in employment for all employees and potential employees. Council acknowledges its legal obligations under The SA Equal Opportunity Act 1984, the Local Government Act 1999 and Federal Equal Opportunity laws.

As part of this Council has: Incorporated the program into the Strategic Management Plan Ensured that recruitment, selection, promotion, transfer and training are based solely on the merit

principle Ensured that services provided to residents will be delivered in a fair and equitable manner.

The overall responsibility for monitoring the effectiveness of this policy and for implementing an ongoing EEO program is vested in the Chief Executive Officer.


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FREEDOM OF INFORMATION (FOI) - INFORMATION SUMMARY

The District Council of Mount Remarkable publishes this Information Summary in accordance with the requirements of the Freedom of Information Act 1991, as amended. A FOI Information Statement can be found at Appendix A.

CERTIFICATES ISSUED

One Freedom of Information application was received by Council in the 12 months to 30 June 2016.

POLICY AND ADMINISTRATIVE DOCUMENTS

The District Council of Mount Remarkable policy and administrative documents are as follows: Ordinary Council Meeting Agendas Ordinary Council Meeting Minutes The Annual Business Plan and Budget Annual Financial Statements The Annual Report Assessment Records Better Development Plan Dog and Cat Management Plan Health Plan LongTerm Financial Plan Asset Management Plan Policy Manual Work Health & Safety ManualThese documents are available for publicinspection at the Council Office between 9.00 am and 5.00 pm Monday to Friday. Members of thepublic may also purchase copies of these documents. The documents are also available on the Councilwebsite.

FINANCIAL STATEMENTS

Pursuant to the provisions of Schedule 4 of the Local Government Act 1999, Council’s Audited Financial Statements for the financial year ending 30 June 2016 form part of this Annual Report and are included at Appendix B.

REGIONAL SUBSIDIARIES

Council currently has two regional subsidiaries that fall within the provisions of Section 43 of the Local Government Act 1999. This is the Central Local Government Region of SA Inc. and Flinders Regional Development Assessment Panel.

These regional subsidiaries produce their own individual Annual Reports. The Local Government Act 1999 provides that each constituent Council must incorporate the annual report of each regional subsidiary into its own annual report and this is included at Appendix C.


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PROJECTION AND TARGETS FOR THE 2016 /2017 FINANCIAL YEAR

A surplus of $223k is being targeted in 2016/2017. The Council’s long-term financial sustainability is dependent on ensuring that, on average over time, its expenses are less than its revenue.

Council’s revenue in 2016/2017 includes $2.309M proposed to be raised from general and other rates. This is based on an increase of 5%. There is little forecast growth expected for the region accordingly no increases to rates revenue has been factored in for growth. Other sources of proposed revenue for the Council are:

User Charges and Commercial Revenue Statutory Charges set by State Government Grants Other Revenue

The following proposed non-financial performance measures for the 2016/2017 financial year are linked to Our 2020 Vision, District Council of Mount Remarkable Strategic Management Plan 2008 – 2020, namely:

Resheet 26.6 kms of category 1 unsealed roads Resheet 10.4 kms category 2 unsealed roads Partial re-sheeting of various roads Finalise flood damage works Installation of urban street-name signage and urban house numbering Carry out footpath refurbishment in Booleroo Centre Construct and seal roadwork in Wilmington Instigate Stage 2 of the Wilmington drainage works New drainage works in Weeroona Island, Wilmington and Appila Road alignment on Weeroona Island Reline the Melrose CWMS to progress water reuse at oval Implement owner connections to Wirrabara CWMS and finalise oval watering system Continue working with government agencies and others for the opening of Baroota Reservoir

to the public for fishing and recreational activities Commence Phase 3 works on the Wilmington to Melrose Walking & Riding Trail (including 6

bridges and trail works) Finalise the Weeroona Island boat launching facility Work with agencies for the continuance of the Northern Passenger Transport Network Finalise the review of Council’s Strategic Management Plan Complete final phase of 2015-2017 Work Health and Safety Implementation Plan Continue the ongoing review of Council policies and procedures Finalise works to culverts on Spear Creek Road Continue to be an active member in the change management of the Central Local Government

Region Stage 1 of Booleroo Centre Carpark area Upgrade IT Infrastructure Upgrade Swimming Pool pump and pipe infrastructure Continue support for Opal Program Continue support for StarClub Program Finalise transfer of all hard copy cemetery registers

to electronic database

APPENDIX A

District Council of Mount Remarkable Freedom of Information (FOI)

Information Statement

The District Council of Mount Remarkable publishes this Information Statement in accordance with the requirements of Section 131 of the Local Government Act 1999, and Section 9 of the Freedom of Information Act 1991.

Council is pleased to comply with the legislation and welcomes inquiries. An updated information Statement will be published at least once every 12 months.

1 STRUCTURE & FUNCTIONS OF THE COUNCIL

1.1 Full Council Full Council, currently consisting of seven (7) Ward Councillors including the Mayor, is the decision making body on all policy matters. Ordinary meetings of the full Council are held on the third Tuesday of every month, commencing at 9.30 am in Council Chambers, 3 Stuart Street Melrose. Members of the public are welcome to attend.

1.2 Committees & Advisory Groups Committees and Advisory Groups have been established by Council to discuss/administer Council and Community business. These groups meet as required, and members of the public are welcome to attend. These Committees and Advisory Groups are:

Melrose Caravan Park Management Advisory Committee Booleroo & District Community Airstrip Management Committee Northern Passenger Transport Network Management Committee Audit Committee Flinders Regional Development Assessment Panel Building Fire Safety Committee Workplace Health & Safety Committee Community Facilities Committees (various) Farmers Roads Reference Group

1.3 Agendas and Minutes Agendas of all Ordinary Council and Committee meetings are placed on display no less than three days prior to those meetings. Minutes of the meetings are placed on display within five days of the meeting. Agendas and Minutes are also available for viewing on Council’s website www.mtr.sa.gov.au .

1.4 Delegations The Chief Executive Officer and other Officers have delegated authority from Council to make decisions on a number of specified administrative and policy matters. These delegations are listed in the Delegations Register and are reviewed by Council in keeping with legislative requirements: To determine policies to be applied by Council in exercising its discretionary powers; To determine the type, range and scope of projects to be undertaken by the Council; and To develop comprehensive management plans, budgets, financial controls and performance

objectives and indicators for the operations of the Council.

The Council makes the decisions which direct and/or determine its activities and functions. Such decisions include the approval of works to be undertaken and services provided, and the resources which are to be made available to implement such works and services. Decisions are also made to determine whether or not approvals are to be granted for applications from residents for various forms of development.


2 SERVICES FOR THE COMMUNITY

All councils have basic responsibilities under the Act and other relevant legislation. These include: numerous regulatory activities (increasing each year) supporting the elected Council; setting rates, preparing an annual business plan and budget, and determining longer-term strategic

management plans for the area; management of basic infrastructure including roads, footpaths, public open spaces; street lighting and storm-water drainage; street cleaning, rubbish collection, recycling and waste management; Development planning and control, including building safety assessment; various environmental and public health services

Council also provides, performs or contributes to a range of additional services and programs in response to community needs, including (but not restricted to):

Mobile Library Service Asset Management Cemeteries Animal and Plant Control Booleroo Centre Airstrip Walking and Riding Trails Melrose Licensed Post Office Parking Community Wastewater Mgt Schemes x 4 Playgrounds Community Bus Property Searches Community Development Public Toilets Community Grants Opal Program Community Engagement and Information Recreation and Sporting Facilities Community Passenger Transport Road Construction and Maintenance Community Halls and public venues Leases Abandoned Vehicles StarClub Program Council Newsletters Rural Road Signs Customer Service Urban Street Signs Caravan Parks Street Trees and Gardens Dog and Cat Management Swimming Pool (Public) Economic Development Tourist and historical sites Fire Prevention Traffic Control Food Act Administration Waste Management Transfer Stations Health Act Administration Willowie Landfill Management Safe Drinking Water Act Administration Jetty management Safe Food Handling Training Waste Collection DrumMuster Recycling CollectionDesludging Programs Council Website Environmental Health Kerbing Watertable Footpaths Floodways Litter and Nuisance Tourism information and promotion Building Approvals Weeroona Island Water Supply Planning Approvals Regional Development Boat Launching Facility Coastal Protection Tidy Towns Citizenship Ceremonies Immunisation Medical Facility

3 PUBLIC PARTICIPATION

3.1 Council Meetings Members of the public have a number of opportunities to put forward their views on particular issues before Council. These are: (1) Deputations - with the permission of the Mayor, a member of the public can address the

Council or a Committee personally or on behalf of a group of residents.


(2) Presentations to Council - with prior notification and permission of the Mayor, a member ofthe public can address the Council on any issue relevant to Council.

(3) Petitions - written petitions can be addressed to the Council on any issues within the Council’sjurisdiction.

(4) Written Requests - a member of the public can write to the Council on any Council policy,activity or service.

(5) Council Members - members of the public can contact a Councillors to discuss any issuerelevant to Council.

3.2 Community Consultation The District Council of Mount Remarkable regularly consults with local residents and ratepayers on particular issues that affect their neighbourhood. Examples of such situations include: (1) Community Information Forums- all residents and electors are eligible and encouraged to

attend meetings.(2) Residents are notified of some Development Applications requiring the approval of Council.

When an application is publicly notified, residents have the opportunity to both write toCouncil expressing their view of the application, and to subsequently personally address theCouncil before a decision is made.

(3) Advertised Public Consultations seeking written submissions on a range of policies and othermatters either mandated or informing the Council of public views.

4 ACCESS TO COUNCIL DOCUMENTS

4.1 Documents Available for Inspection There are a range of documents mandated to be s are available for public inspection at the Council Offices free of charge. Members of the public may purchase copies of these documents (at the charges indicated): Photocopies - 1 copy $0.30 per A4 sheet Minutes $7.50

4.2 Other Information Requests Requests for other information not included in Clause 4.1 above will be considered in accordance with the Freedom of Information provisions of the Local Government Act 1999.

Under this legislation, an application fee and a search fee must be forwarded with the completed request form as provided for in Regulation No. 257 of 1991, unless the applicant is granted an exemption. Should the applicant require copies of any documents inspected pursuant to a Freedom of Information request, the charges set in Clause 4.1 will apply.

Freedom of Information Request Forms should be addressed to: Freedom of Information Officer District Council of Mount Remarkable PO Box 94 MELROSE SA 5483

Forms are available at the Council office. Applications will be responded to as soon as possible within the statutory thirty (30) days of Council receiving the properly completed Freedom of Information Request Form, together with the application and search fees.

5 AMENDMENT OF COUNCIL RECORDS A member of the public may gain access to Council documents to make amendments concerning their personal affairs by making a request under the Local Government Act. A member of the public may then request a correction to any information about themselves that is incomplete, incorrect, misleading or out of date.

To gain access to these Council records, a member of the public must complete a Freedom of Information Request Form as indicated above, outlining the records that he/she wishes to inspect.


APPENDIX B

FINANCIAL STATEMENTS - District Council of Mount Remarkable

District Council of Mount Remarkable

General Purpose Financial Reports for the year ended 30 June 2016

TABLE OF CONTENTS

Council Certificate

Principal Financial Statements

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

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

Note 1 - Significant Accounting Policies

Note 2 - Income

Note 3 - Expenses

Note 4 - Asset Disposal & Fair Value Adjustments

Note 5 - Current Assets

Note 6 - Non-Current AssetsNote 7 - Infrastructure, Property, Plant & Equipment

& Investment Property

Note8 - Liabilities

Note 9 - Reserves

Note 10 - Assets Subject to Restrictions

Note 11 - Reconciliation of Cash Flow Statement

Note 12 Functions

Note 13 - Financial Instruments

Note 14 - Expenditure Commitments

Note 15 - Financial Indicators

Note 16 - Uniform Presentation of Finances

Note 17 Superannuation

Audit Report - Financial Statements

Audit Report - Internal Controls

Council Certificate of Audit Independence

Audit Certificate of Audit Independence

1

2

3

4

5

6

11

13

15

16

17

18

22

23

24

25

26

28

30

31

32

33

34

36

38

39

DISTRICT COUNCIL OF MOUNT REMARKABLE

ANNUAL FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2016

CERTIFICATION OF FINANCIAL STATEMENTS

We have been authorised by the Council to certify the financial statements in their final form. In our opinion:

> the accompanying financial s tatements comply with the Local Government Act1999, Local Government (Financial Management) Regulations 2011 andAustralian Accounting Standards.

> the financial statements present a true and fair view of the Council's financialposition at 30 June 2016 and the results of its operations and cash flows for thefinancial year.

> internal controls implement�d by the Council provide a reasonable assurance thatthe Council's financial records are complete, accurate and reliable and wereeffective throughout the financial year.

> the financial statements accurately reflect the Council's accounting and otherrecords.

��-.��efr!�� Colin Nottle MAYOR (PRESIDING MEMBER)

Date: 1Pj;f6

Another Coalface Software Solution 10/11/16 13:53 Page 1


STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 June 2016

2016

Notes $

INCOME Rates 2 3,168,644 Statutory charges 2 85,106 User charges 2 554,681 Grants, subsidies and contributions 2 2,736,972 Investment income 2 126,337 Reimbursements 2 89,672 Other income 2 169,076 Total Income 6,930,488

EXPENSES Employee costs 3 1,608,985 Materials, contracts & other expenses 3 3,102,688 Depreciation, amortisation & impairment 3 1,747,539 Finance costs 3 35,762 Total Expenses 6,494,973

OPERATING SURPLUS/ (DEFICIT) 435,514

Asset disposal & fair value adjustments 4 (37,136)

Amounts received specifically for new or upgraded assets 2 2,700,000

NET SURPLUS/ (DEFICIT) 3,098,378 transferred to Equity Statement

Other Comprehensive Income Amounts which will not be reclassified subsequently to operating

result

Changes in revaluation surplus - infrastructure, 9

property, plant & equipment Total Other Comprehensive Income

TOTAL COMPREHENSIVE INCOME 3,098,378

Share of Net Surplus / (Deficit) Council 3,098,378

3,098,378 Share of Other Comprehensive Income

Council TOTAL COMPREHENSIVE INCOME 3,098,378

OPERATING SURPLUS of $0.4 million (2015: $0.07 million surplus) has been affected by the timing and recognition of the Federal Government Grant Received in Advance (refer to Note 2).

To aid users of this report, the operating surplus has been restated to reflect the correct accounting treatment of the Federal Grant received (refer Note 2).

Restated Operating Surplus / (Deficit) (606,125)

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

2015

$

3,044,398 91,968

516,871 2,702,996

173,552 119,258 265,330

6,914,373

1,746,511 3,031,195 2,018,355

50,116 6,846,177

68,196

(73,658)

(5,462)

7,178,963

7,178,963

7,173,501

(5,462) (5,462)

7,1781963

7,173,501

1,109,835


STATEMENT OF FINANCIAL POSITION

as at 30 June 2016

2016 2015 ASSETS Notes $ $ Current Assets Cash and cash equivalents 5 4,307,633 5,008,196 Trade & other receivables 5 769,713 857,834 Inventories 5 13,571 13,076

Total Current Assets 5,090,917 5,879,106

Non-current Assets Financial assets 6 170,000 19,821 Infrastructure, property, plant & equipment 7 60,646,974 56,870,716

Total Non-current Assets 60,816,974 56,890,537 Total Assets 65,907,891 62,769,643

LIABILITIES Current Liabilities Trade & other payables 8 1,536,532 1,592,961 Borrowings 8 4,615 84,122 Provisions 8 270,076 267,654

Total Current Liabilities 1,811,223 1,944,737

Non-current Liabilities Borrowings 8 634,891 475,744 Provisions 8 54,726 40,488

Total Non-current Liabilities 689,617 516,232 Total Liabilities 2,500,840 2,460,969 NET ASSETS 63,407,051 60,308,674

EQUITY Accumulated Surplus 33,340,561 30,242,183 Asset Revaluation Reserves 9 30,066,490 30,066,490 TOTAL EQUITY 63,407,051 60,308,673



STATEMENT OF CHANGES IN EQUITY


Asset Accumulated

Surplus Revaluation

2016

Balance at end of previous reporting period Net Surplus/ (Deficit) for Year Other Comprehensive Income

Balance at end of period

2015

Balance at end of previous reporting period Net Surplus/ (Deficit) for Year Other Comprehensive Income

Gain on revaluation of infrastructure, property, plant & equipment


Notes

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

Reserve

$ $

30,242,183 30,066,490 3,098,378

33,340,561 30,066,490

30,247,646 22,887,527 (5,463)

7,178,963

30,242,183 30,066,490

TOTAL EQUITY

$

60,308,673 3,098,378

63,407,051

53,135,173 (5,463)

7,178,963

60,308,673


STATEMENT OF CASH FLOWS for the year ended 30 June 2016

CASH FLOWS FROM OPERATING ACTIVITIES Receipts

Rates - general & other Fees & other charges User charges Investment receipts Grants utilised for operating purposes Reimbursements Other revenues

Payments Employee costs Materials, contracts & other expenses Finance payments

Net Cash provided by (or used in) Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES Receipts

Amounts specifically for new or upgraded assets Sale of replaced assets Repayments of loans by community groups

Payments Expenditure on renewal/replacement of assets Expenditure on new/upgraded assets Loans made to community groups

Net Cash provided by (or used in) Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES Receipts

Proceeds from borrowings Payments

Repayments of borrowings Repayment of aged care facility deposits

Net Cash provided by (or used in) Financing Activities

Net Increase (Decrease) in cash held

Cash & cash equivalents at beginning of period Cash & cash equivalents at end of period

Notes

11

11


2016 $

3,099,841 91,867

578,079 181,794

2,069,182 98,639

1,098,868

(1,570,808) (3,334,678)

(35,762)

2,277,022

2,700,000 76,118 21,327

(1,504,677) (4,132,374)

(170,000)

(3,009,606)

150,000

(70,360) (47,619)

32,021

(700,563)

5,008,196 4,307,633

2015 $

3,040,646 95,646

548,731 139,115

3,779,665 125,222 711,980

(1,751,323) (3,452,033)

(15,300)

3,222,349

85,909 17,067

(2,433,764) (1,508,943)

(3,839,731)

(51,885) 6,815

(45,070)

(662,452)

5,670,648 5,008,196


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2016

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 Preparation 1.1 Compliance with Australian Accounting Standards This general purpose financial report has been prepared in accordance with Australian Accounting Standards as they apply to not-for-profit entities, other authoritative pronouncements of the Australian Accounting 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 16 August 2016.

1.2 Historical Cost Convention Except as stated below, these financial statements have been prepared in accordance with the historical cost convention.

1.3 Critical Accounting Estimates The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates, and requires management to exercise its judgement in applying 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 specifically referred to in the relevant sections of this Note.

1.4 Rounding All amounts in the financial statements have been rounded to the nearest thousand dollars ($'000).

2 The Local Government Reporting Entity The District Council of Mount Remarkable is incorporated under the SA Local Government Act 1999 and has its principal place of business at 3 Stuart Street, Melrose. These financial statements include the Council's direct operations and all entities through which Council controls resources to carry on its functions. In the process of reporting on the Council as a single unit, all transactions and balances between activity areas and controlled entities have been eliminated.

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

Where grants, contributions and donations recognised as incomes during the reporting period were obtained 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 those undischarged 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 obtained in respect of the Council's operations for the current reporting period.



Note 1 - Significant Accounting Policies (cont)

4 Cash, Cash Equivalents and other Financial Instruments Cash Assets include all amounts readily convertible to cash on hand at Council's option with an insignificant 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 rates determined in accordance with the Local Government Act 1999. Other receivables are generally unsecured and do not bear interest.

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

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

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

6 Infrastructure, Property, Plant & Equipment 6.1 Land under roads Council has elected not to recognise land under roads acquired prior to 1 July 2008 as an asset in accordance with AASB 1051 Land under Roads. Land under roads acquired after 30 June 2008 has not been recognised as in the opinion of Council it is not possible to reliably attribute a fair value, and further that such value if determined would be immaterial.

6.2 Initial Recognition All assets are initially recognised at cost. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition.

All non-current assets purchased or constructed are capitalised as the expenditure is incurred and depreciated as soon as the asset is held "ready for use". Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including architects' fees and engineering design fees and all other costs incurred. 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.

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

6.3 Materiality Assets with an economic life in excess of one year are only capitalised where the cost of acquisition exceeds materiality thresholds established by Council for each type of asset. In determining (and in annually 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 given in Note 7. No capitalisation threshold is applied to the acquisition of land or interests in land.




6.4 Subsequent Recognition All material asset classes are revalued on a regular basis such that the carrying values are not materially different from fair value. For infrastructure and other asset classes where no active market exists, fair value is determined to be the current replacement cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. Further detail of existing valuations, methods and valuers are provided at Note 7.

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

Depreciation methods, useful lives and residual values of classes of assets are reviewed annually.

Major depreciation periods for each class of asset are shown in Note 7. Depreciation periods for infrastructure assets have been estimated based on the best information available to Council, but appropriate records covering the entire life cycle of these assets are not available, and extreme care should be used in interpreting financial information based on these estimates.

6.6 Impairment Assets that have an indefinite useful life are not subject to depreciation and are reviewed annually for impairment. Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount (which is 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, and where the future economic benefits would be replaced if Council were deprived thereof, the value in use is the depreciated replacement cost. In assessing impairment for these assets, a rebuttable assumption is made that the current replacement cost exceeds the original cost of acquisition.

Where an asset that has been revalued is subsequently impaired, the impairment is first offset against such amount as stands to the credit of that class of assets in Asset Revaluation Reserve, any excess being recognised as an expense.

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

7 Payables 7.1 Goods & Services Creditors are amounts due to external parties for the supply of goods and services and are recognised as liabilities when the goods and services are received. Creditors are normally paid 30 days after the month of invoice. No interest is payable on these amounts.

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




8 Borrowings Loans are carried at their principal amounts which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period to which it relates, and is recorded as part of "Payables". Interest free loans are carried at their nominal amounts; interest revenues foregone by the lender effectively being a reduction of interest expense in the period to which it relates.

9 Employee Benefits 9.1 Salaries, Wages & Compensated Absences Liabilities for employees' entitlements to salaries, wages and compensated absences expected to be paid or settled within 12 months of reporting date are accrued at nominal amounts (including payroll based oncosts) measured in accordance with AASB 119.

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

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

9.2 Superannuation The Council makes employer superannuation contributions in respect of its employees to the Local Government Superannuation Scheme. The Scheme has two types of membership, each of which is funded differently. No changes in accounting policy have occurred during either the current or previous reporting periods. Details of the accounting policies applied and Council's involvement with the schemes are reported in Note 18.

10 GST Implications In 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.

11 Pending Accounting Standards Certain new accounting standards and UIG interpretations have been published that are not mandatory for the 30 June 2016 reporting period and have not been used in preparing these reports.

AASB 7 Financial Instruments - Disclosures AASB 9 Financial Instruments AASB 15 Revenue from Contracts with Customers AASB 124 Related Party Disclosures Standards containing consequential amendments to other Standards and Interpretations arising

from the above -AASB 2010-7, AASB 2014-1, AASB 2014-3, AASB 2014-4, AASB 2014-5, AASB 2014-6, AASB 2014-7, AASB 2014-8, AASB 2014-9, AASB 2014-10, AASB 2015-1, AASB 2015-2, AASB 2015-3, AASB 2015-4, AASB 2015-5, AASB 2015-6 and AASB 2015-7.

(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 the amounts recognised in the financial statements, but that they may impact certain information otherwise disclosed.




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

Accounting Standard AASB 16 Leases may have a material effect on the amounts disclosed in these reports, particularly in relation to Infrastructure, Property, Plant & Equipment, but does not commence until the 2019/20 financial period, and it is not Council's intention to adopt this Standard early.



Note 2 - INCOME

RATES REVENUES

General Rates Less: Mandatory rebates

Other Rates (including service charges)

Natural Resource Management levy Waste collection Water supply Community wastewater management systems Separate and Special Rates

Other Charges Penalties for late payment Legal & other costs recovered

STATUTORY CHARGES

Development Act & Planning fees Development Act fees Town planning fees Health & Septic Tank Inspection fees Animal registration fees & fines Parking fines / expiation fees Fire Prevention Rates & Property Searches

USER CHARGES

Cemetery/crematoria fees Waste Management Melrose Caravan Park Hall & equipment hire Community Bus Road Reserves & Rental Economic Development Sundry

INVESTMENT INCOME

Interest on investments Local Government Finance Authority Banks & other Loans to community groups

Notes

2016 $

2,422,566 (11,847)

2,410,719

87,550 311,513

37,033 272,858

708,954

27,886 21,086 48,972

3,168,644

55,932

351 13,276

11,503 4,044

85,106

15,276 183,102 296,336

8,937 16,295

34,736 554,681

125,071 303 963

126,337

2015 $

2,235,786 (4,741)

2,231,045

85,761 299,919

56,230 260,834

73,916 776,660

26,331 10,362 36,693

3,044,398

28,352 16,095

551 14,062

6,456 26,452

91,968

13,068 152,899 273,249

2,934 15,785 12,017 17,000 29,919

516,871

170,398 571

2,583 173,552



NOTE 2 • INCOME (continued)

REIMBURSEMENTS - for private works- by joint undertakings- other

OTHER INCOME Melrose Post Office Healthy Communities LGA Workers Compensation Refund Weeroona Island Water Supply Northern Passenger Transport Network Sundry

GRANTS, SUBSIDIES, CONTRIBUTIONS Amounts received specifically for new or upgraded assets Other grants, subsidies and contributions

Notes

2016 $

7,055 21,617 61,000 89,672

68,718

18,105 12,317 33,457 36,479

169,076

2,700,000

2,736,972 5,436,972

The functions to which these grants relate are shown in Note 12.

Sources of grants

Commonwealth government State government Other

lndivudual/y Significant Item

*Grant Commission (FAG) Grant

2,536,593 2,896,879

3,500 5,436,972

(1,041,639)

2015 $

8,705 52,327 58,226

119,258

53,892 12,790

4,504 7,191

27,745 159,208 265,330

2,702,996 2,702,996

260,428 2,391,095

51,473 2,702,996

1,041,639

*In accordance with the Accounting Standard AASB 1004, not for profit entities mustrecognise a contribution immediately as revenue when it has control or the right to receive

the contribution.

For this reason, the first instalment of the 2015-2016 Financial Assistance Grants Money

which was receipted by the Council in June 2015, must be excluded from Grants Subsidies & Contributions.

Adjusted Grants, Subsidies & Contributions 4,395,333 3,744,635

As a result of the above, the Council's operating surplus I (deficit) has been restated on

the Statement of Comprehensive Income.

OPERATING SURPLUS I (DEFICIT) AFTER FEDERAL GOVERNMENT GRANT (606,125) 1,109,835



NOTE 2 - INCOME (continued)

Conditions over grants & contributions Grants and contributions which were obtained on the condition that they be expended for

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

those conditions, are as follows:

Unexpended at the close of the previous reporting period

Less: expended during the current period from

revenues recognised in previous reporting periods

Roads Infrastructure

Unexpended at the close of this reporting period

Net increase (decrease) in assets subject to conditions

in the current reporting period

(237,000)

(237,000)

(237,000)

345,478

(345,478)

(345,478)


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS


Note 3 - EXPENSES

EMPLOYEE COSTS Salaries and Wages Employee leave expense Superannuation - defined contribution plan contributions

Superannuation - defined benefit plan contributions

Less: Capitalised and distributed costs Total Operating Employee Costs

Total Number of Employees (FTE at end of reporting period)

MATERIALS, CONTRACTS & OTHER EXPENSES Prescribed Expenses Auditor's Remuneration Elected members' expenses Subtotal - Prescribed Expenses

Other Materials, Contracts & Expenses Electricity Gas Water Telephone & Internet Fuel Construction Materials Office Consumables Information Technology Melrose Caravan Park - Materials Other Materials Cleaning Consultancy & Professional Services Waste Management Services Vehicle Maintenance & Repairs Freight Desludging Other Contractual Services Melrose Caravan Park - Contractual Services Government Levies Fringe Benefit Tax Travel & Accommodation Conferences & Seminars Memberships & Subscriptions Printing & Postage Publishing & Advertising Libraries Contributions Registration Grants to External Bodies Insurances Other Expenses Bank Fees Less Amounts Capitalised Adjustment Subtotal - Other Materials, Contracts & Expenses

Notes

18

18

2016 2015 $ $

1,352,800 1,818,406 376,926 293,358 161,614 104,646

52,131 87,093 (334,485) (556,992}

1,608,985 1,746,511

38 40

17,500 8,500 70,713 70,822 88,213 79,322

61,035 68,792 7,620 7,142

116,996 128,132 44,428 50,385

195,880 239,844 7,870 54,131 2,809 5,657

76,588 113,022 58,383 29,645

240,361 257,651 3,663 3,400

152,349 197,796 306,419 308,009 357,162 291,989

18,324 9,614 2,755 70,459

229,033 198,986 154,939 116,364 144,964 127,156

35,278 36,941 7,490 8,731

32,801 25,625 14,633 12,863 26,973 22,273 27,518 37,642 82,506 75,165 46,089 17,166 61,342 65,745 36,291 10,658

348,251 297,353 91,353 139,123 22,373 19,922

(97,519) 2,011

3,014,475 2,951,873 3,102,688 3,031,195



Note 3 - EXPENSES (cont)

DEPRECIATION, AMORTISATION & IMPAIRMENT Depreciation Land Plant & Equipment Roads, Bridges & Footpaths CWMS Other Assets Buildings Office Equipment, Furniture & Footings

FINANCE COSTS Interest on Loans

Notes

2016 $

365,080 756,123 131,443

77,328 393,259

24,306 1,747,539

35,762 35,762

2015 $

394,996 943,236

47,225 611,789

21,109 2,018,355

50,116 50,116




Note 4 - ASSET DISPOSAL & FAIR VALUE ADJUSTMENTS

INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT Assets renewed or directly replaced

Proceeds from disposal Less: Carrying amount of assets sold Gain (Loss) on disposal

NET GAIN (LOSS) ON DISPOSAL OR REVALUATION OF ASSETS

Notes

2016 $

76,118 113,254 (37,136)

(37,136)

2015 $

85,909 159,567 (73,658)

(73,658)




Note 5 - CURRENT ASSETS 2016 2015

CASH & EQUIVALENT ASSETS Notes $ $ Cash on Hand and at Bank 510,247 188,193

Deposits at Call 862,364 153,723 Short Term Deposits & Bills, etc 2,935,022 4,666,280

4,307,633 5,008,196

TRADE & OTHER RECEIVABLES

Rates - General & Other 364,970 296,197 Rates postponed for State Seniors Accrued Revenues 28,529 83,986 Debtors - general 362,220 330,121 GST Recoupment 132,030 Loans to community organisations 13,994 15,500

769,713 857,834

INVENTORIES

Stores & Materials 13,571 13,076 13,571 13,076




Note 6 • NON-CURRENT ASSETS

FINANCIAL ASSETS

Receivables

Loans to community organisations

Notes

2016

$

170,000

170,000

2015 $

19,821 19,821




2015

$

2016

$ Fair Value

Level AT FAIR VALUE

AT COST ACCUM DEP'N

CARRYING AT FAIR AMOUNT VALUE

AT COST

Note 7 - INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

Land 2,3 4,500,818 61,960 4,562,778 4,562,778 Buildings 2 20,555,413 (6,484,188) 14,071,225 20,555,414 30,345 Plant & Equipment 5,349,010 (2,131,650) 3,217,360 5,348,640 801,535 Office Equipment, Furniture & Fittings 266,545 (70,493) 196,052 266,545 3,050 Roads, Bridges & Footpaths 3 36,087,060 (9,862,387) 26,224,673 36,087,060 1,669,694 CWMS 3 8,045,285 87,929 (1,907,770) 6,225,444 8,133,214 2,733,732 Other Assets 3 2,658,556 12,400 (297,772) 2,373,184 2,670,979 285,441 TOTAL INFRASTRUCTURE,PROPERTY,

71,847,132 5,777,844 (20,754,260) 56,870,716 77,624,630 5,523,797 PLANT & EQUIPMENT

Comparatives 53,278,407 11,167,059 (16,518,498) 47,926,968 71,847,132 5,777,844

This Note continues on the following pages.

ACCUM DEP'N

{6,877,448)

{2,496,360)

(94,799) (10,618,510)

{2,039,213)

(375,123)

(22,501,453)

(20,754,260)

CARRYING AMOUNT

4,562,778 13,708,311

3,653,815

174,796

27,138,244

8,827,733

2,581,297

60,646,974

56,870,716

Land

Buildings

Plant & Equipment

Office Equipment, Furniture & Fitt

Roads, Bridges & Footpaths

CWMS

Other Assets

TOTAL INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

Comparatives




2015 CARRYING AMOUNT MOVEMENTS DURING YEAR

$ $

CARRYING Additions Disposals Depreciation Impairment

Transfers

AMOUNT New/Upgrade I Renewals In I Note 7 - INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

4,562,778 - - - - - -

14,071,225 - 30,345 - (393,259) - -

3,217,360 868,942 - (67,407) (365,080) - -

196,052 3,050 - - (24,306) - -

26,224,673 195,362 1,474,332 - (756,123) - -

6,225,444 2,733,732 - - (131,443) - -

2,373,184 331,287 - (45,846) (77,328) - -

56,870,716 4,132,373 1,504,677 (113,253) (1,747,539) - -

47,926,968 1,508,943 2,433,766 (159,568) (2,018,355)

This Note continues on the following pages.

2016

$ Net CARRYING

Out Revaluation AMOUNT

- - 4,562,778 - - 13,708,311 - - 3,653,815 - - 174,796 - - 27,138,244 - - 8,827,733 - - 2,581,297

- - 60,646,974

7,178,963 56,870,716



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

Valuation of Assets General Valuation Principles Accounting procedure: Upon revaluation, the current new replacement cost and accumulated depreciation

are re-stated such that the difference represents the fair value of the asset determined in accordance with AASB 13 Fair Value Measurement: accumulated depreciation is taken to be the difference between current new replacement cost and fair value. In the case of land, fair value is taken to be the current replacement cost.

Highest and best use: For land which Council has an unfettered right to sell, the "highest and best use" recognises the possibility of the demolition or substantial modification of some or all of the existing buildings and structures affixed to the land.

Much of the land under Council's care and control is Crown land or has been declared as community land under the provisions of the Local Government Act 1999. Other types of restrictions also exist.

For land subject to these restrictions, the highest and best use is taken to be the "highest and best use" available to Council, with a rebuttable presumption that the current use is the "highest and best use". The reason for the current use of a large proportion of Council's assets being other than the "highest and best use" relates to Council's principal role as the provider of services to the community, rather than the use of those assets for the generation of revenue.

For buildings and other structures on and in the land, including infrastructure, "highest and best use" is determined in accordance with the land on and in which they are situated.

Fair value hierarchy level 2 valuations: Certain land, and the buildings and structures thereon, are shown above as being based on fair value hierarchy level 2 valuation inputs. They are based on prices for similar assets in an active market, with directly or indirectly observable adjustments for specific advantages or disadvantages attaching to the particular asset.

Fair value hierarchy level 3 valuations of land: Valuations of Crown land, community land and land subject to other restrictions on use or disposal, shown above as being based on fair value hierarchy level 3 valuation inputs, are based on prices for similar assets in an active market, but include adjustments for specific advantages or disadvantages attaching to the particular asset that are not directly or indirectly observable in that market, or the number and I or amount of observable adjustments of which are so great that the valuation is more fairly described as being based on level 3 valuation inputs.

Fair value hierarchy level 3 valuations of buildings, infrastructure and other assets: There is no known market for these assets and they are valued at depreciated current replacement cost. This method involves:

The determination of the cost to construct the asset (or its modern engineering equivalent) using current prices for materials and labour, the quantities of each being estimated based on recent experience of this or similar Councils, or on industry construction guides where these are more appropriate. The calculation of the depreciation that would have accumulated since original construction using current estimates of residual value and useful life under the prime cost depreciation method adopted by Council.

This method has significant inherent uncertainties, relying on estimates of quantities of materials and labour, residual values and useful lives, and the possibility of changes in prices for materials and labour, and the potential for development of more efficient construction techniques.

Land & Land Improvements

Council being of the opinion that it is not possible to attribute a value sufficiently reliably to qualify for recognition, land under roads has not been recognised in these reports. Land acquired for road purposes during the year is initially recognised at cost, but transferred to fair value at reporting date, effectively writing off the expenditure.



Note 7 - Property, Plant & Equipment (cont)

Freehold land and land over which Council has control, but does not have title, is recognised on the cost basis. No capitalisation threshold is applied to the acquisition of land or interests in land.

Land improvements, including bulk earthworks with an assessed unlimited useful life, are recognised on the cost basis, originally deriving from a valuation at 30 June 2007 at current replacement cost. Additions are recognised at cost.

Estimated future costs of reinstatement of land, capitalised in accordance with AASB 116.16(c), are reviewed annually (see Note 1) and depreciated over the estimated remaining life of the relevant asset.

Buildings & Other Structures Buildings and other structures were generally are recognised at fair value, based on current market values. However, special purpose buildings ( such as public toilets) for which there are no market are valued at depreciated current replacement cost. Buildings which Council does not intend to replace at the end of their useful life are valued at the market value of the "highest and best" use. These assets were revalued as at 30 June 2015 by Gayler Professional Services.

Infrastructure Transportation assets were revalued by Gayler Professional Services at depreciated current replacement cost with the subsequent changes brought to account as at 1 July 2013. All acquisitions made after the respective dates of valuation are recorded at cost.

Storrnwater drainage infrastructure was valued by Gayler Professional Services Services at depreciated current replacement cost with the subsequent changes brought to account as at 1 July 2013. All acquisitions made after the respective dates of valuation are recorded at cost.

Community wastewater management system infrastructure was valued by Gayler Professional Services Services at depreciated current replacement cost with the subsequent changes brought to account as at 1 July 2013. All acquisitions made after the respective dates of valuation are recorded at cost.

Plant, Furniture & Equipment These assets are recognised on the cost basis.

All other assets These assets are recognised on the cost basis. Library books and other lending materials are capitalised in bulk, and written out when fully depreciated.



Note 8 - LIABILITIES 2016

$ 2015

$ TRADE & OTHER PAYABLES Goods & Services

Notes Current Non-current

372,177 Current

197,179 ** 1,041,639

58,322 248,202

6,815 31,746 9,058

Non-current

Payments received in advance Accrued expenses - employees Accrued expenses - other GST Payable PAYG Account FBT Account

237,000 79,839

847,516

1,536,532 1,592,961

** Payments received in advance contains the first instalment of the 15116 FAG receipted in 30 June 2015. Refer to Note 2.

Amounts included in trade & other payables that are not expected to be settled within 12 months of reporting date.

BORROWINGS Loans 4,615 634,891

4,615 634,891

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

PROVISIONS Employee entitlements (including oncosts) 270,076 54,726

270,076 54,726

84,122 475,744 84,122 475,744

267,654 40,488 267,654 40,488



ASSET REVALUATION RESERVE

Land Buildings Plant & Equipment Roads, Bridges & Footpaths CWMS TOTAL

Note 9 - RESERVES

Net Increments Transfers, (Decrements) Impairments

30/6/2016 11712015

Notes $ $ $ $

10,918,576 10,918,576 5,042,017 5,042,017

10,436,027 10,436,027 3,540,914 3,540,914

128,956 128,956 30,066,490 30,066,490

Comparatives _----=2:..:2.:..:,8.::.;87:...:..;,5:..:2.:....7 __ ......:...:.7,.:....:.17..:::8,~96::.:3:....._ ______ ......::.;30:!,;,O:..:6~6,:...:..;49:..:0_

PURPOSES OF RESERVES Asset Revaluation Reserve

The asset revaluation reserve is used to record increments and decrements arising from changes in fair value of noncurrent assets (less any subsequent impairment losses, where applicable).



Note 10 - ASSETS SUBJECT TO RESTRICTIONS

The 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 revenues were originally obtained.

CASH & FINANCIAL ASSETS

Unexpended amounts received from Federal Government

Roads to Recovery Grant

RECEIVABLES

TOTAL ASSETS SUBJECT TO EXTERNALLY IMPOSED RESTRICTIONS

Notes

2016

$

237,000 237,000

237,000

2015

$

o

o



Note 11 - RECONCILIATION TO CASH FLOW STATEMENT

(a) Reconciliation of Cash Cash Assets comprise highly liquid investments with short periods to maturity subject to insignificant risk of changes of value. Cash at the end of the reporting period as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows:

Total cash & equivalent assets Less: Short-term borrowings Balances per Cash Flow Statement

(b) Reconciliation of Change in Net Assets to Cash from Operating Activities

Net Surplus (Deficit) Non-cash items in Income Statement

Depreciation, amortisation & impairment Net increase (decrease) in unpaid employee benefits Premiums & discounts recognised & unwound Grants for capital acquisitions treated as Investing Activity Net (Gain) Loss on Disposals

Add (Less): Changes in Net Current Assets Net (increase) decrease in receivables Net (increase) decrease in inventories Net increase (decrease) in trade & other payables

Net Cash provided by (or used in) operations

(c) Non-Cash Financing and Investing Activities

(d) Financing Arrangements

Notes

5

8

2016 $

4,307,633

4,307,633

3,098,378

1,747,539 38,177

(2,700,000) 37,136

2,221,230

86,614 (495)

(30,327) 2,277,022

Unrestricted access was available at balance date to the following lines of credit: Bank Overdrafts 15,000 Corporate Credit Cards 30,000 LGFA Cash Advance Debenture facility 700,000

2015 $

5,008,196

5,008,196

(5,462)

2,018,355 (4,812)

73,658 2,081,739

(151,035) 23,187

1,268,458 3,222,349

15,000 120,000 714,678

Business Undertakings Community Services Culture Economic Development Environment Recreation Regulatory Services Transport Plant & Depot Council Administration Other TOTALS



Note 12 - FUNCTIONS

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

INCOME EXPENSES OPERATING SURPLUS GRANTS INCLUDED TOTAL ASSETS HELD

(DEFICIT) IN INCOME

(CURRENT & NON-CURRENT)

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL

2016 2015 2016 2015 2016 2015 2016 2015 2016 2015

$ $ $ $ $ $ $ $ $ $

696,989 588,429 108,560 - -337,116 928,559 517,150 1,280,029 (180,033) (351,470) 191,379 12,293,818 11,727,398

3,999 222,866 151,967 204,323 (147,968) 18,543 20,867 1,962,387 1,871,973

9,000 448,558 43,618 595,972 (34,618) (147,414) 9,000 5,723,910 5,460,189 582,165 14,307 746,161 89,872 (163,995) (75,565) 863,156 823,387

37,995 96,374 469,191 352,139 (431,196) (255,765) 29,973 3,382,063 3,226,239 80,711 162,508 83,423 188,404 (2,712) (25,896) 1,809,494 1,726,124

507,297 889,144 1,553,314 2,472,486 (1,046,017) (1,583,342) 507,297 345,550 23,794,966 22,698,648 469,635 1,391,809 855,324 (922,173) (855,324) 8,214,814 7,836,329

4,205,580 3,830,408 1,056,459 722,798 3,149,121 3,107,610 2,029,296 2,255,133 6,941,988 6,622,146 321,650 84,831 - 236,819 814,748 777,210

6,930,488 6,914,374 6,601,521 6,846,178 328,968 68,196 2,736,972 2,651,523 65,801,344 62,769,643

Revenues and expenses exclude net gain (loss) on disposal or revaluation of assets, net gain (loss) from joint ventures ,So: associated entities, amounts received specifically for new or upgraded assets and physical resources received free of charge.



Note 12 (cant) - COMPONENTS OF FUNCTIONS

The activities relating to Council functions are as follows: Business Undertakings

Abattoirs, Caravan Parks, Electricity Supply, Gravel Pits/Quarries, Development of Land for Resale, Marinas/Boat Havens, MarketslSaleyards, Off-street Car Parks - fee paying, Private Works, Property Portfolio, Sewerage/CWMS, Water Supply - Domestic, Town Bus Service, and Other - please specify.

Community Services

Culture

Public Order and Safety, Crime Prevention, Emergency Services, Other Fire Protection, Other Public Order and Safety, Health Services, Pest Control- Health, Immunisation, Nursing Homes, Preventive Health Services, Other Health Services, Community Support, Elderly Citizens Facilities, Home Assistance Scheme, Other Services for the Aged and Disabled, Child Care Centres, Children and Youth Services, community Assistance, Community Transport, Family and Neighbourhood Support, Other Community Support, Community Amenities, Bus Shelters, Cemeteries / Crematoria, Public Conveniences, Car Parking - non-fee-paying, Telecommunications Networks, and Other Community Amenities.

Library Services, Mobile Libraries and Housebound Services, Static Libraries, Other Library Services, Cultural Services, Cultural Venues, Heritage, Museums and Art Galleries, and Other Cultural Services.

Economic Development Employment Creation Programs, Regional Development, Support to Local Businesses, Tourism, and Other Economic Development.

Environment Agricultural Services, Agricultural Water, Animal/Plant Boards, Landcare, Other Agricultural Services, Waste Management, Domestic Waste, Green Waste, Recycling, Transfer Stations, Waste Disposal Facility, Other Waste Management, Other Environment, Coastal Protection, Stormwater and Drainage, Street Cleaning, Street Lighting, Streetscaping, Natural Resource Management Levy, and Other Environment.

Recreation Jetties, Other Marine Facilities, Parks and Gardens, Sports Facilities - Indoor, Sports Facilities - Outdoor, Swimming Centres - Indoor, Swimming Centres - Outdoor, and Other Recreation.

Regulatory Services Dog and Cat Control, Building Control, Town Planning, Clean Air/Pollution Control, Litter Control, Health Inspection, Parking Control, and Other Regulatory Services.

Transport Aerodrome, Bridges, Bus Service, Footpaths and Kerbing, Roads - sealed, Roads - formed, Roads - natural formed, Roads - unformed, Traffic Management, LGGC - roads (formula funded), and Other Transport.

Plant Hire & Depot

Unclassified Activities

Council Administration Governance, Administration n.e.c., Elected Members, Organisational, Support Services, Accounting/Finance, Payroll, Housing for Council Employees, Human Resources, Information Technology, Communication, Rates Administration, Records, Occupancy, Contract Management, Customer Service, Other Support Services, Revenues, LGGC - General Purpose, and Separate and Special Rates.



Note 13 - FINANCIAL INSTRUMENTS

All financial instruments are categorised as loans and receivables.

Accounting Policies - Recognised Financial Instruments

Bank, Deposits at Call, Short Term Accounting Policy: Carried at lower of cost and net realiseable value; Interest is Deposits recognised when earned.

Terms & conditions: Deposits are returning fixed interest rates between 1.85% and 2.15% (2015: 2.05% and 2.40%). Short term deposits have an average maturity of 30 days and an average interest rates of 1.85% (2015: 30 days, 2.05%).

Carrying amount: approximates fair value due to the short term to maturity. Receivables - Rates & Associated Accounting Policy: Carried at nominal values less any allowance for doubtful debts. An Charges (including legals & penalties allowance for doubtful debts is recognised (and re-assessed annually) when collection in for late payment) full is no longer probable. Note: These receivables do not meet the definition of "financial instruments" Terms & conditions: Secured over the subject land, arrears attract interest of 0.6041 %

and have been excluded from the (2015: 0.6458%) Although Council is not materially exposed to any individual debtor,

following disclosures. credit risk exposure is concentrated within the Council's boundaries in the State.

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

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

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


Receivables - other levels ofl~ccounting Policy: Carried at nominal value. government Terms & conditions: Amounts due have been calculated in accordance with the terms

and conditions of the respective programs following advice of approvals, and do not bear interest. All amounts are due by Departments and Agencies of State and Federal Governments.

Carrying amount: approximates fair value.

Receivables - Retirement Home Accounting Policy: Carried at nominal values less any allowance for doubtful debts. An Contributions allowance for doubtful debts is recognised (and re-assessed annually) when collection in

full is no longer probable.

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


liabilities - Creditors and Accruals Accounting Policy: Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Council.

Terms & conditions: Liabilities are normally settled on 30 day terms.


liabilities - Retirement Home Accounting Policy: To avoid inconvenience when complying with the separate audit Contributions requirements imposed by the relevant legislation, amounts are carried at nominal values.

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

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

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

Terms & conditions: secured over future revenues, borrowings are repayable (describe basis); interest is charged at fixed rates between 3.95% and 6.90% (2015: 6.60% and 6.90%)


liabilities - Finance Leases Accounting Policy: accounted for in accordance with AASB 117.



Note 13 (cont) - FINANCIAL INSTRUMENTS Liquidity Analysis

Due> 1 year; Total

2016 Due < 1 year Due> 5 years Contractual ~ 5 years

Cash Flows Financial Assets $ $ $ $

Cash & Equivalents 4,307,633 4,307,633 Receivables 769,713 170,000 939,713 Other Financial Assets 13,571 13,571

Total 5,090,917 170,000 5,260,917 Financial Liabilities

Payables 1,456,693 1,456,693 Current Borrowings 36,836 36,836 Non-Current Borrowings 592,050 592,050

Total 1,493,529 592,050 2,085,579

Due> 1 year; Total

2015 Due < 1 year Due> 5 years Contractual ::. 5 years

Cash Flows Financial Assets $ $ $ $

Cash & Equivalents 5,008,196 5,008,196 Receivables 478,869 478,869 Other Financial Assets

Total 5,487,065 5,487,065 Financial Liabilities

Payables 1,238,818 1,238,818 Current Borrowings 118,673 118,673 Non-Current Borrowings 536,893 536,893

Total 1,357,491 536,893 1,894,384

The following interest rates were applicable to Council's borrowings at balance date: 30 June 2016 30 June 2015

Other Variable Rates Fixed Interest Rates

Net Fair Value

Weighted Average Interest

Rate %

4.0 5.4

Carrying Value

$ 4,615

634,891 639,506

Weighted Average Interest Carrying Value

Rate % $

4.25 84,122 6.85 475,744

559,866

Carrying Values

$ 4,307,633

574,743

4,882,376

609,177 4,615

634,891 1,248,683

Carrying Values

$ 5,008,196

581,458

5,589,654

1,286,437 84,122

475,744 1,846,303

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



Note 14 - COMMITMENTS FOR EXPENDITURE

Capital Commitments

2016 $

2015 $

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

Weeroona Island Boat Launching Facility Roads & Footpaths

These expenditures are payable: Not later than one year

237,000 237,000

237,000 237,000

405,000

405,000

405,000 405,000



Note 15 - FINANCIAL INDICATORS

2016 2015 2014

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

The Information Paper was revised in May 2015 and the financial indicators for previous years have been re-calculated in accordance with the revised formulas.

Operating Surplus Ratio Operating Surplus Total Operating Revenue

6.0%

This ratio expresses the operating surplus as a percentage of total operating revenue.

Adjusted Operating Surplus Ratio (10%)

1.0% 15.0%

16% 15%

In recent years the Federal Government has made advance payments prior to 30th June from future year allocations of financial assistance grants, as explained in Note. The Adjusted Operating Surplus Ratio adjusts for the resulting distortion in the disclosed operating result for each year.

Net Financial Liabilities Ratio Net Financial Liabilities Total Operating Revenue

-40% -50% -63%

Net Financial Liabilities are defined as total liabilities less financial assets. These are expressed as a percentage of total operating revenue.

Asset Sustainability Ratio Net Asset Renewals Infrastructure & Asset Management Plan required expenditure

103% 169% 176%

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.



Note 16 - UNIFORM PRESENTATION OF FINANCES

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

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

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

Income less Expenses Operating Surplus I (Deficit)

less Net Outlays on Existing Assets Capital Expenditure on renewal and replacement of Existing Assets Depreciation, Amortisation and Impairment Proceeds from Sale of Replaced Assets

less Net Outlays on New and Upgraded Assets

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

Amounts received specifically for New and Upgraded Assets

Net Lending I (Borrowing) for Financial Year

2016 $

1,504,677

(1,747,539) (76,118)

4,132,374

(2,700,000)

6,930,488 6,494,973

435,514

(318,980)

1,432,374

(677,880)

2015 $

2,433,764

(2,018,355) (85,909)

1,508,943

6,914,373 6,846,177

68,196

329,500

1,508,943

(1,770,247)



Note 17 - SUPERANNUATION

The Council makes employer superannuation contributions in respect of its employees to Statewide Super (formerly Local Government Superannuation Scheme). There are two types of membership, each of which is funded differently. Permanent and contract employees of the South Australian Local Government sector with Salarylink benefits prior to 24 November 2009 have the option to contribute to the Accumulation section and/or Salarylink. All other employees (including casuals) have all contributions allocated to the Accumulation section.

Accumulation only Members Accumulation only members receive both employer and employee contributions on a progressive basis. Employer contributions are based on a fixed percentage of ordinary time earnings in accordance with superannuation guarantee legislation (9.50% in 2015/16; 9.50% in 2014/15). No further liability accrues to the Council as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund.

Salarylink (Defined Benefit Fund) Members Salarylink is a defined benefit scheme where the benefit payable is based on a formula determined by the member's contribution rate, number of years and level of contribution and final average salary. Council makes employer contributions to Salarylink as determined by the Fund's Trustee based on advice from the appointed Actuary. The rate is currently 6.3% (6.3% in 2014/15) of "superannuation" salary.

In addition, Council makes a separate contribution of 3% of ordinary time earnings for Salarylink members to their Accumulation account. Employees also make member contributions to the Salarylink section of the Fund. As such, assets accumulate in the Salarylink section of the Fund to meet the member's benefits, as defined in the Trust Deed, as they accrue.

The Salarylink section is a multi-employer sponsored plan. As the Salarylink section's assets and liabilities are pooled and are not allocated by each employer, and employees may transfer to another employer within the local government sector and retain membership of the Fund, the Actuary is unable to allocate benefit liabilities, assets and costs between employers. As provided by AASB 119.32(b), Council does not use defined benefit accounting for these contributions.

The most recent actuarial investigation was conducted by the Fund's actuary, A C Miller, FIAA, of Russell Employee Benefits Pty Ltd as at 30 June 2014. The Trustee has determined that the current funding arrangements are adequate for the expected Salarylink liabilities. However, future financial and economic circumstances may require changes to Council's contribution rates at some future time.

Contributions to Other Superannuation Schemes Council also makes contributions to other superannuation schemes selected by employees under the "choice of fund" legislation. All such schemes are of the accumulation type, where the superannuation benefits accruing to the employee are represented by their share of the net assets of the scheme, and no further liability attaches to the Council.

IRins •••

Accountants, Auditors &.. Business Consultants

David Chan I rel'A

Sim on Smith rePA

David Sullivan erA

Jason Seidel CA

Renae Nicho lson CA

TIm Muhlhausler CA

Aaron Coonan CA

Luke WItIi<1ms eM

Moum ~mbit'r

233 Commercial Street Wc~t

PO 80" 246, Mount~ml>lel SA SZ90 OX 29044

P 0887Z53068 f 08Sn49553 e "(!min"s,,lp1n).(Offl ./lU

Stil ling

Unit 4/3-5 Mount Barker Road

PO Box 727, St ldlngS'" 5152 1'1 088339 1ISS I 0883391266 e sthllJ1s"g;dpln!>.(om.du

NorWOO(i

3 Kensington Ro.\d

PO 6o.Ic 4067, No,W()O(I South SA. 5067

" 088332 3433 f 088332 3466

e no.woodti'gail>lns.c.om.du

w www.g •• lpins.com.ilu

ADN)06J.OS tI 751

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u"rn" rfOfe~,Io",,1 SI~I ... I; .. 'h t t'SloJdl ioro

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE DISTRICT COUNCil OF MOUNT REMARKABLE

Report on the Financial Report

We have audited the accompanying financial report of the District Council of Mount Remarkable, which comprises the balance sheet as at 30 June 2016, the statement of comprehensive income, statement of changes In equity and cash flow statement for the yea r then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Council Certificate of the District Council of Mount Remarkable.

Council 's Responsibility for the Financial Report

The Council is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards (induding Australian Accounting Interpretations), the local Government Act 1999 and the l ocal Government (Financial Management) Regulations 2011 and for such internal control as the Council determines is necessary to enable the preparation of the financial report that is free from material misstatements, whether due to fraud or error.

Auditor's Responsibility

Our responsibility Is to e)(press an opinIon on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about t he amounts and disclosures in the financial report. The procedures selected depend on the auditor's Judgement, Including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Council's preparation of the financial report t hat gives a t rue and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's Internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Coundl, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies, the Local Government Act 1999 and the local Government (Financial Management) Regulations 2011.

Audit Opinion

In our opinion, (he financial report of the District Council of Mount Remarkable for the year ended 30 June 2016 is properly drawn up: (a) so as to give a true and fair view of:

(I) the Council's state of affairs as at 30 June 2016 and Its operating result and cash nows for the year ended on t hat date; and

Iii) the other matters required by Division IV of the local Government Act 1999 to be dealt with in t he accounts;

(b) in accordance with the provisions of the local Government Act 1999 and the local Government (Financial Management) Regulations 2011; and

(c) in accordance with applicable Accounting Standards and other mandatory professional reporting requirements.

GALPINS ACCOUNTANTS, AUDITORS & BUSINESS CONSULTANTS

Tim Muhlhausler, CA ReKistered Company Auditor Par tner

I~ / 11/2016

Accountants. Aud itors &. Business Consul tants

David Chant rCPA

Simon Smi th rCPA

David Sullivan CPA

Jason Seidel CA

Renae Nlc.holson CA

Tim Muhlhausler CA

Aaron Coonan CA

luke Will iams CPA

Moum G.!.mbll:!r

B3 CommelCliIl 5creec WeSl. ro Box 2"6. MounfG,.lmbler SA S290 OX 29044

P 086725 3068 I 088724 9553 e admln8galplns.(om,<l.1I

SlIrllng Unit 413 5 Mount 6,\/kcl Ro.ld

ro Box 727. 5chling5A 5152 p 088339 1255

I 088339 1266 e Sflrllng@salplns.(om.all

Norwood

3 Kenslngcon Ro.-.d ro Box 4067. Norwood South SA 5067

P 088332 3433 r 088332 3466

to norwood@g"lplns.(om.au

W www.galplns.com.i\u

ABN)06)OSI1151

ti.lblhry limited by ~ >(ht~nc ~t-'l)/o\l ... d under P,ofe~~lorloll 51",,,,I.!,d~ I "slsl.llion

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE

DISTRICT COUNCil OF MOUNT REMARKABLE

Independent Assurance Report on the Internal Controls of the District Council of Mount Remarkable

We have audited the compliance of the District Council of Mount Remarkable (the Council) with the requirements of Section 12S of the Local Government Act 1999 in relation only to the Internal Controls established by the Council to ensure that financial transactions relating to the receipt, expenditure and Investment of money, acquisition and disposal of property and incurring of liabilities for the period 1 July 2015 to 30 June 2016 have been conducted properly and in accordance with law.

The Council 's Responsibilit y for the Internal Controls

The Council is responsible for implementing aod maiotaining an adequate system of internal cootrols, in accordance with Section 125 of the Local Government Act 1999 in relation to Internal Controls to ensure that the receipt, expenditure and investment of money, the acquisition and disposal of property, and incurring of liabilities have been conducted properly and In accordance with law.

Our Responsibility

Our responsibility is to e)(press an opinion on the Council 's compliance with Section 125 of the Local Government Act 1999 in relation only to the Internal Controls established by the Council to ensure that financial t ransactions relating to the receipt, expenditure and investment of money, acquisition and disposal of property and incurring of liabilities, based on our procedures. Our engagement has been conducted In accordance with applicable Australian Standards on Assurance Engagements ASAE 3100 Compliance Engagements, issued by the Australian Auditing and Assurance Standards Board, in order to state whether, In all material respects, the Coundl has complied with Section 125 of the Local Government Act 1999 in relation only to the Internal Controls speCified above for the period 1 July 2015 to 30June 2016. ASAE 3100 also requires us to comply with the relevant ethical requirements of the Australian profeSSional accounting bodies.

Our procedures included obtaining an understanding of controls in relation to the receipt, expenditure and investment of money, the acquisition and disposal of property and the incurring of liabilities, evaluating management's assessment of these controls, assessing the risk that a material weakness e)(ists, and testing and evaluating the design and implementation of controls on a sample basis based on the assessed risks.

limitat ion on Use

This report has been prepared for the members of th e Council in accordance with Section 129 of the Local Government Act 1999 In relation to the Internal Controls speCified above. We disclaim any assumption of responsibility for any relia nce on this report to any persons or users other than the members of the Council, or for any purpose other than that for which it was prepared.

Umitations of Controls

Because of the inherent limitations of any internal control structure it Is possible that, even If the controls are suitably designed and operating effectively, the control objectives may not be achieved so that fraud, error, or non-compliance with laws and regulat ions may occur and not be detected.

An assurance engagement on controls is not designed to detect all Instances of controls operating Ineffectively as it is not performed continuously throughout the period and the tests performed are on a sample basis. Any projection of the outcome of the evaluation of controls to future periods is subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with them may deteriorate.

Independence

In conducting our engagement, we have complied with the independence requirements of the Australian professional accounting bodies.

Opinion

In our opinion, the District Council of Mount Remarkable has complied, in all material respects, with Section 115 o/the Locol Government Act 1999 in relation to Internal Controls established by the Council In relation to the receipt, expenditure and Investment of money, acquisition and disposal of property and Incurring of liabilities so as to provide reasonable assurance that the flnandal transactions of the Council have been conducted properly and in accordance with law for the period 1 July 2015 to 30 June 2016.

GALPINS ACCOUNTANTS, AUDITORS & BUSINESS CONSULTANTS

TIm Muhlhausler, CA Rellstertd Company Auditor

Partner

I ~ /11/2016

District Council of Mount Remarkable General Purpose Financial Statements For the year ended 30 June 2016 Audit Certificate of Audit Independence I confirm that, for the audit of the financial statements of District Council of Mount Remarkable for the year

ended 30 June 2016, I have maintained my independence in accordance with the requirements of APES

110 – Code of Ethics for Professional Accountants, Section 290, published by the Accounting

Professional and Ethical Standards Board, in accordance with the Local Government Act 1999 and the

Local Government (Financial Management) Regulations 2011 made under that Act.

This statement is prepared in accordance with the requirements of Regulation 22 (5) Local Government

(Financial Management) Regulations 2011.

Tim Muhlhausler Galpins

9 / 11 / 2016


APPENDIX C

ANNUAL REPORT – REGIONAL SUBSIDIARIES

A regional subsidiary of:

Central Local Government Region of South Australia Incorporated under provisions of the Local Government Act

Annual Report for 2015 - 2016

The Barossa Council District Council of Barunga West Clare & Gilbert Valleys Council District Council of the Copper Coast The Flinders Ranges Council Regional Council of Goyder Light Regional Council District Council of Malla/a District Council of Mount Remarkable Northern Areas Council District Council of Orroroo/Carrieton District Council of Peterborough Port Pirie Regional Council Wakefield Regional Council Yorke Peninsula Council

Page 1 of 32

of 32

Postal Address: 318 Main North Road CLARE SA 5453

Telephone:

0419 341 866

Contact Details ·

Email: [email protected] .gov.au

Website: www.centralregion.sa.gov.au

The Central Local Government Region of South Australia

The Central Local Government Region was established in 1998 under Section 200 of the Local Government Act 1934 as a controlling authority. It now continues in existence and as a regional subsidiary of its member Councils under Part 2 of Schedule 2 of the Local Government Act 1999 by virtue of the provisions of Section 25 of the Local Government (Implementation) Act 1999.

The Central Region is established to:

• undertake co-ordinating, advocacy and representational roles on behalf of its Constituent Councils at a regional level

• facilitate and co-ordinate activities of local government at a regional level re lated to community and economic development with the object of achieving improvement for the benefit of the communities of its Constituent Councils

• develop, encourage, promote, foster and maintain consultation and co-operation and to strengthen the representation and status of local government when dealing with other governments, private enterprise and the community

• develop further co-operation between its Constituent Councils for the benefit of the communities of the region

• develop and manage policies which guide the conduct of programs and projects in the region with the objective of securing the best outcomes for the communities of the region ·

• undertake projects and activities that benefit the region and its communities

• associate, collaborate and work in conjunction with other regional local government bodies for the advancement of matters of common interest.

The Central Region is a body corporate and is governed by a Board of Management which has the responsibility to manage all activities of the Central Region and ensure that the Central Region acts in accordance with its Charter. The Board has 15 members, comprising one representative elected from each constituent Council :

• Barossa Council • District Council of Mount Remarkable • District Counci l of Barunga West • Northern Areas Council • Clare & Gilbert Valleys Council • District Council of Orroroo/Carrieton • District Council of the Copper Coast • District Council of Peterborough • The Flinders Ranges Council • Port Pirie Regional Counci l • Regional Council of Goyder • Wakefield Regional Council • Light Regional Council • Yorke Peninsula Council • District Cou ncil of Mal lala

The Region's area spans the Barossa through the Clare Valley, Yorke Peninsu la , Adelaide Plains, Mid and Upper North districts through to the Flinders Ranges, covering 27 per cent of the incorporated area of the State and comprises some 27 per cent of the State's population outside Adelaide.

Page 3 of 32

Office Bearers for 2015/16

Chairman:

Deputy Chairs:

Executive Members:

Delegate to the LGA Board representing the Central Region of the LGA Constitution:

.. Chief Executive Officer:

Auditor:

Page 4 of 32

Mayor Peter Mattey (Goyder)

Mayor Sandra Wauchope (Mount Remarkable) Mayor Allan Aughey (Clare & Gilbert Valleys)

Mayor Rodney Reid (Wakefield) Mayor Paul Thomas (Copper Coast)

Mayor Denis Clark (Northern Areas) LGA Board Member Mayor Ray Agnew (Yorke Peninsula) LGA Board Member Mayor Peter Mattey (Goyder) LGA Deputy Board Member

Mr Paul Mclnerney (Interim Executive Officer and Outreach Services Project unti l December 2015) Mr David J. Stevenson (from December 2015)

Mr Ian G. McDonald FCA

·. ·. . ·. . · .

Central Local Government Region Board of Mana.gement

Each Constituent Council may appoint one elected member as delegate to be a Boa rd Member. A proxy delegate is also appointed, with provisions allowing for representat ion by other elected or endorsed membe~. · ·

Constituent Councils have appointed the following delegates and proxy delegates to the Board of Management:

Council Delegate Proxy Delegate

The Barossa Counci l Mayor Bob Sloane

District Counci l of Barunga West Mayor Cynthia Axford Deputy Mayor Dean Dol ling

Distri ct Counci l of t he Copper Coast Mayor Paul Thomas Deputy Mayor Roslyn Talbot

Clare & Gilbert Va lleys Council Mayor Al lan Aughey Cr Ian Burfitt

Flinders Ranges Council Mayor Peter Slattery Deputy Mayor Ken Anderson

Regiona l Council of Goyder Mayor Peter Mattey Deputy Mayor Jane Ke llock

Light Reg iona l Counc il Mayor Bill O'Brien Cr Lynette Reichste in

District Council of Ma lla la Mayor Duncan Kenn ington (to 27 Deputy Mayor Marcus Stru.dwicke November)

Mayor Tony Flaherty (from 7 March 2016)

District Cou ncil of Mount Remarkable Mayor Sandra Wauchope Deputy Mayor Coljn Nottle

Northern Areas Council Mayor Denis Cla rk Deputy Mayor Merv Robinson

Distri ct Council of Orroroo Carriet on Chair Kathy Bowman Deputy Chair Grant Chapman

District Counc il of Peterborough Mayor Ruth Wh ittle Cr Frank Hardbottle

Port Pirie Reg ional Council Cr Nevil le Wilson (to August 2015) Cr Nev ille Wilson Mayor John Rohde (from August 2015)

Wakefie ld Regional Council Mayor Rodney Reid Deputy Mayor Darryl Ottens

Yorke Peninsula Council Mayor Ray Agnew Cr John Rich

Page 5 of 32

Meetings of the Central Region Board of Management

The following meetings of the Board of Management were held during t he 2015/16 year:

• Special Meeting 3 rd Ju ly, 2015

• Annual General Meeting 21st August, 2015

• Special Meeting 31st August, 2015

• Special Meeting 9th September, 2015

• Special Meeting 25th September, 2015

• Ordinary Meeting 20th November, 2015

• Ordinary Meet ing 19th February, 2016

• Ordinary Meeting 13th May, 2016

Page 6 of 32

; . . . . .

Committee Meetings ·

In accordance with its Charter, the Board of Management has five committees

Committee Members Meeting Dates Executive • Mayor Peter Mattey (Chair)

Committee: • Mayor Allan Aughey • Mayor Sandra Wauchope • Mayor Rodney Reid • Mavor Paul Thomas

Audit Committee: • Mayor Ray Agnew (Chair) Exemption granted by • Mayor Kathie Bowman the Minister for Local • Dr Andrew Johnson Government until 30 th

• Mr Colin Davies June 2016 Management Group • Mr Martin McCarthy (Barossa) 11 th December, 2015

Meetings: • Mr Andrew Cole (Barunga West) 5 th February, 2016 • Mr Roy Blight (Clare & Gilbert Valleys) 1st April, 2016 • Mr Peter Harder (Copper Coast) • Mr Colin Davies (Flinders Ranges) • Mr John Brak (Goyder) • Mr Richard Michael (Light) • Mr Wayne Hart (Mt Remarkable) • Mr Colin Byles (Northern Areas) • Mr Stephen Rufus (Orroroo/Carrieton) • Mr Peter McGuiness (Peterborough) • Dr Andrew Johnson (Pirie Regional) • Ms Cate Atkinson then Mr Christopher Parish (Wakefield) • Mr Andrew Cameron (Yorke Peninsula)

Transport & • Mr Dav id Hassett (Chair - Wakefield) 22nd April, 2016 Infrastructure • Mr Fred Linke (Barunga West)

Advisory • Mr Steve Kaesler (Barossa) Committee: • Ms Joanne Buchanan (RDAY&MN)

• Mr Kie ren Chappell (Light) • Mr Colin Davies (Flinders Ranqes)

Regional Climate 0 Mr Paul Mclnerney (Interim Executive Officer until 26th October, 2015 Change Steering December 2014) 14th December, 2015

Committee: .. Mr David Stevenson (Chief Executive Officer from 6 th April, 2016 December 2015) 17 th June, 2016

• Ms Kelly-Anne Saffin (RDAY&MN) • Mr Dv lan Stronq (N&Y NRM Board)

Page 7 of 7

Achievements for 2015/16

During t he year, th ere was contin ued progress against a nUm ber of priority activities.

1. Board Governance and Operations

• The operation of the Central Region subsidiary is in accordance with legislative requirements and board policy

• CLGR is well regarded by its member councils and stakeholders as a valid and relevant organisation


• Committees that operated under the Charter all conducted their operations within their terms of reference .

• Interim Executive support was provided to ensure a smooth implementation of the Future Directions Review Transition Management Planning.

• Appointment of a new Chief Executive Officer in December 2015. • Adoption of the 2016/17 Business Plan and Budget. • Review the procurement roadmap work completed by ArcBlue under the Future Directions Review. • Acquittals to the Local Government Research and Development Scheme SA were completed.

Projects included the strategic procurement risk management compliance governance and reporting model. Also the

• Development and the recommendation by the Board of Management to members of a new Charter. • Conduct the election of board members for Regional Development Australia Yorke and Mid North.

2. Local Government Leadership and Sustainability

• The Central Local Governme nt Region Councils supported to collaboratively improve service delivery, resourcing & financial capacity .

• Central Local Government Region Councils w ell represented & regarded at state and national Local Government levels

• Improved awareness & understanding of Central Region Council issues and activities by key stakeholders & political decision makers


• LGA Outreach Services ~ this Pilot Project was funded by the Local Government Association SA. The project commenced in January 2014 and finished in January 2016. In addition to the Future Directions Review the Outreach Services pilot project enabled the Interim Executive Officer to oversee a continuum of the procurement preparatory work.

• Crown Lands Red Tape Reduction between Local and State Governments is an ongoing matter. • Attendance by Local Government Association (LGA) and Office of Local Government (OLG) at

Central Region quarterly meetings. • Communications with LGA and Office of Local Government staff as required. • Complete the transition for the Council Chief Executive Officer meetings into Management Group

Meetings. · · • Regional representation at SA Regional Organis9tion of Councils (SAROC) and LGA Board

meetings. • Attendance at Local Government Association SA ordinary meetings and forums in Adelaide. • Attendance by Councils Mayors and Chief Executives at the Local Government Association · SA

Presidents Show Case in Adelaide. · • Communication and meetings/workshops with SAROC Executive Officers on key issues as

required. • Participation of relevant regional agencies and bodies on Central Region committees and at

workshops and forums as appropriate. • Member of Parliament briefings as required. • Website updated with Agenda, Minutes, Future Directions Review Final Report. • The new "royalty on rubble" introduced by the State Government paid by local government when

raising rubble to maintain vital local roads and infrastructure will continued to be pursued as a major issue for the region and other regional SA Councils.

Page 8 of 32

• The region continues to monitor and is expectin_g to elevate the concerns Council members have for Community Passenger Networks across the region. The region has legitimate concerns about the ongoing funding arrangements and therefore viability of the services. Ongoing discussion with the Department for Communities and Social Inclusion along with the Federal Government as it rolls out the National Disability Scheme will remain an ongoing major issue.

• A detailed submission to the Regional Health Services Inquiry resulted in the Social Development Committee secretariat recommending our concerns be raised directly with Country Heath SA.

3. Regional and Community Sustainability

• The long-term economic, environmental and social sustainability of the Central Local Government Region is fostered through pro-active, innovative, efficient and collaborative approaches to issues of priority. ·


Regional Identity, Planning & Cohesion • Regional Strategic Alliance meetings with Northern and Yorke Natural Resources Management Board

(NRM) and Regional Development Australia Yorke and Mid North (RDAY&MN) were recommenced in · January 2016.

• Participation in meetings of RDAY&MN and Northern and Yorke Resource Management Executive Officers.

• Attendance at a number of Northern and Yorke Natural Resource Management Board meetings as a non-voting delegate.

Transport • Convened the Central Region Transport Infrastructure Advisory Committee, for Special Local Roads

Program purposes in April 2016. • Assessment, inspection and regional submission to Special Local Roads program in accordance with

LGA TAP Committee requirements.

Environment and Natural Resources • Local Government representative attendance at various Regional NRM Board meetings by interim

Executive Officer as a non-voting delegate under the YMN NRM Board constitution. • YMN NRM Board advised of progress by CLGR of its Future Direction Review and investigation of

Hunter Councils Inc. (NSW), Pilbara (WA) and Cradle Coast Authority (Tasmania) models.

Climate Change and Emergency Management • Funding for the regional climate change coordinator to work across local government, regional

development and Natural Resources Management. We participate in the Regional Alliance Climate Change with partners Regional Development Australia Yorke and Mid North (RDA) and Northern & Yorke Natural Resources Management Board (NRM).

• A two-year contract covering the Alliance for the Climate Change Coordinator concludes in 2017. This allows local government access to expertise in this specialised area and for sourcing of project funds for local government as opportunity arises. ·

• Ongoing development of Goyder's Line Sustainability Hub and research concept. • Applying the NRM Planning for Climate Change to begin the update the Regional NRM Plan

incorporating resilience thinking and adaptive management principles. • Partnering in the Climate Change and Bushfire project to investigate the ability to model the impact

cif climate change on fire danger indexes in the region. • Coordinated LG representation to Yorke/Mid North Zone Emergency · Management committees ·

(ZEMC). • Ongoing participation in local, state and Australian Governments workshops and programs.

Page 9 of 32

of 32

Audited Financial.Statements 2015/16

CENTRAL LOCAL GOVERNMENT

REGION of SA Inc

Annual Financial · Statements .. ·

· For the financial year .

· July 1st 2015 - June 30th 2016

of 32

Central Local Government Region of SA Inc

General Purpose Financial Reports for the year ended 30 June 2016

TABLE OF CON1ENTS

Council Certificate

Principal Financial Statements Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in F.quity

Statement of Cash Flows

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

Note 1 - Significant Accounting Policies

Note 2 - Income

Note 3 - Expenses

Note 4 - Asset Disposal & Fair Value Adjustments

Note 5 - Current Assets

Note 6 - Non-Current Assets

Note 7 - Infrastructure, Property, Plant & F.quipment

& Investment Property

Note 8 - Liabilities

Note 9 Reserves

Note IO - Assets Subject to Restrictions

Note 11 - Reconciliation of Cash Flow Statement

Note 12 - Functions

Note 13 - Financial Instruments

Note 14 - Expenditure Commitments

Note 15 - Financial Indicators

Note 16 - Uniform Presentation ofFinances

Note 17 - Operating Leases

Note 18 - Superannuation

Note 19 - Interests in Other Entities

Note 20 - Discontinued Operations and Non-Current Assets held for sale

Note 21 - Assets & Liabilities not Recognised

Note 22 - Events Occurring After Reporting Date

3

4

5

6

7

8

11 12

13

13

NR

14

15

15

NR

17

17

18

NR

NR

19

NR

NR

20

NR

NR

NR

(NR- Not Required)

Audit Report- Financial Statements Region Certificate of Audit Independence Audit Certificate of Audit Independence

Central Local Government Region of SA Inc.


FOR THE YEAR ENDED 30 June 2016

CERTIFICATION OF FINANCIAL STATEMENTS

We have been authorised by the Region to certify the financial statements in their final form. In our opinion:

~ the accompanying financial statements comply with the Local Government Act 1999, Local Government (Financial Management) Regulations 2011 and Australian Accounting Standards.

~ the financial statements present a true and fair view of the Region's financial position at 30 June 2016 and the results of its operations and cash flows for the financial year.

~ internal controls implemented by the Region provide a reasonable assurance that the Region's financial records are complete, accurate and reliable and were effective throughout the financial year.

~ the financial statements accurately reflect the Region's accounting and other records.

Date:

Page 12 of 32

David J. Stevenson Chief Executive Officer

~/!/4¢1 ..... M~;~~· ;,-~~~~i -p~;~; -M~~';j-·

President


STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 June 2016

2016 2015 Notes $ $

INCOME Grants, subsidies and contributions 2 316,166 285,555

Investment income 2 13,869 18,419

Other income 2 154,140 193,714

Total Income 484,175 497,688

EXPENSES Employee costs 3 92,626 Materials, contracts & other expenses 3 264,741 796,701

Depreciation, amortisation & impairment 3 3,243 850

Total Expenses 360,610 797,551

OPERATING SURPLUS / (DEF1Cl1) 123,565 (299,863)

Asset disposal & fair value adjustments 4 (12,602)

NEf SURPLUS/ (DEFICil) 123,565 (312,465)

transferred to Equity Statement

Total Other Comprehensive Income

TOTAL COMPREHENSIVE INCOME 123,565 (312,465)

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

Page 13 of 32


STATEMENT OF FINANCIAL POSITION as at 30 June 2016

2016 2015

ASSEfS Notes $ $

Current Assets Cash and cash equivalents 5 556,783 541,825

Trade & other receivables 5 124,056 64,293

Total Current Assets 680,839 606,118

Non-current Assets Property, plant & equipment 7 30,110

Total Non-current Assets 30,110 Total Assets 710,949 606,118

LIABILITIES Current Liabilities Trade & other payables 8 18,928 43,877

Provisions 8 6,060 Total Current Liabilities 24,988 43,877

Non-current Liabilities Provisions 8 155

Total Non-current Liabilities 155 Total Liabilities 25,143 43,877

NEI' ASSEfS 685,806 562,241

EQUITY Accumulated Surplus 113,143 68,145

Other Reserves 9 572,663 494,096

TOTAL EQUITY 685,806 562,241


Page 14 of 32


STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2016

2016

Balance at end of previous reporting period Net Surplus/ (Deficit) for Year Other Comprehensive Income Transfers between reserves


2015

Balance at end of previous reporting period Net Surplus/ (Deficit) for Year Other Comprehensive Income Transfers between reserves Balance at end of period

Page 15 of 32

Notes

9

9

Accumulated Surplus

$

68,145 · 123,565

· (78,567)

113,143

25,212

(312,465)

355,398

68,i45

Other Reserves

$

494,096

78,567

572,663

849,494

(355,398)

494,096

TOTAL EQUITY

$

562,241 123,565

685,806

874,706

(312,465)

562,241

of 32


STATEMENT OF CASH FLOWS for the year ended 30 June 2016

2016 CASH FWWS FROM OPERA TING ACTIVITIES Receipts

Notes $

Investment receipts Grants utilised for operating purposes Other revenues

Payments Employee costs Materials, contracts & other expenses

Net Cash provided by (or used in) Operating Activities

CASH FWWS FROM INVFSTING ACTIVITllS Receipts

Sale of surplus assets Payments

Expenditure on renewaVreplacement of assets Net Cash provided by (or used in) Investing Activities

CASH FWWS FROMF1NANCING ACTIVITIES Net Cash provided by (or used in) Financing Activities Net Increase (Decrease) in cash held

Cash & cash equivalents at beginning of period Cash & cash equivalents at end of period

11

11


14,132 224,444 217,562

(81,342) (326,485)

48,311

(33,353) (33,353)

14,958

541,825 556,783

2015 $

19,089 438,015 96,095

(776,072) (222,873)

15,455

15,455

(207,418)

749,243 . 541,825



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 Preparation This general purpose financial report has been prepared in accordance with Australian Accounting Standards as they apply to not-for-profit entities, other authoritative pronouncements of the Australian Accounting 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 201 I dated 9th August 2014. ·

The preparation of fmancial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates, and requires management to exercise its judgement in applying the Region's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the fmancial statements are specifically referred to in the relevant sections of this Note.

All amounts in the financial statements have been rounded to the nearest dollar ($).

1.1 Historical Cost Convention Except as stated below, these fmancial statements have been prepared in accordance with the historical cost convention.

1.2 The Local Government Reporting Entity The Central Local Government Region of South Australia Incorporated ("the Region") is a regional subsidiary under Section 43 and Schedule 2 of the Local Government Act 1999.

The Constituent Councils are: 1. The Barossa Council 3. District Council ofBarunga West 5. Clare and Gilbert Valleys Council 7. District Council of the Copper Coast 9. The Flinders Ranges Council 11. Regional Council of Goyder 13. Light Regional Council 15 . District Council of Mallala.

2. District Council of Mount Remarkable 4. Northern Areas Council 6. District Council of Orroroo/Carrieton 8. District Council of Peterborough 10. Port Pirie Regional Council 12. Wakefield Regional Council 14. Yorke Peninsula Council, and

All funds received and expended by the Region have been included in the Financial Statements forming part of this Financial Report.

1.3 Income recognition Income is measured at the fair value of the consideration received or receivable. Income is recognised when the Region obtains control over the assets comprising the income, or when the amount due constitutes an enforceable debt, whichever first occurs.

Where grants, contributions and donations recognised as incomes during the reporting period were obtained 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 those undischarged 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 obtained in respect of the Region's operations for the current reporting period.

1.4 Cash, Cash Equivalents and other Financial Instruments Cash Assets include all amounts readily convertible to cash on hand at the Region's option with an insignificant risk of changes in value with a maturity of three months or less from the date of acquisition.

Page 17 of 32

Receivables for generally unsecured and do not bear interest. All receivables are reviewed as at the reporting date and adequate allowance made for amounts the receipt of which is considered doubtful.

All financial instruments are recognised at fair value at the date ofrecognition. A detailed statement of the accounting policies applied to financial instruments forms part ofNote 13.

1.5 Property, Plant & Equipment All non-current assets purchased are capitalised as the expenditure is incurred and depreciated as soon as the asset is held "ready for use". All assets are recognised at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition.

Assets with an economic life in excess of one year are only capitalised where the cost of acquisition exceeds materiality thresholds established by the Region for each type of asset. In determining (and in annually 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: ·

Office Furniture & Equipment Motor Vehicles, Other Plant & Equipment

$1,000 $1 ,000

All material asset classes are revalued on aregular basis such that the carrying values are not materially different from fair value . . Plant and equipment assets recognised are systematically depreciated over their useful lives on a straight-line basis which, in the opinion of the Region, best reflects the consumption of the service potential embodied in those assets.

Depreciation methods, useful lives and residual values of classes of assets are reviewed annually.

Major depreciation periods for each class of asset are shown in Note 7.

1.6 Payables Creditors are amounts due to external parties for the supply of goods and services and are recognised as liabilities when the goods and services are received. Creditors are normally paid 30 days after the month of invoice. No interest is payable on these amounts.

Amounts received from external parties in advance of service delivery are recognised as liabilities until the service is delivered or damage reinstated, or the amount is refunded as the case may be.

Employee Benefits Salaries, Wages & Compensated Absences The Region engaged the services of a Chief Executive Officer on the 7th December 2015 and as at 30th June 2016 the CEO is the only employee of the Region. Liabilities for employees' entitlements to salaries, wages and compensated absences expected to be paid or settled within 12 months ofreporting date are accrued at nominal amounts (including payroll based oncosts) measured in accordance with AASB 119.

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

Weighted average discount rate Weighted average settlement period

2.08% (2015, Nil%) 10 years (2015, Nil years)

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

Superannuation The Region contributes the statutory 9.5% SGC superannuation for the CEO to a Self-Managed Superannuation Fund.

GST Implications In accordance with UIG Abstract I 031 "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.

Page 18 of 32

~ Amounts included in the Statement of Cash Flows are disclosed on a gross basis.

Pending Accounting Standards Certain new accounting standards and UIG interpretations have been published that are not mandatory for the 30 June 2012 reporting period and have not been used in preparing these reports.

AASB 7 Financial Instruments - Disclosures AASB 9 Financial Instruments AASB 15 Revenue from Contracts with Customers AASB 124 Related Party Disclosures Standards containing consequential amendments to other Standards and Interpretations arising from

the above -AASB 2010-7, AASB 2014-1, AASB 2014-3, AASB 2014-4, AASB 2014-5, AASB 2014-6, AASB 2014-7, AASB 2014-8, AASB 2014-9, AASB 14-10, AASB 15-1, AASB 15-2, AASB 15-3, AASB 15-4, AASB 15-5 and AASB 2015-6. (Standards not affecting local government have been excluded from the above list.)

The Region is of the view that none of the above new standards or interpretations will affect any of the amounts recognised in the financial statements, but that they may impact certain information otherwise disclosed.

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

Page 19 of 32


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended30 June 2016

INVISTMENT INCOME Interest on investments

Note 2 -INCOME

Local Government Finance Authority

Banks & other

OTHER INCOME Council Contributions Sundry

GRANTS, SUBSIDIES, CONTRIBUTIONS Other grants, subsidies and contributions

Sources of grants Commonwealth government

State government

Other

Conditions over grants & contributions

2016 $

13,795 74

13,869

154,140

154,140

316,166 316,166

231,166 85,000

316,166

2015 . $

18,312

107 18,419

152,460 41,254

193,714

285,555

285,555

39,954

235,601

10,000

285,555

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

Unexpended at the close of the previous reporting period 143,003 516,994 Less: expended during the current period from revenues recognised in previous reporting periods

P003-Waste Management (15,635 ) P009-Climate Change (95,703 ) POIO-Windfarm Liaison (27, 593 ) PO I 5-Local Government Reform PO 16-Upper Spencer Gulf RSP

. POJ8-Policy Amendment Review POJ 9-Coastal Adaptation P020-Risk Assessment P022-Roads & Transport P023-0utreach Collaboration Project P024-Climate Change Co-ordinator2015-17

Subtotal

(48,952)

(127) (52,923)

(5,471)

· (107;473)

(182,941 ) (30,000 ) (30,000 ) (30,000 )

(680 )

(4 12,552 ) Plus: amounts recognised as revenues in this reporting period but not yet expended in accordance with the conditions

· A009-Special Projects 13,305

P023-0utreach .Collaboration Project 256 P024-Climate Change Co-ordinator 2015-17 ·

P025-0utreach Phase 2

P026-Strategic Procurement

P028-Regional Capacity Building

Unexpended at the close of this reporting period Subtotal

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

Page 20 of 32

25,000 50,000 31,100

104,940

186,040 38,561 221,570 143,003

78,567 (373,991)


NOTES TO AND FORMING PART OF TIIE FINANCIAL STATEMENTS for the year ended 30 June 2016

EMPLOYEE COS TS Salaries and Wages Employee leave expense Superannuation Workers' Compensation Insurance FBT Total Operating Employee Costs

Total Number of Employees

Note 3 - EXPENSES

(Full time equivalent at end of reporting period)

MATERIALS, CONTRACTS & OTHER EXPENS~ Prescribed Expenses Auditor's Remuneration

- Auditing the financial reports

Subtotal - Prescribed Expenses

Other Materials, Contracts & Expenses Contractors & Consultants Legal Fees Unleaded Fuel Grants Members Allowances & Support Meetings & Conferences Insurance Rental - Prernis es Advertising Sundry Subtotal - Other Materials, Contracts & Expenses

DEPRECIATION, AMORTISATION & IMPAIRMENT Depreciation Motor Vehicle

Page 21 of 32

2016 $

75,887 6,217 7,209

872 2,441

92,626

I

1,683 1,683

220,098 8,639 3,410

6,024 3,175 7,585 3,182 2,093 8,852

263,058 264,741

3,243 3,243

2015

$

1,650

1,650

732,691

9

25,000

4,176

5,064

5,701

22,410

795,051

796,701

850

850


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the yearended30 June 2016

Note 4 -ASSET DISPOSAL & FAIR VALUE .ADJUSTMENTS

PROPERTY, PLANT & EQUIPMENT Assets surplus to requirements Proceeds from disposal Less: Carrying amount of assets sold Gain (Loss) on disposal

CASH & EQIDVALENT ASSETS

Cash on Hand and at Bank Deposits at Call

Note 5 - CURRENT ASSETS

TRADE & OTHER RECEIVABLES Accrued Revenues Debtors - general Other levels of Government

· GST Recoupment Prepayments

Page 22 of 32

2016 $

21,879 534,904 556,783

2,610

115,434 4,421 1,591

124,056

2015

$

15,455

28,057 (12,602)

20,979

520,846

541,825

2,873

40,235

21,185

64,293

Motor Vehicle

Software



. 2015 2016

$ $ I Fair Value AT FAIR AT COST

ACCUM CARRYING AT FAIR AT COST

ACCUM

Level VALUE DEP'N AMOUNT VALUE DEP'N

Note 7 -PROPERTY, PLANT & EQUIPMENT

I - - - - - 33,353 (3,243)

- 772 (772) - - 772 (772)

TOTAL PROPERTY, PLANT & EQUIPMENT - 772 (772) - - 34,125 (4,015)

Comparatives - 36,687 (7,780) 28,907 - 772 (772)

2015 CARRYING AMOUNT MOVEMENTS DURING YEAR

$ $

CARRYING Additions Oisposals Depreciation Impairment

Transfers

AMOUNT New/Up grade Renewals In Out

Note 7 - PROPERTY, PLANT & EQUIPMENT Motor Vehicle - 33,353 - - (3 ,243) - - -Software - - - - - - - -TOTAL PROPERTY, PLANT &

33,353 . (3,243) EQUIPMENT

- - - - - -

Comparatives 28,907 - - (28,05 7) (850) - - -

Page 23 of 32

CARRYING

AMOUNT

30,110

-

30,110

-

2016

$

Net CARRYING

Revaluation AMOUNT

- 30,110

- -

- 30,110

- -

2

3 4

5. 6 7 8 9

10 11



TRADE & OTHER PAYABLES Cbods & Services

Accrned expenses - employee entitlements Accrned expenses - Contractors GST&PAYG

Amounts included in trade & other payables that

are not expected to be settled within 12 months of

reporting date.

PROVISIONS Employee entitlements (including oncosts)

Note 8 -LIABILITIES 2016

$

Current Non-current

317 5,069

13,542 18,928

6,060 155 6,060 155

Note 9 -RESERVES

1/7/2015 Transfers to

OTHER RESERVES Reserve

General Reserve 31,093 A009-Special Projects 17,341 P003-W aste Management 16,273 P009-Climate Change 4,761 P015-Local Cbvemment Refo1m 320,000 P022-Roads & Transpo1t 26,705 P023-0ufreach Collaboration Project 52,923 P024-Climate Change Co-Ordinator 2015-17 25,000 P025-LG Outreach Phase 2 50,000 P026-Strategic Procurement 31,100 P027-LG Refo1m - Incentive Risk 160,000 P028-Regional Capacity Building 104,940 TOTAL OTHER RESERVES 494,096 346,040

Comparatives 849,494 57,154

Transfers from Reserve

(208,952) (127)

(52,923) (5,471)

(267,473)

· (412 .552 )

2015 $

Current Non-current

2,420

41,457

43,877

30/6/2016

31,093 17,341 16,273

4,761 111,048

26,578

19,529 50,000 31,100

160,000 104,940 572,663

494,096

Page 24 of 32


NOTES TO AND FORMING PART OF TIIE FINANCIAL STATEMENTS for the year ended 30 June 2016

Note 9-RESERVES (Continued)

PURPOSES OF RESERVES Other Reserves

1 A007-Special Projects LGA.funded support programme

2 P003-Waste Management State Government.funded technical support programme

3 P009-Climate Change Regional Partners and State Government.funded programme

4 POIS-Local Government Reform CLGR.funded programme - Council Shared Services

5 P022-Roads & Transport CLGR.funded programme - Regional Development Australia Freight Strategy

6 P023-0utreach Collaboration Project Federal Government funded programme

7 P024-Climate Change Co-ordinator 2015-17 Regional Partners and State Government.funded programme

8 P025-LG Outreach Phase 2 LGA.funded programme

9 P026-Strategic Procurement LGA.funded programme

10 P027-LG Reform - Incentive Risk CEO Performance fund

11 P028-Regional Capacity Building Region rubble royalty% returned for project allocation 2016/ 17

Page 25 of 32



Note 11 - RECONCILIATION TO CASH FLOW STATEMENT

(a) Reconciliation of Cash

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

Total cash & equivalent assets

Balances per Cash Flow Statement

(b) Reconciliation of Change in Net Assets to Cash

from Operating Activities Net Surplus (Deficit)

Non-cash items in Income Statement Depreciation, amo1iisation & impairment Net increase (decrease) in unpaid employee benefits

Net (Gain) Loss on Disposals

Add (Less): Changes in Net Current Assets Net {increase) decrease in receivables Netincrease _(decrease) in trade & other payables

Net Cash provided by (or used in) operations

(c) Non-Cash Financing and Investing Activities

(d) Financing Arrangements

Notes

5

2016

$

556,783

556,783

123,565

3,243

11,284

138,092

(59,763) (30,01 8)

48,311

Unrestricted access was available at balance date to the following line of credit:

Corporate Credit Cards 2,000

Note 12 - FUNCTIONS

The activities of the Region are categorised into the following programmes

1 A009-Special Projects

2 P003-W aste Management

3 P009-Climate Change

2015

$

541,825

541,825

(312,465)

850

12,602 (299,013)

55,511 20,629

(222,873)

2,000

4 P015-Local GovemmentReform

5 P022-Rciads & Transport

6 P023-0utreach Collaboration Project

7 P024-Climate Change Co-Ordinator2015-17

8 P025-LGOutreach Phase 2

Income and expenses have been attributed

to the functions/activities throughout the

financial year.

9 P026-Strategic Procurement

10 P027-LG Reform - Incentive Risk

· 11 P028-Regional Capacity Building



Note 13 - FINANCIAL INSTRUMENTS

All financial instruments are categorised as loans and receivables.

Accounting Policies - Recognised Financial Instruments Bank, Deposits at Call Accounting Policy: Carried at lo=r of cost and net realiseable value; Interest is

recognised v.hen earned

Short term deposits are available on 24 hour call with the LGFA and has an interest rate of 1.75% as at 30 June 2016. Carrying amount: approximates fair value due to the short term to maturity.

Receivables -Trade and Other Accounting Policy: Carried at nominal value. Debtors Terms & conditions: Amounts due have been calculated in accord\mce with the terms

and conditions of the respective programs following advice of approvals, and do not bear int ere st . All amounts are due by Departments and Agencies of State and Federal Governments. Carrying amount: approximates fair value (after deduction of any allowance).

Liabilities - Creditors and Accruals Accounting Policy: Liabilities are recognised for amounts to be paid in the future for goods and services received, v.hether or not billed to the Region.

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

Liquidity Analysis

2016 Due< I year Due> I year;::._

Due> 5 years 5 years

Total Contractual Carrying Values Cash Flows

Financial Assets $ $ $ $ $

Cash & Equivalents 556,783 556,783 556,783 Receivables 124,056 124,056 124,056

Total 680,839 680,839 680,839 Financial Liabilities

Payables 13,859 13,859 13,859 Total 13,859 13,859 13,859

2015 Due< I year Due> I year;:::._

Due> 5 years 5 years

Total Contractual Carrying Values Cash Flows

Financial Assets $ $ $ $ $ Cash & Equivalents 541,825 541,825 541,825 Receivables 64,293 64,293 64,293

Total 606,118 606,118 606,118 Financial Liabilities

Payables 2,420 2,420 2,420 Total 2,420 2,420 2,420

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

Risk Exposures Credit Risk represents the loss that would be recognised if counterparties fail to perform as contracted. The maximum credit risk on financial assets of the Region is the carrying amount, net of any allowance for doubtful debts. All Region i.pvestments are made with the SA Local Government Finance Authority and are guaranteed by the SA Government. Except as detailed in Notes 5 & 6 in relation to individual classes of receivables, exposure is concentrated within the Region's boundaries, and there is 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 the Region's financial assets are denominated in Australian dollars and are not traded on any market, and hence neither market risk nor currency risk apply .

Liquidity Risk is the risk that the Region will encounter difficulty in meeting obligations with financial liabilities. In accordance with the model Treasury Management Policy (LGA Information Paper 15), liabilities have a range of maturity dates.

Interest Rate Risk is the risk that future cash flows will fluctuate because of changes in market interest rates. Cash flow fluctuations are managed holistically in seeking to minimise interest costs over the longer term in a risk averse manner.



Note 16 - UNIFORM PRESENTATION OF FINANCES

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

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

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

Income less Expenses Operating Surplus/ (Deficit)

less Net Outlays on Existing Assets

Depreciation, Amortisation and Impairment

less Net Outlays on New and Upgraded Assets Capital Expenditure on New and Upgraded Assets (including investment property & real estate developments)

Proceeds from Sale of Surplus Assets (including investment property and real estate developments)

Net Lending / (Borrovving) for Financial Year

Page 28 of 32

2016 $

484,175 360,610 123,565

(3 ,243) (3 ,243)

33,353

·33,353

93,455

2015

$

(850)

(15,455)

497,688

797,551

(299,863)

(850)

(15,455) .

(283 ,558)



Note 19-JOINT VENTURES & ASSOCIATED ENTITIES

An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture.

A joint venture is a contractual agreement whereby two or more parties undertake an economic activity that is subject to joint control

The Region has no interest in Joint Ventures or Associated Entities.

Although the Region itself is a Regional Subsidiary established by the 15 Member Councils ( as per Note I), it is not considered to be an associate of any of the individual Councils as no one Council has significant influence. As such, equity accounting procedures are not used by the individual Councils. It is likely that each Council's interest in the Regional Subsidiary is non-material and as such, it is appropriate for a Council to write off its annual contribution as an expense.

Page 29 of 32



FOR THE YEAR ENDED 30 June 2016

CERTIFICATION OF AUDITOR INDEPENDENCE

To the best of our knowledge and belief, we confirm that, for the purpose of the audit of The Central Local Government Region of South Australia Incorporated for the year ended 30 June 2016, the Council's Auditor, Ian G McDonald has maintained his independence in accordance with the requirements of the Local Government Act 1999 and the Local Government (Financial Management) Regulations 2011 made under that Act.

This statement is prepared in accordance with the requirements of Regulation 22(3) Local Government (Financial Mana nt) Regulations 2011.

~ ...... . District Council ofBarunga West

Page 30 of 32

of 32

Chief xecutive Officer The Fr ders Ranges Council

cA ... ... .... . .... · ; . .... "\ ............ .. ... . . Chie_fJxecu!ife_~fficer.

. Port Pm~nal Council

Chief Exe ,utive Officer

Regi~ Goyde,

Chief Executive Officer District Council ofMallala

District Council of Peterborough

/ll!:d~ Chairman

Central Local Government Region Board of Management

Ian G McDonald FCA CHARTERED ACCOUNTANTS

Central Local Government Region of South Australia Inc

ANNUAL FINANCIAL STATEMENTS For the year ended 30 June 2016

STATEMENT BY AUDITOR

We confirm that, for the audit of the financial statements of the Central Local Government Region of South Australia Inc for the year ended 30 June 2016, we have maintained our independence in accordance with the requirements of APES 110 -Code of Ethics for Professional Accountants, Section 290, published by the Accounting Professional and Ethical Standards Board, in accordance with the Local Government Act 1999 and the Local Government (Financial Management) Regulations 2011 made under that Act.

This statement is prepared in accordance with the requirements of Regulation 22 (5) Local Government (Financial Management) Regulations 2011.

Ian G McDonald FCA

Dated this 17th day of August 2016

234 Waymouth St, Adelaide SA 5000

www.creatlveauditing.com.au PO Box 75, Henley Beach SA 5022

ABN 37 158 328 655 Ian: 0419 620 906 Nancy: 0408 832 848

ianmcdonald@creativeaud iting.com.au [email protected]

Ian G McDonald FCA CHARTERED A CCOUNTANTS AUST?ALIA • NE'.\' ZEALAND

Independent Audit Report to the Members of the Central Local Government Region of SA Inc.

We have audited the accompanying financial report of the Central Local Government Region of SA Inc. which comprises the statement of financial position as at 30 June 2016, statement of comprehensive income, statement of changes in equity, statement of cash flows, summary of significant accounting policies, other explanatory notes and the certification of the financial statements.

Chief Executive Officer's Responsibility for the Financial Report The Chief Executive Officer is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Local Government Act 1999 together with the Local Government (Financial Management) Regulations 2011. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We have conducted the audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical

. requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Management, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we followed applicable independence requirements of Australian professional and ethical pronouncements and the Local Government Act 1999.

Auditor's Opinion In our opinion, the financial report presents fairly, in all material respects, the financial position of the Central Local Government Region of SA Inc. as of 30 June 2016, and of its financial performance for the year then ended in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Local Government Act 1999 together with the Local Government (Financial Management) Regulations 2011.

Ian G McDonald FCA Registered Company Auditor .

Signed 21 st day of September 2016, at Adelaide, South Australia

234 Waymouth St, Adelaide SA 5000

· www.creativeauditing.com.au PO Box 75, Henley Beach SA 5022

ABN 37 158 328 655 Ian: 0419 620 906 Nancy: 0408 832 848

[email protected] [email protected]

FLINDERS REGIONAL DEVELOPMENT ASSESSMENT PANEL

ANNUAL REPORT 2015-2016

The Terms of Reference for the Flinders Regional Development Assessment Panel (“the Panel”) requires that the Panel, through the Public Officer, will report in writing to the Constituent Councils on an annual basis, detailing: The level of attendance of Panel Members at Panel Meetings; The Panel’s activity and performance in making decisions; and Comment on or an analysis of policy or process that are relevant to the Panel’s assessment

functions and suggesting improvements. During the course of the 2015-2016 Financial Year, the Panel met on four (4) occasions to consider a total of nine (9) applications. The following tables summarise the level of attendance of Panel Members at meetings and the activity and performance of the Panel in decision making.

Panel Member Attendance

Member Meetings Eligible

to Attend Present Apology

Absent without Apology

Ms Shanti Ditter 4 4 0 0

Cllr Garry Thompson (FRC) 4 4 0 0

Cllr Colin Nottle (DCMR) 4 4 0 0

Cllr Ralph Goehring (DCOC) 4 2 2 0

Cllr Frank Hardbottle (DCP) 4 4 0 0

Panel Activity

Constituent Council App’s

Referred to Panel

Approved Refused Appealed Withdrawn

by Applicant

Deferred

The Flinders Ranges Council 1 1 0 0 0 0 District Council of Mount Remarkable

6 6 0 0 0 0

District Council of Orroroo Carrieton

1 (3 times)

0 1 0 0 2

District Council of Peterborough 1 1 (for 12

mths) 0 0 0 0

Totals 9 8 1 0 0 2

Peter McGuinness Public Officer

Flinders Shared Services - Professional Service Delivery for our Rural Communities