attachments for reports ordinary …...weed biosecurity - risk management system table 1: property...

137 Oberon Street PO Box 84 Oberon NSW 2787 Telephone: (02) 6329 8100 Fax: (02) 6329 8142 Email: [email protected] Email: [email protected]

ATTACHMENTS FOR REPORTS

ORDINARY COUNCIL MEETING

Tuesday 20 November 2018

commencing at 5.30pm

in the Oberon Council Chambers

ATTACHMENTS FOR REPORT

Report Item

11.02 UPPER MACQUARIE COUNTY

COUNCIL MEETING

ATTACHMENTS

Copy of the presentation to combined Mayor, General Manager and

Delegates Meeting held on 26 October 2018

UpperMacquarieCountyCouncilJointMeetingwithConstituentCouncils.!26thOctober2018

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1.35Mhectares

4,200kmsroadsides

41,000properties

$918,000certainincome

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THEREISANEWAPPROACHTOWEEDBIOSECURITY

Propertyinspectionandadviceonweedcontrolrequirementsisstillakeyaspect.

Cooperationandacoordinatedresponseisemphasised.

ALLLANDHOLDERSNOWHAVETHESAMEDUTYANDLIABILITY.

Thefocusisnowonmanagingrisknoteradication.

ProsecutionisthelastresortBUTtherearemoreotherenforcementtoolsavailable.

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PropertyWeedRiskRating–CountyAverageYTD

66%

15%

10% 9%

UpperMacquarie

WeedRisk1

WeedRisk2

WeedRisk3

WeedRisk4

2018/2019YTD:OnsiteInspection&UMCCRiskRatingTool

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PropertyWeedRiskRating–TargetResults

81%

19%

UMCC

LowerRisk

HigherRisk

2018/2019YTD:TargetandNon-TargetProperties!

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PERFORMANCE

IMPROVEMENT VIABILITY

FUTURE

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IMPROVEMENT:

StaffingpositionswereallfilledwithcompetentpeoplebyMay2018.

ApermanentGeneralManagerhasbeeninplacesinceMay2018.

Acomprehensivebiosecurityimplementationsystemwasputinplacefrom1stJuly2018.

Aviable10yearBusinessActivityStrategicPlanwasadoptedbefore1stJuly2018.

A‘ManagementInformationSystem’andbetterReportingCapabilitybegandevelopinginAugust2018.

RebuildingrelationshipswithkeyStateGovernmentlandholdersstartedinJuly2018.

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THEFOUNDATIONISSUESAREBEINGADDRESSED:

8

TheBiosecurityAct(2015)isnowbeingproperlyimplemented-throughacomprehensiveBIOSECURITYCOMPLIANCE&ENFORCEMENTPolicyandassociatedriskmanagementsystem.ThegoaloftheCountyCouncilunderthenewlegislativeframeworkisto:“makesureprivateandpubliclandholdersmanagetheirpropertiestoreachandmaintainasustainablylowlevelofweedbiosecurityrisk!”

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WEEDBIOSECURITY-RiskManagementSystem

TABLE1:PropertyInspectionProcess

Inspection(1).

(A)AssessWEEDBIOSECURITYRISKforProperty

[REFERtoTABLE2-WeedRiskScoring]

BiosecurityRisk=0_NONE

UMCCWeedBiosecurityOfficergivesnoticeofintentiontoinspectproperty

ScheduledInspectionofWEEDS

ReportorComplaintabout

BiosecurityRisk=2_MEDIUM

BiosecurityRiskHIGHEST

BiosecurityRiskHIGH

BiosecurityRiskMEDIUM


BiosecurityRiskHIGH



BiosecurityRiskHIGH


ENDofWEED BiosecurityRiskProcessPHASE

STARTWEEDBiosecurityRiskProcessPHASE

STARTWEEDBiosecurityRisk ProcessPHASE



BiosecurityRisk=3_HIGH

BiosecurityRisk=4_HIGHEST

OO

BiosecurityRisk=1_LOW

BiosecurityRiskLOW

BiosecurityRiskLOW

BiosecurityRiskLOW

(B)AssignaWeedComplianceRatingtotheProperty.

[RefertoTable3forComplianceRatings]

Inspection(2).



Inspection(3).



Inspection(4).



(C)IdentifyEnforcementOptionsforProperty.

[RefertoTable4WeedActionGuide]

















ENDofWEEDBiosecurityRiskProcessPHASE

OO

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WEEDBIOSECURITY-RiskManagementSystemTABLE4:EnforcementActionGuide

LandholderWeedBiosecurityComplianceRating

MakeAwareofBiosecurityDuty

MakeEducationMaterialAvailable

ProvideBasicTechnicalAdvice

ProvideSpecialistTechnicalAdvice

AgreetoassistwithPhysicalControl

Agreetoincludeincontrolprograms

Agreetovoluntaryundertaking

IssueDirectionNotice

IssuePenaltyNotice

Demandenforceableundertaking

Forciblyundertakecontrolworks

TakeCourtproceedingtoenforceanUndertaking

TakeCourtproceedingtoenforceDirection

TakeCourtproceedingtoauthorisemandatoryworks

TakeCourtproceedingtoimposecriminalpenalty

0-FULL_COMPLIANCE N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

1_HIGH_COMPLIANCE N/A N/A N/A N/A N/A N/A

2_MEDIUMCOMPLIANCE N/A N/A

3_LOW_COMPLIANCE N/A

4_LOWEST_COMPLIANCE

ONLYUNDEREXCEPTIONAL

CIRCUMSTANCES

LevelsofDecisionMaking

CooperativeComplianceTools EnforcedComplianceTools

GeneralManagerwithCouncilconcurrenceIndividualauthorisedofficerusesdescretion ChiefBiosecurityWeedsOfficerdescretion ChiefWeedsOfficerwithGeneralManagerconcurrence

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WEEDBIOSECURITY-RiskManagementSystemTABLE5:EnforcementPriorityTable

EnforcementWorkPriority

Risk_Score1 Risk_Score2 Risk_Score3 Risk_Score4

1stInspection LOWPRIORITY LOWPRIORITY MEDIUMPRIORITY HIGHPRIORITY

2ndInspection LOWPRIORITY MEDIUMPRIORITY HIGHPRIORITY HIGHESTPRIORITY

3rdInspection LOWPRIORITY MEDIUMPRIORITY HIGHPRIORITY HIGHESTPRIORITY

4thInspection LOWPRIORITY HIGHPRIORITY HIGHESTPRIORITY HIGHESTPRIORITY

PropertyWeedRiskRating(FromInspection)

Prop

ertyInspectio

nNu

mbe

r(AsperInspectio

nProcess)

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HIGHERRISKWEEDBIOSECURITYREGISTER (ForPropertyWeedRiskRating3&4ONLY)Inspection1 Inspection2 Inspection3 Inspection4

PropertyIDInspectionDate

PropertyRiskRating

InspectionReportIssuedBy.

ReinspectionPeriod(From)

InspectionDate

PropertyRiskRating

EvidenceCheck1

Direction,Undertaking,orLetter


InspectionDate

PropertyRiskRating

EvidenceCheck2

PIN,Direction,orUndertaking


InspectionDate

PropertyRiskRating

EvidenceCheck3

PINorSummons


LT65030 3/7/18 3 17-Jul-1830/11/201

8LT80820 4/7/18 3 18-Jul-18 1/12/2018BX271063 5/7/18 3 19-Jul-18 2/12/2018BX295237 5/7/18 3 19-Jul-18 2/12/2018BX274547 6/7/18 3 20-Jul-18 3/12/2018LT81300 6/7/18 3 20-Jul-18 3/12/2018BLA347135 10/7/18 3 24-Jul-18 7/12/2018LT81270 11/7/18 3 25-Jul-18 8/12/2018104222356RW 12/7/18 3 26-Jul-18 9/12/2018

104278593RW 13/7/18 3 27-Jul-1810/12/201

8

LT589978 13/7/18 3 27-Jul-1810/12/201

8

103689792RW 16/7/18 3 30-Jul-1813/12/201

8

LT104245 16/7/18 4 30-Jul-1813/12/201

8

BLA329234 17/7/18 4 31-Jul-1814/12/201

8

BLA329242 17/7/18 3 31-Jul-1814/12/201

8

LT103040 17/7/18 3 31-Jul-1814/12/201

8

LT107300 17/7/18 3 31-Jul-1814/12/201

8

LT114002 17/7/18 3 31-Jul-1814/12/201

8

104206283RW 20/7/18 303-

Aug-1817/12/201

8

BX117977 20/7/18 303-

Aug-1817/12/201

8

BX295492 6/8/18 420-

Aug-18 3/01/2019

101530620RW 8/8/18 322-

Aug-18 5/01/2019104533117RW 8/8/18 3

22-Aug-18 5/01/2019

LT104713 8/8/18 422-

Aug-18 5/01/2019

31233769RW 9/8/18 423-

Aug-18 6/01/2019

DataEnteredfrom1stPropertyInspection

DataEnteredherefrom2ndPropertyInspectionIncludesReviewofRiskRating&CurrentEnforcementApproach

DataEnteredherefrom3rdPropertyInspectionIncludesReviewofRiskRating&CurrentEnforcementApproach

DataEnteredherefrom4thPropertyInspectionIncludesReviewofRiskRating&CurrentEnforcementApproach

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546Sites/2,086ha

UMCCAREADATA=492Sitescovering6,911haofSerratedTussockinfestation.

UpperMacquarieCountyCouncil‘areaofoperations’

SerratedTussockInvasionAreas2016:2018

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PERFORMANCE:

Candemonstrateimprovementsalreadyin2018/2019.

Nowrecognisingtherealcostofbusiness–payingandchargingfullcostrecovery*.

Orientatingthewholebiosecurityoperationstorisk-basedsystem.

Abiosecuritymappingsolutionisbeingdeveloped– [toCountyCouncilbyFeb2019.]

EnhancingKPI’sandreportsonperformancetoStakeholders.

Afocusonprovidingvalueformoney.[IncOperatingpolicytomatch.]

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THEENHANCEMENTSAREUNDERWAY:

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ShareofInspectionWorkforInvestment.

39%

12%

32%

18%

39%

14%

31%

15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Bathurst Blayney Lithgow Oberon

FundingShare

InspectionIndex

FundingSharevs.InspectionShare-2017.2018FullYR:

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ShareofInspectionWorkforInvestment.

39%

12%

32%

18%

51%

12%

22%

15%

0%

10%

20%

30%

40%

50%

60%


FundingShare

InspectionIndex

FundingSharevs.InspectionShare-2018.2019YTD:

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PropertyInspectionRates–YearonYear

100% 100% 100% 100%

51%

36%30%

41%


2017/2018ACT 2018/2019ACT

InspectionProgress:1st¼2018.2019vs.ALLLASTYear2017.2018

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VIABILITY:

Auditorconfirmsexpectedfinancialviability-undernew10YearBusinessActivityStrategicPlan.

AnnualOperatingBudgetRestructuredtoachieve100%

fixedcostcoverratio.

UMCCmustsecure$150,000untiedreliablefundingtoremainviableunder10yearplan.

UMCConlyhastwoareasofdiscretionaryspending–

roadsidespraying(entirely)and(limited)inspectionstaff.

CountyCouncilresolution–findrequiredcashelsewhereorcutroadsidesprayingaccordingly.

Noadditionalrecurrentfundingrequiredfordurationofcurrent

10yearplan.

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THEBUSINESSCANBEVIABLELONG-TERM:

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UMCCASAGOINGCONCERN

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“TheBusinessStrategicPlanprepared,adoptedbyCouncilfor2018-2019,reportedanoperatingsurplus,operatingcashsurplusandcomfortable

cashpositionforthenext10years.ThisprovidessufficientevidencethatCouncilwillcontinueasagoingconcernfortheforeseeableperiod.”ExtractfromAuditOffice‘KeyIssues’Findings(LettertoUMCCGM5thOctober2018)

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CHANGESTO10YEARPLAN-INSUMMARY

2017.201810YearPLAN

BASP 2018 2027AnnualOperatingResult

(85,000) (108,000)

NETASSETS $753,000 ($52,000)

AnnualInvestment NIL NIL

Cash&EquivalentsPosition

$670,000 ($143,000)

PlantReplacement 45Kp.a.ave 45Kp.a.ave

2018.201910YearPLAN

BASP 2018 2027AnnualOperatingResult

Balanced $14,000

NETASSETS $922,000 $997,000

AnnualInvestment 40Kp.a.ave 40Kp.a.ave

Cash&EquivalentsPosition

800,000 800,000

PlantReplacement 61Kp.a.ave 61Kp.a.ave

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THECOUNCILHASCOMMITTEDTOENSURINGAVIABLEBUSINESS

THESPENDINGTHERECURRENTBUDGETNEEDSTOBEPROPERLYFUNDEDTOCOVERCOREBUSINESS–DISCRETIONARYSERVICESARENOTCOREBUSINESS

ESTABLISHEDRECURRENTBUDGETSLEAVENOTHINGFORCAPITALFUNDING–ASSETSAREBEINGCONSUMEDBUTNOTREPLACEDORUPDATED

THEEARNING

COUNCILHASNOREALABILITYTORAISEANYRATESORCHARGESONTHECOMMUNITYITSERVESANDIS

EXCLUDEDFROMGRANTSCOMMISSIONFUNDING

THEREAREFEWOPTIONSTOEARNALTERNATIVEDISCRETIONARY

INCOME–THEYAREALLSUBSTANTIALLYUNRELIABLE

ANYWAY

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ITISALLABOUTHOWFUTUREDISCRETIONARYWORKISFUNDED

IFTHEEXTRARECURRENTFUNDINGISPROVIDED.TheRoadsideWeed-sprayingprogramwillcontinuebutinaffectwouldbeincreasinglyfundeddirectlybyConstituentCouncils.

IFTHEEXTRARECURRENTFUNDINGISNOTPROVIDED.TheRoadsideWeed-sprayingprogramwouldreduceforeachofthenexttwoyearsthenceasefrom2021/2022.

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THEFINANCIALIMPACTFORCONSTITUENTCOUNCILS.

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PROPOSEDFUNDINGCHANGE

County Council Budget Restructure - Constituent Councils Funding Transition Table WITHEXTRAINCREASE

ConstituentCouncilConstituentCouncilContributionAmount

P.A.

ConstituentCouncilContributionProportion

ProposedNEWConstituentCouncilContributionAmount

P.A.


P.A.


P.A.


P.A.

[AsperestablishedFundingFormula]

[AsperestablishedFundingFormula]

[AsperestablishedFundingFormula](IncRatePeg%Est2.5%)




2018.2019 FY 2018.2019 2019.2020 FY 2020.2021 FY 2021.2022 FY 2022.2023 FY

Bathurst Regional Council $223,333 38.5% $248,147 $273,580 $299,650 $307,141Lithgow City Council $182,918 31.5% $203,240 $224,072 $245,423 $251,559Oberon Council $102,898 17.7% $114,331 $126,049 $138,060 $141,512Blayney Shire Council $71,540 12.3% $79,489 $87,636 $95,987 $98,387 Additonal Funding Contributions (ongoing) sought from Councils NIL $50,000 $50,000 $50,000 NIL TOTALFUNDINGPROGRAM $580,690 100% $695,207 $761,337 $829,120 $798,598

THEFINANCIALIMPACTFORCONSTITUENTCOUNCILS.

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DIFFERENCEBETWEENNORMAL&EXTRA 2018.2019 FY 2018.2019 2019.2020 FY 2020.2021 FY 2021.2022 FY 2022.2023 FY Bathurst Regional Council $0 0.0% $19,230 $38,941 $59,144 $60,623

Lithgow City Council $0 0.0% $15,750 $31,894 $48,441 $49,652

Oberon Council $0 0.0% $8,860 $17,942 $27,250 $27,931

Blayney Shire Council $0 0.0% $6,160 $12,474 $18,946 $19,419

RatePeg%TOTALEXTRAFUNDINGPROGRAM $0 0.0% $50,000 $101,250 $153,781 $157,626

Arobustoperationalmonitoringandreportingregimewillbeembedded.

SoundworkingrelationshipswithForests,CRNandRMS

willbeestablished.

Essentialbusinesssystems&technologywillbefixedwithin6to12months.

Fundcontributorswillgetafairreturnontheir

investment.

Opportunitiesforuseofremotesensingtechnologieswillbeassessedonmerit.

The‘conceptofoperations’and‘compliance&

enforcementsystem’willproveeffective.

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THREEPOSSIBLEFUTURES:

ONE(1):BUSINESSASUSUAL/DONOTHING(PRE-2018)ANDRISKBECOMINGINSOLVENTWITHINAFEWYEARS.

THREE (3) REDESIGN THE WHOLE CONCEPT OF OPERATIONSANDINVESTINLEADINGTECHNOLOGIESANDBECOMEEXEMPLARYINTIME.

TWO (2): REFORMBUDGET,GOVERNANCEANDBIOSECURITYACTIVITY–UPGRADETOCONTEMPORARYTECHNOLOGYANDREMAINAMODESTBUTCAPABLEANDVIABLEGOINGCONCERN.

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COUNCILBE:

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END

ANYQUESTIONS?

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Report Item

13.01 2017-18 AUDITED FINANCIAL

STATEMENTS

ATTACHMENTS

Audit Office Report

Audited Financial Statements

Engagement Closing Report

for the year ended 30 June 2018

Oberon Council

contents

1 INTRODUCTION 1

2 AUDIT OVERVIEW 1

3 AUDIT OUTCOME AND REPORTS 1

3.1 Audit outcome 1

3.2 Report on the Conduct of the Audit 2

3.3 Auditor-General’s Report to Parliament 2

3.4 Management Letter 2

4 AUDIT FINDINGS 2

4.1 Response to key issues and audit risks 2

4.2 Misstatements 3

4.3 Compliance with legislative requirements 3

5 THE AUDIT PROCESS 4

5.1 Management co-operation 4

5.2 Next year’s audit 4

APPENDIX ONE – GENERAL PURPOSE FINANCIAL STATEMENTS 5

Corrected disclosure deficiencies 5

APPENDIX TWO – SPECIAL PURPOSE FINANCIAL STATEMENTS FOR

DECLARED BUSINESS ACTIVITIES 6

Corrected disclosure deficiency 6

Our insights inform and challenge government to improve outcomes for citizens

1

1 INTRODUCTION

We have audited the Oberon Council (the Council’s):

• general purpose financial statements (GPFS)

• special purpose financial statements (SPFS) for the Council’s:

- Declared Business Activities

- Special Schedule 2 ‘Permissible income for general rates’ (the Schedule).

This report informs the General Manager and the Mayor of audit findings relevant to their

responsibilities and oversight of the Council’s financial statements. We will inform you if significant

new matters are found while finalising the audit.

An audit is designed to obtain reasonable assurance the financial statements are free from material

misstatement. It is not designed to identify all matters of governance interest, nor is it conducted to

express an opinion on the effectiveness of internal control. Matters of governance interest identified

during the audit are included in this report.

2 AUDIT OVERVIEW

The table below provides an overview of findings identified during the audit of the Council.

Impact Assessment

High Matters identified which had a high impact on the financial statements and/or audit.

Moderate Matters identified which had a moderate impact on the financial statements and/or

audit.

Low No matters or matters identified which had a low impact on the financial statements

and/or audit.

Section Outcome Reference

Audit outcome:

GPFS Unqualified opinion 3.1

SPFS for Council’s Declared Business

Activities Unqualified opinion 3.1

Special Schedule 2 ‘Permissible income for

general rates’ Unqualified opinion 3.1

Response to key issues and audit risks Matters addressed 4.1

Misstatements No misstatements noted 4.2

Compliance with legislative requirements No matters noted 4.3

3 AUDIT OUTCOME AND REPORTS

3.1 Audit outcome

We are likely to express an unmodified opinion on the GPFS and the SPFS for Declared Business

Activities and the Schedule. The Independent Auditor’s Reports will be signed on 22 October 2018

after the signed financial statements and management representation letters are received.


2

3.2 Report on the Conduct of the Audit

We will issue the Report on the Conduct of the Audit required by section 417(3) of the Local

Government Act 1993 at the same time as the Independent Auditor’s Reports. The Report on the

Conduct of the Audit will incorporate comments we consider appropriate, based on the audit of the

Council’s financial statement.

3.3 Auditor-General’s Report to Parliament

The 2019 Auditor-General’s Report to Parliament will incorporate the results of the audit.

3.4 Management Letter

We issued an Interim Management Letter in July 2018 which included observations from the interim

phase of the audit. A Final Management Letter will be sent shortly which expands on matters

summarised in this report.

4 AUDIT FINDINGS

4.1 Response to key issues and audit risks

The Client Service Plan, sent on 19 March 2018 identified key issues affecting the Council and how

the audit team planned to respond to them. The results of the audit work are detailed below.

Issue or risk Audit outcome

Revaluation of infrastructure property, plant and equipment

The following infrastructure property, plant and

equipment classes were subjected to a

comprehensive revaluation by an external valuer this

year:

• Operational Land

• Community Land

• Buildings- specialized

• Buildings- non-specialized

• Other structures.

We reviewed the management’s procedures for

assessing fair value at reporting date. We considered

externally available information to be satisfied the

carrying amount materially reflects fair value. This

included reviewing the external valuers methodology

to comply with AASB 13 ‘Fair Value Measurement’,

reasonableness of useful lives and depreciation,

qualifications and experience of experts,

completeness and accuracy of data used in the

valuation and their mathematical accuracy, accuracy

of adjustments to the general ledger and adequacy of

disclosure in the financial statements.

We did not identify any significant control deficiencies

or material misstatements.

Assessing the fair value of Council’s infrastructure, property, plant and equipment

For those asset classes not subject to a

comprehensive revaluation this year, the Council

satisfied itself their carrying value materially reflects

fair value at reporting date.

We reviewed management’s procedures for

assessing fair value at reporting date. We considered

internally available information to satisfy the carrying

amount materially reflects fair value.

Early Close reporting

While not a mandatory requirement, the Council

should consider completing early close procedures to

facilitate:

• a smoother year-end audit process

• the effective resolution of issues; and

• earlier completeion and improvement in the

quality of year-end financial statements.

The following infrastructure property, plant and

equipment classes were revalued prior to

31 May 2018:

• Operational Land

• Community Land

• Buildings- specialized

• Buildings- non-specialized

• Other structures.


3

Issue or risk Audit outcome

We reviewed the management’s procedures for

assessing fair value. We did not identify any

significant control deficiencies or material

misstatements. We will continue to work with

management to identify procedures that would help

ensure earlier completion and improve the quality of

year-end financial statements.

Procurement and contract management risk

The Council spends a substantial amount each year

to procure goods and services and enters into

numerous contracts which vary in nature, size and

complexity.

We performed the following:

• gained an understanding of Council’s procedures

around procurements and contract management

• reviewed tendering procedures to identify any

probity and related party issues.

Our testing did not identify any exceptions.

Rehabilitation provisions

The Council continues to be responsible for the

rehabilitation of closed and operating landfill sites.

The rehabilitation obligations over the next 50 years

were estimated at $280,000 at 30 June 2018.

We gained an understanding of Council’s procedures

around rehabilitation provisions and reviewed the

assumptions, judgements and estimates used in the

provision. Our testing did not identify any non-

compliance with AASB 137.

4.2 Misstatements

Misstatements are differences between what has been reported in the financial statements and what

is required in accordance with the Council’s financial reporting framework. Misstatements can arise

from error or fraud.

Auditing Standards require matters of governance interest and significant misstatements identified

during the audit to be communicated to those charged with governance.

General Purpose Financial Statements (GPFS)

Appendix One lists and explains the nature and impact of the misstatements contained in the GPFS.

Based on my evaluation, none of the misstatements reported are due to fraud.

Special Purpose Financial Statements (SPFS)

Declared Business Activities

The SPFS for Declared Business Activities contained misstatement. Appendix Two lists and explains

the nature and impact of this misstatement on the SPFS for Declared Business Activities.

Based on my evaluation, the misstatement reported is not due to fraud

Special Schedule 2 ‘Permissible income for general rates’ (the Schedule)

The Schedule did not contain misstatements.

4.3 Compliance with legislative requirements

The Client Service Plan and Terms of Engagement explain that audit procedures are targeted

specifically towards forming an opinion on the Council’s financial statements. This includes testing

whether the Council has complied with legislative requirements that may materially impact the

financial statements.


4

Our audit procedures did not identify reportable findings on compliance with legislative requirements.

5 THE AUDIT PROCESS

5.1 Management co-operation

The audit team appreciated the co-operation and help received from the Council’s staff, in particular

the finance team.

5.2 Next year’s audit

An efficient audit relies on:

• regular and open communications between the audit team and management

• management responding promptly to the audit team’s questions and documentation requests

• timely preparation of the financial statements and resolution of financial reporting issues

• management implementing appropriate quality controls over financial statement preparation

• performing early close procedures, where appropriate, such as revaluations of property, plant

and equipment before year-end in order to identify and resolve potential issues in a timely

manner.

Your comments about the audit process are welcomed.


5

APPENDIX ONE – GENERAL PURPOSE FINANCIAL STATEMENTS

Corrected disclosure deficiencies

Management corrected the following disclosure deficiencies in the current year’s GPFS. The audit

team agrees with management’s determination and confirms this treatment complies with Australian

Accounting Standards.

AASB reference Disclosure title Description of disclosure deficiency

AASB 119 Provisions The balance for the current provisions not anticipated to be

settled within the next twelve months was incorrect.

AASB 13 Fair Value Measurement The table (4) Fair value measurements using significant

unobservable inputs (level 3) showed 2017 balances instead

of the 2018 balances.


6

APPENDIX TWO – SPECIAL PURPOSE FINANCIAL STATEMENTS FOR DECLARED BUSINESS ACTIVITIES

Corrected disclosure deficiency

Management corrected the following disclosure deficiency in the current year’s SPFS for Declared

Business Activities. The audit team agrees with management’s determination and confirms this

treatment complies with the financial reporting framework.

AASB reference Disclosure title Description of disclosure deficiency

Local Government

Code of Accounting

Practice and

Financial Reporting

(the Code)

Calculation of

dividend payable –

water supply

In this disclosure the capital grant was not deducted thus the

potential dividend was overstated.


7

Oberon Council GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2018

Financial Statements 2018

Oberon Council

General Purpose Financial Statements for the year ended 30 June 2018

Contents

1. Understanding Council’s Financial Statements

2. Statement by Councillors and Management

3. Primary Financial Statements:

– Income Statement– Statement of Comprehensive Income– Statement of Financial Position– Statement of Changes in Equity– Statement of Cash Flows

4. Notes to the Financial Statements

5. Independent Auditor’s Reports:

– On the Financial Statements (Sect 417 [2]) – On the Conduct of the Audit (Sect 417 [3])

Overview

137-139 Oberon StreetOBERON NSW 2787

Council’s guiding principles are detailed in Chapter 3 of the LGA and includes:

principles applying to the exercise of functions generally by council,principles to be applied when making decisions,principles of community participation,principles of sound financial management, andprinciples for strategic planning relating to the development of an integrated planning and reporting framework.

A description of the nature of Council’s operations and its principal activities are provided in Note 2(b).

Through the use of the internet, we have ensured that our reporting is timely, complete and available at minimumcost. All press releases, financial statements and other information are publicly available on our website:www.oberon.nsw.gov.au.

Page

4

67

5

2

3

Oberon Council is constituted under the Local Government Act 1993 (NSW) and has its principal place of businessat:

8

9

i

iiii

page 1

Financial Statements 2018_

Oberon Council

General Purpose Financial Statementsfor the year ended 30 June 2018

Understanding Council’s financial statements

page 2

Introduction

Each year, individual local governments across NewSouth Wales are required to present a set of auditedfinancial statements to their council and community.

What you will find in the statements

The financial statements set out the financialperformance, financial position and cash flows ofCouncil for the financial year ended 30 June 2018.

The format of the financial statements is standardacross all NSW Councils and complies with both theaccounting and reporting requirements of AustralianAccounting Standards and requirements as setdown by the Office of Local Government.

About the Councillor/Management Statement

The financial statements must be certified by seniorstaff as ‘presenting fairly’ the Council’s financialresults for the year and are required to be adoptedby Council – ensuring both responsibility for andownership of the financial statements.

About the primary financial statements

The financial statements incorporate five ‘primary’financial statements:

1. The Income StatementSummarises Council's financial performance for theyear, listing all income and expenses.

This statement also displays Council's originaladopted budget to provide a comparison betweenwhat was projected and what actually occurred.

2. The Statement of Comprehensive IncomePrimarily records changes in the fair value ofCouncil's Infrastructure, Property, Plant andEquipment.

3. The Statement of Financial PositionA 30 June snapshot of Council's financial positionindicating its assets, liabilities and “net wealth”.

4. The Statement of Changes in EquityThe overall change for the year (in dollars) ofCouncil’s “net wealth”.

5. The Statement of Cash FlowsIndicates where Council's cash came from andwhere it was spent. This statement also displaysCouncil's original adopted budget to provide acomparison between what was projected and whatactually occurred.

About the Notes to the Financial Statements

The Notes to the Financial Statements providegreater detail and additional information on the fiveprimary financial statements.

About the Auditor’s Reports

Council’s annual financial statements are required tobe audited by the NSW Audit Office. In NSW theauditor provides 2 audit reports:

1. an opinion on whether the financial statementspresent fairly the Council’s financial performanceand position, and

2. their observations on the conduct of the audit,including commentary on the Council’s financialperformance and financial position.

Who uses the financial statements?

The financial statements are publicly availabledocuments and must be presented at a Councilmeeting between seven days and five weeks afterthe date of the Audit Report.

The public can make submissions to Council up toseven days subsequent to the public presentation ofthe financial statements.

Council is required to forward an audited set offinancial statements to the Office of LocalGovernment.

.


Oberon Council

Income Statement for the year ended 30 June 2018

$ ’000

Income from continuing operationsRevenue:Rates and annual chargesUser charges and feesInterest and investment revenueOther revenuesGrants and contributions provided for operating purposesGrants and contributions provided for capital purposesOther income:Net gains from the disposal of assets

Total income from continuing operations

Expenses from continuing operationsEmployee benefits and on-costsBorrowing costsMaterials and contractsDepreciation and amortisationOther expensesNet losses from the disposal of assets

Total expenses from continuing operations

Operating result from continuing operations

Net operating result for the year

Net operating result attributable to Council

Net operating result for the year before grants andcontributions provided for capital purposes

4,088

18,766

3,931

19,454

4,435

unaudited

3,6003,147

3,021

Original

3e,f

4d

5

4b4c

4,734

505

3b

4a

3e,f

350

2005,393

3,2222,337

– 54e

121

14,678

2,474

5,304

Notes

3a

3d3c

2018

371

5,220165

16,648

2018

5,812330468

6,594

5,591188

5,173

2,449

–

4,088

–

1913,5073,3332,396

4,002

4,4354,088

2017

5,090

416863

4,435

15,018

6,014

157 434

43

6,588

5,411

3,021

Actual Actualbudget

3,021

2,857

13,626

This statement should be read in conjunction with the accompanying notes. page 4


Oberon Council

Statement of Comprehensive Income for the year ended 30 June 2018

$ ’000

Net operating result for the year (as per Income Statement)

Other comprehensive income:

Amounts that will not be reclassified subsequently to the operating result

Gain (loss) on revaluation of IPP&ETotal items which will not be reclassified subsequentlyto the operating result

Total other comprehensive income for the year

Total comprehensive income for the year

Total comprehensive income attributable to Council

2017

2,925

(1,510)

2018

4,088

Notes

4,435

(828) (1,510)9a

(1,510)(828)

3,260

(828)

2,9253,260



Oberon Council

Statement of Financial Positionas at 30 June 2018

$ ’000

ASSETSCurrent assetsCash and cash equivalentsInvestmentsReceivablesInventoriesOtherTotal current assets

Non-current assetsInventoriesInfrastructure, property, plant and equipmentTotal non-current assets

TOTAL ASSETS

LIABILITIESCurrent liabilitiesPayablesIncome received in advanceBorrowingsProvisionsTotal current liabilities

Non-current liabilitiesPayablesBorrowingsProvisionsTotal non-current liabilities

TOTAL LIABILITIES

Net assets

EQUITYAccumulated surplusRevaluation reserves

Total equity

6,336

291,041

7

976

2017

1,407

–

11,800

1

76784

465

279,414

3,291

155,416

6,789

4,086

Notes

6a6b7

279,180

8

154,588

279,349

2,729

169

1110

1212

89

294,570

2,703

287,781

781

1,657

1,557

1,032

98786

17,962

14,300

15,220

1

2018

287,781

136,453

3,607

3,756

132,365

291,041

329315

109

1,423445

8

1010

10

10

279,414

732

297,376

11



Oberon Council

Statement of Changes in Equity for the year ended 30 June 20182018

$ ’000

Opening balance

Net operating result for the year

Other comprehensive income – Gain (loss) on revaluation of IPP&EOther comprehensive income

Total comprehensive income (c&d)

Equity – balance at end of the reporting period

Net operating result for the year prior to correction of errors andchanges in accounting policies

Accumulated Accumulated

(828)

4,088

(828)

3,260

287,781155,416132,365

(1,510)

4,435 (1,510)

– (1,510)

2,925

– (1,510)

4,435

(1,510)

4,435 –– 4,435

equity

284,856

surplus

127,930 156,926

reserverevaluation Total

IPP&E2017

136,453 154,588 291,041

– (828)

4,088 (828)

9a – (828)

2018

132,365 155,416 287,781

revaluation TotalNotes surplus reserve

IPP&E

equity

4,088 –4,088 – 4,088 4,435



Oberon Council

Statement of Cash Flows for the year ended 30 June 2018

$ ’000

Cash flows from operating activitiesReceipts:Rates and annual chargesUser charges and feesInvestment and interest revenue receivedGrants and contributionsBonds, deposits and retention amounts receivedOtherPayments:Employee benefits and on-costsMaterials and contractsBorrowing costsOther

Net cash provided (or used in) operating activities

Cash flows from investing activitiesReceipts:Sale of investment securitiesSale of real estate assetsSale of infrastructure, property, plant and equipmentPayments:Purchase of investment securitiesPurchase of infrastructure, property, plant and equipmentPurchase of real estate assets

Net cash provided (or used in) investing activities

Cash flows from financing activitiesReceipts:NilPayments:Repayment of borrowings and advances

Net cash flow provided (used in) financing activities

Net increase/(decrease) in cash and cash equivalents

Plus: cash and cash equivalents – beginning of year

Cash and cash equivalents – end of the year

Additional Information:

plus: Investments on hand – end of year

Total cash, cash equivalents and investments

340

5,0785,3336,263

935

2018 2017Actual

87

978

2018

4,554

–6,362

383

(2,003)

(5,341)

–(6,000)

(14,300)

(6,000)

(446)

407

407

(460)

–

(460)

13a

Notes

5,228

(176)

Original

budgetunaudited

––

(3,118)

14,300

6,867

(5,531)

407

(184)

7,028

(6,012)

(168)

(4,187)

81,761

6,919

Actual

5,592

(4,214)(5,185)

(6,058)

(165)(2,661)

(12,600)

(427)

12,800

(427)

(6,328)

15,332

(16,800)

1,657

11,800

114

1,543

1,657

(625)

(446)

(7,168)

13,457

1,03213a

14,300

13b 6,989

140 160124

14,300

7,982

(2,683)

1,164

116

6b



Oberon Council

Notes to the Financial Statements for the year ended 30 June 2018

Contents of the notes accompanying the financial statements

Details

Basis of preparationCouncil functions/activities – financial informationCouncil functions/activities – component descriptionsIncome from continuing operationsExpenses from continuing operationsGains or losses from the disposal of assetsCash and cash equivalent assetsInvestmentsRestricted cash, cash equivalents and investments – detailsReceivablesInventories and other assetsInfrastructure, property, plant and equipmentExternally restricted infrastructure, property, plant and equipmentPayables and borrowingsProvisions

Statement of cash flows – additional informationInterests in other entitiesCommitments for expenditureContingencies and other liabilities/assets not recognisedFinancial risk managementMaterial budget variationsFair value measurementRelated party transactionsStatement of developer contributionsFinancial result and financial position by fundStatement of performance measures – consolidated resultsStatement of performance measures – by fund

Additional council disclosures (unaudited)

Statement of performance measures – consolidated results (graphs)

n/a – not applicable

7423(a)

21

73

23(c) 77

6(a)

4

6(c)

23(b)

13

22

20

35

1615

Note

10

Page

12(a)

32(b)

6(b)

5

31

39

Accumulated surplus, revaluation reserves, changes in accountingpolicies, changes in accounting estimates and errors

19

11

5418

4714

17

12

45

4851

27

2829

33

1013141521

27

78

9(a)9(b)

56

6871

44

41

46

66

38

page 9


Oberon Council

Notes to the Financial Statementsfor the year ended 30 June 2018

Note 1. Basis of preparation

page 10

These financial statements were authorised for issue by Council on 18/09/2018.

Council has the power to amend and reissue these financial statements.

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

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian AccountingStandards and Australian Accounting Interpretations, the Local Government Act 1993 (NSW) and Regulations,and the Local Government Code of Accounting Practice and Financial Reporting. Council is a not-for-profitentity for the purpose of preparing these financial statements.

The financial statements are presented in Australian dollars and are rounded to the nearest thousand dollars.

Full dollars have been used in Note 20 Related party disclosures in relation to the disclosure of specific relatedparty transactions.

Unless otherwise indicated, all amounts disclosed in the financial statements are actual amounts.

Specific budgetary amounts have been included for comparative analysis (to actuals) in the following reportsand notes:

§ Income statement§ Statement of cash flows§ Note 18 – Material budget variations

and are clearly marked.

(a) New and amended standards adopted by Council

There have been no new (or amended) accounting standards adopted by Council in this year’s financialstatements which have had any material impact on reported financial position, performance or cash flows.

(b) Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by therevaluation of certain financial assets and liabilities and certain classes of infrastructure, property, plant andequipment and investment property.

(c) Significant accounting estimates and judgements

The preparation of financial statements requires the use of certain critical accounting estimates. It alsorequires management to exercise its judgement in the process of applying the Council's accounting policies.

Estimates and judgements are continually evaluated and are based on historical experience and other factors,including expectations of future events that may have a financial impact on the Council and that are believedto be reasonable under the circumstances.

Critical accounting estimates and assumptions

Council makes estimates and assumptions concerning the future. The resulting accounting estimates will, bydefinition, seldom equal the related actual results. The estimates and assumptions that have a significant risk


Oberon Council


Note 1. Basis of preparation (continued)

page 11

of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial yearinclude:

(i) estimated fair values of infrastructure, property, plant and equipment – refer Note 9,

(ii) estimated tip remediation provisions – refer Note 11,

(iii) employee benefit provisions – refer Note 11.

Significant judgements in applying the Council's accounting policies

(iv) Impairment of receivables

Council has made a significant judgement about the impairment of a number of its receivables in Note 7.

Monies and other assets received by Council

(a) The Consolidated Fund

In accordance with the provisions of Section 409(1) of the Local Government Act 1993 (NSW), all money andother assets received by Council is held in the Council’s Consolidated Fund unless it is required to be held inthe Council’s Trust Fund.

Cash and other assets of the following entities have been included as part of the Consolidated Fund:

§ General purpose operations§ Water service§ Sewerage service

(b) The Trust Fund

In accordance with the provisions of Section 411 of the Local Government Act 1993 (NSW) (as amended), aseparate and distinct Trust Fund is maintained to account for all money and other assets received by theCouncil in trust which must be applied only for the purposes of, or in accordance with the trusts relating tothose monies. Trust monies and other assets subject to Council’s control have been included in these reports.

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GSTincurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost ofacquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount ofGST recoverable from, or payable to the taxation authority is included with other receivables or payables in theStatement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing orfinancing activities which that are recoverable from, or payable to the taxation authority are presented asoperating cash flows.

New accounting standards and interpretations issued not yet effective

Certain new accounting standards and interpretations have been published that are not mandatory for thecurrent reporting period and which have not been applied.


Oberon Council


Note 1. Basis of preparation (continued)

page 12

As at the date of authorisation of these financial statements, Council considers that the standards andinterpretations listed below will have an impact upon future published financial statements ranging fromadditional and / or revised disclosures to actual changes as to how certain transactions and balances areaccounted for.

Effective for annual reporting periods beginning on or after 1 July 2018

· AASB 9 Financial Instruments

This replaces AASB 139 Financial Instruments: Recognition and Measurement, and addresses theclassification, measurement and disclosure of financial assets and liabilities.

The standard introduces a new impairment model that requires impairment provisions to be based onexpected credit losses, rather than incurred credit losses.

Based on assessments to date, Council expects a small increase to impairment losses however the standardis not expected to have a material impact overall.

Effective for annual reporting periods beginning on or after 1 July 2019

· AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-for-Profit Entities andAASB 2016-8 Amendments to Australian Accounting Standards - Australian Implementation Guidance forNot-for-Profit Entities

AASB 15 will replace AASB 118 Revenue, AASB 111 Construction Contracts and a number of Interpretations.AASB 2016-8 provides Australian requirements and guidance for not-for-profit entities in applying AASB 9 andAASB 15, and AASB 1058 will replace AASB 1004 Contributions.

Together they contain a comprehensive and robust framework for the recognition, measurement anddisclosure of income including revenue from contracts with customers.

While Council is still reviewing the way that income is measured and recognised to identify whether there willbe any material impact arising from these standards, these standards may affect the timing of the recognitionof some grants and donations.

· AASB 16 Leases

Council is not currently a party to leases that are not recognised in the Statement of Financial Position.

Council has not elected to apply any pronouncements before their operative date in these financialstatements.


Oberon Council


Note 2(a). Council functions/activities – financial information

Total functions and activities 19,453 14,67818,766 294,570

(139)

297,376

4,3830

4,088

7,3566,448

15,018

124130

4,9384,435

310––

5,447

(40) (7)

3,347 3,347

–4,240

12,4735,902– –

–25,717

1,6265,902

12,9471,6268,71111

–(72)

(1,004)

(0)3,547 3,711

9,62711–

11–

20,22722,805

–180,318

–198,071

4,272

585

(115)

–4,240

–

1722,805

435(972)

561

5851,081

11 (3)

(564)(93)

11–

577

(609)

(632)

646 6(450)

2018 2017

–– 12,473

25,7175 51,234(556) 1,585

17 (305)

(1,352)(605) –

–

Economic affairs

Mining, manufacturing and construction 8Transport and communication 5,579

962(276)596

Environment

1,2981,0081,493

366

167

6,625

153

24

7721,5651,465

6,935489

1,063127

Public order and safetyHealth

1,677151

652Adminstration

Other

Governance

6,448

7731 –

340 760

93760 52

11

Recreation and culture

Community services and educationHousing and community amenities

Sewerage servicesWater supplies

444

– 450

7,356

–

294

449

954

6281,099

5,85548

350–

556

–

325

1,0784

945

2,0421,333

Income fromcontinuing operations

Income, expenses and assets have been directly attributed to the following functions/activities.Details of these functions/activities are provided in Note 2(b).

Expenses fromcontinuing operations

Operating result fromcontinuing operations

$ ’000

Total assets held(current and non-

current) Functions/activities

2017

Grants included inincome from continuing

operations

201720182018 2017 2018 2018 2017

page 13


Oberon Council


Note 2(b). Council functions/activities – component descriptions

Details relating to the Council’s functions/activities as reported in Note 2(a) are as follows:

Governance

Adminstration

Public order and safety

Health

Environment

Community services and education

Housing and community amenities

Water supplies

Sewerage services

Recreation and culture

Mining, manufacturing and construction

Transport and communication

Economic affairs

Includes noxious plants and insect/vermin control; other environmental protection; solid waste management,including domestic waste; other waste management; other sanitation; and garbage, street cleaning, drainageand stormwater management.

Includes costs relating to Council’s role as a component of democratic government, including elections,members’ fees and expenses, subscriptions to local authority associations, meetings of Council and policy-making committees, public disclosure (e.g. GIPA), and legislative compliance.

Includes corporate support and other support services, engineering works, and any Council policy compliance.

Includes Council’s fire and emergency services levy, fire protection, emergency services, beach control,enforcement of regulations and animal control.

Includes immunisation, food control, health centres etc.

Includes administration and education; social protection (welfare); migrant, Aboriginal and other communityservices and administration (excluding accommodation – as it is covered under ‘housing and community

Includes public cemeteries; public conveniences; street lighting; town planning; other community amenities,including housing development and accommodation for families and children, aged persons, disabled persons,migrants and Indigenous persons.

Includes public libraries; museums; art galleries; community centres and halls, including public halls andperforming arts venues; sporting grounds and venues; swimming pools; parks; gardens; lakes; and othersporting, recreational and cultural services.

Includes camping areas and caravan parks; tourism and area promotion; industrial development promotion;sale yards and markets; real estate development; commercial nurseries; and other business undertakings.

Urban local, urban regional, includes sealed and unsealed roads, bridges, footpaths, parking areas, andaerodromes.

Includes building control, quarries and pits, mineral resources, and abattoirs.

page 14


Oberon Council


Note 3. Income from continuing operations

$ ’000

(a) Rates and annual charges

Ordinary ratesResidentialFarmlandBusinessTotal ordinary rates

Special ratesTown improvementTotal special rates

Annual charges (pursuant to s.496, s.496A, s.496B, s.501 & s.611)Domestic waste management servicesWater supply servicesSewerage servicesWaste management services (non-domestic)Total annual charges

TOTAL RATES AND ANNUAL CHARGES

Council has used 2016 year valuations provided by the NSW Valuer General in calculating its rates.

Accounting policy for rates and annual chargesRates, annual charges, grants and contributions (including developer contributions) are recognised as revenuewhen the Council obtains control over the assets comprising these receipts. Developer contributions may onlybe expended for the purposes for which the contributions were required, but the Council may apply contributionsaccording to the priorities established in work schedules.

Control over assets acquired from rates and annual charges is obtained at the commencement of the ratingyear as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates.

3,233

222

1,441 1,410

1,436

2011,870

3,508

463

20172018

463 447

1,267

1911,776

447

55

226438445

71553

695

5,411 5,090

page 15


Oberon Council


Note 3. Income from continuing operations (continued)

$ ’000

(b) User charges and fees

Specific user charges (per s.502 – specific ‘actual use’ charges)Water supply servicesSewerage servicesWaste management services (non-domestic)Industrial waste managementTotal specific user charges

Other user charges and fees(i) Fees and charges – statutory and regulatory functions (per s.608)Inspection servicesPlanning and building regulationPrivate works – section 67Regulatory feesSection 149 certificates (EPA Act)Section 603 certificatesTown planningTotal fees and charges – statutory/regulatory

(ii) Fees and charges – other (incl. general user charges (per s.608))CemeteriesGravel pitsLeaseback fees – Council vehiclesLibraryRMS (formerly RTA) charges (state roads not controlled by Council)Swimming poolTourismWater connection feesVisitor Information CentreTotal fees and charges – other

TOTAL USER CHARGES AND FEES

Accounting policy for user charges and feesUser charges and fees are recognised as revenue when the service has been provided.

–

58

20

321114

75

1,008

39439

2863

31

48

1,551

2018

461

4922,549

2017

2,922

6,014

–

341

3,902

15

17

3,742

–10

7

4913

83

2,730

1,791

30444

10

–

168

67

40

1223

31

–

6

5,812

225

page 16


Oberon Council



$ ’000

(c) Interest and investment revenue (including losses)

Interest – Overdue rates and annual charges (incl. special purpose rates) – Cash and investmentsTOTAL INTEREST AND INVESTMENT REVENUE

Interest revenue is attributable to:Unrestricted investments/financial assets:Overdue rates and annual charges (general fund)General Council cash and investmentsRestricted investments/funds – external:Development contributions – Section 7.11Water fund operationsSewerage fund operationsTotal interest and investment revenue recognised

Accounting policy for interest and investment revenueInterest income is recognised using the effective interest rate at the date that interest is earned.

2018

383

2017

33

–

380

330

–

25–

272

3

416

11

40290

3322

330 416

page 17


Oberon Council



$ ’000

(d) Other revenues

Rental income – other council propertiesAccident ResponseFines – animals controlFines – otherLegal fees recovery – rates and charges (extra charges)Legal fees recovery – otherCommunity transportDistribution of Natural GasDiesel rebateDiscounts and rebatesFESLHeritageInsurance claim recoveriesInvestment recoveryMisc revenueRental income – aged units rentsSales – generalYouth councilWorkers compServices NSWCTCTOTAL OTHER REVENUE

Accounting policy for other revenueCouncil recognises revenue when the amount of revenue can be reliably measured, it is probable that futureeconomic benefits will flow to the Council and specific criteria have been met for each of the Council’s activitiesas described below. Council bases its estimates on historical results, taking into consideration the type ofcustomer, the type of transaction and the specifics of each arrangement.

Parking fees and fines are recognised as revenue when the service has been provided, or when the penalty hasbeen applied, whichever occurs first.

Rental income is accounted for on a straight-line basis over the lease term.

Miscellaneous sales are recognised when physical possession has transferred to the customer which isdeemed to be the point of transfer of risks and rewards.

Other income is recorded when the payment is due, the value of the payment is notified, or the payment isreceived, whichever occurs first.

863

19

18

265

2

52

74

64–

8

3

16

38

42

74

– 121

2017

3

60

10

7

–

–

–

2

1

1

468

64

64

4

43

71

–

273

1

–

Notes 2018

75

3

– 4

–47

page 18


Oberon Council



$ ’000

(e) Grants

General purpose (untied)Current year allocationFinancial assistance – general componentFinancial assistance – local roads componentOtherPensioners’ rates subsidies – general componentTotal general purpose

Specific purposePensioners’ rates subsidies: – Water – Sewerage – Domestic waste managementSewerage servicesBushfire and emergency servicesOLG Innovation Fund - Finance Control Centre ProjectsStronger Country Communities - Stage 1Community infrastructureEmployment and training programsHeritage and culturalLibraryLIRS subsidyNoxious weedsRestart NSW – fixing country roadsTransport – Roads to RecoveryTransport – Flood DamageYouth weekTotal specific purposeTotal grants

Grant revenue is attributable to:– Commonwealth funding– State funding– Other funding

929–

–

–

–

–

–

–

–

–

––

–

–

–

–

77

–

–

–

–

––

–

––

–

2,299

–3,413

4–

––

–

2018

28

–

405

–

37

27

–

6

944

–325

744

–

2,639

Operating

–

4,938

––

–54

CapitalOperating

–

––

–

–

83 –

11

1,655

11

14

5,447

5,447

4,609

38

11

1,487

11

–

761

4,938

1,736

38

–51

–

2

121

–

46

8

1,4662,199

2017

–

–

– –

Capital2017 2018

3,711

–

3

134

––

69 – –

119 – –

1 – –

828

page 19


Oberon Council



$ ’000

(f) Contributions

Developer contributions:(s7.4 & s7.11 – EP&A Act, s64 of the LGA):

Cash contributionsS 7.11 – contributions towards amenities/servicesS 64 – water supply contributionsS 64 – sewerage service contributionsTotal developer contributions – cashTotal developer contributions

Other contributions:Cash contributionsBushfire servicesRMS contributions (regional roads, block grant)RMS contributions – traffic facilitiesTotal other contributions – cashTotal other contributionsTotal contributions

TOTAL GRANTS AND CONTRIBUTIONS

Accounting policy for contributionsControl over grants and contributions is normally obtained upon their receipt (or acquittal) and is valued at thefair value of the granted or contributed asset at the date of transfer.

Where grants or contributions recognised as revenues during the financial year were obtained on condition thatthey be expended in a particular manner or used over a particular period and those conditions wereun-discharged at reporting date, the unused grant or contribution is disclosed above.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite servicehas not been provided at reporting date.

(g) Unspent grants and contributions

Certain grants and contributions are obtained by Council on conditionthat they be spent in a specified manner:

Operating grantsUnexpended at the close of the previous reporting period

Add: operating grants recognised in the current period but not yet spent

Less: operating grants recognised in a previous reporting period now spent

Unexpended and held as restricted assets (operating grants)

273

1807701,183

134

1,377 1,010 – 134

273 137

1,650

477

300

–

137

1,802

6,594

434

(157)

157134

Capital Capital

1,482

–

434

37

1,377

20172018

17

–

Operating

–157

–

2017 2018Operating

21

6,588

23

Notes

213

300

261137

1,147

2,177

–

–

1,010

–

157

134

1,802

157

60 61 – –

22

(420)

795

157

page 20


Oberon Council


Note 4. Expenses from continuing operations

$ ’000

(a) Employee benefits and on-costs

Salaries and wagesEmployee termination costsTravel expensesEmployee leave entitlements (ELE)SuperannuationWorkers’ compensation insuranceFringe benefit tax (FBT)Training costs (other than salaries and wages)Protective clothingMedicalsRecruitment CostsTotal employee costsLess: capitalised costsTOTAL EMPLOYEE COSTS EXPENSED

Accounting policy for employee benefits and on-costsEmployee benefit expenses are recorded when the service has been provided by the employee.

Retirement benefit obligationsAll employees of the Council are entitled to benefits on retirement, disability or death. Council contributes tovarious defined benefit plans and defined contribution plans on behalf of its employees.

Superannuation plansContributions to defined contribution plans are recognised as an expense as they become payable. Prepaidcontributions are recognised as an asset to the extent that a cash refund or a reduction in the future paymentsis available.

Council participates in a Defined Benefit Plan under the Local Government Superannuation Scheme, however,when sufficient information to account for the plan as a defined benefit is not available and therefore Councilaccounts for its obligations to defined benefit plans on the same basis as its obligations to defined contributionplans, i.e. as an expense when it becomes payable – refer to Note 16 for more information.

145

–

6240

30

151538

62

(1,021)

2017

6,194(957)

5,609

–

1661

127

5,591

2

6,548

23

5,173

7

5,286

523(40)

10

37

2018

54

page 21


Oberon Council


Note 4. Expenses from continuing operations (continued)

$ ’000

(b) Borrowing costs

(i) Interest bearing liability costsInterest on loansTotal interest bearing liability costs expensed

(ii) Other borrowing costsDiscount adjustments relating to movements in provisions (other than ELE) – Remediation liabilitiesTotal other borrowing costsTOTAL BORROWING COSTS EXPENSED

Accounting policy for borrowing costsBorrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time thatis required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed.

–

165

2018 2017

11

Notes

7

–723

184

191

184

23

165

188

page 22


Oberon Council



$ ’000

(c) Materials and contracts

Raw materials and consumablesContractor and consultancy costs – Animal control – Asset mgt – Building contractors – Cleaning – Development control – Garbage contract – Ground maintenance – Other contractors – Plant – RFS – Road maintenance contractors – Sewer infrastructure – Water infrastructure – Revaluation Expenses – Waste – Noxious WeedsAuditors remuneration (2)

Legal expenses: – Legal expenses: planning and development – Legal expenses: debt recovery – Legal expenses: otherOperating leases: – Operating lease rentals: minimum lease payments (1)

Internal auditingTotal materials and contractsLess: capitalised costsTOTAL MATERIALS AND CONTRACTS

Operating leasesLeases in which a significant portion of the risks and rewards of ownership arenot transferred to Council as lessee are classified as operating leases. Paymentsmade under operating leases (net of any incentives received from the lessor) arecharged to the income statement on a straight-line basis over the period of the lease.

1. Operating lease payments are attributable to:Other

2. Auditor remunerationDuring the year the following fees were paid or payable for services provided by theauditor of Council, related practices and non-related audit firms

Auditors of the Council – NSW Auditor-General:

(i) Audit and other assurance servicesAudit and review of financial statementsRemuneration for audit and other assurance servicesTotal Auditor-General remunerationTotal Auditor remuneration

2017

29

416

86

51 262

33

3,147

29

3,507

68

31

43

8,203

87

–

3535

43

2

35

66

17

45

454343

4345

(5,056) (5,051)

5,744

45

13

9

16

–

6 10

15 21

–

23

8,558

29

45

50 5348 56

–

– 283

5,920

– 144

11

1,566

131

–

2018

13

–

201 –

1,539

17

page 23


Oberon Council



$ ’000

(d) Depreciation, amortisation and impairment

Depreciation and amortisationPlant and equipmentOffice equipmentFurniture and fittingsLand improvements (depreciable)Infrastructure: – Buildings – non-specialised – Buildings – specialised – Other structures – Roads – Bridges – Footpaths – Stormwater drainage – Water supply network – Sewerage network – Swimming pools – Other open space/recreational assetsOther assets: – Library books – OtherReinstatement, rehabilitation and restoration assets: – Tip assets – Quarry assetsTotal gross depreciation and amortisation costsTOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT /REVALUATION DECREMENT COSTS EXPENSED

Accounting policy for depreciation, amortisation and impairment expensesDepreciation and amortisationDepreciation and amortisation are calculated using the straight line method to allocate their cost, net of theirresidual values, over their estimated useful lives. Useful lives are included in Note 9 for IPPE assets.

173

292

682

107

6

258 177

211,722

1

5

22

39121

5

6

1,764

117

29

720

2

2

59

3,333

1

3,600

2

56

22

30

10

3,333

59

50

107

Notes

3,600

9 & 119 & 11 2

145

20172018

118

41

5

page 24


Oberon Council



(d) Depreciation, amortisation and impairment (continued)

Accounting policy for depreciation, amortisation and impairment expenses (continued)Impairment of non-financial assetsIntangible assets that have an indefinite useful life or are not yet available for use are not subject to amortisationand are tested annually for impairment, or more frequently if events or changes in circumstances indicate thatthey might be impaired. Other assets are tested for impairment whenever events or changes in circumstancesindicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount bywhich the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of anasset’s fair value less costs to sell and value in use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there areseparately identifiable cash inflows that are largely independent of the cash inflows from other assets or groupsof assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possiblereversal of the impairment at each reporting date.

Impairment losses for revalued assets are firstly offset against the amount in the revaluation surplus for theclass of asset, with only the excess to be recognised in the Income Statement.

Impairment of financial assetsCouncil assesses at the end of each reporting period whether there is objective evidence that a financial asset orgroup of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairmentlosses are incurred only if there is objective evidence of impairment as a result of one or more events thatoccurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact onthe estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

page 25


Oberon Council



$ ’000

(e) Other expenses

AdvertisingBank chargesComputer software chargesContributions/levies to other levels of government – Emergency services levy (includes FRNSW, SES, and RFS levies) – NSW fire brigade levy – NSW rural fire service levy – Upper Macquarie County CouncilCouncillor expenses – mayoral feeCouncillor expenses – councillors’ feesCouncillors’ expenses (incl. mayor) – other (excluding fees above)Donations, contributions and assistance to other organisations (Section 356)Election expensesElectricity and heatingEngineering/Finance/Development ConsultantsFESLHardware expensedHeritageInsuranceOffice expenses (including computer expenses)PostagePrinting and stationeryRates and chargesStreet lightingSubscriptions and publicationsTelephone and communicationsVehicle registrationOtherTotal other expensesTOTAL OTHER EXPENSES

Accounting policy for other expensesOther expenses are recorded on an accruals basis as the Council receives the goods or services.

2018

5123

16

8

23

8

23

–

9161

12

92

25

88

44

9

128

15

–

25

251

274

17

425

391

74

742

369

103

8928

15

2,449

70

410

2,396

–

–

77

14

9

37

31

95

24

79

446

69

2,449 2,396

2017

244

74

47

26

95

Notes

331

101 109

page 26


Oberon Council


Note 5. Gains or losses from the disposal of assets

$ ’000

Property (excl. investment property)Proceeds from disposal – propertyLess: carrying amount of property assets sold/written offNet gain/(loss) on disposal

Plant and equipmentProceeds from disposal – plant and equipmentLess: carrying amount of plant and equipment assets sold/written offNet gain/(loss) on disposal

Real estate assets held for saleProceeds from disposal – real estate assetsLess: carrying amount of real estate assets sold/written offNet gain/(loss) on disposal

Financial assets (1)

Proceeds from disposal/redemptions/maturities – financial assetsLess: carrying amount of financial assets sold/redeemed/maturedNet gain/(loss) on disposal

NET GAIN/(LOSS) ON DISPOSAL OF ASSETS

Accounting policy for disposal of assetsThe gain or loss on sale of an asset is determined when control of the asset has irrevocably passed to thebuyer and the asset is derecognised.

Note 6(a). Cash and cash equivalent assets

Cash and cash equivalentsCash on hand and at bankCash-equivalent assets – Deposits at callTotal cash and cash equivalents

Accounting policy for cash and cash equivalentsFor Statement of Cash Flow presentation purposes, cash and cash equivalents includes cash on hand; depositsheld at call with financial institutions; other short-term, highly liquid investments with original maturities of threemonths or less that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value; and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilitieson the Statement of Financial Position.

140

383(156)124

2018

(552)

Notes

9

2017

–

319

–

(1,332)780 –

(86)160

–

12,800

9

(12,800)

(32)(64)

112(28)

(14,300)

500

532

1,032

(121) 43

14,300

954

7031,657

–

8

6

75

page 27


Oberon Council


Note 6(b). Investments

$ ’000

Investmentsa. ‘Held to maturity’Total investments

TOTAL CASH ASSETS, CASHEQUIVALENTS AND INVESTMENTS

Held to maturity investmentsLong term depositsOther long term financial assetsTotal

Accounting policy for investments

ClassificationCouncil classifies its financial assets in the following categories: financial assets at fair value through profit orloss; loans and receivables; held-to-maturity investments; and available-for-sale financial assets. Theclassification depends on the purpose for which the investments were acquired. Management determines theclassification of its investments at initial recognition and, in the case of assets classified as held-to-maturity,re-evaluates this designation at each reporting date.

(a) Held to maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturities that Council’s management has the positive intention and ability to hold to maturity. Assets in thiscategory are measured at amortised cost.

Recognition and de-recognitionRegular purchases and sales of financial assets are recognised on trade-date: the date on which Councilcommits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costsfor all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value throughprofit or loss are initially recognised at fair value and transaction costs are expensed in the income statement.Investments are derecognised when the rights to receive cash flows from the financial assets have expired orhave been transferred and Council has transferred substantially all the risks and rewards of ownership.

When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised inequity are included in the income statement as gains and losses from investment securities.

Impairment of available for sale investmentsIn the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fairvalue of the security below its cost is considered an indicator that the assets are impaired.

11,800

Non-current

15,332

Current

–14,30014,300

2018

11,800

Non-current

–

20172018

14,300

––

14,300700

–

2017

–

–13,457–

–

11,100–

11,800–

–

Current

–

page 28


Oberon Council


Note 6(c). Restricted cash, cash equivalents and investments – details

$ ’000

Total cash, cash equivalentsand investments

attributable to:External restrictions (refer below)Internal restrictions (refer below)Unrestricted

$ ’000

Details of restrictions

External restrictions – otherDeveloper contributionsSpecific purpose unexpended grantsWater suppliesSewerage servicesDomestic waste managementTown improvementsOther LIRS loanExternal restrictions – otherTotal external restrictions

–1,092

6,6997,981

15,332

7,002

Non-currentCurrent2018

13,457

7,981

–

–

692

3,282

349

7,981

559

6,699

871

Non-current

2,650

–

13,457

2018

–

Notes 2018

–

Current

15,332

370

2017

717

2017

2017

–

–

6,0416,699

99

259

1,749 1,700

–

–

428

–

929

page 29


Oberon Council


Note 6(c). Restricted cash, cash equivalents and investments – details (continued)

$ ’000

Internal restrictionsPlant and vehicle replacementEmployees leave entitlementCemetery plaquesCommunity grantsCommunity centreCommunity technology centreElectionEngineering instrumentsFAG – 50% 2017-18FinanceGarbage depotGravel pitsLand developmentLibraryOffice equipmentRail crossings updateResidential dwellingsRoad constructionSelf care unitsSwimming poolTourismTotal internal restrictions

TOTAL RESTRICTIONS

2017Notes

38 3829 37

11

6,0417,002

12,740

11

15 15

58 40

1,041 902

278 255

1,309 1,247

57 57

411

850

1,047

829 109

1,047411

2018

745 745

150 150850

14,983

56 49

27 27

8 810 10

7 7

26 26

page 30


Oberon Council


Note 7. Receivables

$ ’000

PurposeRates and annual chargesInterest and extra chargesUser charges and feesPrivate worksAccrued revenues – Interest on investmentsNet GST receivableTotal

Less: provision for impairmentUser charges and feesTotal provision for impairment – receivables

TOTAL NET RECEIVABLES

Externally restricted receivablesWater supply – Rates and availability charges – OtherSewerage services – Rates and availability charges – OtherTotal external restrictionsUnrestricted receivablesTOTAL NET RECEIVABLES

Movement in provision for impairment of receivablesBalance at the beginning of the yearBalance at the end of the year

Accounting policy for receivablesRecognition and measurementLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quotedin an active market. They are included in current assets, except for those with maturities greater than 12 monthsafter the reporting date which are classified as non-current assets. Loans and receivables are included inother receivables (Note 8) and receivables (Note 7) in the Statement of Financial Position. Receivables arerecognised initially at fair value and subsequently measured at amortised cost using the effective interestmethod, less provision for impairment. Receivables are generally due for settlement within 30 days.

Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

–

Current2017

Non-current

50

37805

443

Notes

– 65252

146 –

–

–

1,559

(2)

976

67–

–45

–

–41

2

1,130

2018

–

2

141 –109 –978

Current

–

87

–

–

(2)––(2)

–

–80

–

47

–

–

– ––

1,557 –

–

–

Non-current

364

2

427763

976

37

–

67

228

(2)

––213

–

–

2017

2

–

2018

68

1,557

page 31


Oberon Council


Note 7. Receivables (continued)

Accounting policy for receivables (continued)ImpairmentFor loans and receivables the amount of the loss is measured as the difference between the asset’s carryingamount and the present value of estimated future cash flows (excluding future credit losses that have not beenincurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset isreduced and the amount of the loss is recognised in profit or loss.

Collectability of receivables is reviewed on an on-going basis. Debts that are known to be uncollectible are writtenoff by reducing the carrying amount directly. An allowance account (provision for impairment of receivables) isused when there is objective evidence that Council will not be able to collect all amounts due according to theoriginal terms of the receivables.

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financialreorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicatorsthat the receivable is impaired. When a receivable for which an impairment allowance had been recognisedbecomes uncollectable in a subsequent period it is written off against the allowance account. Subsequentrecoveries of amounts previously written off are credited against other expenses in the Income statement.

2018 2017

page 32


Oberon Council


Note 8. Inventories and other assets

$ ’000

(a) Inventories

Inventories at costReal estate for resale(refer below)Stores and materialsTrading stockTotal inventories at cost

TOTAL INVENTORIES

(b) Other assets

PrepaymentsTOTAL OTHER ASSETS

Externally restricted assets

WaterStores and materialsTotal water

SewerageStores and materialsTotal sewerage

Total externally restricted assetsTotal unrestricted assetsTOTAL INVENTORIES AND OTHER ASSETS

Notes

12

Current

781

––

–

––

2017

–

–

–

7

987

8686

–

– –

(320)–

–1,073

169788

1,073 788169

–

–

–

–

7

–

279

––

115

169

205

781

–

205

–

Non-current

169

10

Non-current

115

–

–

Current2018

–

987

320

428

–

169

546 492

–

page 33


Oberon Council


Note 8. Inventories and other assets (continued)

$ ’000

(i) Other disclosures

(a) Details for real estate developmentResidentialTotal real estate for resale(Valued at the lower of cost and net realisable value)

Represented by:Acquisition costsTotal costsTotal real estate for resale

Movements:Real estate assets at beginning of the year – Purchases and other costs – WDV of sales (expense)Total real estate for resale

(b) Current assets not anticipated to be settled within the next 12 monthsThe following inventories and other assets, even though classifiedas current are not expected to be recovered in the next 12 months;

Real estate for resale

Accounting policyRaw materials and stores, work in progress and finished goodsRaw materials and stores, work in progress and finished goods are stated at the lower of cost and netrealisable value. Costs are assigned to individual items of inventory on basis of weighted average costs. Costsof purchased inventory are determined after deducting rebates and discounts. Net realisable value is theestimated selling price in the ordinary course of business less the estimated costs of completion and theestimated costs necessary to make the sale.

Inventory held for distributionInventory held for distribution is held at cost, adjusted where applicable for any loss of service potential.

Land held for resale/capitalisation of borrowing costsLand held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specificidentification and includes the cost of acquisition, and development and borrowing costs during development.When development is completed borrowing costs and other holding charges are expensed as incurred.

Borrowing costs included in the cost of land held for resale are those costs that would have been avoided if theexpenditure on the acquisition and development of the land had not been made. Borrowing costs incurred whileactive development is interrupted for extended periods are recognised as expenses.

CurrentNon-currentCurrent

– 492

492

546

–

169

–

(31)(492)–

–

––

199

492

2017

492

492

492

Non-current

286

2018

492–

293

–

546

(86)(28)5

–

169

492

405

169

20172018

546

546

Notes

546546

492

169

169169

169

page 34


Oberon Council


Note 9(a). Infrastructure, property, plant and equipment

Asset class

$ ’000

Capital work in progress 240 – 240 – – – – 647 – – – 887 – 887 Plant and equipment 11,275 5,537 5,738 – 1,330 (64) (682) – – – – 12,540 6,218 6,322 Office equipment 312 264 48 – – – (6) – – – – 312 270 42 Furniture and fittings 248 228 20 – – – (6) – – – – 248 234 14 Land: – Operational land 5,274 – 5,274 – – – – – – – – 5,274 – 5,274 – Community land 8,476 – 8,476 – – – – – – – – 8,476 – 8,476 – Land under roads (post 30/6/08) 8,363 – 8,363 – – – – – – (355) – 8,008 – 8,008 Land improvements – non-depreciable 80 – 80 – – – – – – – – 80 – 80 Land improvements – depreciable 1,019 760 259 – – – (59) – – – – 1,019 819 200 Infrastructure: – Buildings – non-specialised 243 75 168 – – – (2) – – (12) 153 – 153 – Buildings – specialised 18,411 2,574 15,837 843 – (1,332) (145) – – (2,048) 22,081 8,925 13,156 – Other structures 920 236 684 106 – – (50) – – – 1,191 2,649 717 1,932 – Roads 194,791 31,955 162,836 3,064 – – (1,764) – (7) – – 197,847 33,718 164,129 – Bridges 10,747 674 10,073 – – – (107) – – – – 10,747 782 9,965 – Footpaths 3,415 489 2,926 – – – (22) – – – – 3,460 554 2,906 – Bulk earthworks (non-depreciable) 31,627 – 31,627 – – – – – – – – 31,627 – 31,627 – Stormwater drainage 10,619 3,282 7,337 – – – (118) – – – – 10,855 3,636 7,219 – Water supply network 12,916 4,576 8,340 60 – – (258) – – – 118 13,160 4,901 8,259 – Sewerage network 20,232 11,072 9,160 – – – (292) – – – 123 20,513 11,523 8,990 – Swimming pools 1,568 687 881 – – – (30) – – (13) 1,049 210 839 – Other open space/recreational assets 968 254 714 – – – (41) – – – 168 1,136 296 840 Other assets: – Library books 338 309 29 15 – – (10) – – – – 352 319 33 – Other 66 57 9 – – – (5) – – – – 66 61 5Reinstatement, rehabilitation and restorationassets (refer Note 11): – Tip assets 28 10 18 – – – (1) – – – – 28 10 18 – Quarry assets 57 14 43 – – – (2) – – – – 57 17 40TOTAL INFRASTRUCTURE,PROPERTY, PLANT AND EQUIP.

Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets).

Accumulateddepreciation

andimpairment

Grosscarryingamount

Grosscarryingamount

Depreciationexpense

as at 30/6/2017

WIPtransfers

Adjustmentsand transfers

Additionsnew assets

Additionsrenewals

Carryingvalue

of disposals

Revaluationdecrements

to equity (ARR)

Revaluationincrements

to equity (ARR)Net

carryingamount

as at 30/6/2018

Netcarryingamount

Asset movements during the reporting period

Accumulateddepreciation

andimpairment

279,414(2,428) 1,600 352,624 73,210342,233 63,053 279,180 4,088 (1,396)1,330 (3,600) (7)647

page 35


Oberon Council


Note 9(a). Infrastructure, property, plant and equipment (continued)

Accounting policy for infrastructure, property, plant and equipmentInfrastructure, property, plant and equipment are held at fair value. Independent valuations are performed atleast every five years, however the carrying amount of assets is assessed at each reporting date to confirm that it isnot materially different from current fair value.

Water and sewerage network assets are indexed at each reporting period in accordance with the RatesReference Manual issued by Crown Lands and Water (CLAW).

Increases in the carrying amounts arising on revaluation are credited to the asset revaluation reserve. To theextent that the increase reverses a decrease previously recognising profit or loss relating to that asset class, theincrease is first recognised as profit or loss. Decreases that reverse previous increases of assets in the sameclass are first charged against revaluation reserves directly in equity to the extent of the remaining reserveattributable to the class; all other decreases are charged to the Income Statement.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,only when it is probable that future economic benefits associated with the item will flow to Council and the costof the item can be measured reliably. All other repairs and maintenance are charged to the income statementduring the financial period in which they are incurred.

Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocatetheir cost, net of their residual values, over their estimated useful lives as follows:

Plant and equipment Years Other equipment YearsOffice equipment 5 to 10 Playground equipment 5 to 15Office furniture 10 to 20 Benches, seats etc. 10 to 20Computer equipment 4Vehicles 5 to 8 BuildingsHeavy plant/road making equipment 5 to 8 Buildings: masonry 50 to 100Other plant and equipment 5 to 15 Buildings: other 20 to 40

Water and sewer assets Stormwater assetsDams and reservoirs 80 to 100 Drains 80 to 100Bores 20 to 40 Culverts 50 to 80Reticulation pipes: PVC 70 to 80 Flood control structures 80 to 100Reticulation pipes: other 25 to 75Pumps and telemetry 15 to 20

Transportation assets Other infrastructure assetsSealed roads: surface 20 Bulk earthworks 20Sealed roads: structure 50 Swimming pools 50Unsealed roads 20 Unsealed roads 20Bridge: concrete 100 Other open space/recreational assets 20Bridge: other 50 Other infrastructure 20Road pavements 60Kerb, gutter and footpaths 40

page 36


Oberon Council


Note 9(a). Infrastructure, property, plant and equipment (continued)

Accounting policy for infrastructure, property, plant and equipment (continued)The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are includedin the Income statement.

Land under roadsLand under roads is land under roadways and road reserves including land under footpaths, nature strips andmedian strips.

Council has elected to recognise land under roads acquired before 1 July 2008 in accordance with AASB 1051.

Land under roads acquired after 1 July 2008 is recognised in accordance with AASB 116 Property, Plantand Equipment.

Crown reservesCrown Reserves under Council’s care and control are recognised as assets of the Council. While ownership ofthe reserves remains with the Crown, Council retains operational control of the reserves and is responsible fortheir maintenance and use in accordance with the specific purposes to which the reserves are dedicated.Improvements on Crown Reserves are also recorded as assets, while maintenance costs incurred by Counciland revenues relating to the reserves are recognised within Council’s Income Statement.

Rural Fire Service assetsUnder section 119 of the Rural Fire Services Act 1997 (NSW) , “all fire fighting equipment purchased orconstructed wholly or from money to the credit of the Fund is to be vested in the council of the area for or onbehalf of which the fire fighting equipment has been purchased or constructed”.

Until such time as discussions on this matter have concluded and the legislation changed, Council willrecognise rural fire service assets including land, buildings, plant and vehicles.

page 37


Oberon Council


Note 9(b). Externally restricted infrastructure, property, plant and equipment

36,227 16,852 19,375 35,416

2017Gross

carryingamount

Accumulateddepn. and

impairment

Net carryingamount

– – –

–75 41

428

4,649

4

8,68412,916 4,576

1,116

339

9,627

969

311

–

8,340

52

262–

502

13,334

$ ’000

Total sewerage services

Class of asset

Infrastructure

Plant and equipment

Total water supply

Buildings

2018

57

4,901

–27

44

Water supply

Furniture and fittings

8,711

205

WIP

502 258 Plant and equipment

11,52921,440 11,812

Infrastructure26

8,25513,671 4,960

20,514

339

34

240219 26 193

311

– Improvements – depreciable 529

Mobile garbage bins 65 60

31115

244

28

Domestic waste management

115

1

8,985

Other structures6

21

Sewerage services

13,156

Buildings

WIP 205 –

219

Total DWM 1,116

11

Land – Operational land

30

969 –

Grosscarryingamount

Accumulateddepn. and

impairment

Net carryingamount

79 1,037

41

193

16,062 19,354TOTAL RESTRICTED IPP&E

42

11,338

21

20,245 11,07220,966

30

9,173

96910

9,628

969

65 56 975 1,041

–

9

–

page 38


Oberon Council


Note 10. Payables and borrowings

$ ’000

PayablesGoods and services – operating expenditureAccrued expenses: – Interest – Salaries and wages – Salary RDO accruals – Workers Compensation on ELE's – Other expenditure accrualsSecurity bonds, deposits and retentionsSuperannuationRFSTotal payables

Income received in advancePayments received in advanceTotal income received in advance

BorrowingsLoans – secured 1

Total borrowings

TOTAL PAYABLES AND BORROWINGS

(a) Payables and borrowings relating to restricted assets

Externally restricted assetsWaterSewer

TOTAL PAYABLES AND BORROWINGS

1. Loans are secured over the general rating income of Council Disclosures on liability interest rate risk exposures, fair value disclosures and security can be found in Note 17.

–

171

249

–

–

8

–

–

–732

35

64

84

31

109

–

344

73 –

–

52

3,291

––

64

33

1,241

–

69

67

44

84–

Non-current

3,292

1,305

Current

–

445

3,757

– –

767

–

3,291

–

2018

–

113

9

465

–

Current

445 3,756

1

–

3,756

145

Current

465

–

2017

––

55–

–

–

–

2017

109

–35 1

–

3,757

1,296

2018

–

–

3,292

1

Non-current Current Non-current

1,296

1,296 3,757

Total payables and borrowings relatingto unrestricted assets

Payables and borrowings relating toexternally restricted assets

Total payables and borrowings relatingto restricted assets

311

– –

Non-current

1,305 3,292

page 39


Oberon Council


Note 10. Payables and borrowings (continued)

$ ’000

(b) Current payables and borrowings not anticipated to be settled within the next twelve months

The following payables and borrowings, even though classified as current, are notexpected to be settled in the next 12 months.

Payables – security bonds, deposits and retentions

(c) Changes in liabilities arising from financing activities

Accounting policy for payables and borrowingsPayablesThese amounts represent liabilities for goods and services provided to the Council prior to the end of financialyear that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

BorrowingsBorrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequentlymeasured at amortised cost. Any difference between the proceeds (net of transaction costs) and theredemption amount is recognised in the income statement over the period of the borrowings using the effectiveinterest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of theloan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee isdeferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of thefacility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over theperiod of the facility to which it relates.

Borrowings are removed from the Statement of Financial Position when the obligation specified in the contractis discharged, cancelled or expired. The difference between the carrying amount of a financial liability that hasbeen extinguished or transferred to another party and the consideration paid, including any non-cash assetstransferred or liabilities assumed, is recognised in other income or finance cost.

Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement ofthe liability for at least 12 months after the reporting date.

TOTAL 4,201 (446)

Class ofborrowings

Openingbalance

as at 1/7/17Cash flows Acquisition Fair value

changes

Othernon-cash

movements

Closingbalance

as at 30/6/18

Loans – secured 4,201 –

2018

(446)–

–

2017

3,755

2017

158

3,755

–158

2018

–– ––

Non-cash changes

page 40


Oberon Council


Note 11. Provisions

$ ’000

ProvisionsEmployee benefits:Annual leaveLong service leaveSuperannuation

Asset remediation/restoration:Asset remediation/restoration (future works)

Sub-total – asset remediation/restoration

TOTAL PROVISIONS

(a) Provisions relating to restricted assets

Externally restricted assetsWaterSewer

TOTAL PROVISIONS

$ ’000

(b) Current provisions not anticipated to be settled within the next twelve months

The following provisions, even though classified as current, are notexpected to be settled in the next 12 months.

Provisions – employees benefits

–Provisions relating to externally restrictedassets

Total provisions relating to restrictedassets

329

2017

31– 32

280

946

1,423

63

315

Non-current

1,423

1,407

Current

64 1 62 4

–

–

824–

–

Non-current

–

Non-current

54653667

2017Current

2018Current

–

33

258280 –

–

–

Non-current2018 2017

––

1,007

329

329

31

315 1,4071,360 315

63

2018

Total provisions relating to unrestrictedassets

1,007

799

Current

946

64

34

–

1,344

64

258

page 41


Oberon Council


Note 11. Provisions (continued)

$ ’000

(c) Description of and movements in provisions

At beginning of yearELE Movement

ELE Balance C/Fwd

Other provisions

At beginning of yearChanges to provision:Unwinding of discountOther

Other provisions

At beginning of yearChanges to provision:Unwinding of discount

Assetremediation

–

Total ELE provisions atend of year

536

Annual leave TotalSick leave

–1,478

(8)

858

ELE provisions

1,458–

–

Annual leave Sick leave Long serviceleave

ELE on-costs

280

– 66 1,478

7 7

866–

2017

546

Other (enterdetailshere...)


(10)

Otheremployee

benefits

ELE provisions

ELE on-costs

Total other provisions atend of year

– 1,478

(1)

Other (enterdetails here...)

– – –

546

(20)

866

65

546

66

–

–

66

280

Self-insurance

23(1) (1)

Otheremployee

benefits Total

251

866 –

–


Assetremediation

251

Self-insurance Total

Total ELE provisions atend of year

2017

Long serviceleave

23

2018 Other (enterdetails here...)

Other (enterdetails here...)

– – – – 258 258

2018

–

Total

Total other provisions atend of year – – – – 258 258

page 42


Oberon Council



Nature and purpose of non-employee benefit provisionsAsset remediationCouncil has a legal/public obligation to make, restore, rehabilitate and reinstate the council tip and quarry.

Accounting policy for provisionsProvisions are recognised when Council has a present legal or constructive obligation as a result of past events,it is probable that an outflow of resources will be required to settle the obligation, and the amount has beenreliably estimated.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement isdetermined by considering the class of obligations as a whole. A provision is recognised even if the likelihoodof an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management’s best estimate of the expenditure required tosettle the present obligation at the reporting date. The discount rate used to determine the present valuereflects current market assessments of the time value of money and the risks specific to the liability. Theincrease in the provision due to the passage of time is recognised as interest expense.

Employee benefitsShort-term obligationsLiabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leaveexpected to be wholly settled within 12 months after the end of the period in which the employees render therelated service are recognised in respect of employees' services up to the end of the reporting period and aremeasured at the amounts expected to be paid when the liabilities are settled. The liability for annual leaveand accumulating sick leave is recognised in the provision for employee benefits. All other short-termemployee benefit obligations are presented as payables.

Other long-term employee benefit obligationsThe liability for long service leave and annual leave that is not expected to be wholly settled within 12 monthsafter the end of the period in which the employees render the related service is recognised in the provision foremployee benefits and measured as the present value of expected future payments to be made in respect ofservices provided by employees up to the end of the reporting period using the projected unit credit method.

Consideration is given to expected future wage and salary levels, experience of employee departures, andperiods of service. Expected future payments are discounted using market yields at the end of the reportingperiod on national government bonds with terms to maturity and currency that match, as closely as possible,the estimated future cash outflows.

The obligations are presented as current liabilities in the Statement of Financial Position if the Council doesnot have an unconditional right to defer settlement for at least 12 months after the reporting date, regardless ofwhen the actual settlement is expected to occur.

page 43


Oberon Council



Provisions for close-down and restoration, and environmental clean-up costs – tips and quarriesRestorationClose down and restoration costs include the dismantling and demolition of infrastructure and the removal ofresidual materials and remediation of disturbed areas. Estimated close down and restoration costs are providedfor in the accounting period when the obligation arising from the related disturbance occurs, whether this occursduring the development or during the operation phase, based on the net present value of estimated future costs.

Provisions for close down and restoration costs do not include any additional obligations which are expected toarise from future disturbance. The costs are estimated on the basis of a closure plan. The cost estimates arecalculated annually during the life of the operation to reflect known developments, eg updated cost estimatesand revisions to the estimated lives of operations, and are subject to formal review at regular intervals

RehabilitationWhere rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure,provision is made for the estimated outstanding continuous rehabilitation work at each reporting date and thecost is charged to the Income Statement.

Provision is made for the estimated present value of the costs of environmental clean up obligations outstandingat the reporting date. These costs are charged to the Income Statement. Movements in the environmental cleanup provisions are presented as an operating cost, except for the unwinding of the discount which is shown as aborrowing cost.

Remediation procedures generally commence soon after the time the damage, remediation processand estimated remediation costs become known, but may continue for many years depending on the nature ofthe disturbance and the remediation techniques.

As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary inresponse to many factors including changes to the relevant legal requirements, the emergence of newrestoration techniques or experience at other locations. The expected timing of expenditure can also change, forexample in response to changes in quarry reserves or production rates. As a result there could be significantadjustments to the provision for close down and restoration and environmental clean up, which would affectfuture financial results.

Other movements in the provisions for close down and restoration costs, including those resulting from newdisturbance, updated cost estimates, changes to the estimated lives of operations and revisions to discountrates are capitalised within property, plant and equipment. These costs are then depreciated over the lives of theassets to which they relate.

Close down and restoration costs are a normal consequence of tip and quarry operations, and the majority ofclose down and restoration expenditure is incurred at the end of the life of the operations. Although the ultimatecost to be incurred is uncertain, Council estimates the respective costs based on feasibility and engineeringstudies using current restoration standards and techniques.

Note 12. Accumulated surplus, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors

Nature and purpose of reserves

Infrastructure, property, plant and equipment revaluation reserveThe infrastructure, property, plant and equipment revaluation reserve is used to record increments /decrements of non-current asset values due to their revaluation.

Changes in accounting policies, changes in accounting estimates and errorsThere has been no changes in accounting policies, or changes in accounting estimates and errors.

page 44


Oberon Council


Note 13. Statement of cash flows – additional information

$ ’000

(a) Reconciliation of cash assets

Total cash and cash equivalent assetsBalance as per the Statement of Cash Flows

(b) Reconciliation of net operating result to cash provided from operating activities

Net operating result from Income StatementAdjust for non-cash items:Depreciation and amortisationNet losses/(gains) on disposal of assetsUnwinding of discount rates on reinstatement provisions

+/- Movement in operating assets and liabilities and other cash items:Decrease/(increase) in receivablesIncrease/(decrease) in provision for doubtful debtsDecrease/(increase) in inventoriesDecrease/(increase) in other assetsIncrease/(decrease) in payablesIncrease/(decrease) in other accrued expenses payableIncrease/(decrease) in other liabilitiesIncrease/(decrease) in employee leave entitlementsIncrease/(decrease) in other provisionsNet cash provided from/(used in)operating activities from the Statement of Cash Flows

6a

91

Notes

1,032

(2)

23

111112

7,982

(1)

(28)

2017

1,032

(43)1213,600

2018

1,657

4,088

1,657

(9)6

0

(95)(79)

(0)

113

6,989

(580)

(20) 53

(112)

(151)

7

4,435

3,333

page 45


Oberon Council


Note 14. Interests in other entities

$ ’000

Associates

Aggregate carrying amount of individually immaterial Associate

Aggregate amounts of Council’s share of individually immaterial:Profit/(loss) from continuing operationsTotal comprehensive income – individually immaterial Associate

The nature and extent of significant restrictions relating to AssociatesCouncil is a member of the Upper Macquarie County Council (which is a body incorporated under the LocalGovernment Act):

The County Council is a noxious weeds control authority...

Council is of the opinion that at 25% it has influence over the County Council and has deemed it as an Associate.The Council's share of the operations of the Country Council were not completed prior to the audit of thesefinancial statements. Council therefore has not accounted for this associate within these financial statements.This disclosure note is based on the "Draft" 2018 Statements of the Associate only.The necessary adjustments to incorporate this Associate will be taken in the 2019 Statements.

14

2017

148

231 223

8

2018

page 46


Oberon Council


Note 15. Commitments for expenditure

$ ’000

(a) Capital commitments (exclusive of GST)

Capital expenditure committed for at the reporting date but notrecognised in the financial statements as liabilities:

Property, plant and equipmentOther – Replacement RollersTotal commitments

These expenditures are payable as follows:Within the next yearTotal payable

Sources for funding of capital commitments:Unrestricted general fundsTotal sources of funding

(b) Finance lease commitments

(i) Commitments under finance leases at the reporting date are payable as follows:

Within the next yearTotal minimum lease paymentsAmount recognised as a liabilityWithin the next yearTotal non-cancellable operating lease commitments

245

245

245

–

2018

4–

4

––

2017

–

245–

245

–4

––

–

4

245

4

page 47


Oberon Council


Note 16. Contingencies and other liabilities/assets not recognised

The following assets and liabilities do not qualify for recognition in the Statement of Financial Position, but theirknowledge and disclosure is considered relevant to the users of Council’s financial report.

LIABILITIES NOT RECOGNISED:

1. Guarantees

(i) Defined benefit superannuation contribution plans

Council participates in an employer-sponsored defined benefit superannuation scheme, and makes contributionsas determined by the superannuation scheme’s trustees.

Member councils bear responsibility of ensuring there are sufficient funds available to pay out the required benefitsas they fall due.

The schemes most recent full actuarial review indicated that the net assets of the scheme were not sufficient tomeet the accrued benefits of the schemes defined benefit member category with member councils required to makesignificantly higher contributions in future years.

The Local Government Superannuation Scheme however is unable to provide Council with an accurate estimate ofits share of the net deficit and accordingly Council has not recorded any net liability from its defined benefit schemeobligations in accordance with AASB 119.

Future contributions made to the defined benefit scheme to rectify the net deficit position will be recognised as anexpense when they become payable – similar to the accounting for defined contributions plans.

(ii) Statewide Limited

Council is a member of Statewide Mutual, a mutual pool scheme providing liability insurance to local government.

Membership includes the potential to share in either the net assets or liabilities of the fund depending on its pastperformance. Council’s share of the net assets or liabilities reflects Council’s contributions to the pool and the resultof insurance claims within each of the fund years.

The future realisation and finalisation of claims incurred but not reported to 30/6 this year may result in futureliabilities or benefits as a result of past events that Council will be required to fund or share in respectively.

(iii) StateCover Limited

Council is a member of StateCover Mutual Limited and holds a partly paid share in the entity.

StateCover is a company providing workers compensation insurance cover to the NSW local government industryand specifically Council.

page 48


Oberon Council


Note 16. Contingencies and other liabilities/assets not recognised (continued)

LIABILITIES NOT RECOGNISED (continued):

1. Guarantees (continued)

(iii) StateCover Limited (continued)

Council has a contingent liability to contribute further equity in the event of the erosion of the company’s capitalbase as a result of the company’s past performance and/or claims experience or as a result of any increasedprudential requirements from APRA.

These future equity contributions would be required to maintain the company’s minimum level of net assets inaccordance with its licence requirements.

(iv) Other guarantees

Council has provided no other guarantees other than those listed above.

2. Other liabilities

(i) Third party claims

The Council is involved from time to time in various claims incidental to the ordinary course of business includingclaims for damages relating to its services.

Council believes that it is appropriately covered for all claims through its insurance coverage and does not expectany material liabilities to eventuate.

page 49


Oberon Council


Note 17. Financial risk management

$ ’000

Risk management

Council’s activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity riskand (4) interest rate risk.

The Council’s overall risk management program focuses on the unpredictability of financial markets and seeksto minimise potential adverse effects on the financial performance of the Council.

Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreigncurrency risk.

Financial risk management is carried out by Council’s finance section under policies approved by the Council.

A comparison by category of the carrying amounts and fair values of Council’s financial assets and financialliabilities recognised in the financial statements is presented below.

Financial assetsCash and cash equivalentsInvestments – ‘Held to maturity’ReceivablesTotal financial assets

Financial liabilitiesPayablesLoans/advancesTotal financial liabilities

Fair value is determined as follows:

– Cash and cash equivalents, receivables, payables – are estimated to be the carrying value that approximatesmarket value.

– Borrowings and held-to-maturity investments – are based upon estimated future cash flows discounted by the current mkt interest rates applicable to assets and liabilities with similar risk profiles, unless quoted market prices are available.

– Financial assets classified (i) ‘at fair value through profit and loss’ or (ii) ‘available-for-sale’ – are based upon quoted market prices (in active markets for identical investments) at the reporting date or independent valuation.

4,2014,969

733

16,889

4,488

1,032

2018

1,55811,800

2017Fair value

9761,55714,432

4,488 4,843

1,657 1,657

4,201733

3,755642

14,300

3,755

14,433

768

16,890

14,300

2018

975

1,032

11,800

2017Carrying value

page 50


Oberon Council


Note 17. Financial risk management (continued)

$ ’000

Council’s objective is to maximise its return on cash and investments whilst maintaining an adequate level ofliquidity and preserving capital.

Council’s finance area manages the cash and Investments portfolio with the assistance of independentadvisors.

Council has an investment policy which complies with the Local Government Act 1993 and MinisterialInvestment Order 625. This policy is regularly reviewed by Council and its staff and a monthly Investment reportis provided to Council setting out the make-up and performance of the portfolio as required by LocalGovernment regulations.

The risks associated with the investments held are:

– Price risk – the risk that the capital value of Investments may fluctuate due to changes in market prices, whether there changes are caused by factors specific to individual financial instruments or their issuers or are caused by factors affecting similar instruments traded in a market.

– Interest rate risk – the risk that movements in interest rates could affect returns and income.

– Credit risk – the risk that the investment counterparty will not complete their obligations particular to a financial instrument, resulting in a financial loss to Council – be it of a capital or income nature.

Council manages these risks (amongst other measures) by diversifying its portfolio and only purchasinginvestments with high credit ratings or capital guarantees.

Council also seeks advice from independent advisers before placing any funds in cash equivalents andinvestments.

(a) Market risk – price risk and interest rate risk

The following represents a summary of the sensitivity of Council’s Income Statement and accumulated surplus(for the reporting period) due to a change in either the price of a financial asset or the interest rates applicable.

It is assumed that the change in interest rates would have been constant throughout the reporting period.

2018Possible impact of a 10% movement in market valuesPossible impact of a 1% movement in interest rates

2017Possible impact of a 10% movement in market valuesPossible impact of a 1% movement in interest rates (90)91

(90)

(75)75

75 (75)

(90)

75

Increase of values/rates

9175

Profit(75)(90)90

EquityDecrease of values/rates

(75)

Profit

90

Equity

page 51


Oberon Council



$ ’000

(b) Credit risk

Council’s major receivables comprise (i) rates and annual charges and (ii) user charges and fees.

The major risk associated with these receivables is credit risk – the risk that debts due and payable to Councilmay not be repaid in full.

Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures.It also encourages ratepayers to pay their rates by the due date through incentives.

Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the landrelating to the debts – that is, the land can be sold to recover the debt. Council is also able to charge intereston overdue rates and annual charges at higher than market rates which further encourages the payment of debt.There are no significant concentrations of credit risk, whether through exposure to individual customers,specific industry sectors and/or regions.

The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored foracceptable collection performance.

Council makes suitable provision for doubtful receivables as required and carries out credit checks on mostnon-rate debtors.

There are no material receivables that have been subjected to a re-negotiation of repayment terms.

A profile of Council’s receivables credit risk at balance date follows:

(i) Ageing of receivables – %Current (not yet overdue)Overdue

(ii) Ageing of receivables – valueRates and annual chargesCurrent< 1 year overdue1 – 2 years overdue2 – 5 years overdue> 5 years overdue

Other receivablesCurrent0 – 30 days overdue31 – 60 days overdue61 – 90 days overdue> 91 days overdue

614

100%9%

268

76%

annualRates and

343

23%

2018

26%

receivableschargesannual

Rates and2017

charges

9

31

848

18

Other

2018

2018

1,116

204

74%

5

100%

receivables

523

34

20

77%

2017

100%

7

364

80

413

–

55

Other

11

55443

9

100%24%

2017

91%

page 52


Oberon Council



$ ’000

(c) Liquidity risk

Payables and borrowings are both subject to liquidity risk – the risk that insufficient funds may be on handto meet payment obligations as and when they fall due.

Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining anadequate cash buffer.

Payment terms can (in extenuating circumstances) also be extended and overdraft facilities utilised as required.

Borrowings are also subject to interest rate risk – the risk that movements in interest rates could adverselyaffect funding costs and debt servicing requirements. Council manages this risk by borrowing long term andfixing the interest rate on a 4-year renewal basis. The Finance Section regularly reviews interest ratemovements to determine if it would be advantageous to refinance or renegotiate part or all of the loan portfolio.

The contractual undiscounted cash outflows (ie. principal and interest) of Council’s payables and borrowingsare set out in the maturity table below:

$ ’000

Trade/other payablesLoans and advancesTotal financial liabilities

Trade/other payablesLoans and advancesTotal financial liabilities 55

3.60%

interest rateaverage

3,755

2018

4,969

Weighted

7684,201

2017

4,488

1,760

361,992 4,2014.28%

-1,760

171

cashTotal

2,6492,691 4,444660

outflows

768

660 3,755

-

42

55

≤ 1 Yearmaturity

-

payable in:1 – 5 Years > 5 Years

to no

689 733

values

Subject

2,028

carryingActual

677

1,126449

4,969

476446922

171-

page 53


Oberon Council


Note 18. Material budget variations

$ ’000

While the Income Statement included in this General Purpose Financial Report must disclose the originalbudget adopted by Council, the Local Government Act 1993 requires Council to review its financial budgeton a quarterly basis, so that it is able to manage the various variations between actuals versus budget thatinvariably occur throughout the year.

This note sets out the details of material variations between Council’s original budget and its actualresults for the year as per the Income Statement – even though such variations may have been adjusted forduring each quarterly budget review.

Note that for variations* of budget to actual :Material variations represent those variances that amount to 10% or more of the original budgeted figure.F = Favourable budget variation, U = Unfavourable budget variation

$ ’000

REVENUESRates and annual charges

User charges and feesDrought conditions has resulted in increased water usage

Interest and investment revenueA result of a change in the in the S&P credit ratings as well as a slight decrease in BBSW points and a reduction ininterest yeilds available has see a decrease in interest revenue

Other revenuesOriginal budget included provision for FESL reimbursment which was subsequently removed by the NSW StateGovernment

Operating grants and contributionsRound 1 of Stronger Country Communities Fund not budgeted plus the movement in 2017-18 and 2018-19 FAGadvanced payment

Capital grants and contributions

Net gains from disposal of assetsThe write off of the residual value from the sale of a council building exceeded the sale price which resulted in aloss from disposal of assets.

F

26%

165

330 (11%)

6,588

(7%)

U

(36)468 U

5,304

U

1,368

5,411

5,220

Budget ---------- Variance* ----------

4,734

107

Council’s original financial budget for 17/18 was adopted by the Council on dd/mm/yy and is not required to beaudited.

F

(350) (100%)

5,812

350

23%

–

(4%)

505

1,078

157

371 (41)

(7)

U

2018 20182018

2% F

Actual

page 54


Oberon Council


Note 18. Material budget variations (continued)

$ ’000

EXPENSESEmployee benefits and on-costs

Borrowing costs

Materials and contractsIncrease in water purchases due to drought, increased costs in purchase of chemicals for sewer plant as wellas costs relating to the Round 1 of Stronger Country Communities Fund

Depreciation and amortisationRevaluation of Buildings plus water and sewer incrementation increase has seen an increase in depreciation overthe live of the assets

Other expenses

Net losses from disposal of assetsThe write off of the residual value from the sale of a council building exceeded the sale price which resulted in aloss from disposal of assets.

Budget variations relating to Council’s Cash Flow Statement include:

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

U

F

(810)

200

2,337

(7,168) U

14

1%

6%

3,147

F

121

3,222

–

121

2,449

0%

12

(12%)

(35%)

2195,1735,393

(3.1%)

19.5%

(446)

(6,000) (1,168)

25

6,867 6,989 F1.8%

2,474

F(460)

(121)

(377) U3,600

F188

2018

U

---------- Variance* ----------

4%

Budget Actual2018 2018

page 55


Oberon Council


Note 19. Fair value measurement

$ ’000

The Council measures the following asset and liability classes at fair value on a recurring basis:

– Infrastructure, property, plant and equipment– Financial assets and liabilities

(1) The following table presents all assets and liabilities that have been measured and recognised at fair values:

2018

Recurring fair value measurements

Financial assetsInvestments– ‘Held for trading’ReceivablesTotal financial assets

Infrastructure, property, plant and equipmentPlant and equipmentOffice equipmentFurniture and fittingsOperational landCommunity landLand improvementsBuildingsOther structuresLand under roadsBulk earth worksRoadsBridgesFootpathsStormwater drainageWater supply networkSewerage networkSwimming poolsOpen space/recreation assetsLibrary books and otherGravel pitsGarbage tipsOtherTotal infrastructure, property, plant and equipment

30/06/18 – –30/06/18 – – 164,128 164,128

839 83930/06/18 – – 8,990 8,99030/06/1830/06/18 –30/06/18 –

– –

– – 18 18– – 57

– 7,219

30/06/18

8,259 8,259

57– – 19

7,219

9,965 9,965

30/06/18

30/06/18

30/06/18 –

– – 8,476

– 5 530/06/1830/06/1830/06/18 19

– 2,905 2,905

30/06/18 – – 840 84030/06/18 – –

6,322–

8,008

– 4214 14

– 42

– – 5,274 5,274

31,627

8,476

–

–

––

278 278

– – 31,627

278,525

prices in observableDate

– 15,858 – 15,8581,558

30/06/18 – 14,300

inputsactive mkts

14,3001,558 –

30/06/18

Quoted Significant

Fair value measurement hierarchyLevel 1 Level 2

Significant

–

Level 3 Total

valuation inputs

30/06/18 –

8,008

– – 13,309 13,3091,9311,931– –

–

–

6,322

30/06/18 –

–

30/06/1830/06/18

30/06/18

30/06/1830/06/18

unobservable

278,525

of latest

–

page 56


Oberon Council


Note 19. Fair value measurement (continued)

$ ’000

(1) The following table presents all assets and liabilities that have been measured and recognised at fair values:

2017

Recurring fair value measurements

Financial assetsInvestments– ‘Held for trading’– ‘Held for maturity’ReceivablesTotal financial assets

Infrastructure, property, plant and equipmentPlant and equipmentOffice equipmentFurniture and fittingsOperational landCommunity landLand improvementsBuildingsOther structuresLand under roadsBulk earth worksRoadsBridgesFootpathsStormwater drainageWater supply networkSewerage networkSwimming poolsOpen space/recreation assetsLibrary books and otherGravel pitsGarbage tipsOtherTotal infrastructure, property, plant and equipment

(2) Transfers between level 1 and level 2 fair value hierarchies

During the year, there were no transfers between level 1 and level 2 fair value hierarchies for recurring fairvalue measurements.

30/06/17 – 700

8,36330/06/16 –

– – 2,927 2,92730/06/15 –

–

30/06/1630/06/16 – –

–30/06/15 –

12,775 –

inputs

30/06/15

– – 20

88130/06/17

30/06/15 – –

30/06/15 – – 31,627 31,62730/06/16 – – 8,363

975

8,33730/06/15 – – 7,337 7,337

– 881

– 8,337

29 2930/06/16 – –

162,837 162,837

– 684 684

30/06/16

278,938

714 714

– 18 18

– – 278,938

– – 5,274 5,274

–– 9,160 9,160

––

8,476 8,476

–

Quotedunobservable

339

– 9

30/06/15 – –

Date

30/06/15

active mkts

48

inputsprices in observable

30/06/17

30/06/17– 700

–

42 4230/06/15 –

30/06/17

20

12,775–

48

–

30/06/15

10,072 10,072

9

30/06/16 – –– – 16,005 16,00530/06/16

–

valuation

– 11,100

30/06/15 – – 5,739 5,739

Total

11,100

975

Level 1 Level 2Significant

30/06/15 –

–

SignificantLevel 3

Fair value measurement hierarchy

339

of latest

page 57


Oberon Council



(3) Valuation techniques used to derive level 2 and level 3 fair values

Where Council is unable to derive fair valuations using quoted market prices of identical assets (ie. level 1 inputs), Council instead utilises a spread of both observableinputs (level 2 inputs) and unobservable inputs (level 3 inputs).

The fair valuation techniques Council has employed while utilising level 2 and level 3 inputs are as follows:

Financial assets

Held to Maturity – Long term asset valued at fair valueValuation Technique: ‘Cost approach’Inputs Used (Level 2): Original investment value

Loans & Receivables - Term deposits valued at fair valueValuation Technique: ‘Cost approach’Inputs Used (Level 2): Original investment value

Receivables - Valued using the cost approachValuation Technique: ‘Cost approach’Inputs Used (Level 2): Cost of product or service

Financial liabilities

Payables - Outstanding creditor payments, security bonds & depositsValuation Technique: ‘Cost approach’Inputs Used (Level 2): Cost of product or service

Loans / Advances - Valued using the cost approachValuation Technique: ‘Cost approach’Inputs Used (Level 2): Loan borrowing amount

page 58


Oberon Council



(3) Valuation techniques used to derive level 2 and level 3 fair values (continued)

Infrastructure, property, plant and equipment

Plant and Equipment – Major plant (graders, loaders trucks etc.), fleet vehicles (cars, utes etc.) and minor plant (chainsaws, mowers etc.)Valuation Techniques: ‘Cost approach’Inputs Used (Level 3): Purchase price, useful lives (current replacement cost)

Office Equipment – Computers, printers etcValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Purchase price, useful lives (current replacement cost)

Furniture and Fittings – Desks, chairs, air conditioners, etcValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Purchase price, useful lives (current replacement cost)

Operational Land – Industrial land, quarries, residential aged care unitsValuation Techniques: ‘Market approach’Inputs Used (Level 3): Land area, rate per square metre, zoning restrictions, geographical location, sales of comparable landThe valuation of the freehold land has been carried out on a Market Value basis and they have been assessed on the basis of the estimated amount which the interestin each property being valued might reasonably be expected to realise on the date of valuation in an exchange between a willing vendor and a willing purchaser inan arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

With regard to the above, Council's Valuer APV Valuers & Asset Management analysed sales of land throughout Oberon and surrounding Council areas and adopteda rate per square metre, after taking into consideration zoning, location, area and configuration.

page 59


Oberon Council




Infrastructure, property, plant and equipment (continued)

Community Land – Parkland, sporting grounds, reserves, land under public buildings (halls & community centres)Valuation Techniques: ‘Cost approach’Inputs Used (Level 3): The NSW Valuer General’s valuations

Council's community land is land intended for public access and use, or where other restrictions applying to the land create some obligation to maintain public access(such as a trust deed, or dedication under section 94 of the Environmental Planning and Assessment Act 1979). This gives rise to the restrictions in the Act, intended topreserve the qualities of the land.Community Land:· Cannot be sold· Cannot be leased, licensed, or any other estate granted over the land for more than 21 years and· Must have a plan of management for it.

In relation to the valuing of Community Land the Office of Local Government has authorised the use of the NSW Valuer General’s valuations as a sufficient basis torepresent fair value for the revaluation of community land under clause 31 of AASB 116.

Depreciable Land ImprovementsValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Unit rates, purchase price, useful lives

Buildings (Specialised/Non Specialised) – Community halls, toilet blocks, council offices, library, works depotValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Unit rates, useful life, asset condition

Council’s buildings were valued at fair value on 30th June 2013 in accordance with Compiled Accounting Standard AASB116 Property, Plant and Equipment.Councils buildings were valued by APV Valuers & Asset Management (APV). APV valuations were calculated by determining the Gross Current Replacement Cost anddetermining the amount of accumulated depreciation to reflect the level of service potential remaining in the asset. Assessed on the basis of replacement with a newasset having similar service potential and includes allowances for preliminaries and professional fees.

page 60


Oberon Council





Roads – Road surface, pavement, formation, major earthworksValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Unit rates, useful life/remaining life, asset condition, length

Councils roads infrastructure assets were segmented and componentised into the following categories (each representing a significant part of the overall asset):· Road Surface· Pavement· Formation & Major Earthworks· Kerb and Gutter

GPS logged to establish the length and extent of the network. Road terminuses (extent of Council maintenance activities) were taken as the measure of OC asset length.Seal widths (sealed roads) were taken from full condition assessment (undertaken by IMG Data and OC staff).

The pavement width of each segment was an additional 1m on each side of the Seal (e.g. Seal of 6 m was measured to have an 8m wide pavement).

Unit rates for formation, pavement and sealing were based on the Rawlinson’s; Construction Cost Guide 2015, Edition 18. These rates were verified against recent actualrates from OC road works. Unit rates are assumed to be for an undulating topography, as this represents the majority of road corridors in the Shire. The slightly steepergrades are assumed to be countered by the substantially longer corridors of flat to slightly undulating topography.

Formation widths for sealed roads was assumed to be an additional 1m on each side of pavement width.

Kerb and GutterUnit rates for Kerb and Gutter are all based on average cost of previous works.

page 61


Oberon Council





BridgesValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Unit rates, useful life, asset condition, dimension and specifications (concrete/timber), bridge traffic

Councils bridge infrastructure assets were last valued on 30 June 2015.

Condition assessment for bridges was provided by Bridge Check Australia Pty Ltd, valuation was based on observed defects, but does not include core sampling or tensiletesting of any components.Bridge values were determined on the basis of a square metre (of deck) rate. This was in part because council does not possess sufficient detail on the individualcomponents of individual bridges, or their respective conditions.

Footpaths – Footways including cyclewaysValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Unit rates, useful life, asset condition, dimensions and specifications (concrete/bitumen)

Footpaths assets were valued in-house as at 30 June 2015. Aerial imagery was used to calculate the length of Councils footpath/cycleway network combined with anextensive inspection program. In-house unit rates were developed using recent construction data providing a square metre rate which was then applied across the network.Condition data (captured through the inspection program) was then applied to each individual asset segment to provide a written down value.

Stormwater Drainage – includes pits, pipesValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Unit rates, useful life, asset condition, dimensions and specifications

A register of stormwater drainage was developed using in-house field observations and a valuation was carried out as of 30 June 2015. The level of capture is estimated tobe around 85% to 95%, as by its nature Urban Stormwater drainage is difficult to locate and Oberon Council does not have complete records of drainage installed.

Unit Rates for stormwater pits, pipes etc. were determined by estimates of previous work.

page 62


Oberon Council





Sewerage Network – Sewer pipes, pump stations, treatment plant, telemetry system, manholesValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Unit rates, useful life, asset condition, dimensions and specifications

Councils Sewer Network was valued by CPE Associates as at 30 June 2012. The valuation was based on the NSW Office of Water’s NSW Reference Rates Tablesissued in July 2012, a supplement to the former Ministry of Energy and Utilities’ 2003 document NSW Reference Rates Manual: Valuation of Water Supply, Sewerageand Stormwater Assets. Valuations in the updated tables are for June 2012.

CPEa conducted a field survey, involving a physical inspection of the ground-level facility assets in the system such as treatment plants, pumping stations and effluentreuse reservoir.

The object of the survey was to uncover any evidence that will challenge the default useful life for that asset class such as corrosion (or lack of), obviousmechanical/electrical defects or structural damage. Field survey sheets were completed and a photographic record also was made.

Tip and Quarry Assets – Reinstatement, rehabilitation and restorationValuation Techniques: ‘Cost approach’Inputs Used (Level 3): Unit rates, useful life, asset condition, dimensions and specifications

page 63


Oberon Council



$ ’000

(4). Fair value measurements using significant unobservable inputs (level 3)

a. The following tables present the changes in level 3 fair value asset classes.

Opening balance – 30/6/17

Transfers from/(to) another asset classPurchases (GBV)Disposals (WDV)Depreciation and impairmentFV Adjustments to Equity

Closing balance – 30/6/18




Plant andequipment

Officeequipment

Furnitureand fittings

Operationalland

Communityland

Landimproveme

nts BuildingsOther

structures

Land underroads

Bulkearthworks Roads Bridges Footpaths

Streetfurniture

Kerb andgutter

Stormwaterdrainage

– –

–

(21) (155) (21)– – (7) – – –

(118)

158,883

– – – – – – – – –– – 3,064 – – – – 3,064

– – (7)– – (1,588) (108)

–

146,322

– – – –1,330 –

31,627

16,005

42

5,738 20 5,274 36,5838,47647

Total

2,280(64) – –

–

684339

(1,396)–––

– ––

843(1,332)

(682) (6) (6) – (950)

–

Total

8,363 157,414 10,073 2,927 3,692 1,730

–

1,932

–107

–(50)– (59) (147)

– – (869)

280 35,6488,4765,274 13,309

– 1,191– (2,060)–

8,008

7,337 223,162

(2,011)(355) – – – – – – (355)–

9,965 2,906 3,537 1,709 7,219 223,85431,627page 64


Oberon Council



$ ’000

(4). Fair value measurements using significant unobservable inputs (level 3) continued

a. The following tables present the changes in level 3 fair value asset classes. (continued)




(5). Highest and best use

All of Council’s non-financial assets are considered to being utilised for their highest and best use.

Watersupply

Seweragenetwork

Swimmingpool

Open space/ recreation

assetsOther

assets Tip Quarry

881 714 38 18 43 19,192

–

– 8,339 9,159

TotalhereclassAsset

(639)– – – – – –

(258)– –

–– – – – 15 – – 75– – – – – –

60– –

– (292) (30) (41) (15) (1) (3)

– 8,259 841 38 188,990 838 41

396118– 123 (13) 168 – – –

19,024

page 65


Oberon Council


Note 20. Related party transactions

$ ’000

a. Key management personnel

Key management personnel (KMP) of the Council are those persons having the authority and responsibility for planning, directing and controlling the activities of thecouncil, directly or indirectly.

The aggregate amount of KMP compensation included in the Income Statement is:

Compensation:Short-term benefitsOther long-term benefitsTermination benefitsTotal

–1,108,744

2018854,510254,234

20171,034,390

299,03340,627

1,374,050

page 66


Oberon Council


Note 20. Related party transactions (continued)

b. Other transactions with KMP and their related parties

Council has determined that transactions at arm’s length between KMP and Council as part of Council delivering a public service objective (e.g. access to libraryor Council swimming pool by KMP) will not be disclosed.

Nature of the transaction

2018Oberon ConcreteOberon Earthmoving

2017Oberon ConcreteOberon Earthmoving

At arms length market value - -# 511,000 - At arms length market value - -

Ref Actual $ Actual $ Actual $ Actual $# 50,000 -

# 134,477 - At arms length market value - -# 15,360 - At arms length market value - -

Ref Actual $ Actual $ Actual $ Actual $

during year (incl. loans and debts expensecommitments) outstanding recognised

Terms and conditions Provisions Doubtfultransactions balance for doubtful debts

Value of Outstanding

page 67


Oberon Council


Note 21. Statement of developer contributions

$ ’000

Under the Environmental Planning and Assessment Act 1979 , Council has significant obligations to provide Section 7.11 (contributions towards provision orimprovement of amenities or services) infrastructure in new release areas.

It is possible that the funds contributed may be less than the cost of this infrastructure, requiring Council to borrow or use general revenue to fund the difference.

SUMMARY OF CONTRIBUTIONS AND LEVIES

DrainageRoadsOpen spaceCommunity facilitiesEmergency services

Cumulativeinternal

borrowingsdue/(payable)

––––––

–

–

–

–

191

1

9

––

149

–

–

PURPOSE Openingbalance

–26 9

earnedContributions

received during the yearInterest

–

28

Cash

1389in yearNon-cash

– ––

–assetyear

35

–

257

(40)

432

–

–

–

799

1,700

704

196

11

(40)

191

(345)

224(40)

1

(385)

– –

–

–

2

950

950

541

1,749

–

–

–

541

Held as

–

–

37

Internal

–

Expenditureborrowing

–

restricted(to)/from

235

–

during

102–

–

–

––

60

799

Total contributions

S7.11 contributions – under a plan

181S7.11 not under plans

–432

S64 contributions

Total S7.11 and S7.12 revenue under plans

page 68


Oberon Council


Note 21. Statement of developer contributions (continued)

$ ’000

S7.11 CONTRIBUTIONS – UNDER A PLAN

CONTRIBUTION PLAN NUMBER 1 – URBAN DEVELOPMENT

DrainageRoadsOpen spaceCommunity facilitiesEmergency services

CONTRIBUTION PLAN NUMBER 2 – RURAL DEVELOPMENT

RoadsOpen spaceCommunity facilitiesEmergency services

Cumulativeinternal


Cumulativeinternal


–

–––––

–––––

13

Contributions

balance

Non-cash

–

Expenditure

(40)

–

Internal

received during the year

–

duringearned

–11

Interest

in year

–

300

assetrestricted

–

Internal

yearborrowing(to)/from

restricted

24224

––

–

–

Expenditure

116

4

Total

PURPOSE

5

4

Opening

49–

459

Opening

–

Total

–

Cash

Contributionsreceived during the year

75105

–

341

21–6

PURPOSE

89–

–

–

Interest

7

182

–

––

Non-cash

2517

Cash

5 –

(to)/from

–

–

–

––

balance

5119

26

in year

–

earned

–417–

–

–19

100

Held as

–

–

–

–

–(40)

during

–

Held as

125

assetyear

–

11110

–

102

–

borrowing

534

–

page 69


Oberon Council


Note 21. Statement of developer contributions (continued)

$ ’000

S7.11 CONTRIBUTIONS – NOT UNDER A PLAN

Roads

–

–

Cumulativeinternal

borrowingsdue/(payable)in year

(345)704 –Cash Non-cash

received during the yearbalance

181

Contributions Held asrestricted

Internalborrowingduring

yearOpening earned

541

–asset(to)/from

541

1

1

–

Interest Expenditure

(345)

PURPOSE

Total 704 –181

page 70


Oberon Council


Note 22. Financial result and financial position by fund

Income Statement by fund$ ’000

Continuing operationsIncome from continuing operationsRates and annual chargesUser charges and feesInterest and investment revenueOther revenuesGrants and contributions provided for operating purposesGrants and contributions provided for capital purposesTotal income from continuing operations

Expenses from continuing operationsEmployee benefits and on-costsBorrowing costsMaterials and contractsDepreciation and amortisationOther expensesNet losses from the disposal of assetsTotal expenses from continuing operationsOperating result from continuing operations

Net operating result attributable to each council fund

Net operating result for the year before grants and contributions provided for capital purposesand contributions provided for capital purposes

1 General fund refers to all Council’s activities other than Water, Sewer and Other NB. All amounts disclosed above are gross – that is, they include internal charges and recoveries made between the funds.

15,391

1,465

561

561

554–

772–

121

577

–

2,042–

–

127

23

524

– 577

2,950

2,853

9311

296188

12,441

37 97

1,549

2,950

468––

153

312

1,333

3,024184

6,483

2632,835

4,724–

721 179– –

11

4,251462

2931,551 3,800

2018

715

2018

25

General1SewerOther Water

2018 2018

445

page 71


Oberon Council

Notes to the Financial Statements as at 30 June 2018

Note 22. Financial result and financial position by fund (continued)

Statement of Financial Position by fund$ ’000

ASSETSCurrent assetsCash and cash equivalentsInvestmentsReceivablesInventoriesOtherTotal current assets

Non-current assetsInfrastructure, property, plant and equipmentTotal non-current assetsTOTAL ASSETS

LIABILITIESCurrent liabilitiesPayablesIncome received in advanceBorrowingsProvisionsTotal current liabilities

Non-current liabilitiesBorrowingsProvisionsTotal non-current liabilitiesTOTAL LIABILITIESNet assetsEQUITYAccumulated surplusRevaluation reservesTotal equity1 General Fund refers to all Council’s activities other than Water, Sewer and Other NB. All amounts disclosed above are gross – that is, they include internal receivables and payables between the funds.

315

124,0716,837

2018

–

Other

144,117

2,665

5,546

268,187

–

31

–

1,782871

Sewer

–

2018

1,500273

12,8001,130

General1

(1,621)

2018

Water

154

2018

8613,382

8,711 9,627

3,436

––

261,076

987

–3,291

31

261,076

33– 465

109

1,36033 31

1,144–

–

732

9,6278,711

–

–

13,063

–

333,606–6,271

9,822

13,032 268,188

9,855

–

13,032

274,458

9,822

––

–

6,195

–

–

–

–

4,276

–

– –

page 72


Oberon Council


Note 23(a). Statement of performance measures – consolidated results

$ ’000

Local government industry indicators – consolidated

1. Operating performance ratioTotal continuing operating revenue (1) excluding capitalgrants and contributions less operating expensesTotal continuing operating revenue (1) excluding capitalgrants and contributions

2. Own source operating revenue ratioTotal continuing operating revenue (1)

excluding all grants and contributionsTotal continuing operating revenue (1)

3. Unrestricted current ratioCurrent assets less all external restrictions (2)

Current liabilities less specific purpose liabilities (3, 4)

4. Debt service cover ratioOperating result (1) before capital excluding interestand depreciation/impairment/amortisationPrincipal repayments (Statement of Cash Flows)plus borrowing costs (Income Statement)

5. Rates, annual charges, interest and extra charges outstanding percentageRates, annual and extra charges outstandingRates, annual and extra charges collectible

6. Cash expense cover ratioCurrent year’s cash and cash equivalentsplus all term depositsPayments from cash flow of operating andfinancing activities

Notes

(1) Excludes fair value adjustments and reversal of revaluation decrements, net gain/(loss) on sale of assets and the net share of interests in joint ventures and associates.

(2) Refer Notes 6-8 inclusive.Also excludes any real estate and land for resale not expected to be sold in the next 12 months.

(3) Refer to Notes 10 and 11.(4) Refer to Note 10(b) and 11(b) – excludes all payables and provisions not expected to be paid in the next 12 months (incl. ELE).

7.67%

x12

12.38x

1,05815,332

5,926

14.50mths

493

633

11.8 mths > 3 mths

63.79%

3.43x > 1.5x

12.11x > 2x

10%

12.48x

11.0 mths

7.88%

18,766

Indicator

4,051

12,021

Amounts

18,609

2018 20162018Benchmark

> 0.00%

8.31%

64.06%

Prior periods

1,4289,555

7,839

2017

4.78x

61.99%

6.69x

20.55%20.86%21.77%

> 60.00%

page 73


Oberon Council


Note 23(b). Statement of performance measures – by fund

$ ’000

Local government industry indicators – by fund

1. Operating performance ratioTotal continuing operating revenue (1) excluding capital grants and contributionsless operating expensesTotal continuing operating revenue (1) excluding capital grants and contributions

2. Own source operating revenue ratioTotal continuing operating revenue (1) excluding capital grants and contributionsTotal continuing operating revenue (1)

3. Unrestricted current ratioCurrent assets less all external restrictions (2)

Current liabilities less specific purpose liabilities (3, 4)

Notes

(1) - (4) Refer to Notes at Note 23a above.(5) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

Benchmark

> 60.00%

> 0.00%

57.25%

6.69x

19.88% 22.13% 27.45% -5.91% 36.37% 38.94%

2018 2018 20182017 2017

98.34% 98.12% 90.20% 96.99%

4.79x 89.20x111.26x34.99x

2017Water indicators Sewer indicatorsGeneral indicators 5

15.20x > 1.5x

58.57%

page 74


Oberon Council


Note 23(b). Statement of performance measures – by fund (continued)

$ ’000

Local government industry indicators – by fund (continued)

4. Debt service cover ratioOperating result (1) before capital excluding interest anddepreciation/impairment/amortisationPrincipal repayments (Statement of Cash Flows) plus borrowing costs (IncomeStatement)

5. Rates, annual charges, interest and extra charges outstanding percentageRates, annual and extra charges outstandingRates, annual and extra charges collectible

6. Cash expense cover ratioCurrent year’s cash and cash equivalents plus all term depositsPayments from cash flow of operating and financing activities

Notes

(1) Refer to Notes at Note 23a above.(5) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

9.90x

7.99%

11.05x 0.00x 0.00x 0.00x

0.00months

2017

9.30% 9.36%10.18% 9.00%7.26%

General indicators 5 Water indicators Sewer indicators

0.00x

x12

Benchmark2018 2017 2018 2017

months months monthsmonths11.99 0.00 0.009.43 0.00

months

> 2x

> 3 months

2018

< 10%regional &

rural

page 75


Oberon Council


Note 23(c). Statement of performance measures – consolidated results (graphs)

Benchmark: ――― Minimum >=0.00% Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark


Benchmark: ――― Minimum >=1.50 Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

To assess theadequacy of workingcapital and its abilityto satisfy obligationsin the short term for

the unrestrictedactivities of Council.

Council's unrestricted ratio remains abovethe benchmark, indicating it has sufficientliquidity to cover short term obligations.

Purpose of ownsource operating

revenue ratio

Commentary on 2017/18 result

2017/18 ratio 64.06%

This ratio measuresfiscal flexibility. It is

the degree of relianceon external funding

sources such asoperating grants and

contributions.

Again a result of continuing RMS PrivateWorks and the Special Rates Variation

which continues to see Council achive therequired benchmark of 60% and above

Purpose ofunrestricted current

ratio


2017/18 ratio 6.69x

Purpose ofoperating

performance ratio


2017/18 ratio 21.77%

This ratio measuresCouncil’s

achievement ofcontaining operatingexpenditure withinoperating revenue.

Council has been consistant over the last 3years in achieving a positive operational

performance ratio due to the Special RatesVariation and continued RMS Private

Works

21% 21% 22%

0%

-5%

0%

5%

10%

15%

20%

25%

2015 2016 2017 2018

Rat

io%

1. Operating performance ratio

64% 62% 64% 64%

0%

10%

20%

30%

40%

50%

60%

70%

2015 2016 2017 2018

Rat

io%

2. Own source operating revenue ratio

3.9 3.44.8

6.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2015 2016 2017 2018

Rat

io(x

)

3. Unrestricted current ratio

page 76


Oberon Council


Note 23(c). Statement of performance measures – consolidated results (graphs)


Benchmark: ――― Maximum <10.00% Ratio is within BenchmarkSource for Benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside Benchmark


Purpose of cashexpense cover ratio


2017/18 ratio 14.50 mths

This liquidity ratioindicates the numberof months a Councilcan continue paying

for its immediateexpenses withoutadditional cash

inflow.

Due to diligent investment processescouncil continues to ensure sufficient cash

for immediate expenses

To assess the impactof uncollected ratesand annual chargeson Council’s liquidityand the adequacy of

recovery efforts.

Council continues to remain with therequired benchmark.

Purpose of debtservice cover ratio


2017/18 ratio 12.38x

This ratio measuresthe availability ofoperating cash to

service debt includinginterest, principal and

lease payments

Councils debt service cover ratio remainsconsistant and above the benchmark

Purpose of ratesand annual charges

outstanding ratio


2017/18 ratio 8.31%

24.1

12.5 12.1 12.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2015 2016 2017 2018

Rat

io(x

)

4. Debt service cover ratio

7% 8% 8% 8%

0%

2%

4%

6%

8%

10%

12%

2015 2016 2017 2018

Rat

io%

5. Rates, annual charges, interest andextra charges outstanding percentage

9.211.0 11.8

14.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2015 2016 2017 2018

Rat

io(m

ths)

6. Cash expense cover ratio

page 77


END OF AUDITED FINANCIAL STATEMENTS

page 78

INDEPENDENT AUDITOR’S REPORT

Report on the general purpose financial report

Oberon Council

To the Councillors of the Oberon Council

Opinion

I have audited the accompanying financial report of Oberon Council (the Council), which comprise the

Income Statement and Statement of Comprehensive Income for the year ended 30 June 2018, the

Statement of Financial Position as at 30 June 2018, the Statement of Changes in Equity and

Statement of Cash Flows for the year then ended, notes comprising significant accounting policies and

other explanatory information, and the Statement by Councillors and Management.

In my opinion,

• the Council’s accounting records have been kept in accordance with the requirements of the

Local Government Act 1993, Chapter 13, Part 3, Division 2 (the Division)

• the financial report:

- has been presented, in all material respects, in accordance with the requirements of this

Division

- is consistent with the Council’s accounting records

- presents fairly, in all material respects, the financial position of the Council as at

30 June 2018, and of its financial performance and its cash flows for the year then ended

in accordance with Australian Accounting Standards

• all information relevant to the conduct of the audit has been obtained

• no material deficiencies in the accounting records or financial report have come to light during

the audit.

My opinion should be read in conjunction with the rest of this report.

Basis for Opinion

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under the

standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Report’ section

of my report.

I am independent of the Council in accordance with the requirements of the:

• Australian Auditing Standards

• Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for

Professional Accountants’ (APES 110).

I have fulfilled my other ethical responsibilities in accordance with APES 110.

Parliament promotes independence by ensuring the Auditor-General and the Audit Office of

New South Wales are not compromised in their roles by:

• providing that only Parliament, and not the executive government, can remove an

Auditor-General

• mandating the Auditor-General as auditor of councils

• precluding the Auditor-General from providing non-audit services.

I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Other Information

Other information comprises the information included in the Council’s annual report for the year ended

30 June 2018, other than the financial report and my Independent Auditor’s Report thereon. The

Councillors are responsible for the other information. At the date of this Independent Auditor’s Report,

the other information I have received comprise the special purpose financial statements and Special

Schedules (the Schedules).

My opinion on the financial report does not cover the other information. Accordingly, I do not express

any form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the special purpose financial

statements and Special Schedule 2 - Permissible income for general rates.

In connection with my audit of the financial report, my responsibility is to read the other information

and, in doing so, consider whether the other information is materially inconsistent with the financial

report or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude there is a material misstatement of the other

information, I must report that fact.

I have nothing to report in this regard.

The Councillors’ Responsibilities for the Financial Report

The Councillors are responsible for the preparation and fair presentation of the financial report in

accordance with Australian Accounting Standards and the Local Government Act 1993, and for such

internal control as the Councillors determine is necessary to enable the preparation and fair

presentation of the financial report that is free from material misstatement, whether due to fraud or

error.

In preparing the financial report, the Councillors are responsible for assessing the Council’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting except where the Council will be dissolved or amalgamated by an

Act of Parliament, or otherwise cease operations.

Auditor’s Responsibilities for the Audit of the Financial Report

My objectives are to:

• obtain reasonable assurance about whether the financial report as a whole is free from material

misstatement, whether due to fraud or error

• issue an Independent Auditor’s Report including my opinion.

Reasonable assurance is a high level of assurance, but does not guarantee an audit conducted in

accordance with Australian Auditing Standards will always detect material misstatements.

Misstatements can arise from fraud or error. Misstatements are considered material if, individually or

in aggregate, they could reasonably be expected to influence the economic decisions users take

based on the financial report.

A description of my responsibilities for the audit of the financial report is located at the Auditing and

Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf. The

description forms part of my auditor’s report.

http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf

My opinion does not provide assurance:

• that the Council carried out its activities effectively, efficiently and economically

• on the Original Budget information included in the Income Statement, Statement of Cash Flows,

and Note 18 Material budget variations

• on the Special Schedules. A separate opinion has been provided on Special Schedule 2 -

Permissible income for general rates

• about the security and controls over the electronic publication of the audited financial report on

any website where it may be presented

• about any other information which may have been hyperlinked to/from the financial report.

Dominika Ryan

Director

23 October 2018

SYDNEY

Oberon Council SPECIAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2018

0

SPFS 2018

Oberon Council

Special Purpose Financial Statements for the year ended 30 June 2018

Contents

1. Statement by Councillors and Management

2. Special Purpose Financial Statements:

Income Statement – Water Supply Business ActivityIncome Statement – Sewerage Business Activity

Statement of Financial Position – Water Supply Business ActivityStatement of Financial Position – Sewerage Business Activity

3. Notes to the Special Purpose Financial Statements

4. Auditor’s Report

Background

These Special Purpose Financial Statements have been prepared for the use by both Council and the Office ofLocal Government in fulfilling their requirements under National Competition Policy.

The principle of competitive neutrality is based on the concept of a ‘level playing field’ between persons/entitiescompeting in a market place, particularly between private and public sector competitors.

Essentially, the principle is that government businesses, whether Commonwealth, state or local, should operatewithout net competitive advantages over other businesses as a result of their public ownership.

For Council, the principle of competitive neutrality and public reporting applies only to declared business activities.

These include (a) those activities classified by the Australian Bureau of Statistics as business activities beingwater supply, sewerage services, abattoirs, gas production and reticulation, and (b) those activities with a turnoverof more than $2 million that Council has formally declared as a business activity (defined as Category 1 activities).

In preparing these financial statements for Council’s self-classified Category 1 businesses and ABS-definedactivities, councils must (a) adopt a corporatisation model and (b) apply full cost attribution including tax-equivalentregime payments and debt guarantee fees (where the business benefits from Council's borrowing position bycomparison with commercial rates).

(iv)

7

6

(i)

(ii)

(iii)

5

Page

34

2

page 1

SPFS 2018

Oberon Council

Income Statement of Council's Water Supply Business Activity for the year ended 30 June 2018

$ ’000

Income from continuing operationsAccess chargesUser chargesInterestGrants and contributions provided for non-capital purposesTotal income from continuing operations

Expenses from continuing operationsEmployee benefits and on-costsMaterials and contractsDepreciation, amortisation and impairmentWater purchase chargesOther expensesTotal expenses from continuing operationsSurplus (deficit) from continuing operations before capital amounts

Grants and contributions provided for capital purposesSurplus (deficit) from continuing operations after capital amounts

Surplus (deficit) from all operations before taxLess: corporate taxation equivalent (30%) [based on result before capital]

SURPLUS (DEFICIT) AFTER TAX

Plus opening retained profitsPlus adjustments for amounts unpaid:– Corporate taxation equivalentClosing retained profits

Return on capital %Subsidy from Council

Calculation of dividend payable:Surplus (deficit) after taxLess: capital grants and contributions (excluding developer contributions)Surplus for dividend calculation purposesPotential dividend calculated from surplus

4561,021

811

1,497

296310182641156

1,585(88)

17(71)

(71)–

(71)

5,040

–4,969

-1.0%295

(71)–––

2017

4451,551

1111

2,019

296184263587134

1,465554

23577

577(166)

411205

2018

1665,546

6.4%–

411

4,969

411-

page 3

SPFS 2018

Oberon Council

Income Statement of Council's Sewerage Business Activity for the year ended 30 June 2018

$ ’000

Income from continuing operationsAccess chargesUser chargesInterestGrants and contributions provided for non-capital purposesTotal income from continuing operations

Expenses from continuing operationsEmployee benefits and on-costsMaterials and contractsDepreciation, amortisation and impairmentOther expensesTotal expenses from continuing operationsSurplus (deficit) from continuing operations before capital amounts

Grants and contributions provided for capital purposesSurplus (deficit) from continuing operations after capital amounts

Surplus (deficit) from all operations before taxLess: corporate taxation equivalent (30%) [based on result before capital]

SURPLUS (DEFICIT) AFTER TAX

Plus opening retained profitsPlus adjustments for amounts unpaid:– Corporate taxation equivalentClosing retained profits

Return on capital %

Calculation of dividend payable:Surplus (deficit) after taxSurplus for dividend calculation purposesPotential dividend calculated from surplus

404

179 772 524

1,061

6,837

5.4%

404

157

202

561 (157)

1,295

145 152 139

311 311 156

404

6,276

2018

32 11

715 462 25

211 648

37 561

93

714 304

2017

413

22 435

4.3%

435 (124)

311

5,842

6,276

153 127 312

124

X3A1T

page 4

SPFS 2018

Oberon Council

Statement of Financial Position – Council's Water Supply Business Activity as at 30 June 2018

$ ’000

ASSETSCurrent assetsCash and cash equivalentsReceivablesTotal current assets


LIABILITIESCurrent liabilitiesProvisionsTotal current liabilities

Non-current liabilitiesTotal non-current liabilitiesTOTAL LIABILITIESNET ASSETS

EQUITYAccumulated surplusRevaluation reservesTOTAL EQUITY 9,822

4,163 4,969

–

5,546

–

871 370

8,711 8,685 8,711

273 109 1,144 478

20172018

9,855

8,685

9,163

33 31 31 33

33 9,132

31

9,132 4,276

9,822

X4A0T

page 5

SPFS 2018

Oberon Council

Statement of Financial Position – Council's Sewerage Business Activity as at 30 June 2018

$ ’000

ASSETSCurrent assetsCash and cash equivalentsInvestmentsReceivablesTotal current Assets


LIABILITIESCurrent liabilitiesProvisionsTotal current liabilities

Non-current liabilitiesTotal non-current liabilitiesTOTAL LIABILITIESNET ASSETS

EQUITYAccumulated surplusRevaluation reservesTOTAL EQUITY

9,627 9,629

6,837 6,195 6,077

12,353

31 – –

6,276

13,032

13,032

1,782

2018

2,151

31

31 31 31

500

3,436 2,755

13,063

154 104 1,500

2017

9,627 9,629

12,353

12,384

31

X4A1T

page 6

SPFS 2018

Oberon Council

Special Purpose Financial Statements for the year ended 30 June 2018

Contents of the notes accompanying the financial statements

Details

Summary of significant accounting policies

Water Supply Business Best-Practice Management disclosure requirements

Sewerage Business Best-Practice Management disclosure requirements 143

Note Page

1

2

8

12

X5A0T

page 7

SPFS 2018

Oberon Council Notes to the Special Purpose Financial Statements for the year ended 30 June 2018 Note 1. Significant accounting policies

page 8

A statement summarising the supplemental accounting policies adopted in the preparation of the Special Purpose Financial Statements (SPFS) for National Competition Policy (NCP) reporting purposes follows. These financial statements are SPFS prepared for use by Council and the Office of Local Government. For the purposes of these statements, the Council is a non-reporting not-for-profit entity. The figures presented in these Special Purpose Financial Statements have been prepared in accordance with the recognition and measurement criteria of relevant Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and Australian Accounting Interpretations. The disclosures in these Special Purpose Financial Statements have been prepared in accordance with the Local Government Act 1993 (NSW), the Local Government (General) Regulation, and the Local Government Code of Accounting Practice and Financial Reporting. The statements are prepared on an accruals basis. They are based on historic costs and do not take into account changing money values or, except where specifically stated, current values of non-current assets. Certain taxes and other costs, appropriately described, have been imputed for the purposes of the National Competition Policy. The Statement of Financial Position includes notional assets/liabilities receivable from/payable to Council's general fund. These balances reflect a notional intra-entity funding arrangement with the declared business activities. National Competition Policy Council has adopted the principle of ‘competitive neutrality’ in its business activities as part of the National Competition Policy which is being applied throughout Australia at all levels of government. The framework for its application is set out in the June 1996 NSW government policy statement titled 'Application of National Competition Policy to Local Government'. The Pricing and Costing for Council Businesses, A Guide to Competitive Neutrality issued by the Office of Local Government in July 1997 has also been adopted. The pricing and costing guidelines outline the process for identifying and allocating costs to activities and provide a standard for disclosure requirements. These disclosures are reflected in Council’s pricing and/or financial reporting systems and include taxation equivalents, Council subsidies, return on investments (rate of return), and dividends paid. Declared business activities In accordance with Pricing and Costing for Council Businesses – A Guide to Competitive Neutrality, Council has declared that the following are to be considered as business activities: Category 1 (where gross operating turnover is over $2 million) None

SPFS 20187

Oberon Council Notes to the Special Purpose Financial Statements for the year ended 30 June 2018 Note 1. Significant accounting policies (continued)

page 9

Category 2 (where gross operating turnover is less than $2 million) a. Oberon Council Water Supply Comprising the whole of the water supply activities and net assets therein servicing the town of Oberon, which is established as a separate Special Rate Fund. b. Oberon Council Sewerage Service Comprising the whole of the sewerage reticulation & treatment activities and the net assets therein servicing the town of Oberon, which is established as a separate Special Rate Fund. Monetary amounts Amounts shown in the financial statements are in Australian currency and rounded to the nearest thousand dollars, except for Note 2 (Water Supply Best-Practice Management Disclosures) and Note 3 (Sewerage Best-Practice Management Disclosures). As required by Crown Lands and Water (CLAW), the amounts shown in Note 2 and Note 3 are disclosed in whole dollars. (i) Taxation-equivalent charges Council is liable to pay various taxes and financial duties. Where this is the case, they are disclosed as a cost of operations just like all other costs. However, where Council does not pay some taxes which are generally paid by private sector businesses, such as income tax, these equivalent tax payments have been applied to all Council-nominated business activities and are reflected in Special Purpose Financial Statements. For the purposes of disclosing comparative information relevant to the private sector equivalent, the following taxation equivalents have been applied to all Council-nominated business activities (this does not include Council’s non-business activities): Notional rate applied (%) Corporate income tax rate – 30% Land tax – the first $629,000 of combined land values attracts 0%. For the combined land values in excess of $629,001 up to $3,846,000 the rate is 1.6% + $100. For the remaining combined land value that exceeds $3,846,000 a premium marginal rate of 2.0% applies. Payroll tax – 5.45% on the value of taxable salaries and wages in excess of $750,000. In accordance with Crown Lands and Water (CLAW), a payment for the amount calculated as the annual tax equivalent charges (excluding income tax) must be paid from water supply and sewerage business activities. The payment of taxation equivalent charges, referred to in the NSW Office of Water Guidelines to as a ‘dividend for taxation equivalent’, may be applied for any purpose allowed under the Local Government Act, 1993.

SPFS 20187


page 10

Achievement of substantial compliance to the NSW Office of Water Guidelines is not a prerequisite for the payment of the tax equivalent charges, however the payment must not exceed $3 per assessment. Income tax An income tax equivalent has been applied on the profits of the business activities. Whilst income tax is not a specific cost for the purpose of pricing a good or service, it needs to be taken into account in terms of assessing the rate of return required on capital invested. Accordingly, the return on capital invested is set at a pre-tax level - gain/(loss) from ordinary activities before capital amounts, as would be applied by a private sector competitor. That is, it should include a provision equivalent to the corporate income tax rate, currently 30%. Income tax is only applied where a gain/ (loss) from ordinary activities before capital amounts has been achieved. Since the taxation equivalent is notional – that is, it is payable to Council as the ‘owner’ of business operations - it represents an internal payment and has no effect on the operations of the Council. Accordingly, there is no need for disclosure of internal charges in the SPFS. The rate applied of 30% is the equivalent company tax rate prevalent at reporting date. Local government rates and charges A calculation of the equivalent rates and charges payable on all category 1 businesses has been applied to all land assets owned or exclusively used by the business activity. Loan and debt guarantee fees The debt guarantee fee is designed to ensure that council business activities face ‘true’ commercial borrowing costs in line with private sector competitors. In order to calculate a debt guarantee fee, Council has determined what the differential borrowing rate would have been between the commercial rate and Council’s borrowing rate for its business activities. (ii) Subsidies Government policy requires that subsidies provided to customers, and the funding of those subsidies, must be explicitly disclosed. Subsidies occur when Council provides services on a less-than-cost-recovery basis. This option is exercised on a range of services in order for Council to meet its community service obligations. Accordingly, ‘subsidies disclosed’ (in relation to National Competition Policy) represents the difference between revenue generated from ‘rate of return’ pricing and revenue generated from prices set by Council in any given financial year. The overall effect of subsidies is contained within the Income Statement of each reported business activity.

SPFS 20187


page 11

(iii) Return on investments (rate of return) The NCP policy statement requires that councils with Category 1 businesses ‘would be expected to generate a return on capital funds employed that is comparable to rates of return for private businesses operating in a similar field’. Such funds are subsequently available for meeting commitments or financing future investment strategies. The actual rate of return achieved by each business activity is disclosed at the foot of each respective Income Statement. The rate of return is calculated as follows:

Operating result before capital income + interest expense

Written down value of I,PP&E as at 30 June As a minimum, business activities should generate a return equal to the Commonwealth 10 year bond rate which is 2.63% at 30/6/18. (iv) Dividends Council is not required to pay dividends to either itself (as owner of a range of businesses) or to any external entities. Local government water supply and sewerage businesses are permitted to pay an annual dividend from its water supply or sewerage business surplus. Each dividend must be calculated and approved in accordance with the DPIW guidelines and must not exceed: (i) 50% of this surplus in any one year, or

(ii) the number of water supply or sewerage assessments at 30 June 2018 multiplied by $30 (less the payment for tax equivalent charges, not exceeding $3 per assessment).

In accordance with the DPIW guidelines a Dividend Payment form, Statement of Compliance, Unqualified Independent Financial Audit Report and Compliance Audit Report are required to be submitted to the DPIW.

END OF AUDITED SPECIAL PURPOSE FINANCIAL STATEMENTS

SPFS 2018

Oberon Council

Notes to the Special Purpose Financial Statements for the year ended 30 June 2018

Note 2. Water supply business best-practice management disclosure requirements

Dollars amounts shown below are in whole dollars (unless otherwise indicated)

1. Calculation and payment of tax-equivalents[all local government local water utilities must pay this dividend for tax equivalents]

Calculated tax equivalents

Number of assessments multiplied by $3/assessment

Amounts payable for tax equivalents [lesser of (i) and (ii)]

Amounts actually paid for tax equivalents

2. Dividend from surplus50% of surplus before dividends[calculated in accordance with Best-Practice Management for Water Supply and Sewerage Guidelines]

Number of assessments multiplied by $30/assessment, less tax equivalentcharges/assessment

Cumulative surplus before dividends for the 3 years to 30 June 2018, less thecumulative dividends paid for the 2 years to 30 June 2017 and 30 June 2016

2018 Surplus 2017 Surplus 2016 Surplus2017 Dividend 2016 Dividend

Maximum dividend from surplus [least of (i), (ii) and (iii) above]

Dividend actually paid from surplus [refer below for required pre-dividend payment criteria]

Are the overhead reallocation charges to the water business fair and reasonable? a

3. Required outcomes for 6 criteria[to be eligible for the payment of a ‘dividend from surplus’, all the criteria below need a ‘YES’]

Completion of strategic business plan (including financial plan)

Full cost recovery, without significant cross subsidies[refer item 2 (a) in table 1 on page 22 of the Best-Practice Guidelines]

– Complying charges [item 2 (b) in table 1]

– DSP with commercial developer charges [item 2 (e) in table 1]

– If dual water supplies, complying charges [item 2 (g) in table 1]

Sound water conservation and demand management implemented

Sound drought management implemented

Complete performance reporting form (by 15 September each year)

a. Integrated water cycle management evaluation

b. Complete and implement integrated water cycle management strategy

YES

YES(v)

(vi)

YES

–

–

40,470

2018

–

213,367

40,470

589,820

4,047

–

(iv) NO

NO

YES

(ii)

YES

YES

– 426,735 (71,281)

YES

YES

– 234,366

YES

(iv)

(iii)

(i)

(iv)

(iii)

(iii)

(i)

(ii)

(ii)

(v)

(i)

(vi)

X7A0T

page 12

SPFS 2018

Oberon Council


Note 2. Water supply business best-practice management disclosure requirements (continued)


National Water Initiative (NWI) financial performance indicators

Total revenue (water)Total income (w13) – grants for the acquisition of assets (w11a) – interest income (w9)– Aboriginal Communities W&S Program income (w10a)

Revenue from residential usage charges (water)Income from residential usage charges (w6b) x 100 divided by the sum of[income from residential usage charges (w6a) + income from residentialaccess charges (w6b)]

Written down replacement cost of fixed assets (water)Written down current cost of system assets (w47)

Operating cost (OMA) (water)Management expenses (w1) + operational and maintenance expenses (w2)

Capital expenditure (water)Acquisition of fixed assets (w16)

Economic real rate of return (water)[total income (w13) – interest income (w9) – grants for acquisition of assets (w11a) –operating costs (NWI F11) – current cost depreciation (w3)] x 100 divided by[written down current cost of system assets (w47) + plant and equipment (w33b)]

Capital works grants (water)Grants for the acquisition of assets (w11a)

Notes: 1. References to w (e.g. w12) refer to item numbers within Special Schedules 3 and 4 of Council’s Annual FinancialStatements.

2. The NWI performance indicators are based upon the National Performance Framework Handbook for Urban PerformanceReporting Indicators and Definitions.

a refer to 3.2 (2) on page 15 of the Best-Practice Management of Water Supply and Sewerage Guidelines, 2007

NWI F26 – $’000

NWI F11

NWI F17 %

NWI F14 $’000

6.58%

151

1,202 $’000

$’000NWI F9

2018

2,031

NWI F4 %

8,566

$’000

76.58%

NWI F1

page 13

SPFS 2018

Oberon Council


Note 3. Sewerage business best-practice management disclosure requirements


1. Calculation and payment of tax-equivalents[all local government local water utilities must pay this dividend for tax equivalents]

Calculated tax equivalents

Number of assessments multiplied by $3/assessment

Amounts payable for tax equivalents [lesser of (i) and (ii)]

Amounts actually paid for tax equivalents

2. Dividend from surplus

50% of surplus before dividends[calculated in accordance with Best-Practice Management for Water Supply and Sewerage Guidelines]

Number of assessments x ($30 less tax equivalent charges per assessment)

Cumulative surplus before dividends for the 3 years to 30 June 2018, less thecumulative dividends paid for the 2 years to 30 June 2017 and 30 June 2016

2018 Surplus 2017 Surplus 2016 Surplus2017 Dividend 2016 Dividend

Maximum dividend from surplus [least of (i), (ii) and (iii) above]

Dividend actually paid from surplus [refer below for required pre-dividend payment criteria]

Are the overhead reallocation charges to the sewer business fair and reasonable? a

3. Required outcomes for 4 criteria [to be eligible for the payment of a ‘dividend from surplus’, all the criteria below need a ‘YES’]

Completion of strategic business plan (including financial plan)

Pricing with full cost-recovery, without significant cross subsidies [refer item 2 (a) in table 1 on page 22 of the Best-Practice Guidelines]

Complying charges Residential [item 2 (c) in table 1] Non-residential [item 2 (c) in table 1] Trade waste [item 2 (d) in table 1]

DSP with commercial developer charges [item 2 (e) in table 1] Liquid trade waste approvals and policy [item 2 (f) in table 1]

Complete performance reporting form (by 15 September each year)

a. Integrated water cycle management evaluation

b. Complete and implement integrated water cycle management strategy

–

3,711

YES

NO

YES

201,785

NO

YES

2018

YES

37,110

–

NO

–

–

YES

YES

990,221

YES

YES

(i)

(iv)

(iii)

(ii)

(iii)

403,570

(i)

(ii) 37,110

275,554

(iv)

(c)

(iv)

– 311,097

–

(v)

(iii)

(i)

(ii)

(a)(b)

(vi)

X8A0T

page 14

SPFS 2018

Oberon Council


Note 3. Sewerage business best-practice management disclosure requirements (continued)


National Water Initiative (NWI) financial performance indicators

Total revenue (sewerage)Total income (s14) – grants for acquisition of assets (s12a) – interest income (s10)– Aboriginal Communities W&S Program income (w10a)

Written down replacement cost of fixed assets (sewerage)Written down current cost of system assets (s48)

Operating cost (sewerage)Management expenses (s1) + operational and maintenance expenses (s2)

Capital expenditure (sewerage)Acquisition of fixed assets (s17)

Economic real rate of return (sewerage)[total income (s14) – interest income (s10) – grants for acquisition of assets (s12a)– operating cost (NWI F12) – current cost depreciation (s3)] x 100 divided by[written down current cost (i.e. WDCC) of system assets (s48) + plant and equipment (s34b)]

Capital works grants (sewerage)Grants for the acquisition of assets (12a)

National Water Initiative (NWI) financial performance indicatorsWater and sewer (combined)

Total income (water and sewerage)Total income (w13 + s14) + gain/loss on disposal of assets (w14 + s15)minus grants for acquisition of assets (w11a + s12a) – interest income (w9 + s10)

Revenue from community service obligations (water and sewerage)Community service obligations (NWI F25) x 100 divided by total income (NWI F3)

Capital expenditure (water and sewerage)Acquisition of fixed assets (w16 + s17)

Economic real rate of return (water and sewerage)[total income (w13 + s14) – interest income (w9 + s10) – grants for acquisition of assets(w11a + s12a) – operating cost (NWI F11 + NWI F12) – current cost depreciation (w3 + s3)] x 100divided by [written down replacement cost of fixed assets (NWI F9 + NWI F10)+ plant and equipment (w33b + s34b)]

Dividend (water and sewerage)Dividend paid from surplus (2 (v) of Note 2 + 2 (v) of Note 3)

Dividend payout ratio (water and sewerage)Dividend (NWI F20) x 100 divided by net profit after tax (NWI F24)

$’000

83

9,178

1,225

4.83%

458

191

2018

NWI F3 $’000 3,256

NWI F8 % 0.68%

NWI F19

NWI F21

NWI F20

%

%

– $’000

0.00%

5.67%

341 NWI F16 $’000

NWI F27

NWI F18

NWI F15 $’000

%

$’000

NWI F2

NWI F10

NWI F12

$’000

$’000

page 15

SPFS 2018

Oberon Council


Note 3. Sewerage business best-practice management disclosure requirements (continued)


National Water Initiative (NWI) financial performance indicatorsWater and sewer (combined)

Net debt to equity (water and sewerage)Overdraft (w36 + s37) + borrowings (w38 + s39) – cash and investments (w30 + s31)x 100 divided by [total assets (w35 + s36) – total liabilities (w40 + s41)]

Interest cover (water and sewerage)Earnings before interest and tax (EBIT) divided by net interest

Earnings before interest and tax (EBIT):Operating result (w15a + s16a) + interest expense (w4a + s4a) – interest income (w9 + s10)– gain/loss on disposal of assets (w14 + s15) + miscellaneous expenses (w4b + w4c + s4b + s4c)

Net interest:Interest expense (w4a + s4a) – interest income (w9 + s10)

Net profit after tax (water and sewerage)Surplus before dividends (w15a + s16a) – tax equivalents paid (Note 2-1 (iv) + Note 3-1 (iv))

Community service obligations (water and sewerage)Grants for pensioner rebates (w11b + s12b)

Notes: 1. References to w (eg. s12) refer to item numbers within Special Schedules 5 and 6 of Council’s Annual FinancialStatements.

2. The NWI performance indicators are based upon the National Performance Framework Handbook for Urban PerformanceReporting Indicators and Definitions.

a refer to 3.2 (2) on page 15 of the Best-Practice Management of Water Supply and Sewerage Guidelines, 2007

NWI F25 $’000

NWI F24

NWI F23

NWI F22 %

1,021

22

> 100

1,056

(37)

$’000

-18.17%

2018

page 16


Report on the special purpose financial report

Oberon Council


Opinion

I have audited the accompanying special purpose financial report (the financial report) of Oberon

Council’s (the Council) Declared Business Activities, which comprise the Income Statement of each

Declared Business Activity for the year ended 30 June 2018, the Statement of Financial Position of

each Declared Business Activity as at 30 June 2018, notes comprising a Summary of significant

accounting policies and other explanatory information for the Business Activities declared by Council,

and the Statement by Councillors and Management.

The Declared Business Activities of the Council are:

• Water Supply

• Sewerage.

In my opinion, the financial report presents fairly, in all material respects, the financial position of the

Council’s declared Business Activities as at 30 June 2018, and its financial performance for the year

then ended, in accordance with the Australian Accounting Standards described in Note 1 and the

Local Government Code of Accounting Practice and Financial Reporting (LG Code).


Basis for Opinion


standards are described in the ‘Auditor’s Responsibilities for the Audit of the Financial Report’ section

of my report.






Parliament promotes independence by ensuring the Auditor-General and the Audit Office of New

South Wales are not compromised in their roles by:


Auditor-General

• mandating the Auditor-General as the auditor of councils


I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Emphasis of Matter - Basis of Accounting

Without modifying my opinion, I draw attention to Note 1 to the financial report which describes the

basis of accounting. The financial report has been prepared for the purpose of fulfilling the Council’s

financial reporting responsibilities under the LG Code. As a result, the financial report may not be

suitable for another purpose.

Other Information


30 June 2018, other than the financial report and my Independent Auditor’s Report thereon. The

Councillors are responsible for the other information. At the date of this Independent Auditor’s Report,

the other information I have received comprise the general purpose financial statements and Special

Schedules (the Schedules).

My opinion on the financial report does not cover the other information. Accordingly, I do not express

any form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the general purpose financial

statements and Special Schedule 2 - Permissible income for general rates.

In connection with my audit of the financial report, my responsibility is to read the other information

and, in doing so, consider whether the other information is materially inconsistent with the financial

report or my knowledge obtained in the audit, or otherwise appears to be materially misstated.




The Councillors’ Responsibilities for the Financial Report

The Councillors are responsible for the preparation and fair presentation of the financial report and for

determining that the accounting policies, described in Note 1 to the financial report, are appropriate to

meet the requirements in the LG Code. The Councillors’ responsibility also includes such internal

control as the Councillors determine is necessary to enable the preparation and fair presentation of

the financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Councillors are responsible for assessing the Council’s ability to


going concern basis of accounting, unless it is not appropriate to do so.

Auditor’s Responsibilities for the Audit of the Financial Report


• obtain reasonable assurance about whether the financial report as a whole is free from material







based on the financial report.

A description of my responsibilities for the audit of the financial report is located at the Auditing and






• about the security and controls over the electronic publication of the audited financial report on

any website where it may be presented

• about any other information which may have been hyperlinked to/from the financial report.

Dominika Ryan

Director, Financial Services

23 October 2018

SYDNEY

Oberon Council SPECIAL SCHEDULES for the year ended 30 June 2018

0

Special Schedules 2018

Oberon Council

Special Schedules for the year ended 30 June 2018

Contents

Special Schedules 1

Net Cost of Services

Permissible income for general ratesIndependent Auditors Report

Water Supply Operations – incl. Income StatementWater Supply – Statement of Financial Position

Sewerage Service Operations – incl. Income StatementSewerage Service – Statement of Financial Position

Notes to Special Schedules 3 and 5

Report on Infrastructure Assets

1 Special Schedules are not audited (with the exception of Special Schedule 2).

Background

These Special Schedules have been designed to meet the requirements of special purpose users such as;

the NSW Grants Commissionthe Australian Bureau of Statistics (ABS),the NSW Office of Water (NOW), andthe Office of Local Government (OLG).

The financial data is collected for various uses including;

the allocation of Financial Assistance Grants,the incorporation of Local Government financial figures in national statistics,the monitoring of loan approvals,the allocation of borrowing rights, andthe monitoring of the financial activities of specific services.

Special Schedule 6Special Schedule 5 10

Special Schedule 1

Special Schedule 3

Special Schedule 2 4Special Schedule 2 5

Special Schedule 4

14

13

Page

2

69

21Special Schedule 7

(ii)

(i)

page 1


Oberon Council

Special Schedule 1 – Net Cost of Services for the year ended 30 June 2018

$’000

Governance

Administration

Public order and safety

Beach controlEnforcement of local government regulationsAnimal controlOtherTotal public order and safety

Health

EnvironmentNoxious plants and insect/vermin controlOther environmental protectionSolid waste managementStreet cleaningDrainageStormwater managementTotal environment

Community services and educationAdministration and educationSocial protection (welfare)Aged persons and disabledChildren’s servicesTotal community services and education

Housing and community amenitiesPublic cemeteriesPublic conveniencesStreet lightingTown planningOther community amenitiesTotal housing and community amenities

Water supplies

Sewerage services

(93)

313 –

–

– (5)

(51)

–

561

(41) –

–

(52)

58

577

(563)

(93)

– 99

–

51 159

590

937 –

–

52

153

161

– –

–

– –

1,007

113

Net cost.of services.

– –

(523)

(147)

17 –

556 – – (556)

(81) – –

(1,351)

–

16

131

Function or activity

–

Fire service levy, fire protection, emergency services

–

2

95 594

1,677

656

327

– (6) (610)

– 11

–

–

97 6

760 –

–

134

–

83

444

2,042

–

–

47

(30) (161)

(324) (95)

1 –

–

–

–

–

91 44

–

270

60 2

1,465

–

1,333 772

–

– –

Expenses from. continuing. operations. Non-capital.

–

–

– 13

Capital.


–

11

– 38

903

150

954

5

X2A0T

page 2


Oberon Council

Special Schedule 1 – Net Cost of Services (continued) for the year ended 30 June 2018

$’000

Recreation and culturePublic librariesMuseumsArt galleriesCommunity centres and hallsPerforming arts venuesOther performing artsOther cultural servicesSporting grounds and venuesSwimming poolsParks and gardens (lakes)Other sport and recreationTotal recreation and culture

Fuel and energy

Agriculture

Mining, manufacturing and constructionBuilding controlOther mining, manufacturing and constructionTotal mining, manufacturing and const.

Transport and communicationUrban roads (UR) – localUrban roads – regionalSealed rural roads (SRR) – localSealed rural roads (SRR) – regionalUnsealed rural roads (URR) – localUnsealed rural roads (URR) – regionalBridges on UR – localBridges on SRR – localBridges on URR – localBridges on regional roadsParking areasFootpathsAerodromesRMS - State Roads not controlled by CouncilOther transport and communicationTotal transport and communication

Economic affairsCamping areas and caravan parksVisitor Information CentreOther economic affairsTotal economic affairs

Totals – functionsGeneral purpose revenues (1)

NET OPERATING RESULT (2)

(1) Includes: rates and annual charges (including ex gratia, excluding water and sewer), non-capital general purpose (2) As reported in the Income Statement

grants, interest on investments (excluding externally restricted assets) and interest on overdue rates and annual charges

Share of interests – joint ventures and associates using the equity method

87

–

–

(40)

(2)

(64)

–

Net cost.of services.

–

–

–

(40)

(214)

(450)

–

– (141)

6,448 –

178 –

–

(146) –

157

–

400 828

(566) –

4,088

–

(2,361) 595

3

(275) (832)

781

–

–

–

–

– (18)

(288)

– 10

–

(632)

– 325

–

Capital.

–

–

–

626

– – 828

1,107 –

– –

214 –

707

–

–

–

60

48

–

– – 620 170

–

–

Non-capital.

–

Expenses from. continuing. operations.

466

2 346

–

23

10 –

–

–

–

–

–

–

–

48

– –

– – 1,081

– – 449

– –

Function or activity

8

–

–

–

–

8 –

–

–

–

–

–

157

–

–

157

– –

–

–

460

–

1,448

– 18 –

–

–

– –

157

14,678

–

5,855 5,423

367 142

18,609

962

20 16

6,448 14,678

923

–

12,161 –

209 19

58

33

–


– – –

– (190)

2,220 2,798 – 577

page 3


Oberon Council

Special Schedule 2 – Permissible income for general rates for the year ended 30 June 2019

$’000

Notional general income calculation (1)

Last year notional general income yieldPlus or minus adjustments (2)

Notional general income

Permissible income calculation

Special variation percentage (3)

Or rate peg percentageOr crown land adjustment (incl. rate peg percentage)

Less expiring special variation amountPlus special variation amount

Or plus rate peg amountOr plus Crown land adjustment and rate peg amount

Sub-total

Plus (or minus) last year’s carry forward totalLess valuation objections claimed in the previous yearSub-total

Total permissible income

Less notional general income yieldCatch-up or (excess) result

Plus income lost due to valuation objections claimed (4)

Less unused catch-up (5)

Carry forward to next year

Notes

(1) The notional general income will not reconcile with rate income in the financial statements in the correspondingyear. The statements are reported on an accrual accounting basis which include amounts that relate to prior years’rates income.

(2) Adjustments account for changes in the number of assessments and any increase or decrease in land value occurringduring the year. The adjustments are called ‘supplementary valuations’ as defined in the Valuation of Land Act 1916 .

(3) The ‘special variation percentage’ is inclusive of the rate peg percentage and where applicable Crown land adjustment.

(4) Valuation objections are unexpected changes in land values as a result of land owners successfully objecting to theland value issued by the Valuer-General. Councils can claim the value of the income lost due to valuation objections inany single year.

(5) Unused catch-up amounts will be deducted if they are not caught up within 2 years. Usually councils will have anominal carry forward figure. These amounts can be adjusted for in setting the rates in a future year.

(6) Carry forward amounts which are in excess (an amount that exceeds the permissible income) require ministerial approval by order published in the NSW Government Gazette in accordance with section 512 of the Local Government Act 1993 . The OLG will extract these amounts from Council’s Special Schedule 2 in the financial data return (FDR) to administer this process.

(2) 25 3,790 4,074

3,792 4,049

6.95%7.00%0.00%0.00%0.00%0.00%

– (43) 263 282

(0) 4

– – – –

4,053 4,313

– – (0) 4

4,317

4,049 4,312

a

4 5

Calculation Calculation2017/182018/19

– –

4 5

– –

4,053

lm

n = (l + m)

o = k + n

g

k = (c + g + h + i + j)

b

def

j = c x fi = c x e

h = d x (c – g)

c = (a + b)

pq = o – p

rs

t = q + r – s

X3A0T

page 4


Oberon Council

Special Schedule 2 – Independent Auditors Report for the year ended 30 June 2019

Report on Special Schedule 2

Insert here signed Independent Auditors Report

X4A0T

page 5


Oberon Council

Special Schedule 3 – Water Supply Income Statement Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2018

$’000

A Expenses and incomeExpenses

1. Management expensesa. Administrationb. Engineering and supervision

2. Operation and maintenance expenses– dams and weirsa. Operation expensesb. Maintenance expenses

– Mainsc. Operation expensesd. Maintenance expenses

– Reservoirse. Operation expensesf. Maintenance expenses

– Pumping stationsg. Operation expenses (excluding energy costs)h. Energy costsi. Maintenance expenses

– Treatmentj. Operation expenses (excluding chemical costs)k. Chemical costsl. Maintenance expenses

– Otherm. Operation expensesn. Maintenance expenseso. Purchase of water

3. Depreciation expensesa. System assetsb. Plant and equipment

4. Miscellaneous expensesa. Interest expensesb. Revaluation decrementsc. Other expensesd. Impairment – system assetse. Impairment – plant and equipmentf. Aboriginal Communities Water and Sewerage Programg. Tax equivalents dividends (actually paid)

5. Total expenses

–

– – –

– –

–

182

20 –

– –

–

–

–

71 50

646

– –

587 120 43

273

–

– – –

–

–

–

1

364

–

– –

– 89

– –

–

–

– –

2018

–

113

–

263

150 23 55

2017

–

1,465 1,585

X5A0T

page 6


Oberon Council

Special Schedule 3 – Water Supply Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2018

$’000

Income

6. Residential chargesa. Access (including rates)b. Usage charges

7. Non-residential chargesa. Access (including rates)b. Usage charges

8. Extra charges

9. Interest income

10. Other income10a. Aboriginal Communities Water and Sewerage Program

11. Grantsa. Grants for acquisition of assetsb. Grants for pensioner rebatesc. Other grants

12. Contributionsa. Developer chargesb. Developer provided assetsc. Other contributions

13. Total income

14. Gain (or loss) on disposal of assets

15. Operating result

15a. Operating result (less grants for acquisition of assets)

(71)

17 –

–

– 11 11

–

–

– –

– –

11 8

456

–

1,021

2018

577

–

–

577

–

23

2,043

12

–

(71)

–

1,520 465

–

–

2017

1,514

–

–

page 7


Oberon Council

Special Schedule 3 – Water Supply Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2018

$’000

B Capital transactionsNon-operating expenditures

16. Acquisition of fixed assetsa. New assets for improved standardsb. New assets for growthc. Renewalsd. Plant and equipment

17. Repayment of debt

18. Totals

Non-operating funds employed

19. Proceeds from disposal of assets

20. Borrowing utilised

21. Totals

C Rates and charges

22. Number of assessmentsa. Residential (occupied)b. Residential (unoccupied, ie. vacant lot)c. Non-residential (occupied)d. Non-residential (unoccupied, ie. vacant lot)

23. Number of ETs for which developer charges were received

24. Total amount of pensioner rebates (actual dollars)

2018

–

– –

12 12 1,097

54

1,097

–

–

–

128

–

151

–

2017

53

– –

–

–

75 97

240 –

240 –

4 ET2 ET

20,497$ 19,687$

page 8


Oberon Council

Special Schedule 4 – Water Supply Statement of Financial Position Includes internal transactions, i.e. prepared on a gross basis as at 30 June 2018

$’000

ASSETS25. Cash and investments

a. Developer chargesb. Special purpose grantsc. Accrued leaved. Unexpended loanse. Sinking fundf. Other

26. Receivablesa. Specific purpose grantsb. Rates and availability chargesc. User chargesd. Other

27. Inventories

28. Property, plant and equipmenta. System assetsb. Plant and equipment

29. Other assets

30. Total assets

LIABILITIES31. Bank overdraft32. Creditors

33. Borrowings

34. Provisionsa. Tax equivalentsb. Dividendc. Other

35. Total liabilities

36. NET ASSETS COMMITTED

EQUITY37. Accumulated surplus38. Asset revaluation reserve39. Other reserves

40. TOTAL EQUITY

Note to system assets:41. Current replacement cost of system assets42. Accumulated current cost depreciation of system assets43. Written down current cost of system assets

– –

–

31

– –

31

–

– –

33

–

– – –

–

33

– –

– –

–

– –

5,546

8,566

13,499 (4,933)

4,276

9,822

9,822

33

33

–

45

–

–

9,855

115

8,711 1,111

– –

–

–

115

45

–

–

871 –

228

8,711

–

– –

–

1,144

8,565

Current

– –

– –

–

– –

–

Total

–

– –

8,565

871

228 –

Non-current

–

–

X6A0T

page 9


Oberon Council

Special Schedule 5 – Sewerage Service Income Statement Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2018

$’000

A Expenses and incomeExpenses

1. Management expensesa. Administrationb. Engineering and supervision

2. Operation and maintenance expenses– mainsa. Operation expensesb. Maintenance expenses

– Pumping stationsc. Operation expenses (excluding energy costs)

d. Energy costse. Maintenance expenses

– Treatmentf. Operation expenses (excl. chemical, energy, effluent and biosolids management costs)

g. Chemical costsh. Energy costsi. Effluent managementj. Biosolids managementk. Maintenance expenses

– Otherl. Operation expensesm. Maintenance expenses

3. Depreciation expensesa. System assetsb. Plant and equipment

4. Miscellaneous expensesa. Interest expensesb. Revaluation decrementsc. Other expensesd. Impairment – system assetse. Impairment – plant and equipmentf. Aboriginal Communities Water and Sewerage Programg. Tax equivalents dividends (actually paid)

5. Total expenses

2018 2017

–

292

111 110 99 32

103

50 – –

–

31

772 648

20 – –

– –

25

2

– –

– –

–

–

– – –

– –

– – –

–

5

72 –

–

139 20

–

– –

126

–

–

183

–

X7A0T

page 10


Oberon Council

Special Schedule 5 – Sewerage Service Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2018

$’000

Income

6. Residential charges (including rates)

7. Non-residential chargesa. Access (including rates)b. Usage charges

8. Trade waste chargesa. Annual feesb. Usage chargesc. Excess mass chargesd. Re-inspection fees

9. Extra charges

10. Interest income

11. Other income11a. Aboriginal Communities Water and Sewerage Program

12. Grantsa. Grants for acquisition of assetsb. Grants for pensioner rebatesc. Other grants

13. Contributionsa. Developer chargesb. Developer provided assetsc. Other contributions

14. Total income

15. Gain (or loss) on disposal of assets

16. Operating result

16a. Operating result (less grants for acquisition of assets)

25 32

5 10

– –

– – – –

–

–

–

561 435

479

– –

11 11 83 –

1,333 1,083

–

435

37 22

– – – –

– –

–

457 100 98

–

293

616 615

20172018

page 11


Oberon Council

Special Schedule 5 – Sewerage Service Income Statement (continued) Includes all internal transactions, i.e. prepared on a gross basis for the year ended 30 June 2018

$’000

B Capital transactionsNon-operating expenditures

17. Acquisition of fixed assetsa. New assets for improved standardsb. New assets for growthc. Renewalsd. Plant and equipment

18. Repayment of debt

19. Totals

Non-operating funds employed

20. Proceeds from disposal of assets

21. Borrowing utilised

22. Totals

C Rates and charges

23. Number of assessmentsa. Residential (occupied)b. Residential (unoccupied, ie. vacant lot)c. Non-residential (occupied)d. Non-residential (unoccupied, ie. vacant lot)

24. Number of ETs for which developer charges were received

25. Total amount of pensioner rebates (actual dollars)

43 191

9 – 34 –

–

–

–

–

4 ET

19,503$

–

191 –

2018 2017

–

–

53 189

995

–

–

–

18,498$

–

189 53

–

2 ET

995

page 12


Oberon Council

Special Schedule 6 – Sewerage Service Statement of Financial Position Includes internal transactions, i.e. prepared on a gross basis as at 30 June 2018

$’000

ASSETS26. Cash and investments

a. Developer chargesb. Special purpose grantsc. Accrued leaved. Unexpended loanse. Sinking fundf. Other

27. Receivablesa. Specific purpose grantsb. Rates and availability chargesc. User chargesd. Other

28. Inventories

29. Property, plant and equipmenta. System assetsb. Plant and equipment

30. Other assets

31. Total assets

LIABILITIES32. Bank overdraft33. Creditors

34. Borrowings

35. Provisionsa. Tax equivalentsb. Dividendc. Other

36. Total liabilities

37. NET ASSETS COMMITTED

EQUITY38. Accumulated surplus39. Asset revaluation reserve40. Other reserves

41. TOTAL EQUITY

Note to system assets:42. Current replacement cost of system assets43. Accumulated current cost depreciation of system assets44. Written down current cost of system assets

3,282

67

– – –

– –

Non-current Current

3,282 – –

–

–

Total

– –

– –

244

81 6 –

–

–

–

–

67

–

– –

205

–

81 –

– – 244

9,178

3,436

–

–

13,063

9,178

9,627

6

–

–

205

– –

–

6,837

9,178

20,733 (11,554)

6,195

13,032

9,627

–

–

3,405

–

–

– –

– –

–

31 –

31

– –

13,032

31

31 – –

X8A0T

page 13


Oberon Council

Notes to Special Schedules 3 and 5 for the year ended 30 June 2018

Administration (1) Engineering and supervision (1)

(item 1a of Special Schedules 3 and 5) comprises the following: (item 1b of Special Schedules 3 and 5) comprises the following:

• Administration staff: • Engineering staff:− Salaries and allowance − Salaries and allowance− Travelling expenses − Travelling expenses− Accrual of leave entitlements − Accrual of leave entitlements− Employment overheads. − Employment overheads.

• Meter reading • Other technical and supervision staff:− Salaries and allowance

• Bad and doubtful debts − Travelling expenses− Accrual of leave entitlements

• Other administrative/corporate support services − Employment overheads.

Operational expenses (item 2 of Special Schedules 3 and 5) comprise the day to day operational expensesexcluding maintenance expenses.

Maintenance expenses (item 2 of Special Schedules 3 and 5) comprise the day to day repair and maintenanceexpenses. (Refer to Section 5 of the Local Government Asset Accounting Manual regarding capitalisationprinciples and the distinction between capital and maintenance expenditure).

Other expenses (item 4c of Special Schedules 3 and 5) includes all expenses not recorded elsewhere.

Revaluation decrements (item 4b of Special Schedules 3 and 5) is to be used when I,PP&E decreases in FV.

Impairment losses (item 4d and 4e of Special Schedules 3 and 5) are to be used when the carrying amount ofan asset exceeds its recoverable amount (refer to page D-31).

Aboriginal Communities Water and Sewerage Program (item 4f of Special Schedules 3 and 5) is to beused when operation and maintenance work has been undertaken on behalf of the Aboriginal CommunitiesWater and Sewerage Program. Similarly, income for item 11a of Special Schedule 3 and item 12a of SpecialSchedule 5 are for services provided to the Aboriginal Communities Water and Sewerage Program and is notpart of Council’s water supply and sewerage revenue.

Residential charges

(2) (items 6a, 6b and item 6 of Special Schedules 3 and 5 respectively) include all incomefrom residential charges. Item 6 of Schedule 3 should be separated into 6a access charges (including rates ifapplicable) and 6b usage charges.

Non-residential charges

(2) (items 7a, 7b of Special Schedules 3 and 5) include all income from non-residentialcharges separated into 7a access charges (including rates if applicable) and 7b usage charges.

Trade waste charges (item 8 of Special Schedule 5) include all income from trade waste charges separatedinto 8a annual fees, 8b usage charges and 8c excess mass charges and 8d re-inspection fees.

Other income (items 10 and 11 of Special Schedules 3 and 5 respectively) include all income not recordedelsewhere.

Other contributions (items 12c and 13c of Special Schedules 3 and 5 respectively) including capital contributionsfor water supply or sewerage services received by Council under Section 565 of the Local Government Act .

Notes:(1) Administration and engineering costs for the development of capital works projects should be reported as part of the capital cost of the project and not as part of the recurrent expenditure (ie. in item 16 for water supply and item 17 for sewerage, and not in items 1a and 1b).

(2) To enable accurate reporting of residential revenue from usage charges, it is essential for councils to accurately separate their residential (item 6) charges and non-residential (item 7) charges.

X9A0T

page 14


Oberon Council

Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2018

$’000

Bulk earthworks

Sealed Roads Pavement

Kerb & Gutter 774 774 124 – 1,706 3,814 4% 22% 0% 74% 0%

2,906 31,627

0%3,416 0% 0%

8

20% 14%

4.0%

127 13 47.7% 2.2%

11% 0%

26,992 33,891 86% 2% 10% 2% 0%

0%

10,747

31,627

Buildings Council Offices/Admin – – 28 5 1,969 3,700 28% 70% 2% 0%

Council Works Depot 32 32 34 – 1,254 2,416 36% 29% 30% 5%0%

Assets in condition as a percentage of gross replacement cost

Net carryingamount

153

505

0%

0%

0%

83,282 3,543 0%

92%

56%14% 18%0%

– 40%60%

20.9% 4.2%452

Sub-total 8.0%208,627 5%

5,271

–

0%0%

0%Footpaths

Street Furniture–

–

14.4%

0%4%

100%

100%

2,257 883

4,822 13,309

1,932 0%

3%

Libraries

Emergency Services

2 –

21%1

13

65%

13

Roads Sealed Roads Surface 196 196 138 622

structures

Amenities/Toilets 37 1,369 55%

5

1,796 7,518

9

– –

27 18

Unsealed roads

73%23.0%2

1,754

–

1,426

2 1,932

48,606

2

196

9

21

–

0%

0.0%

1%

Other structuresSub-total

Asset class

to bring assetsEstimated cost

2017/18to bring to the 2017/18 Gross

standard maintenanceAsset categoryRequired Actual replacement

cost (GRC)maintenanceato satisfactory

Estimated cost

agreed level ofservice set by

Council

–

– 3 7 37 14 – 795

Other

Sub-totalRecreational Facilities

27 18

17%

3,331 45%

127

23%

20 65

22,234

4

– 0%

0%

48%

874 5%

0%–

4%9%

18%

0%

4 4%

0%153

4%

5

Aged Care Facilities

Other Buildings

3

Buildings – non-specialised

0%0%

35.6%

66%10%

– – 0%

83%

100%

0%1,077 73%

8 –

1,754 61,246 11%

25%

3%

1%

0.0%

4%2,649

671

2 –

– –

– 2 Bridges 9,965 –

93,624 81% 14% 0%243,636 0.3%2,732

450 –

2,166

0%

2,732

21

0%23

1,642

0%73.0%

– 5 –

566 0%

66.7%

2,649 0.0%

X10A0T

page 15


Oberon Council

Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2018 (continued)

$’000

Asset class

2017/18

Water supply Mains 55 55 62 43 3,807 6,265 65% 4% 27% 4% 0%

Sewerage Equipment 1,503 1,503 283

– 0%111

– 15

0.0%

748 3,614


–

91

Net carryingamount

29.3%38.1%1,503 0%0%

21

0%

Sub-totalPipes

8,990 20,513 – 96

897

6%– 975

6,409

81% 0%

98

0%0%

0%0%

1,503

7,418 0% 0% 19%–

50

21.5%395

1,334 28%

3

66%0%–

– 10,718

8,259 0%

5

3%

Pumping Stations –

Sub-total

72% 28%1,043

28%19%

Asset category

72%

90 –

–

4

–

1,394

Gross

100%

2

5,410 0%0%

78%

3

Treatment–

43 166 –

to satisfactorystandard

to bring assets

maintenancea

Estimated cost

ActualRequired2017/18

agreed level of

Estimated cost

1.9%12.7% 0.0%14.1%71.3%13,160

1

0%

cost (GRC)

0%

maintenance

–

0% 0%

0%

replacementto bring to the

service set byCouncil

166

709 0%

50

Other Meters

111

network

Reservoirsnetwork

Manholes

11.1%

13 – –

100%

page 16


Oberon Council

Special Schedule 7 – Report on Infrastructure Assets as at 30 June 2018 (continued)

$’000

Notes:a Required maintenance is the amount identified in Council’s asset management plans.

Infrastructure asset condition assessment ‘key’

Excellent/very good No work required (normal maintenance) Condition Description here…Good Only minor maintenance work required Condition Description here…Satisfactory Maintenance work required Condition Description here…Poor Renewal required Condition Description here…Very poor Urgent renewal/upgrading required Condition Description here…

0% 0%

4321 6

10987

250,015 TOTAL – ALL ASSETS 4,534 2,908 1,763

Inlet and Junction Pits – – 1


314,997 63.9% 11.3% 19.3% 5.4% 0.2%4,534

4 15 15 2,186 41.1%

– 1,457

4

8,683 – 1,936 95% 5%Stormwater

Swimming pools –

4 – 1,136 79% 17%

Sub-total

1,050 0% 100%

to bring assets

Asset class

26%

2017/18

21Asset category

–

22.2% 0.0%1.6%

0%

– 0.0%29

0%

0% 0%

56.9% 2.1% 0.0% 0.0%1,679

15

4% 0%

11

3cost (GRC)

28

to bring to the

Council

0%

2017/18

0%72% 2%5,762 0%

maintenanceActual

– Stormwater Pipes

Estimated cost

–

Requiredto satisfactorystandard

Estimated cost

agreed level ofservice set by

Net carryingamountmaintenancea

10,619 Sub-total 76.2%

Open space/

7,219

839

840

–

Other Open Spaces/ Recreational 4

Gross

5

–

recreational4 4

drainage

5replacement

page 17


Oberon Council

Special Schedule 7 – Report on Infrastructure Assets (continued) for the year ended 30 June 2018

$ ’000

Infrastructure asset performance indicators * consolidated

1. Buildings and infrastructure renewals ratio (1)

Asset renewals (2)

Depreciation, amortisation and impairment

2. Infrastructure backlog ratio (1)

Estimated cost to bring assets to a satisfactory standardNet carrying amount of infrastructure assets

3. Asset maintenance ratioActual asset maintenanceRequired asset maintenance

4. Cost to bring assets to agreed service level

Gross replacement cost

Notes

* All asset performance indicators are calculated using the asset classes identified in the previous table.

(1) Excludes Work In Progress (WIP)

(2) Asset renewals represent the replacement and/or refurbishment of existing assets to an equivalent capacity/performance as opposed to the acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.

1.44% 0.61% 0.00%4,534

1,763

314,997

Estimated cost to bring assets toan agreed service level set by Council

2,908

Amounts Prior periods

60.63% 93.78% 89.51%

2018

>= 100%

< 2.00%

> 100%

BenchmarkIndicator

143.94% 224.78% 214.45%

2018 2017 2016

4,072

4,534 1.81% 4.22% 3.45%250,215

2,829

page 18


Oberon Council



Benchmark: ――― Maximum <2.00% Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

Benchmark: ――― Minimum >100.00% Ratio achieves benchmarkSource for benchmark: Code of Accounting Practice and Financial Reporting #26 Ratio is outside benchmark

This ratio provides a snapshot of the

proportion of outstanding renewal works compared to the total value of

assets under Council's care and

stewardship.

With the introduction of the Special Rates Variation and LIRS in the last few years Council has worked hard to reduce this

ratio.


Purpose of asset maintenance ratio

This ratio showswhat proportion the backlog is against

the total valueof a Council’s infrastructure.

2017/18 Ratio 143.94%

To assess the rate at which these assets are being renewed

relative to the rate at which they are depreciating.

Purpose of infrastructure backlog ratio

Purpose of asset renewals ratio

Compares actual vs. required annual asset maintenance. A ratio

above 100% indicates Council is investing

enough funds to stop the infrastructure backlog growing.

Council has fallen behind a result of decreased funding during the 2017-18 period being the first year without LIRS

funding.

Council continues to maintain the benchmark requirement for this ratio.


2017/18 Ratio 1.81%

2017/18 Ratio 60.63%

Council has made headways into reducing the infrastructure backlog with the

introduction of the Special Rates Variation.


Purpose of agreed service level ratio


2017/18 Ratio 1.44%

166%214% 225%

144%

0%

50%

100%

150%

200%

250%

300%

2015 2016 2017 2018

Rat

io %

1. Buildings and infrastructure renewals ratio

1.8%

3.6% 3.5%4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2015 2016 2017 2018

Rat

io %

2. Infrastructure backlog ratio

85% 90% 94%61%

0%20%40%60%80%

100%120%140%

2015 2016 2017 2018

Rat

io %

3. Asset maintenance ratio

0.00%

0.61%

1.44%

-0.02%0.19%0.41%0.62%0.84%1.05%1.26%1.48%1.69%1.90%

2016 2017 2018

Rat

io %

4. Cost to bring assets to agreed service level

page 19


Oberon Council


$ ’000

Infrastructure asset performance indicators by fund

1. Buildings and infrastructure renewals ratio (2)

Asset renewals (3)

Depreciation, amortisation and impairment

2. Infrastructure backlog ratio (2)

Estimated cost to bring assets to a satisfactory standardNet carrying amount of infrastructure assets

3. Asset maintenance ratioActual asset maintenanceRequired asset maintenance

4. Cost to bring assets to agreed service levelEstimated cost to bring assets to an agreed service level set by CouncilGross replacement cost

Notes

(1) General fund refers to all of Council’s activities except for its water and sewer activities which are listed separately.

(2) Excludes Work In Progress (WIP)(3) Asset renewals represent the replacement and/or refurbishment of existing assets to an equivalent capacity/performance as opposed to the acquisition of new assets

(or the refurbishment of old assets) that increases capacity/performance.

2018

0.00%254.79% 0.00%

2018

178.67%

87.92%

50.00%

7.55%

1.23%

1.26% 7.33%1.02%

3.60%0.45%

12.66%91.88%

2.05%0.07%

95.78%

2.01%

69.15%

General indicators (1)

2017

>= 100%

< 2.00%

> 100%

Benchmark2017

Sewer indicatorsWater indicators20172018

0.00% 0.00%

16.72%

43.88%

page 20


Special Schedule 2 - Permissible Income for general rates

Oberon Council


Opinion

I have audited the accompanying Special Schedule 2 – Permissible income for general rates (the

Schedule) of the Oberon Council (the Council) for the year ending 30 June 2019.

In my opinion, the Schedule of the Council for the year ending 30 June 2019 is prepared, in all

material respects in accordance with the requirements of the Local Government Code of Accounting

Practice and Financial Reporting (LG Code) issued by the Office of Local Government (OLG), and is in

accordance with the books and records of the Council.


Basis for Opinion


standards are described in the ‘Auditor’s Responsibilities for the Audit of the Schedule’ section of my

report.






Parliament promotes independence by ensuring the Auditor-General and the Audit Office of

New South Wales are not compromised in their roles by:


Auditor-General

• mandating the Auditor-General as auditor of councils


I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.

Emphasis of Matter – Basis of Accounting

Without modifying my opinion, I draw attention to the special purpose framework used to prepare the

Schedule. The Schedule had been prepared for the purpose of fulfilling the Council’s reporting

obligations under the LG Code. As a result, the Schedule may not be suitable for another purpose.

Other Information


30 June 2019, other than the Schedule and my Independent Auditor’s Report thereon. The Councillors

are responsible for the other information. At the date of this Independent Auditor’s Report, the other

information I have received comprise the general purpose financial statements, special purpose

financial statements and the Special Schedules excluding Special Schedule 2 (the other Schedules).

My opinion on the Schedule does not cover the other information. Accordingly, I do not express any

form of assurance conclusion on the other information. However, as required by the Local

Government Act 1993, I have separately expressed an opinion on the general purpose financial

statements and the special purpose financial statements.

In connection with my audit of the Schedule, my responsibility is to read the other information and, in

doing so, consider whether the other information is materially inconsistent with the Schedule or my

knowledge obtained in the audit, or otherwise appears to be materially misstated.




The Councillors’ Responsibilities for the Schedule

The Councillors are responsible for the preparation of the Schedule in accordance with the LG Code.

The Councillors’ responsibility also includes such internal control as the Councillors determine is

necessary to enable the preparation of the Schedule that is free from material misstatement, whether

due to fraud or error.

In preparing the Schedule, the Councillors are responsible for assessing the Council’s ability to


going concern basis of accounting, unless it is not appropriate to do so.

Auditor’s Responsibilities for the Audit of the Schedule


• obtain reasonable assurance whether the Schedule as a whole is free from material







based on the Schedule.

A description of my responsibilities for the audit of the Schedule is located at the Auditing and






• about the security and controls over the electronic publication of the audited Schedule on any

website where it may be presented

• about any other information which may have been hyperlinked to/from the Schedule.

Dominika Ryan

Director, Financial Audit

23 October 2018

SYDNEY


Report Item

13.02 2017-18 ANNUAL REPORT

ATTACHMENTS

Annual Report 2017-18

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2017/18

ANNUAL REPORT

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INDEX / CONTENTS

Contents PAGE

Contact Details 3

Councillor Contact Details 4

Message from the Mayor 5

General Manager’s Report 6

Workforce / Organisational Structure 7

Planning and Development 8

Finance and Community Services 9

Technical Services 14

Statutory Information 16

Attachments

Oberon End of Term Report 2018

2017/18 State of the Environment Snapshot

2017/18 Audited Financial Statements

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CONTACT DETAILS Oberon Council Administration Centre & Council Chambers

137 Oberon Street (PO Box 84) Oberon NSW 2787 Ph: 02 6329 8100 Email: [email protected] Website: www.oberon.nsw.gov.au

Council Works Depot 21 Albion Street Oberon NSW 2787 Ph: 02 6329 8200 (Store) Fax: 02 6329 8201 (Workshop)

Oberon Library 74 Dart and Fleming Street Oberon NSW 2787 Ph: 02 6329 8220

Oberon Visitor Information Centre Cnr Ross & Edith Streets Oberon NSW 2787 Ph: 02 6329 8210 or 8212

Robert (Bob) Hooper Community Centre 9 Fleming Street Oberon NSW 2787 Ph: 02 6329 8100

Oberon Swimming Pool 15 Cunynghame Street Oberon NSW 2787 Ph: 02 6329 8251

Oberon Fire Control Centre 12 North Street Oberon NSW 2787 Ph: 02 6329 0493

mailto:[email protected]

http://www.oberon.nsw.gov.au/

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OUR COUNCIL COUNCILLORS: Elected September 2017

Councillor Phone Email

Don Capel 6335 8226 [email protected]

Ian Doney 6337 5793 [email protected]

Kerry Gibbons 6336 0830 [email protected]

Mark Kellam 0438 215 482 [email protected]

Brenda Lyon 0418 629 073 [email protected]

Clive McCarthy 6336 1019 [email protected]

Michael McKechnie 0408 542 711 [email protected]

Andrew McKibbin 6337 9624 [email protected]

Kathy Sajowitz 6336 0742 [email protected]

MAYOR Kathy Sajowitz was elected Mayor in July 2015, and September 2015, 2016, 2017 and 2018. DEPUTY MAYOR Kerry Gibbons was elected Deputy Mayor in September 2012, 2013, 2014, 2015, 2016, 2017 and 2018.

From left to right: Clr Mick McKechnie, Clr Don Capel, Clr Andrew McKibbon,

Deputy Mayor Kerry Gibbons, Mayor Kathy Sajowitz, Clr Ian Doney, Clr Brenda Lyon,

Clr Mark Kellam, Clr Clive McCarthy










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ORGANISATIONAL STRUCTURE The Organisation Structure was reviewed by Council and represents the current structure.

GENERAL MANAGER

DIRECTOR PLANNING AND DEVELOPMENT

Shane Wilson

Health & Building Manager Senior Development Control Officer

DIRECTOR FINANCE AND COMMUNITY SERVICES

Lynette Safranek

Finance Coordinator Community Services Coordinator

IT/GIS Coordinator

DIRECTOR TECHNICAL SERVICES

Chris Schumacher

Works Manager Project Engineer

EXECUTIVE AND CUSTOMER SERVICES

Executive Coordinator Human Resources Coordinator

Work Health & Safety/Risk Coordinator

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A MESSAGE FROM THE MAYOR It is my great pleasure to introduce the 2017/18 Oberon Council Annual Report which provides an overview of the Council’s activities over the past Financial Year. The 2017/18 has been a year of rejuvenation after the reversal of the forced amalgamation proposal.

A new council was elected to office in September 2017 for a period of three years. This deviation from the normal four year cycle will enable councils who were under merger proposals to come back in line with the majority of NSW Local Government Elections. Oberon was fortunate to receive substantial funding from the NSW Government through the Stronger Country Communities Fund which has enabled us to progress projects important to the community including new playground equipment for the villages, upgrades to the Oberon Pool, the Oberon Recreation Ground, new BBQ’s on the Fish River and the commencement of a Skateboard Precinct at the Oberon Common. Council has worked in collaboration with many community groups over the past twelve months to achieve some good outcomes examples being the Wellness Festival Event and the Oberon Show. Our current focus is to promote economic development by not only encouraging our existing small businesses but actively pursuing new business initiatives. We have facilitated this by collaborating with OBTA on the delivery of relevant workshops for small business owners, assisting to forge connections and importantly the employment of an Economic Development and Tourism Manager. This has proved to be a great success; tourism is the single most beneficial driver of economic development in the region and a rapidly growing benefit to Oberon. Wedding venues, gardens, caves, adventure tourism and history are just a few of the attractions we boast and promote. On Australia Day 2018 we welcomed Sam Cawthorn as our Ambassador into our community. We congratulated Neil Francis from Burraga as Citizen of the Year and Hannah Dusselaar and Victoria Webb as joint Young Citizens of the Year. I would like to pass on my congratulations to all of the award category winners. As a community we celebrated Youth Week, Seniors Week and I hosted a Mayoral Lunch to celebrate International Women’s Day. Indigenous artist Nyree Reynolds was the keynote speaker. We commemorated Anzac Day and council through the 356 Community Donation Program was happy to support our local schools, sporting groups and community organisations with projects and activities too numerous to mention here to the value of over $90000, a great investment into the social fabric of the town. The Oberon Youth Council has been very active, assisting at community events and fundraising for various projects. Our youth are valued members of the community and we need to continually invest in and encourage their participation. I would like to acknowledge the many volunteers that work in our community, without you we would be much the poorer, please be assured you are all greatly valued and appreciated. Council continues to deliver on the Special Rate Variation agreed to by the community in 2015/16 to improve road infrastructure. After two years of implementation, targets are being met on the upgrade of priority roads agreed upon by the community during the consultation process. The Borg Manufacturing expansion program is almost complete and subdivision development continues to grow which augers well for our future, our population is growing and I am pleased to say we have a strong well connected community culture. Council continues its efforts to secure a more equitable solution to the issue of unrateable land and progress is being made. My thanks go to the community, Oberon Council staff and elected representatives for their amazing effort on behalf of the community during 2017/18. Our financial position is sound, we are vibrant and inclusive – our future is bright indeed. Clr Kathy Sajowitz Mayor

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GENERAL MANAGER’S REPORT

I take this opportunity to thank the Oberon community for their ongoing support during what has been a very quick 2018. The year has sped along and with it a very steep learning curve in my tenure as Oberon Councils General Manager. On the back of the scrapping of the forced mergers proposals by the NSW State Government Oberon Council continues to punch well above its weight in terms of outcomes achieved.

Some of the significant outcomes include a new Community Engagement Strategy that sees Council engaging with the community in a more hands on approach. The community continues to be our best source of information and this new approach puts that engagement front of mind. 2018 has also seen significant investment in the Local Government Area by way of the Stronger Country Communities fund. This injection of over $2,000,000 from the State Government has produced foot path extensions in Oberon, Black Springs and Burraga, playground upgrades to Oberon, Black Springs and Burraga, Village improvement in Black Springs and Burraga together with our BBQ’s on the Fish application that sees new BBQ Shelter, BBQ and information boards placed at the Reef Reserve, Flat Rock and Hassall Park. Additionally, new grandstands will be commissioned in the recreation ground and a signage strategy prepared and implemented across the local government area. Another huge accomplishment was the contribution towards a funding application for a Community Fitness Centre. This was helped by the overwhelming support from the community. A new and exciting strategic initiative is the development of a new Community Strategic Plan that will guide Oberon towards 2040. I am confident that the long term prospects for Oberon are positive. Significant development in industry, together with thriving residential and business sectors are all good triggers for long term prosperity. Another significant change in 2018 was the introduction of a Tourism and Economic Development Manager into the Council fold. In a very short time this investment has produced significant opportunities and in the coming year it will be very exciting to see how these initiatives flourish. Council has also welcomed a new Library Manager who has made a significant contribution to the Library operation since commencing. The positive comments received in this area are always encouraging. One of the most pleasing things I have received this year was a ‘clean’ audit result from the NSW Audit Office in relation to our 2017/18 financial statements. It is a credit to our finance staff (and Council as a whole) to provide these statements in a clear and transparent way and get that acknowledged by the independent auditing authority. In order to continue to provide a robust and transparent process Council has also implemented an Independent Internal Audit Committee that will continue to monitor risk to Council and its operations. Advocating for unrateable lands to become rateable is something that Council continues to push with the State Government. Over $700,000 is unable to be collected by Council from approximately 47% of the Local Government Area being unrateable. This is significant and Council continues to lobby for this to be rectified. We continue to be mindful of the significant achievements for the Oberon Community with the development of new infrastructure whilst being mindful of reducing our infrastructure backlog within our Area. We continue to undertake projects on the State road network outside the Local Government Area which is a credit to our Works Staff and acknowledgement for their professionalism in undertaking these projects on behalf of the RMS.

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Our commitments statement in accordance with the current Community Strategic Plan is simple: We respect the past, the future and position of others. We take pride in community achievement, and we work together in an open and co-operative manner. I believe in this mantra and continue to reinforce this within the organisation. However, we do not want to lose the relaxed rural environment and pace of living we now enjoy. Our identity is key to underpinning the intonation of life as it should be! I would like to thank all the Staff of Oberon Council for their ongoing support and I congratulate them on the achievements during the last year. I look forward to working with them, Council and our Community to achieve priorities identified in the Oberon Local Government Area during 2018/19. Gary Wallace General Manager

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PLANNING & DEVELOPMENT Council's Planning and Development Department helps to conserve, protect and enhance the natural and built environment of the Oberon Local Government Area. Council has a primary responsibility of ensuring our sensitive environment is retained and where possible, enhanced through the application of appropriate building and development controls.

The 2017/18 year resulted in the stabilisation of the department with new staff coming on board, thus ensuring that a complement and seamless delivery of all planning and building services are available to the community. The year also resulted in a number of unauthorised developments having action taken upon them, of which some have escalated into the Land & Environment court for further enforcement. A number of applications for subdivision of residential and large lot residential land continues and is a sign of the continued expansion of the Oberon Council area, some of these application have also attracted a great deal of public interest. A number of major projects have been undertaken during this time with a substantial development continuing at the major industrial hub of Borg. The $120 Million project which was approved by the NSW State Government increases the ability of the manufacturer to utilise its Particleboard operations whilst also consolidating its approvals which were many and varied over the lifetime of the facility. The interest in the Oberon Industrial Estate continues with several lots being sold throughout the year and ever increasing interest showing a positive sign for the area. Amendments to the Environmental Planning & Assessment Act and the commencement of the Crown Land Management Act resulted in several processes having to be reviewed and staff training to now have a Native Title Manager on staff and understanding of the new requirements for crown land management. Gateway Planning Proposals for the creation of recreations zones were granted during the year and once completed will allow for more flexible use of some of the community recreation areas around Oberon. A Planning Proposal for rezoning of land within O’Connell has seen substantial interest and continues to be reviewed by the Independent Planning Commission prior to progressing to the next stages. The Oberon Waste Facility improvements continued with the construction and official opening of the Community Recycling Centre in February. This facility allows residential properties to disposal of Household problem waste, such as paints, oils, gas bottles and an assortment of other items.

Heritage During the year there were a number of locally listed heritage item nominated for State Heritage listings. Council along with the Friends of Lindlegreen at O’Connell were successful in obtaining a $100,000 Heritage Local Strategic Project grant through NSW Government - Heritage Near Me program for a “Conserving O’Connell’s Earth Building Heritage”. The first part of this program has already been undertaken with the University of Sydney having spent a weekend to undertake heritage assessments of several sites in the O’Connell area. This will see a number of activities being undertaken in the upcoming year. Shane Wilson Planning & Development Director

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FINANCE & COMMUNITY SERVICES The 2017/18 Financial Statements show a net surplus of $3.9 million, before grants and contributions for capital purposes. The Statement of Cash Flows shows the total cash, cash equivalents and investments at $15.3 million, which is made up of $1 million in cash and $14.3 million in investments. Council is pleased to have received a ‘clean’ external audit with no reportable issues.

Community Services Oberon and Surrounding Villages Community Newsletter The Community Newsletter continues to be distributed to all Oberon residents, as well as motels, caravan parks, and small businesses within Oberon. The promotion of advertising space has proven so successful we have extended the pages within the Newsletter to cope with the demand. The Community Newsletter is key tool, together with Council’s Facebook and Website, to spread the word regarding local news and events. All of Oberon’s community groups use the Newsletter to promote upcoming events, as well as provide updates on what is or has happened in and around local communities. Oberon Youth Council

2017/18 has seen the Oberon Youth Councillors secure funding for a new Skate Park for the Oberon Youth. Construction is due to commence on the new park at The Common in late 2018. The Youth Councillors have been busy holding multiple raffles and sausage

sizzles in an effort to raise funds for youth activities in and around Oberon. They held a successful Youth Week event at the Oberon Recreation ground. Community Services The Community Services Department of Oberon Council is small, just five staff members including two Library Staff. Over the past 12 months this small group of people supported by the organisation have produced some amazing outcomes. The team often give up valuable family time to run weekend projects. They go above and beyond to ensure our community are engaged and active. This attitude and commitment needs to be encouraged and acknowledged.

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Some of the successful projects and events CS have facilitated or assisted this year include:

Australia Day Celebrations engaging with over two hundred community members

Youth Week, a highly successful activity Day held at Oberon Rec Ground involving Youth Council and Community Volunteers

Wellness Festival incorporating Seniors Week held in collaboration with local schools and Aged Care facility

National Simultaneous Storytime involving local preschool and kindy students held at the library. Every library in Australia read the same book on the same day at the same time, thirty children participated

Oberon Biggest Morning Tea raising funds for cancer held at Library

International Women’s Day Mayoral Lunch held at the Community Centre and booked out with 60 community members attending

Dragonskin Event – Scouts weekend held at Black Springs involving approx. 2000 scouts and their support grew, as a result of this event the organisers have expressed a wish to bring the event to Oberon bi-annually. A huge economic boost to Oberon. CSS worked closely with the organisers of this event and participated in part of the weekend.

Support for W2A Competition – collaborating with Friends of the Oberon Library

Noel Braun Author talk at the library

Council School Holiday Activities including activities such as Pink Mad Hatters Tea Party; Lego workshops; Wombats are Wonderful talk; Ice Skating in Bathurst as part of the Winter Festival; seasonal craft activities; and Programming the Future Activity Van visit, wonderful concept for our young people, something they may not normally be exposed to. The participants built robots and worked on digital projects, with plans for further visits. Our young people are once again engaging at the Library. A brilliant outcome!

Welcome to Oberon afternoon tea, a meet and greet for new residents held each December. The Community Services Staff at Oberon Council actively engage and support the Oberon Youth Council assisting both physically and organisationally to ensure our young people are

valued in our community. The soon to be commenced Oberon Skateboard Precinct is an example of the success of this collaboration. Events such as Youth Week Celebration, Fright Night Movies (Halloween), Dive in Movies at the Oberon Pool, and Youth Life Skills Workshop are coordinated and encouraged by the CSS.

The success of this small group of staff members is easily measured by the increased level of community participation in events, projects and promotions, other organisations both internal and external are seeking to engage with CSS to collaborate and deliver beneficial outcomes for Oberon and the wider community. The CSS work well together and are well supported by council; they are engaged with the community. Lynette Safranek Finance & Community Services Director

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TECHNICAL SERVICES Oberon Council Technical Services area has delivered on another big budget during the 2017/2018 financial year including several road projects across the combined network of Local, Regional and State Roads. Following is an outline of road works listed with the respective funding sources which have permitted Council to deliver improvements to the Local Government Ratepayers of the Oberon Local Government Area.

During the 2017/2018 ‘Community Strategic Plan’ consultation meetings held across the LGA, the general consensus by community echoed an ongoing need for continued road improvements. Council agreed, allocating more funding to make more improvements to the public road assets, building wider roads, stronger pavements and vast improvements to safety for all users of our road LGA network. Council will continue to advocate for improvements to the road network seeking additional funding opportunities to upgrade the structural integrity of main trunk roads that provide economic prosperity and tourism to the Oberon LGA Below is a summary of the completed capital road upgrades, routine maintenance, and gravel re-sheeting of rural roads within the Oberon Council area for 2017/2018. Regional Roads During 2017/2018 2km section of road rehabilitation work was carried out on the Edith Road. The work was part of the 2017/2018 RMS Regional Roads ‘Repair’ Program. The work was completed on the from the intersection Old Shooters Hill Road running south east for 2km to the intersection of Titania Road. The work was supported through an additional 50% funding of $400,000 from the Roads & Maritime Service, with a total amount of project expenditure being $800,000. A further $400,000 of sectional road reconstruction work was completed on various sections of Titania Road between Edit Road and Duckmaloi Road. Through the Annual Block Grant of $823,000, further maintenance work was undertaken on heavy patch pavement repairs on the Abercrombie Road between Oberon and Black Springs, and three heavy patch repairs undertaken on the Albion Street heavy vehicle bypass. Further road safety improvement works included new guardrail work on Abercrombie Road at Porters Retreat. This work involved removal of old chain wire mesh fence and old rotted timber posts, replaced with new safety barrier. Refresher line marking also carried out along various sections of Abercrombie Road. Roads to Recovery (R2R) During 2017/2018 Oberon Council received an allocated funding amount of $840,833 from the Federal Government to upgrade selected road pavement sections on the following roads:

1) Arkstone Road - 1.2 km road rehabilitation work costing $400,000

2) Campbell’s River Road - 1.0k m road realignment work costing $116,833 (Partially subsidised by R2R).

3) Edith Road- 2.0 km road rehabilitation work costing $324,000 (Partially subsidised by R2R). Special Rate Variation (SRV) Part of the Oberon Councils Special Rate Variation (SRV) was spent on the continuation to upgrade the Campbell’s River Road on the western side of the Black Springs Village. An SRV amount of $154,000 was allocated along with $116,833 of R2R funding (combined total $270,833) utilised to acquire land and realign a 1km section of the Campbell’s River Road, adjacent to Swatchfield Road. The primary objective to remove the existing ninety degree bend and improve road user safety for motorists and heavy vehicles which frequent Campbell’s’ River Road daily.

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Further (SRV) funding was distributed to assist with the ongoing grading maintenance of Councils unsealed road network, an allocation of over $25,000 contributing to the upkeep of these roads. RMCC - Roads Maintenance Council Contracts As part of Oberon Council continued commitment with Roads & Maritime Services the following projects were completed as part of Oberon Council ongoing contract commitment to both capital improvements and maintenance work on Roads & Maritime Services ‘State Roads’ network O’Connell Road (MR 253) and Duckmaloi Road (MR 358):

Trunkey Road (MR 54) 1km of road rehabilitation Trunkey Village, additional drainage construction, widening, new bitumen seal and installation of new guardrail for the Roads & Maritime Services, total cost of project work $425,756.75

O’Connell Road -Bitumen resealing various section of road pavement between Albion Street and the Bathurst Regional Council boundary, total project cost $370,146.83

Perthville Road – Road rehabilitation, kerb and gutter construction of 1.8km of road pavement for Bathurst Regional Council and Roads & Maritime Services, total cost of project work $544,536

O’Connell Road – Heavy Patching rectification works to road pavement various sections, total cost of project works $302,550

Duckmaloi Road – Heavy Patching rectification works to road pavement various sections, total cost of project works $67,425

Duckmaloi Road – Bitumen resealing various section, total cost of project works $136,835

Duckmaloi & O’Connell Roads – Road shoulder maintenance, vegetation/tree trimming and removal works, total project cost $124,300

Hartley & Forty Bends – Work on the Great Western Highway to assist Roads & Maritime Services on the Lithgow to Mt Victoria upgrade. Work including road shoulder widening, drainage construction, bitumen sealing, signage and guard rail installation works, total cost of project works $282,671

A very proud achievement for our Work staff is continued work on RMS State Roads outside of the Oberon Local Government Area. This continues to be a proud achievement for our staff. Routine Maintenance budget spent on maintaining the daily operations of the combined state road network $170,000. Chris Schumacher Technical Services Director

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STATUTORY INFORMATION

Councillor Expenses Local Government (General) Regulations Clause 217(1) (a1)

Council reimburses the following costs incurred while on Council business:

Travelling expenses for private vehicle use

Accommodation, travelling and sustenance whilst attending conferences and seminars

Provision of a mobile phone for the Mayor

Provision of an IPad for the Mayor and all Councillors.

The total costs associated with Mayor and Councillor Expenses for 2017/18 were $139,245 made up as follows:

Mayor Fee (excluding Councillor fee) $34,540

Councillor’s Fees $77,070

Councillor Expenses (other excluding fees above) $27,635

TOTAL $139,245

Councillor Overseas Visits – Nil during 2017/18

Councillor Interstate Visits – Nil during 2017/18

Councillor Training and Skill Development Councillor Professional Development

19 September 2017: Councillor Induction Workshop 19 October 2017: LG NSW Capable Councillor Workshop Orange 2 November 2017: Clr Workshop - Hit the ground Running 22 November 2017: Councillor Roads Inspections 14 February 2018: Councillor General Manager Performance Review

Training

Councillor Informal Briefing Sessions - 11 July 2017 - 8 August 2017 - 10 October 2017 - 14 November 2017 - 12 December 2017 - 13 February 2018 - 13 March 2018 - 10 April 2018 - 8 May 2018 - 12 June 2018

Rates and Charges Written Off Local Government (General) Regulations Clause 132

The amount of rates written off in the period under review related to the following:

Total Pensioner concession 2017/18 $132,873

LESS: Subsidy reimbursement ($73,080)

Rates and Water written off by Council $6,162

Rates debts abandoned 0

Concessions 0

$65,955

Work carried out on Private Land Local Government (General) Regulation Clause 217 (1)(a4)

During the year ending 30 June 2018 Council made no resolutions under Section 67 of the Local Government Act to subsidise work carried out on private land.

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Joint Ventures/Partnerships Local Government (General) Regulation Clause 217 (1)(a8)

Oberon Council is a member of the Upper Macquarie County Council (which is a body incorporated under the Local Government Act). Council is of the opinion that at 25% share it has influence of the Country Council and has deemed it as an Associate.

Legal Proceedings Local Government (General) Regulation Clause 217 1(a4) For the year ended 30 June 2018, Council had incurred $204,000 in legal fees for proceedings taken by or against Council. By comparison, Council had expended $416,000 in 2016/17.

Planning Matters $87,000

Debt Recovery $66,000

Other Matters $51,000

Total $204,000

External Bodies Local Government (General) Regulation Clause 217 (1)(a6)

Council delegated debt recovery functions to SR Law during 2017/18.

Companies Controlled by Council Local Government (General) Regulation Clause 217 (1)(a7)

Oberon Council is a member of the Statewide Mutual Liability, Workers Compensation and Property Schemes.

Remuneration Packages – Senior Staff Local Government (General) Regulation Clause 217(1)(b) and Clause 217(1)(c)

Council’s organisation structure provides for the employment of the General Manager as the only Senior Staff position. The General Manager is engaged under the Office of Local Government Standard Contract of Employment. The senior staff contract is performance based for a period of five (5) years. The all-inclusive remuneration package of senior staff incorporating salary, employer superannuation, non-cash benefits, and amounts payable for fringe benefits tax, in the 2017/18 financial year totalled $218,387.

State of the Environment Local Government Act 1993 S428(1)

Information on the environment can be found in the 2017/18 State of the Environment Snapshot included as an Appendix.

Companion Animals Act and Regulations Local Government (General) Regulation Clause 217 (1)(f)

The Oberon Council undertakes companion animal management functions and activities in accordance with the Companion Animals Act 1998 and the associated Regulations.

Further information can be found in the Planning and Development section of this Annual Report.

Public Interest Disclosures (PID) Act 1994 PID Act 1994 Council is committed to the objectives of the Public Interest Disclosure Act 1994 and encourages the disclosure of any instances of corrupt conduct, maladministration, serious and substantial waste and government information contravention.

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In accordance with the Act, Council’s Internal Reporting Policy (as required by PID Act 1994) establishes guidelines for the reporting and management of Protected Disclosures. For the reporting period ending 30 June 2018, Oberon Council received no protected disclosures.

Contributions and Donations – (Section 356 of LG Act 1993) Local Government (General) Regulation Clause 217 (1)(a5)

Under Council’s Community Grants Program, Council allocates funding to various organisations and community groups that make annual requests.

Community recipients of Section 356 Financial Assistance

In 2017/18 a total of $90,891 was made available and provided as follows:

Details $

Local Schools $1,250

Bathurst Harness Racing $500

Black Springs Public School P&C $500

Country Women’s Association NSW – Central Western Group $100

Burraga Community $5,000

Black Springs Community $5,000

O'Connell Community $5,000

Can Assist, Oberon Branch $2,000

LiveBetter – Oberon Community Transport $26,000

CHOICE (Churches of Oberon Implementing Christian Educ.) $500

Daffodil Fairies $1,000

Friends of Oberon Library Inc. $500

Neighbourhood Centre Oberon $500

Oberon Community & Farmers Markets $500

Oberon District Little Athletics Centre Inc. $500

Oberon & District Museum $500

Oberon Golf Club $20,000

Oberon High School - Performing Arts Department $500

Oberon Junior Hockey Club $500

Oberon Junior Rugby League $500

Oberon Masonic Centre $544

Oberon Men's Shed $500

Oberon Netball Club $500

Oberon Pony Club $500

Oberon Public School P&C Association $500

Oberon Rotary Club $500

Oberon Senior Hockey Club $500

Oberon Senior Rugby League $500

Oberon Show Society $5,000

Oberon Showground Trust $1,115

Oberon Tarana Heritage Railway $5,000

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Oberon United Football Club $500

Oberon United Junior Football Club $500

Oberon Wrap with Love Knitters Group $150

RSL Sub Branch Memorial $374

RSL Sub Branch Memorial/Museum $570

St Vincent De Paul $500

University of Sydney $2,000

Western Region Academy of Sports $288

Total Grants $90,891

ATTACHMENT 1

2017/18 STATE OF THE ENVIRONMENT SNAPSHOT

ATTACHMENT 2

2017/18 AUDITED FINANCIAL STATEMENTS

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