shire of carnarvon annual report 2015/2016€¦ · shire of carnarvon annual report 2015/2016 3 ......

Shire of

Carnarvon

Annual

Report

2015/2016 Endorsed by Council – 24th January 2017

SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 2

Shire President’s Message ............................................................................................................................................... 5 Chief Executive Officers Report Future Planning Local Planning Strategy .................................................................................................................................................... 9 Blowholes Reserve Management Plan............................................................................................................................. 9 East Carnarvon – Kingsford District Structure Plan .......................................................................................................... 9 Brockman Park ‘Ageing in Place’ Structure Plan ............................................................................................................. 9 Emergency Response Plans ............................................................................................................................................. 9 Projects, Works & Services Main Street Enhancement Works .................................................................................................................................. 10 Foreshore Completion Works ........................................................................................................................................ 10 Shire Administration Office Refurbishment ................................................................................................................... 10 Blowholes Reserve Management Plan........................................................................................................................... 10 Economic Tourism Action Plan ...................................................................................................................................... 10 Statutory Compliance Matters....................................................................................................................................... 10 Road Works Program ..................................................................................................................................................... 10 Waste Management Services ........................................................................................................................................ 11 Airport Runway Upgrade ............................................................................................................................................... 11 Youth Outreach Services ................................................................................................................................................ 11 Mosquito Management Program .................................................................................................................................. 11 Financial Performance ................................................................................................................................................... 11 Staff ............................................................................................................................................................................... 11 Shire Profile ................................................................................................................................................................... 12 Location ......................................................................................................................................................................... 13 History ........................................................................................................................................................................... 13 Council ........................................................................................................................................................................... 14 Your Council ................................................................................................................................................................... 15 Summary - Council Meeting Attendance ....................................................................................................................... 16 Senior Staff .................................................................................................................................................................... 16 Integrated Planning Update ........................................................................................................................................... 17 Corporate Business Plan 2015/2016 – Progress Report ................................................................................................ 19 Core Function Business Activities Corporate Services Finance .......................................................................................................................................................................... 29 Governance ................................................................................................................................................................... 29 Information Technology ................................................................................................................................................ 29 Library/Art Gallery ......................................................................................................................................................... 29 Airport ........................................................................................................................................................................... 29 Development Services Environmental Health .................................................................................................................................................... 30 Planning & Development ............................................................................................................................................... 30 Emergency Services ....................................................................................................................................................... 31 Economic and Tourism .................................................................................................................................................. 31 Carnarvon Civic Centre .................................................................................................................................................. 32

INDEX


Building .......................................................................................................................................................................... 32 Rangers .......................................................................................................................................................................... 32 Aquatic Centre ............................................................................................................................................................... 32 Infrastructure Services .................................................................................................................................................... 33

STATUTORY REPORTS Disability Access & Inclusion Plan .................................................................................................................................. 35 Structure and Functions of Council Establishment ........................................................................................................ 37 Services to the Community ............................................................................................................................................ 38 Freedom of Information Statement .............................................................................................................................. 39 Official Conduct Report ................................................................................................................................................. 40 National Competition Policy Statement ........................................................................................................................ 40 Competitive Neutrality .................................................................................................................................................. 41 Structural Reform .......................................................................................................................................................... 41 State Records Act 2000.................................................................................................................................................. 42

FINANCIAL REPORTS Annual Financial Report ................................................................................................................................................ 43 Auditors Report ............................................................................................................................................................. 43


MESSAGE FROM

SHIRE PRESIDENT


MESSAGE FROM THE SHIRE PRESIDENT Again, I take pleasure in presenting the President’s Report pursuant to Section 5.53 (2) (a) of the Local Government Act 1995. Notably, the 2015/16 financial year proved rather challenging, with the Shire managing to successfully complete, at least progress, a number of significant projects. This included:

Enhancement works in the Town Centre involving installation of reticulated lawn in the central swale of the Main Street, reconfiguration and landscaping the Town Centre roundabouts, and removal of speed humps and wheel stops at the request of the community.

Completion of the foreshore works, inclusive of hard and soft landscaping, three new cantilevered multipurpose jetty structures, and a renewed car parking area at the termination of Brown Street and Olivia Terrace.

Continuation of the Shire Administration Office refurbishment involving conversion of the old Council Chambers to office accommodation, and a face lift of main reception area.

Reconstruction and reseal of North River Road, and upgrade works to the Quobba – Gnaraloo Road.

Refurbishment of the Carnarvon Aquatic Centre with repainting of the swimming pool bowl, as the first stage.

Completion of the Shire of Carnarvon draft Local Planning Strategy for referral to the Western Australian Planning Commission (WAPC) for assessment, and consent to advertise.

Endorsement of the Blowholes Reserves Management Plan (BRMP) by the Minister for Lands In consideration of above, the foreshore works along Olivia Terrace has been particularly pleasing, adding a new dimension to the aesthetics and amenity of the Fascine waterway. This area is now the centre piece of Carnarvon, and proving to be the main draw card for local residents and tourist alike. To the contrary, a genuine attempt by Council to implement the Blowholes Reserves Management Plan in cooperation with existing squatter shack owners has proven unproductive. Working with this Group has been difficult and frustrating for the Shire, resulting in Council withdrawing its interest in managing the popular day use and overnight camping reserves in June 2016. I do appreciate this has raised a level of uncertainty over the future tenure and provision of new shack/chalet sites. However, the Council has acknowledged the need to address the existing shack structures in terms of their poor structural integrity and standard of habitation in consideration of the Shire’s duty of care and public safety.


On a more positive note I would like to acknowledge and thank, on behalf of the Shire Council, all staff for their contributions throughout the year. I would also like to recognize the contributions from the outgoing elected members in Neil Ganzer, Lex Fullarton and Naomi McMahon for their contributions to Council. I also congratulate Cr Ed Garrett, Cr Brett Smith, Cr Eddie Smith and Cr Luke Skender on their election to Council, and welcome back Cr Julee Nelson for another 2 year term, following the October 2015 elections. In closing, I would like to also thank all my current fellow Councillors for their support and dedication in making the Shire of Carnarvon an attractive and better place to live and visit.

Karl Brandenburg SHIRE PRESIDENT


GOVERNANCE


CHIEF EXECUTIVE OFFICER’S REPORT I am pleased to provide my annual report as Chief Executive Officer with the Shire of Carnarvon for the past 2015/16 financial year.

Future Planning In consideration of the future planning the Shire has made in roads as it further develops its suite of Integrated Plans and Land use Plans to provide for future community needs and development. In this context the organisation completed a desktop review of the Corporate Business Plan, and the Council acknowledged the need for a holistic review of all its integrated plans in 2016/17. These plans include:

Strategic Community Plan Corporate Business Plan Asset Management Plan Long Term Financial Plan

Additionally, progress within the year has been made on:

o Local Planning Strategy - Preparation of the Shire of Carnarvon Local Planning Strategy and the drafting of a new Local Planning Scheme No.13, with the former document being advertised for public comment following review by the Western Australian Planning Commission;

o Blowholes Reserves Management Plan - Endorsement of the Blowholes Reserves Management Plan by the Minister for Lands, albeit implementation of works has subsequently been compromised by a lack of acceptance and cooperation by a number of squatter shack owners;

o East Carnarvon – Kingsford District Structure Plan - Final adoption of the East Carnarvon – Kingsford District Structure Plan occurred during the financial year and now forms part of the Shire’s land use planning framework;

o Brockman Park ‘Ageing in Place’ Structure Plan - Commencement of the Brockman Park ‘Ageing in Place’ Structure Plan and associated Prospectus to further the future provision of Independent Living Units (ILU’s) and Residential Aged Care accommodation in Carnarvon occurred during the year;

o Emergency Response Plans - Review and amendment of the Shire’s Emergency Response Plans for both Carnarvon and Coral Bay were successful completed and adopted by Council.


Projects, Works and Services An array of other activities were preformed through-out the financial year that require specific mention:

o Main Street Enhancement Works – This has involved the use of the Shire workforce and resources, and resulted in further works to the Main Street with the removal of the remaining speed humps and wheel stops to the parking bays. Unfortunately, the installation of public art has been delayed by the difficulty in attracting acceptable art works, except for selection of a Mural to be painted and installed on the wall of Carpet Court in early 2017.

o Foreshore Completion Works – The year saw completion of the Fascine Foreshore works by civil contractors, Insitu Construction. As identified, these works consisted of installation of the three new cantilevered jetty structures with floating pontoons, a lower level pedestrian pathway with disable ramps, installation of extensive lawn, garden areas, shade shelters, gas BBQ’s, drink fountains, outdoor gym equipment, a new sealed car park at Brown Street/Olivia Terrace junction, and pedestrian lighting. Extension of the surge protection wall around Baxter Park is also to be undertaken in the latter part of 2016.

o Shire Administration Office Refurbishment – During the 2015/16 financial year works progressed on converting the old Council Chambers to office accommodation, and redecoration of the front reception of the Main Administration Building. Following these works, staff has moved to refurbishment of the Development Services wing with the building to be completed at the end of 2016.

o Blowholes Reserve Management Plan (BRMP) - As directed by the Minister for Lands in 2012, the Council continued to progress preparation of the BRMP that was finally endorsed by the Minister in January 2016. Council proceeded with implementation of recommended actions involving allocation of forty new shack sites on a 21 year lease and removal of the existing shack structures in line with the BRMP. At the time of preparing this report opposition has again been raised by a number the Shack Owner to the pending demolition, with approximately half the Shack Owners exercising their right of appeal against building demolition notices with the State Administration Tribunal. It is expected the appeal process will be concluded in the first quarter of the 2016/17 financial year, in time for the building to be removed prior to the pending cyclone season.

o Economic Tourism Action Plan – Unfortunately, this project was not completed within the contract timeline, with officers (representing the Council’s interest) not satisfied with drafting and content of the document. Subsequently agreement was reached with the consultant to terminate services, with preparation of the document to be undertaken in house. It is therefore projected the Economic Tourism Action Plan in consultation with local industries (ie Pastoral, Horticultural, Tourism, Fishing and Retail) will be completed in at the end of the 2016/17 financial year.

o Statutory Compliance Matters – The Shire has continued with its statutory compliance obligations, over the past year with ongoing review and auditing of internal systems and procedures and compliance measures. The most obvious matter externally is the compliance regarding the Blowholes Squatters Shacks, mentioned above.

o Road Works Program – The 2015/16 year yielded completion of the Shire road works program, inclusive of maintenance grading, road sealing program for Carnarvon, and upgrade works for North River Road and Quobba Gnaraloo Road. A Commonwealth funding application was also prepared for construction of Harbour Road to link through to Cornish street at a RAV 10 standard based on a dollar for dollar matching contribution to a total project cost of $1.2m.


o Waste Management Services – The past year has seen continued improvement to the Shire’s waste management services, with particular emphasis on achieving compliance against regulatory licences for the Brown Range and Coral Bay land fill facilities and planning for the establishment of ‘bring/recycling centres’ at both landfill sites together with specialized equipment such as shedder, bailer, transfer drop off facility and shed. It is projected on-ground works will commence in early 2017.

o Airport Runway Upgrade – Much work has been performed in the background to undertake

refurbishment works at the Carnarvon Airport involving reconstruction of the main runway, replacement of the runway lighting system, and resurfacing of the taxiway and apron to ensure compliance to Civil Aviation Standards. This has required a number of funding applications to raise the necessary $3.6m in equal one third contributions from Commonwealth, State and Local Governments. With the funding and design requirements in place construction works are scheduled to commence in early August 2016.

o Youth Outreach Services – Whilst the Youth Outreach Services staff has experienced difficulties from external influences, through their commitment has still managed to maintain a focus and involvement in the Youth Outreach programs for the betterment of ‘at risk’ youth in Carnarvon.

o Mosquito Management Program – The Shire through grants moneys from the Department of Health embarked on a pilot study in the latter part of 2015/16 to investigate the breeding patterns of Mosquitos in and around Carnarvon. Initial findings concluded much of the breeding occurring in ‘trapped pools of water from high tides both north and south of Carnarvon. Application has been made for further investigation to occur in the 2016/17.

Financial Performance Whilst there has been a slight improvement in Shire’s financial performance for 2015/16, five of the seven financial ratios has indicated a downward trend that continues to persist. It is recognized that this still needs to be rectified, either through a reduction in spending, an increase in revenue, or both. Appended to the Annual Report is a copy of the Auditors Financial Report for the 2015/16 year that provides a detailed understanding the Shire’s financial performance, inclusive of the financial ratios and explanatory notes as I have referenced – refer to pages 42 and 43 of the Financial Report. Staff I would express my sincere appreciation to Councillors for their continued support, and to staff for their un-

waivered commitment during what has proved to be again, another challenging year. This includes the endurance of dealing with false and unsubstantiated allegations, and continued defamatory and derogatory comments made by some directed at elected members and staff who have given their all to serve the Carnarvon community.

Ian D’Arcy CHIEF EXECUTIVE OFFICER


Shire Profile The following information is general information about the Shire of Carnarvon. All specific enquiries should be directed to the shire office during normal business hours. Climate Carnarvon has an average temperature of 26 degrees and the average yearly rainfall is 229mm. We are almost 10 degrees cooler than Exmouth in the summer months and 10 degrees warmer than Perth in the winter months. Statistics

Distance from Perth 902kms

Area (sq km) 53,000

Length of Sealed Roads 239.21

Length of Unsealed Roads 1,287.15

Population 6,800

Number of Electors 2,989

Number of Dwellings 2,587

Temperature Mean Max Temp – 27.1°C (81°F) Mean Min Temp – 17.2°C (63°F) Annual Rainfall – 228.4mm (9 in)

Shire of Carnarvon Administration Centre 3 Franics Street CARNARVON WA 6701 Shire of Carnarvon Works Depot Robinson Street CARNARVON WA 6701 Carnarvon Public Swimming Pool Babbage Island Road CARNARVON WA 6701 Shire of Carnarvon Regional Library and Art Gallery 18 Egan Street CARNARVON WA 6701 Shire of Carnarvon Civic Center Cnr Camel Lane/Robinson Street CARNARVON WA 6701 Shire of Carnarvon Information Centre Cnr Camel Lane/Robinson Street CARNARVON WA 6701


Location Carnarvon’s unique location, makes it a tropical oasis situated approximately 904km north of Perth on the west coast. Carnarvon is commonly recognised for its banana plantations, tropical fruits, fine seafood and warm climate and situated in the heart of the Gascoyne Region on the doorstep of the Indian Ocean. It is the gateway to Australia’s Ningaloo Coast, and very close proximity to the Ningaloo Reef and World Heritage areas. Equally, the vast Australian outback will beckon you and a visit to the majestic Kennedy Ranges is not to be missed. With an exceptional climate (average yearly temp of 26°C), and a vibrant and diverse community which offers exciting culinary delights, you need to come to Carnarvon and ‘Catch a Taste of the Great Life’. Carnarvon is located 902kms north of Perth, sitting approximately 4m above sea level and positioned right on the edge of WA’s Coral Coast, in the centre of the Shark Bay and Ningaloo World Heritage areas. Carnarvon is the only town in Australia where the central desert reaches out to the sea. Carnarvon’s population census is approximately 9,046 (2,145 rural and 6,901 urban). Carnarvon’s tidal range is approximately 0.1m to +1.8m.

History His Excellency, the Governor, Major General Sir Douglas Anthony Kendrew, K.C.M.G., C.B., C.B.E., D.S.O., united the municipalities of the Town of Carnarvon and the Shire of Gascoyne – Minilya to form the Shire of Carnarvon. The Order of Council was published in the Government Gazette on 12th February 1965 and effective on the 1st March 1965. At the time of amalgamation Mr C W Tuckey was the President with Mr G G Craig as Deputy President until the first elections of the Council on the 22nd May 1965.


Council

Ten Council meetings are held on the fourth Tuesday of each month in the Council Chambers in Carnarvon commencing at 8.30am. The other two meetings are convened on the fourth Tuesday at Bill’s Tavern in Coral Bay at 10.30 am, usually being the months of May and October. All members of the public are welcome to attend. All Council meetings include a provision for ‘public question time’ catered for at the beginning of the meeting.

Council Chambers


YOUR COUNCIL

Karl Brandenburg SHIRE PRESIDENT

Julee Nelson Councillor – Town

Ward

Ed Garrett Councillor – Town

Ward

Brett Smith Councillor –

Gascoyne/Minilya Ward

Eddie Smith Councillor – Town

Ward

Max March Councillor – Town

Ward

Kane Simpson Councillor – Coral Bay

Ward

Luke Skender Councillor –

Plantation Ward


SUMMARY OF ATTENDANCES COUNCIL MEETINGS

1 JULY 2015 TO 30 JUNE 2016

MEMBER

MTGS HELD

DURING OFFICE

ATTENDANCE

%

ATTENDED

LOA BRANDENBURG, K SHIRE PRESIDENT COUNCILLOR – TOWN WARD

13

12

Nil

92

NELSON, J COUNCILLOR – TOWN WARD

13

11

Nil

77

MARCH, M COUNCILLOR – TOWN WARD

13

12

Nil

92

GARRETT. E COUNCILLOR – TOWN WARD (elected October 2015)

10

10

Nil

100

SMITH, E COUNCILLOR – TOWN WARD (elected October 2015)

10

9

Nil

90

SIMPSON, K COUNCILLOR – CORAL BAY WARD

13

12

Nil

92

SKENDER, L COUNCILLOR – PLANTATION WARD (elected October 2015)

10

12

Nil

92

SMITH, B COUNCILLOR – GASCOYNE/MINILYA (elected October 2015)

10

9

Nil

90


Senior Staff

Council has one designated senior employee position in accordance with section 5.37 of the Local Government Act 1995. For the year ended 30 June 2016 this is the Chief Executive Officer Mr Ian D’Arcy. The Shire of Carnarvon also employs approximately 92 full time equivalent (FTE) staff. These include an array multi-skilled staff for road maintenance and construction, maintenance town parks and gardens, finance, governance, statutory planning, statutory health and building services, ranger services, waste management, asset management, community development and youth services, airport operations, tourism and entertainment, administration, maintenance and cleaning of public buildings. Regulation 19B of the Local Government (Administration) Regulations 1996 requires the annual report to contain the details of the number of employees of the local government entitled to an annual salary of $100,000 or more in bands of $10,000 for each such band over $100,000.

Salary Range 2015 2016 Number $100,000 - $109,999 0 $110,000 - $119,999 3 $120,000 - $129,999 0 $130,000 - $139,999 0 $140,000 - $149,999 0 $150,000 - $159,999 0 $160,000 - $169,999 0 $170,000 - $179,999 0 $180,000 - $189,999 0 $190,000 - $199,999 1 $200,000 - $209,999 0

Integrated Planning Update Strategic Community Plan 2013-2023 The first Strategic Community Plan using the Integrated Planning and Reporting Framework was developed and adopted by Council in 2011. A desktop review of this Plan was completed in 2013 and a full review was scheduled to be conducted 2015. However, this review was deferred to the latter part of 2016. The following is a summary of the Strategic framework for the 2015/16 year:


Objectives Identified Outcomes Achieved

2015/16

ECO

NO

MIC

A developing

regional economic

base and increased

employment

supported by strong

business enterprises

and a growing

population

Increased tourism within the region.

Increased availability of serviced residential, commercial and industrial land.

The hub of regional infrastructure and service delivery.

A thriving and diverse business environment.

Increased capacity of education and training services.

Improved viability and profile of pastoral, horticultural and fishing industries.

An economy that is based on the Shire's distinct characteristics, regional advantages and natural qualities.

Progressed enhancement of Tourism Information Centre

Installed new tourism signage

Enhanced Main Street and Fascine Foreshore

Finalised Blowhole Reserves Management Plan

Secured funding to enhance Carnarvon Airport Runway, Lighting and Taxi ways

Commenced Preparation of 5 year Action Plan

pro

gres

sed

EN

VIR

ON

MEN

T

A sustainable

natural and built

environment that

meets current and

future community

needs

Continued conservation and enhancement of natural environs.

Efficient use and integrated management of water resources.

Improved management of recycling and re-use of waste.

Efficient use and conservation of energy to reduce the production of greenhouse gases.

Improved physical quality of the built environment.

Preservation of the local heritage and character of built environs.

Improved waste landfill compliance

Progressed coordination and planning of recycling bring centres in Carnarvon and Coral Bay – Regional Project

Encouraged and supported development of OTC facility

Financially committed to Carnarvon Heritage Group and One Mile Jetty

Collaboration with Water Corp over upgrade to Carnarvon Sewerage Ponds

SOC

IAL

A healthy and safe

community enjoying

a high quality of Life

Carnarvon is a proud community and is a desirable place to live, invest and visit.

Increased population and industry growth.

Recognition by existing residents of the value and importance of tourism to the local economy.

Improved passive and active leisure and recreation facilities.

Cohesive communities capable of supporting each other.

Improved Youth Outreach Services

Improvements to Premier Oval and Festival Grounds

Identified need and securing of funding for additional community assets (ie Bus)

Continued recovery efforts aiding


Corporate Business Plan 2015/16 – Progress Report

The Shire of Carnarvon Strategic Community Plan (2011-2021) has five Key Focus Areas:

1. Economic 2. Environmental 3. Social 4. Cultural 5. Civic Leadership

Under each of these focus areas there are Five Goals with identified Outcomes that have been allocated individual Strategic Objectives which Council and Staff have prioritized over a four year period. This four year plan called the Corporate Business Plan includes the Activities & Services that need to be delivered in order to achieve these identified Strategic Objectives. The Corporate Business Plan is reviewed and

Events and activities fostering community ownership.

Housing and transport options that respond to our communities’ needs.

Improved community health, safety and well being.

community member as a result of TC Olwyn

CU

LTU

RA

L

Vibrant and

connected

communities

celebrating diversity

and heritage

through arts and

culture

Carnarvon's identity enhanced through culture and the arts.

Greater recognition of local aboriginal and multicultural heritage.

Increased awareness and valuing of a diverse culture.

Celebration of the unique beliefs and values within Carnarvon.

Improved Shire organised Community Events

Increase engagement in Youth activities

Facilitating multiple live shows and movies at Civic Centre

CIV

IC L

EAD

ERSH

IP

Leadership and community

engagement to ensure the

best use of our physical,

financial and human

resources

A well engaged and informed community.

A high standard of governance and accountability.

Improved business performance and quality of service delivery.

Long-term financial viability.

Best practice asset management.

Best practice human resource management practices.

Volunteers continue to be acknowledged and supported.

Introduction of Shire Facebook page

Increase reporting of delegated activities

Conducted Elected Member training

Continued improvement to procurement processes and separation of duties

Continued improvements to employee inductions, position description and performance reviews

Conducted volunteers BBQ in recognition of contributions


updated annually to reflect changes in priorities over the life of the Strategic Community Plan (2011-2021). The following provides a progress update for the 2014/15 year.

Outcomes

Strategic Initiatives/ Projects

No. Action/Project Progress Update 2015/2016

1.1 Increased Tourism Within the Region

1.1.1 One Mile Jetty restoration and development

28 Encourage Carnarvon Heritage Group (CHG) in their activities;

Support completion of Interpretive Centre ;

Encourage restoration of Jetty;

- Financial support provided in 2015/16 to Carnarvon Heritage Group for operational purposes – Action Completed.

- Council requested detailed information of status of the CHG, including financial standing, before offering further assistance.

1.1.2 Carnarvon Entry Statement

21 Consultation to determine location and design;

Undertake construction;

- Design, quotation, consultation’ location and approval processes undertaken on proposed town entry statements for Carnarvon– Action Completed.

- Budget allocated in 2016/17 for construction and installation of Town entry statements - Action Pending.

1.1.3 OTC Development

42 Finalise management plan once NBN has been established;

Call for EOI’s for use of buildings;

Implement Management Plan;

- Building lease executed with Carnarvon Space and Technology Museum Inc. (excludes dishes) – Action Completed.

- Preparation of Management Plan ‘parked’ due to lease arrangement – Action Pending.

1.1.4 Coast Road / Quobba-Gnaraloo

25 Lobby/liaise with pastoralists;

Amend the Ningaloo Coastal Regional Strategy;

Undertake improvements to the road.

Develop the Management Plan;

- Staged upgrade works of Quobba - Gnaraloo Road performed in 2015/16 financial year – Project Completed.

- Coastal road identified as future tourism wilderness drive in draft Local Planning Strategy, with temporary closure instigated at request of DPW in 2015/16 - Action Completed.

- Further staged works of road improvement scheduled in 2016/17 financial year – Actions Ongoing.

1.1.5 Bibbawarra Bore Development

34 Community consultation;

Management Plan;

Site development;

- Community Group works undertaken to tidy the area of Bibbawarra Bore – Action Completed.

- Budget allocation in 2016/17 for preparation of Management Plan in-house for Bibbawarra Bore – Action Pending.

1.1.6 Coral Bay Resort Expansion & Development

48 Provide land use planning assistance;

Proposed 3rd (overflow) caravan park.

- Formal request lodged with the Minister for Lands to initiate process of land tenure for 3rd Overflow Caravan Park IN Coral Bay – Action Ongoing.

1.1.7 Babbage Island Golf Course

13 Complete Babbage Island Structure Plan;

Resolve related environmental issues;

Raise Capital

Secure Land

- Babbage and Whitlock Island District Structure Plan completed and endorsed by Council and WAPC - Project Completed.

- Formal request lodged with the Minister for Lands to initiate process of land tenure for


Caravan Park and Golf Course – Action Ongoing.

1.1.8 Blowholes Master Plan

31 Continue implementing day use facilities;

Complete Reserve Management Plan in accordance with Ministerial direction;

Facilitate removal and replacement of squatters shacks;

Foster increased tourism profile to benefit the town;

- Blowholes Reserves Management Plan (BRMP) received Ministerial endorsement in Jan 2015 – Action Completed.

- Implementation of BRMP commenced in Feb 2015, including processes for allocation of new shack sites and demolition of existing structures – Action Ongoing.

- Appeal lodged by shack owners with the SAT against demolition notices in May 2016 resulting in delay to implementation of BRMP – Action Pending.

1.2 Increased Availability of Serviced Residential, Commercial and Industrial land

1.2.1 Land Use Planning – Carnarvon Shire

22 Complete Town Planning Scheme Review – TPS 13;

Complete Local Planning Strategy (LPS);

Participate in Regional Planning Initiative;

- Draft TPS 13 being prepared by Shire Planning Staff – document being progressed through statutory planning process. – Project Ongoing.

- LPS completed and adopted by Council awaiting WAPC endorsement – may be subject to modifications - Project Ongoing.

1.2.2 Small Boat Harbour Redevelopment

37 Lobby State Government;

Land Use Planning assistance.

- Consideration to be given as part of preparation of LPS and TPS 13 - not a Shire facility – Action Pending.

1.3 Improved Shire Infrastructure

1.3.1 Fascine/CBD Development

2 Secure funding for completion;

Community consultation and design;

Implement once funding is secured;

- Fascine foreshore development and Main Street enhancements implemented in 2015/16 – Project Completed.

- Public art component of works progressing with mural painting contracted out 2015/16 and mural to be completed in 2016/17 – Project Ongoing.

- Difficulties in progressing balance of public art due high level of subjectivity - Project Ongoing.

1.3.2 Airport Redevelopment

3 Complete airport planning;

Undertake remedial works on existing facility;

Implement recommendations from airport planning;

- Funding for existing airport (runway, lighting, taxiway and apron) refurbishment secured from State and Commonwealth Governments, with equal contribution from Council – Action Completed.

- Tender/Construction Contract let for works to be undertaken this financial year - Action Completed.

- Construction works scheduled for July 2016/17 – Action Pending.

- Airport planning recommendations yet to be implemented – Action Pending.

1.3.3 Shire Administration Upgrade

10 Finalise office layout;

Obtain costings;

Implement;

- Stage 2 conversion of old Chambers to office accommodation and refurbishment of reception area completed in 2015/16 – Project Completed.

- Stage 3 refurbishment of Development Services office area


to commence Oct 2016 – Project Pending.

1.3.4 Staff Housing

11 Analyse need;

Develop and implement a Housing Strategy;

Construct new Executive and CEO house;

- Design completed and tender awarded for new CEO house, with construction commenced Feb 2016 – projected 12 construction period – Action Ongoing.

- House strategy yet to be discussed with Council – Action Pending.

1.3.5 Civic Centre Refurbishment

15 Air condition Woolshed;

Replace roof;

Replace kitchen in Woolshed;

Replace theatre chairs;

- Council resolved to not proceed with air conditioning of Woolshed due to excessive capital expenditure and recurrent operational cost.

- CLGF funding initially allocated was re-directed to refurbishment of the Carnarvon Aquatic Centre and installation of photovoltaic (solar) systems for selected Civic buildings – Action Pending.

1.3.6 Coral Bay Office Accommodation

27 Entertain discussions with other stakeholders;

Establish requirements;

Secure funding;

Proceed to construct;

- Preliminary discussions conducted with the Department of Lands regarding future tenure of Lot 307, designated for government purposes – Action Ongoing.

1.3.7 Robinson Street Development (Realign NWCH/Dual Carriageway)

23 Lobby Main Roads WA;

By-pass Speedway Road; (Lobby MRWA & RDL)

- No discussion conducted this financial year – Action Pending.

1.3.8 Coral Bay roads Upgrade

24 Complete construction of Banksia Drive;

Partially close Robinson Street;

- R4R funding application prepared by GDC in consultation with Shire Officers – Action Ongoing.

- Funding application to be reviewed/endorsed by Council in 2016/17 – Action Ongoing.

1.4 The Hub of Regional Infrastructure and Service Delivery

1.4.1 Build a Multi Agency Building integrated with Aquatic Centre

38 Prepare concept plan for discussion with indicative costings;

Undertake remedial repairs to keep facilities in good condition;

- This project has not yet been investigated at this stage - Action Pending.

- Refurbishment works and remedial repairs to be undertaken in 2016/17 subject to available grants funding – Action Pending.

1.5 A Thriving and Diverse Business Environment

1.5.1 Townsite Infrastructure – Planning Carnarvon & Coral Bay

19 Note – duplication with projects 36, 16, 17, 4

1.5.2 Lake McLeod – Increase Salt Production

41 Encourage Rio Tinto - Economic implications has forced reduction in production – Shire has no influence over these circumstances – not a Shire facility.

1.5.3 Coral Bay Service Storage Area

43 Prepare Management Plan with CBPA;

Formulate lease arrangement with Group;

- Formal lease agreement with Coral Bay Progress Association drafted - Project Completed.

1.5.4 Carnarvon Fruit Fly Free Status

45 Encourage Fruit Fly Committee;

- Council agreed to one final contribution $100k to Carnarvon Fruit Fly Committee for baiting program - no further financial


assistance offered by Shire – not a Shire project - Action Completed

1.5.5 Port Development

46 Encourage Government to consider merits of development;

- This action has not yet been pursued – pending Economic Planning in 2016/17 - not a Shire facility - Action Pending.

1.5.6 New Abattoir

47 Encourage potential business opportunities;

- This project has not yet been investigated – pending Economic Planning in 2016/17 – not a Shire facility - Action Pending.

1.6 Increase the Capacity of Education & Training Services

1.6.1 Education Resource Precinct

33 Encourage Education Department and Workforce Development and Training to consolidate and improve education.

- Written correspondence sent to Minister for Education in support of necessary funding to complete Carnarvon Community College – not a Shire facility - Action Completed.

1.7 Economy that is based upon Shire’s distinct characteristics – Regional advantages and natural Qualities

1.7.1 Whitlock Babbage Island Development

13 Complete Planning Study;

Establish further actions based on study;

- The Babbage and Whitlock Islands District Structure Plan was adopted by Council and endorsed by the WAPC in 2015/16 – Project Completed.

- A request for land tenure of future caravan park and golf course was forwarded to Minister for Lands in 2015/16 with response pending – Action Ongoing.

1.7.2 Kingsford land use

14 Conduct Planning Study;

Establish further actions based on study;

- The East Carnarvon - Kingsford District Structure Plan was adopted by Council and endorsed by the WAPC in 2015/16 - Project Completed.

- Implementation of the recommendation outlined in the Structure Plan are yet to be undertaken – Action Pending.

1.7.3 Gascoyne Foodbowl Initiative

26 Assist with Land Use Planning;

Encourage future development and release of additional horticultural land;

Encourage retention of horticultural land;

- Assistance provided to DAFWA with subdivision design and progression of Structure Plan/Scheme Amendment to progress rezoning and future development for expanded horticultural - Action Ongoing.

1.7.4 Maritime Boating Facilities Study (in Carnarvon)

29 Participate in regional initiative;

- This project has not yet been investigated – pending Economic Planning scheduled for 2016/17 – Action Pending.

2.1 Continued Conservation and Enhancement of Natural Environs

2.1.1 To support natural resource management;

New Consider environmental aspects of all infrastructure activities;

Consider environmental aspects of all planning and resource activities;

Investigate grant funding opportunities;

- Natural Resource principals imbedded in land use planning processes and instruments (ie District Structure Plans, Management Plans, draft LPS and draft TPS 13) - Action Completed.

- No action taken on grant funding opportunities 2015/16 for NRM initiatives – pending outcome of future tenure of Blowholes Reserves - Action Pending.

2.2 Efficient Use and Integrated Management of Water Resources

2.2.1 Waste Management

5 Improve waste management disposal sites practices to comply with licence conditions.

Plan for post closure management needs;

- Improved compliance against operational landfill licence conditions in Carnarvon and Coral Bay – Action Ongoing.

- Planning progressed on recycling initiatives for Coral Bay and Carnarvon with implementation


Provide for Coral Bay transfer station;

Consider bed levy;

scheduled for 2016/17 - Action Ongoing.

- Introduction of bed levy investigated, but lacks legislative framework – Action Completed.

2.2.2 Water Integration

7 Ensure existing facility is upgraded to comply with WA Health requirements;

Determine compliance requirements;

Implement reticulation plan;

Supply re-use water to proposed new Golf Course subject to availability.

- Agreed improvements negotiated with Water Corp on delivery of reuse water - Action Ongoing.

- RGS grant funding application lodged with GDC for upgrade of Shire Integrated Water Scheme – application unsuccessful – Action Completed.

2.2.3 Gascoyne River Surface Water Flow Loss Study

12 Support the Department of Water to undertake this Study.

- Study yet to be instigated by DoW -not a Shire facility – Action Pending.

2.3 Improved Management Practices and Recycling and re-use of waste.

2.3.1 Carnarvon townsite deep sewerage.

18 Infrastructural Planning demonstrate gaps in in-fill sewerage.

Canvass the Government for in-fill sewerage as a high priority.

- District Structure Plan for East Carnarvon - Kingsford has highlighted need for infill sewerage – information referred to Water Corp – Action Completed.

2.3.2 Waste Water Treatment Plan

16 Encourage Water Corp’s plan for a new facility.

- Discussions held with Water Corp over new sewerage treatment facility – site secured and identified in draft LPS and TPS 13 - Action Completed.

2.4 Efficient use and Conservation of energy to reduce the production of greenhouse gases.

2.4.1 Renewable Energy

20 Encourage establishment of renewable energy projects within the Region;

Consider LED future lighting replacement;

Installation of solar power on civic buildings;

- Installation of solar power on civic buildings investigated – limited capacity to accommodate surplus with Horizon Power – relatively cost prohibitive at this stage due to solar smoothing technology needed - Action Completed.

- Proposal to install LED lighting scheduled for 2017/18 financial year - Action Pending.

2.5 Improved physical quality of the built environment.

2.5.1 Underground Power

39 Encourage Horizon Power to install additional underground power in the Carnarvon region;

Support underground power as a condition of sub division.

- Application of underground power applied to recent subdivision approvals, including Sailfish Drive subdivision in Coral Bay - Action Completed.

- Continued support for installation of underground utilities by Service Providers – Action Ongoing.

2.5.2 Pelican Point – Remedial works (roadworks)

30 Finalise on ground reconstruction works of roads and sand dunes;

- No works conducted in the 2015/16 financial year – Action Pending.

2.6 Preservation of the local Heritage character of built environs

2.6.1 Update the Shire’s Municipal Heritage Inventory

New Undertake a review in consultation with Heritage Council of WA.

- Full review MHI completed and adopted by Council in 2015/16 - Project Completed.

2.6.2 Recognition of local heritage values and character of built environment.

New Pioneer Cemetery refurbishment;

Policy and reserve list of road names.

- Works and listing yet to be progressed – Action Pending.

3.1 Carnarvon is a proud community and is a desirable

Purpose of objective is to be clarified with elected members when Corporate Plan is reviewed.


place to live, invest and visit.

3.2 Increased Population and Industry Growth


3.3 Recognition by existing residents of the value and importance of tourist to the local economy.


3.4 Improved passive and active leisure and recreation facilities.


3.5 Cohesive communities capable of supporting each other.


3.6 Events and activities fostering community ownership

Purpose of objective is to be clarified with elected members when document is reviewed.

3.7 Housing and Transport options that respond to our community’s needs.

3.7.1 Carnarvon Residency Aged Care

1 Continue to support and participate in residential aged care planning.

- Rezoned portion of Brockman Park in 2015/16 to accommodate Age Care Housing development – Action Completed.

- Commenced preparation of a Brockman Park Structure Plan and Prospectus for additional ‘aging in place’ housing to be completed in 2016/17 – Action Ongoing.

3.7.2 Independent Living Units

1 Continue to work with DoH and GMF for the provision of ILU’s.

- Assisted with planning and access for 15 new GMF Independent Living Units (ILU’s) – not a Shire project - Action Completed.

3.8 Improved Community, health, safety and well being.

3.8.1 New Police and Justice Complex

8 Continue to support development of new facility;

Insist on roundabout to be included as part of project.

- New Police Station Courthouse completed – not a Shire facility - Project Completed.

- Proposed roundabout pending MRD funding – not a Shire project – Project Pending.

3.8.2 Carnarvon Hospital Upgrade

9 Continue to support development of new facility.

- New Hospital upgrade completed – not a Shire facility - Project Completed.

3.8.4 Multi Purpose Medical Centre

44 Actively investigate the new model of management.

- Medical Centre is privately owned and funded - not a Shire facility – Direction Pending.

4.1 Carnarvon’s identity enhanced through culture and the arts

4.1.1 Library/Art Gallery

7 Finalise completion;

Encourage regional art displays.

- Library/Art Galley completed and opened to the public – Project Completed.

- Art Gallery routinely used for regional art displays – Action Completed.


4.2 Greater recognition of local Aboriginal and multi-cultural heritage

4.2.1 Gascoyne Aboriginal Cultural Centre

50 Purpose of strategy to be discussed with elected members.

- Aboriginal Cultural Centre is a State Government owned and funded asset - not Shire owned property – Direction Pending.

4.3 Increases awareness and valuing of diverse culture

4.3.1 Preparation of Cultural and Reconciliation Plan

- Purpose of strategy to be discussed with elected members;

- Purpose discussed in 2015/16. - Budget allocation for

Reconciliation Plan and Culture Plan to be prepared in 2016/17 – Action Pending.

4.4 Celebration of the unique beliefs and values within Carnarvon

4.4.1 HMAS Sydney Memorial Drive

40 Purpose of strategy to be discussed with elected members;

- HMAS Sydney Sailor Plaques were removed HMAS Sydney Memorial Drive and relocated to Fascine Foreshore walk by RSL volunteers in 2015/16.

- Requested renaming of Sydney Memorial Drive to Carnarvon Road determined by Council – Action Completed.

- Planning of HMAS Sydney and Kormoran Commemorative Memorials and 75th Anniversary Event progressed – On ground works proposed for early part of 2016/17 - Action Ongoing.

5.1 A well engaged and informed community.

5.1.1 Community Consultation

New Review of community consultation process;

Seek community views on the next revision of the Community Strategic Plan;

Continue to engage and seek community’s views;

- Integrated Planning Review process (Strategic Community, Corporate, Long Term Financial, Workforce, and Asset Plans) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.

5.2 A high standard of governance and accountability.

5.2.1 Maintain legislative compliance standards appropriate to local government responsibilities.

New Continue to enforce levels of legislative compliance across the Shire;

Continue to undertake relevant audit and probity reviews and act upon the findings;

Consider the establishment of a regional audit or compliance capability;

- Shire staff have continued to review and amend processes/ procedures to improve compliance against relevant legislation – Action Ongoing.

- Random internal audits has commenced in 2015/16 across to identify/address risks to internal systems /processes with results presented Council Audit Committee – Action Ongoing.

5.2.2 Meet the requirements of the integrated planning and reporting framework.

New Ensure the ongoing development, implementation and review of the following plans and strategies – o Strategic Financial Plan o Asset Management Plan o Workplace Plan o ICT Plan

- Integrated Planning Review process (Strategic Community, Corporate, Long Term Financial, Workforce, and Asset Plans) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.

5.2.3 Establish a business planning framework to support the review of the Strategic Community Plan and Corporate Business Plan and the development of directorate/branch plans.

New Determine priorities for next financial year;

Develop framework to roll out priorities throughout the organisation;

Conduct regular reviews;

- Integrated Planning Review process (Strategic Community, Corporate, Long Term Financial, Workforce, and Asset Plans) deferred to 2016/17 at request of incoming Council elected in Oct 2015 - Action Pending.


5.3 Improved business performance and quality of service delivery

5.3.1 Effectively and efficiently use our limited resources;

New Undertake a comprehensive series of scheduled reviews of work areas to ensure services are delivered efficiently and effectively across staff and elected members;

- Review scheduled to be performed as part of Workforce Plan in 2016/17 - Action Pending.

5.3.2 Continued training of staff and elected members.

Regular training on observance matters.

Continued training of technical and non-technical staff;

Provision of customer service training;

- Staff training conducted across areas of need as priority on 2015/16 – Action Ongoing.

- Skills audit and staff training/ development linked to organisational needs conducted. This work is being addressed to align with a Workforce Plan review in 2016/17 – Action Pending.

- WALGA Elected Member training was conducted in Feb 2016, with new Councillors attending this training – Action Completed.

5.3.3 Team building – building a cohesive and effective team environment in all directions

Targeted team building with elected members and executive to continue to build a cohesive team;

Targeted team building exercises to build across the Shire Staff teams on cohesion.

- This action was not performed due to matters of conflict and unsubstantiated allegations of bullying and harassment, which proved a significant distraction for Shire Executive in second half of 2015/16.

5.4 Long Term Financial Viability

5.4.1 Maintaining sound business practices and standards.

New New - Integrated Planning Review process (long Term Financial Plan) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.

5.4.2 Identify ways of building the Shire’s long term viability.

New New - Shire Auditors emphasized in 2015/16 the need for Council to focus on addressing asset management, setting appropriate rates revenue, and increasing fees structure to accommodate long term financial modelling and planning.

- Economic and land-use planning also identified projects that can yield financial return to ratepayers This includes focus on future Shire caravan parks in Carnarvon and Coral Bay, land subdivision in Carnarvon, age care housing, and opportunities with Carnarvon Airport – Actions Ongoing.

- Further initiatives to be identified and investigated under Economic Planning in 2016/17 – Action Pending.

5.4.3 Develop a long term strategic final plan to ensure financial sustainability of the Shire.

New Increase the amount of money into reserve funds for the future;

Ensure adequate funds to maintain assets to desired levels;

- Integrated Planning Review process (Long Term Financial Plan) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.

5.5 Best Practice Asset Management

5.5.1 Effectively maintain our assets to an

New Continue to develop and review the shire’s Asset Management Plan;

- The Shire’s asset management continued to be developed in 2015/16, with aid of specialist


appropriate level for the community.

Implement the findings and recommendations of the Asset Management Plan;

Properly fund and resource the implementation and execution of the Asset Management Plan;

consultant funded by DLGC – Action Ongoing.

- Shire Reserve funding was used to address ageing assets.

- Concern was raised by Administration over increased pressure for Shire to accept responsibility for One Mile Jetty and Heritage Precinct.

- Maintenance/upgrade works conducted in line with asset management programs for Shire infrastructure (roads, foot paths, parks and open space areas and buildings) in 2015/16 – includes upgrade or refurbishment works to North River Road, Gnaraloo Road, Main Street and Fascine Foreshore, Shire Admin. Building, Coral Bay Ablution Building – Actions Completed.

5.6 Best practice Human Resource Management practices

5.6.1 Implement the Shires Workforce Development Plan.

New Establish the priorities of the Workforce Development Plan;

Properly fund and resource Council’s implementation and execution of the Workforce Development Plan;

Update all human resource policies and procedures;

- Integrated Planning Review process (Workforce Plan) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.

5.6.2 Be the premier, desirable employer in WA.

New Instilling and upholding a professional culture in the workplace;

Provide a workplace that attracts and retains quality staff at current or better levels;

Provide a flexible workplace:

- Internal recruitment process to attract/retain a suitable Workforce was maintained during 2015/16.

- Difficulties also experienced through unsubstantiated allegations in second half of 2015/16 arising from and motivated by undue political influences, mainly through media and social media mediums, with an adverse effect on individual staff and overall culture. This has presented a significant risk in quality staff seeking employment elsewhere at considerable cost to the organization and ratepayers – Ongoing Concern.

- Council policies reviewed in April 2016 continues to afford flexible working arrangements and generous working conditions - Action Completed.

5.7 Volunteers continue to be acknowledged and supported

New Continue with an annual events to recognise the contributions of our volunteers;

Establish a policy for recognising volunteers;

Review ways in which to engage and recognise our volunteers.

- Annual volunteer event conducted to recognize contributions made.

- Policy prepared and adopted by Council that reflects and recognizes volunteers and their valuable contributions - Action Completed.


Core Function Business Activities The following is a summary of the core functions and business activities performed during 2015/16 by each directorate:

Corporate Services (John Nuttall – Executive Manager) Finance

Please refer to Annual Financial Report.

Governance

As previously mentioned by the CEO, governance was a major focus of Council and the Shire Administration

during 2015/16. This involved a thorough review of all contracts, leases and agreements leading to a new

policy adopted by Council to ensure a consistent approach. There were also internal audits undertaken, with

a view to discovering areas where improvements could be made. The governance department also continues

to be responsible for the preparation and oversight of tenders. Finally, a centralised purchasing system was

implemented and refined during the financial year. This has removed the need for officers to spend time

chasing and obtaining quotes to the detriment of their other functions, as a dedicated officer now fulfils the

purchasing role that instils separation of duties and affords a checking and accountability function.

Information Technology

We welcomed two new members of staff in the IT department, and with their input it is hoped that there will

be a continuation of the efficiency improvements made over the last few years. IT continues to be a vital area

for the Shire, which explains the continued expenditure in this area.

Library/Art Gallery

The Regional Library & Art Gallery continued to be extremely well utilised during 2015/16, and the continued

provision of young people services means children from pre-primary to middle school are regular attenders,

with many being avid readers. The focus looking forward is continue to encourage older teens to attend and

utilise the Shire’s library services, including continued resourcing and use of ‘electronic’ media.

There were also a number of prominent art displays throughout the year, all being well supported and enjoyed

by the local community. Again this is an area the Shire continues to work on enhancing and improving.

Airport

Airport operations moved to the responsibility of Corporate Services in this financial year. As a result, several

more staff members were trained as Airport Reporting Officers (ARO) to assist with the compliance

requirements for the airport operations. Additionally, the Administration has increased its focus on addressing

matters identified by annual audits by the Civil Safety Aviation Authority (CASA), primarily in the area of the

airport/aviation governance.

Further, the Shire proved successful in securing grant funding from both State and Federal Government bodies

to undertake important remedial works to the main runway at the Carnarvon Airport. Allied to Council’s own

funds this meant that the long overdue upgrade of the main runway and aprons can be progressed as a matter

of priority. Accordingly, these works are now scheduled to commence and finish early in the financial year

2016/17 that should secure continuity of the airport operations for at least the next twenty years if regular

asset maintenance is undertaken.


Development Services (Mark Chadwick – Executive Manager) Environmental Health

The Shire’s Environmental Health Section has operated with 1.8 FTE Environmental Health Officers for most of the year to its deliver and monitor a range of programs and activities to enhance and safeguard public health and promote a safe environment for the well-being of our community. A summary of routine environmental health program activities is provided as follows:

Activity Inspections/Approvals

Food Business Compliance 81 (115)

Public Buildings Compliance 75

Onsite Waste Water Treatment Systems 5

Lodging Houses 20

Mosquito Surveillance Project 500 hours

Waste Water Reuse Ponds Monthly

Licensing Audits for Solid Waste Disposal Facilities Quarterly

Environmental Health Officers followed up on ensuring the public health and safety of properties damaged

by Cyclone Olwyn in March 2015. There were 50 recorded health complaints investigated during the year,

with main issue being health nuisance and asbestos related.

Planning and Development The purpose of the Planning Section is to plan, implement, administer and review the orderly and sustainable use and development of all land contained within the local government area. Some of the outcomes has included;

East Carnarvon/Kingsford Structure Plan – finalised.

Gascoyne Food Bowl and Brockman Park Structure Plans - initiated.

The Local Planning Strategy was submitted to the WA Planning Commission.

Formal review culminating in the preparation of draft Local Planning Scheme No.13.

Funding to progress three future strategic planning projects: a Civic Precinct Revitalisation Plan, a District Water Management plan and a Public Open Space Strategy. These projects are anticipated to be completed in the next financial year and will contribute greatly to the integrated planning framework of the Shire.

Implementing new Planning and Development (Local Planning Schemes) Regulation 2015.

Application Type 2013/14 2014/15 2015/16

Development Applications 77 44 75

Subdivision Referrals 7 4 4

Scheme Amendments 4 3 3


Emergency Services In partnership with the Shire of Shark Bay and the Shire of Upper Gascoyne, the Shire of Carnarvon hosts the position of Community Emergency Services Manager, a role that includes implementing and supervising the delivery preparedness, prevention, response and recovery of Emergency Services functions across the Region The LEMC committee consists of representatives from 27 agencies and community groups that meet quarterly Emergency Management activities included;

The airport held its annual exercise;

There were 2 major incidents o Yaringa Complex Fires 5,500 ha. o Yalbalgo Complex Fires 17,000 ha.

Five incidents midlevel incidents o Mia Mia Station o Jimba Jimba Station o Middalya Station o Wanda gee Station o Mardathuna Station

One desk top exercise. Primary and support incidents reported to DFES and attended by the Shire and Bushfire Brigades in the financial year 2015/16 were:

Unit Primary Supported

Coral Bay VES 3 0

Gascoyne River BFB 4 15

Shire of Carnarvon 8 1

Total 15 16

Economic and Tourism During the 2015/16 financial year a dedicated Economic Development Planner was appointed to assist with the preparation of an Economic Development Action Plan that aims to identify and prioritise viable initiatives to grow the local and regional economy within the next 5 years. This plan will then be incorporated into a comprehensive long-term Regional Centre Growth Plan to steer economic growth of Carnarvon as the Regional Centre of the Gascoyne. The Carnarvon Visitor Centre (CVC) has also continued to provide excellence in all areas of service, promotion and the facilitation of tourism to visitors to the Carnarvon region. The CVC served 46,671 visitors in the last financial year. This service is aimed to assist the local tourism industry and the CVC business by better enabling the promotion of the Carnarvon region. Booking activity for this financial year was;

Region No. of Nights Ave spend per night No. of Bookings

Coral Coast Region (Cervantes to Exmouth)

1247 $139.26 671 – Average consumer staying 1.86 nights


Carnarvon Civic Centre The Carnarvon Civic Centre comprises two venues:

The Camel Lane Theatre is a proscenium arch theatre and digital surround sound cinema, with tiered seating for 300. The Camel Lane Theatre is used for showing movies on weekends.

The Wool Shed is a multipurpose hall with a maximum capacity of 350. In this financial year a total of 14 live performances was conducted with 5175 tickets were sold, and a total of 24 venue hires were achieved.

The Wool Shed also operates as an emergency shelter. In 2016 various works are scheduled to be undertaken, including repair of water leaks in the roof, upgrade of kitchen, installation of backup power and carrying out of an engineer’s assessment in review of structural compliance in the longer term following the removal of a partial collapsed ceiling in July 2015. Building With departures of two Building Surveyors, the Shire engaged with the City of Greater Geraldton, providing building surveying services and visiting the Shire on a monthly basis. The Shire also engaged external services for conducting private swimming pool fence inspections. Building Services Activity 2015/2016:

Activity 2012/2013 2013/2014 2014/2015 2015/2016

Permits Approved 42 17 163 309

Swimming Pool Fences Inspected/Compliant??

81

Building Orders 1

Estimated Building Value N/A N/A $4,701,848 $15,352,370

Rangers The Ranger Services continued to have a busy year with a considerable amount of time was consumed in addressing matters relating to dogs and cats. With 840 dogs and 80 cats currently registered with the Shire, a total of 263 dogs and 26 cats were impounded for the year, and 89 dogs and 1 cat returned to their owner, once microchipped and registered. Fortunately, 142 dogs and 19 cats were rehomed through SAFE or WISH foundations to new owners. As for other activities, this included;

All Rangers undertaking a community snake handling course.

A pet registration day and family BBQ being held at the Town Oval.

145 motor vehicle owners educated about illegal camping, with seven (7) infringements being issued.

Routine seasonal fire break and permits to burn and asset register for pastoral properties published in the DFES Midwest - Gascoyne Regional Directory.

Aquatic Centre

The participation of swimmers has increased markedly over the past season. In total there were 28,448 entries into the facility for this financial year compared with 13,264 entries in 2014/15 and 22,177 entries in 2013/2014, respectively.


Key activities and Programs of the Aquatic Centre included;

Country Health WA – Aqua Aerobics which is an extension of the “Stay on Your Feet” Program

Watch Around Water Inflatable utilised during the Centre’s Opening Weekend.

Lifeguard and Bronze Medallion staff training.

Youth Outreach Stepping Stones program

Shell of the 50m pool and the Toddler pool were re-painted

Infrastructure Services (Michael Hudson – Executive Manager) The Shire Infrastructure Directorate has incurred a busy year across its core responsibilities. This includes road works (construction and maintenance), parks and gardens management, waste management (rubbish collection and landfill operations) and cleaning services. Further, additionally effort has also been directed to continued clean-up efforts post Tropical Cyclone Olwyn and ongoing enhancements to the Main Street environs, with particular emphasis on removal of speed humps at the entrance of the respective roundabouts and improving the presentation of garden areas. A focus was placed of completing the Shire road works program in line with allocated funding, which resulted in required maintenance grading of unsealed roads, the resealing of Carnarvon/Mullewa, North River and Bibbawarra Bore roads, Rushton, Boor, Brown and Woodman streets upgrade works on Quobba-Gnaraloo Road. Considerable attention was also paid to progressing the Shire’s compliance against its licence conditions at the Browns Range and Coral Bay landfill facilities, notwithstanding the significant increase in debris received at both locations as a result of damage caused by Topical Cyclone Olwyn. Similarly, the Premier Oval at the Carnarvon Festival Grounds also received some much needed attention in preparation for a WAFL game to be played in early August 2015. This involved much time, love and attention by the Shire’s grounds staff to ensure the facility met the required standard for such an event to be held.


STATUTORY

REPORTS


Disability Access & Inclusion Plan

The Disability Services Act 1993 (amended 2004) requires local governments to report on their Disability Access & Inclusion Plan (DAIP) achievements annually. The achievements for the year ended 30 June 2016 are listed below and grouped into the outcome areas addressed in the Shire of Carnarvon Disability Access and Inclusion Plan 2013-2018.

Outcome 1.0

People with disabilities have the same opportunities as other people to access the services of, and by events organised by, the Shire of Carnarvon.

Action Progress 1.1 Ensure people with disability are consulted on

their needs for services and accessibility of current services.

DAIP Advisory Group formed in 2015 with initial

meeting in January 2016 – ongoing

1.2 Monitor Shire services to ensure equitable access and inclusion

Enforcement on ACROD parking by Ranger and public

awareness campaign conducted through local media

streams – ongoing

The Shire’s Library continues to provide a ‘Home

Bound Library Service’ for people with mobility

restrictions due to disability - ongoing

1.3 Ensure that events, whether organised or funded, are accessible for people with disability

Review of Event Application process to encourage

event organisers to be aware of accessibility issues

that may impact

their event - completed

Outcome 2.0

People with disability have the same opportunities as other people to access the buildings and other facilities of the Shire of Carnarvon

Action Progress 2.1 Ensure that all Shire buildings and facilities

meet the standards for access and any demonstrated additional need.

The Shire administration office redeveloped to

improve and modify functionality of the front

reception area for universal access - completed.

2.2 Ensure ACROD parking meets the needs of people with disability in terms of quantity and location

Annual audit of ACROD bays as part of infrastructure

maintenance program - completed

2.3 Plan and develop training programs for staff and council members on contemporary values and practices

Information on disability during induction process by

HR, job training as per employee

performance appraisals provided where deemed

necessary, and annual disability awareness training

commenced in late 2015 for all staff across the

organization - ongoing

2.4 Advocate to local businesses and tourist venues the requirements for and benefits flowing from the provision of accessible venues

Information/educational material disseminated - ongoing

2.5 Ensure all recreational areas are accessible, where practicable

Fascine Waterway redeveloped for recreational use, fully accessible using universal access design principles - completed


Outcome 3.0

People with disability receive information from the Shire of Carnarvon in a format that will enable them to access the information as readily as other people are able to access it.

Action Progress 3.1 Ensure the Shire information is available in

alternative formats upon request Quarterly community newsletter made available in alternative formats upon request

3.2 Improve staff awareness of accessible information needs and how to provide information in other formats

Yet to be implemented

3.3 Improve communication access to Shire events


3.4 Ensure the Shire’s website meets contemporary good practice


Outcome 4.0

People with disability receive the same level and quality of service from the staff of the Shire of Carnarvon as other people receive from the staff of Shire of Carnarvon.

Action Progress 4.1 Ensure all employees, existing and new, and

all Elected members are aware of disability and access issues and have skills to provide appropriate services

Still working towards implementation plan to meet

the above strategy - Current DAIP is accessible for all

staff and elected members

4.2 Improve community awareness about disability and access issues

Still working towards implementation plan to meet

the above strategy through quarterly meetings with

DAIP Advisory Group

Outcome 5.0

People with disability have the same opportunities as other people to make complaints to the Shire of Carnarvon

Action Progress 5.1 Ensure that grievance mechanisms are

accessible for people with disabilities and are acted upon.

Mechanisms promoted through shire newsletter,

website and radio - monitoring of complaint/feedback

process and promoting feedback mechanisms ongoing

Outcome 6.0

People with disability have the same opportunities as other people to participate in any public consultation by the Shire of Carnarvon.

Action Progress 6.1 Ensure people with disability are actively

consulted about the DAIP and any other significant planning processes

Regular contact with key agencies including monthly

non Gov’t agency meetings, attending social and

organization

meetings with relevant community members to keep updated with DAIP and DAIP related processes - ongoing

6.2 Ensure people with disabilities are aware of and can access other established consultative processes

Promotion of consultative processes through networking and interagency meetings - ongoing

Outcome 7.0

People with disability have the same opportunities as other people to obtain and maintain employment with the Shire of Carnarvon

Action Progress 7.1 Use inclusive recruitment practices Continue to include EEO statement in all job

advertisements, ensuring interviews can be

held in accessible locations and were possible use appropriate formats for all advertisements - ongoing

7.2 Improve methods of attracting, recruiting and retaining people with disability

Actively investigating funding opportunities to

increase accessibility throughout shire


administration buildings. HR has confirmed an ongoing

assessment of current percentage of people with

disability - ongoing

7.3 Promote organisational work culture that messages to employee’s that the Shire of Carnarvon are an Equal Opportunity Employer and value diversity and inclusion

Participation in disability awareness programs in the workplace - ongoing

7.4 Work with key disability employment provider/s when recruiting and employing individuals with disability

Yet to be implemented.

Structure and Functions of Council Establishment

The Shire of Carnarvon is established under the Local Government Act 1995, and has the responsibility for the administration of this legislation across the district. Other significant legislation which falls to the authority of Council to act upon, includes:

Building Act 2012

Bush Fires Act 1954

Caravan and Camping Grounds Act 1995

Cemeteries Act 1986

Dog Act 1976

Environmental Protection Act 1995 (delegated responsibilities)

Food Act 2008

Freedom of Information Act 1992 Health Act 1911

Litter Act 1979

Planning and Development Act 2005

Council Council’s matters are managed by a Shire President together with seven other Councillors duly elected from, and by, the community. The Council as a whole effectively acts as a community ‘board of directors’ responsible for preparing policies and making decisions pursuant to the Local Government Act 1995 and Planning and Development Act 2005 on a wide range of matters and applications in keeping with the legislative requirements. This involves: Determining policies applied in exercising discretionary powers. Determining type, range and scope of projects to be undertaken by the Local Government. Developing comprehensive management plans, budgets, financial controls and performance objectives/and indicators for the operations of the Local Government.

Further, the Council makes decisions which directs and determines functions and activities performed in the broad interest of the local community. These decisions includes approval of works and services and associated the allocation of resources.

Decisions are also made to determine whether or not approvals are to be granted for applications for development across a range of land uses, including residential, commercial and industrial development.


In the making of these decisions, ordinary meetings of Council are held on the fourth Tuesday of each month in the Council Chambers commencing at 8.30 am, other than the months of May and October each year where the ordinary meetings are conducted at Bill’s Tavern in Coral Bay commencing at 10.30am. Personal Involvement Elected Members involvement often extends to representing Council on other regional or state bodies that includes: WALGA Gascoyne Country Zone (Regional) Gascoyne Regional Road Group Local Emergency Management Committee Main Roads WA Gascoyne Regional Road Group Gascoyne Joint Development Assessment Panel Aviation Community Consultation Group Carnarvon Land Conservation District Advisory Committee Gascoyne Development Commission Board Ningaloo World Heritage Committee

Standing Committees At present the Council has four specific Standing Committees, listed below: Audit Committee Management Review Committee Awards Committee Community Growth Fund Committee

Occasional Committees Council utilises occasional Committees as and when required. Agendas Meeting agendas, largely consisting officer reports and recommendations, are prepared for Council and Committee meetings. These agendas are distributed one week prior to the meeting date. Copies of the meeting agenda is also made available to the public prior to the meeting date in accordance with the Local Government Act 1995. Delegated Authority In accordance with provisions of the Local Government Act 1995 the Council may delegate many powers to a Committee or the Chief Executive Officer (CEO) of the Local Government, with ability for the Committee or CEO to then further delegate the duty or responsibility to an officer of the organisation. For accountability, delegations are recorded in a register reviewed by Council annually and available for viewing by members of the public.

Services to the Community

Council provides an extensive variety of services for the community under a wide range of legislation. Services provided includes: Airport services Youth services Aquatic Centre and water park Community events


Club development Ranger services Bushfire control Emergency response and recovery coordination Entertainment (Live Shows and Movies) Tourist Information Building regulation Environmental Health services Library services Bush fire control Litter bins Roads, footpaths & kerbs Cemeteries Nature based camping areas Rubbish collection and landfill disposal Citizenship ceremonies Recreation grounds, parks and other reserves Land use planning and development controls Street lighting Public toilets Dog control Playground equipment Street sweeping Drainage infrastructure Public buildings for hire Street tree planting and maintenance

Freedom of Information Statement

This information statement is published in accordance with section 96 of the Freedom of Information Act 1992.

Access to Council Documents The following documents are available for inspection at the Shire Administration Office, usually free of charge. Minutes and Agendas of Council and Committee meetings General Policy Manual Annual Budget Annual Report Annual Financial Statements Monthly Financial Statements Council Local Laws Town Planning Schemes and Local Planning Strategy Electoral Roll Financial Interest Register - Primary and Annual Returns and Declarations Tender Register Complaints Register Gifts Register


Requests for other information can be considered pursuant to the Freedom of Information Act, subject to formal application being lodged. This includes an application fee and search fee being lodged with a completed request form, unless the information is of a personal nature, or an exemption is granted under this legislation.

The table below illustrates all the FOI applications received by the Shire of Carnarvon in 2015/16:

Most documents can also be accessed through the Shire of Carnarvon website at www.carnarvon.wa.gov.au .

Official Conduct Report

The Local Government Act 1995 requires the Shire to report on the number of official conduct complaints recorded under section 5.121 during a financial year. The Shire of Carnarvon did not receive complaints of this nature that resulted in action under section 5.110 (6)(b) or (c) during the 2015/16 financial year.

National Competition Policy Statement

The State Government has a Competition Principles Agreement in place, which is binding on local government. This agreement requires the Shire of Carnarvon to carry out a number of procedures and include a report on the matter in Annual Report. The three areas that affect Local Government are:

1. Competitive Neutrality - To remove benefits (and costs) which accrue to Government business as a result of their public ownership.

2. Structural Reform - Local government is required to reform the structure of publicly owned monopoly

businesses where it is proposed to introduce competition.

3. Legislation Review - To review legislation that restricts competition. The full requirements of the package are contained in a statement issued by the Department of Local Government and Communities.

Access Type Personal Non-Personal Total

Access in full 0 4 4 Edited access 1 0 1 Access refused 0 0 0 No documents found 0 0 0 Withdrawn by applicant 0 0 0 Not finalised 0 0 0

Total 1 4 5

http://www.carnarvon.wa.gov.au/


Competitive Neutrality

There are of way in determining if there is a “significant business enterprise” undertaken by the Local Government, namely:

1. Is revenue received from external sources that exceeds $200,000 per annum? (In determining this amount, Council has been advised to disregard grant income, internal charges, and statutory fees).

2. Would any benefits be realised from the implementation of competitive neutrality that exceeds costs?

From an examination of the revenue statement for the Shire of Carnarvon for the subject period there is no apparent activity that satisfies this first part of the test, and therefore the principles of competitive neutrality do not apply to any of Council activities during the 2015/16 financial year.

Structural Reform

In this area, the Council has no monopoly activities. What is basic to the function of restructuring public monopolies is the splitting or division of the regulatory role from the service provision role. To address the question of monopoly, the following test has been applied to each activity:

1. Definition: In regards to this service, does the Council have “exclusive or near exclusive control of the market supply of this service?”

2. Dual Function: Does the Council have both a regulatory and supply function in this area of activity?

3. Willing competitors: If the Council tendered for the supply of this service in the open market, is it likely

that there would be a supplier willing to perform this service? The Council does not have a dual function role in any of the following services:

Airport operations Swimming pool Parks and gardens Roads Recreation services Cemetery

When reviewed, these functions appear to have substance to the sole provider argument. However, there are two areas that may be considered competitive, being:

Waste collection Nature Based Camp Areas

Arguably, although the waste collection and nature based camping does have willing local competitors, it is considered Council does not present as anti-competitive and a disadvantage for the private sector, but rather complementary to the private sector to meet public demand.


State Records Act 2000

The State Records Act, 2000 requires the keeping records by the Local Government records. Specifically, Section 19 requires Council to have a Recordkeeping Plan approved by the State Records Commission. The State Records Commission (SRC) requires records to be created, managed and maintained over time and disposed of in accordance with an approved plan by the SRC, known as a Recordkeeping Plan (RKP). The purpose of the Shire’s RKP is to set the minimum requirements for records to be created and kept. The RKP provides an accurate reflection of the organisation’s records, including information regarding the Shire’s recordkeeping system(s), disposal arrangements, policies, practices and processes. The RKP also presents as the primary means of providing evidence for compliance matters. In summary, the main objectives of the Shire of Carnarvon RKP is to ensure:

Compliance with Section 19 of the State Records Act 2000, as mentioned; Recordkeeping within the Local Government in a compliant manner weighted against the State

Records Commission Standards and Records Management Standard AS ISO 15489; Processes are established that ensures complete/accurate records of the Shire’s business transactions

and decisions; The retrieval for recorded information in a quick, accurate and cheap manner; and The Protection/preservation of the Local Government’s records as required by legislation.

In accordance with Section 17 of the Records Act the Shire is required to comply with the contents of this Plan. This includes participation from:

Employees; Contractors; Elected Members; and Organisations performing outsourced services on behalf of the Shire.


FINANCIAL

REPORTS

FINANCIAL REPORT

FOR THE YEAR ENDED 30TH JUNE 2016

TABLE OF CONTENTS

Statement by Chief Executive Officer 2

Statement of Comprehensive Income by Nature or Type 3

Statement of Comprehensive Income by Program 4

Statement of Financial Position 5

Statement of Changes in Equity 6

Statement of Cash Flows 7

Rate Setting Statement 8

Notes to and Forming Part of the Financial Report 9

Independent Auditor's Report 57

Supplementary Ratio Information 59

Principal place of business:

3 Francis Street

Carnarvon WA 6701

SHIRE OF CARNARVON

SHIRE OF CARNARVONSTATEMENT OF COMPREHENSIVE INCOME

BY NATURE OR TYPEFOR THE YEAR ENDED 30TH JUNE 2016

NOTE 2016 2016 2015$ Budget $

$RevenueRates 22 4,665,823 4,636,354 4,320,948

Operating grants, subsidies and

contributions 29 4,019,385 4,426,977 9,910,094

Fees and charges 28 3,337,022 2,981,300 2,980,770

Interest earnings 2(a) 282,704 363,301 319,139

Other revenue 2(a) 614,210 437,731 1,724,862

12,919,144 12,845,663 19,255,813

ExpensesEmployee costs (6,287,025) (7,497,299) (6,305,458)

Materials and contracts (7,392,009) (8,018,771) (9,428,679)

Utility charges (772,398) (767,334) (704,465)

Depreciation on non-current assets 2(a) (7,093,927) (6,341,023) (6,355,354)

Interest expenses 2(a) (48,619) (54,075) (62,684)

Insurance expenses (463,709) (488,679) (387,513)

Other expenditure (350,218) (435,596) (354,552)

(22,407,905) (23,602,777) (23,598,705)

(9,488,761) (10,757,114) (4,342,892)

Non-operating grants, subsidies and

contributions 29 2,346,048 3,139,048 4,730,148

Profit on asset disposals 20 553,010 546,999 570,135

(Loss) on asset disposals 20 (45,411) 0 (79,350)

Loss on revalution of fixed assets 0 0 (7,422,287)

Net result (6,635,114) (7,071,067) (6,544,246)

Other comprehensive income

Items that will not be reclassified subsequently to profit or lossChanges on revaluation of non-current assets 12 448,150 0 295,340,719

Total other comprehensive income 448,150 0 295,340,719

Total comprehensive income (6,186,964) (7,071,067) 288,796,473

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

Page 3

SHIRE OF CARNARVONSTATEMENT OF COMPREHENSIVE INCOME

BY PROGRAMFOR THE YEAR ENDED 30TH JUNE 2016

NOTE 2016 2016 2015$ Budget $

$Revenue 2(a)

Governance 262,300 134,885 473,247

General purpose funding 7,124,290 7,192,281 11,830,296

Law, order, public safety 312,012 579,339 966,486

Health 80,607 37,907 133,643

Education and welfare 798,996 739,726 560,609

Housing 55,134 91,480 81,515

Community amenities 1,990,693 1,780,500 1,618,372

Recreation and culture 345,627 302,626 325,332

Transport 1,145,084 1,268,669 2,058,849

Economic services 760,451 694,500 619,100

Other property and services 43,950 23,750 588,364

12,919,144 12,845,663 19,255,813

Expenses 2(a)

Governance (1,139,422) (1,393,320) (1,519,590)

General purpose funding (207,592) (220,352) (165,437)

Law, order, public safety (909,026) (1,064,854) (1,696,202)

Health (691,951) (750,334) (600,318)

Education and welfare (1,038,138) (1,597,634) (997,896)

Housing (119,593) (148,009) (178,636)

Community amenities (2,177,158) (2,490,274) (2,430,826)

Recreation and culture (4,631,000) (5,942,774) (4,376,808)

Transport (10,260,272) (8,470,380) (10,281,997)

Economic services (1,078,860) (1,353,394) (1,272,775)

Other property and services (106,274) (117,377) (15,536)

(22,359,286) (23,548,702) (23,536,021)

Finance costs 2(a)

Housing (4,072) (3,593) (4,280)

Recreation and culture (31,431) (28,127) (37,469)

Transport (13,116) (22,355) (20,935)

(48,619) (54,075) (62,684)

(9,488,761) (10,757,114) (4,342,892)

Non-operating grants, subsidies and

contributions 29 2,346,048 3,139,048 4,730,148

Profit on disposal of assets 20 553,010 546,999 570,135

(Loss) on disposal of assets 20 (45,411) 0 (79,350)

Loss on revaluation of fixed assets 0 0 (7,422,287)

Net result (6,635,114) (7,071,067) (6,544,246)

Other comprehensive incomeItems that will not be reclassified subsequently to profit or lossChanges on revaluation of non-current assets 12 448,150 0 295,340,719

Total other comprehensive income 448,150 0 295,340,719

Total comprehensive income (6,186,964) (7,071,067) 288,796,473


Page 4

SHIRE OF CARNARVONSTATEMENT OF FINANCIAL POSITION

AS AT 30TH JUNE 2016

NOTE 2016 2015$ $

CURRENT ASSETSCash and cash equivalents 3 8,618,298 14,947,141

Trade and other receivables 4 1,185,342 1,187,509

Inventories 5 41,056 95,863

TOTAL CURRENT ASSETS 9,844,696 16,230,513

NON-CURRENT ASSETSOther receivables 4 64,049 56,250

Property, plant and equipment 6 31,734,663 31,707,066

Infrastructure 7 373,234,324 375,684,650

TOTAL NON-CURRENT ASSETS 405,033,036 407,447,966

TOTAL ASSETS 414,877,732 423,678,479

CURRENT LIABILITIESTrade and other payables 8 1,192,203 3,123,110

Current portion of long term borrowings 9 356,605 475,433

Provisions 10 532,013 747,806

TOTAL CURRENT LIABILITIES 2,080,821 4,346,349

NON-CURRENT LIABILITIESLong term borrowings 9 293,185 649,790

Provisions 10 95,762 87,412

TOTAL NON-CURRENT LIABILITIES 388,947 737,202

TOTAL LIABILITIES 2,469,768 5,083,551

NET ASSETS 412,407,964 418,594,928

EQUITYRetained surplus 77,185,245 82,553,807

Reserves - cash backed 11 8,043,912 9,310,464

Revaluation surplus 12 327,178,807 326,730,657

TOTAL EQUITY 412,407,964 418,594,928


Page 5

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Page 6

SHIRE OF CARNARVONSTATEMENT OF CASH FLOWS


NOTE 2016 2016 2015Actual Budget Actual

CASH FLOWS FROM OPERATING ACTIVITIES $ $ $ReceiptsRates 4,462,152 4,636,354 4,273,334

Operating grants, subsidies and

contributions 4,109,244 4,426,977 10,131,451

Fees and charges 3,337,022 2,981,300 2,980,770

Interest earnings 282,704 363,301 319,139

Goods and services tax 819,272 0 617,564

Other revenue 614,210 437,731 1,724,862

13,624,604 12,845,663 20,047,120

PaymentsEmployee costs (6,768,811) (7,497,299) (6,350,087)

Materials and contracts (8,995,700) (8,018,771) (12,283,995)

Utility charges (772,398) (767,334) (704,465)

Interest expenses (46,685) (54,075) (64,239)

Insurance expenses (463,709) (488,679) (387,513)

Goods and services tax (711,092) 0 (663,365)

Other expenditure (350,218) (435,596) (354,552)

(18,108,613) (17,261,754) (20,808,216)

Net cash provided by (used in) operating activities 13(b) (4,484,009) (4,416,091) (761,096)

CASH FLOWS FROM INVESTING ACTIVITIESPayments for purchase of

property, plant & equipment (839,510) (4,765,163) (834,666)

Payments for construction of

infrastructure (3,655,939) (5,905,788) (2,911,762)

Non-operating grants,

subsidies and contributions 2,346,048 3,139,048 4,730,148

Proceeds from sale of fixed assets 780,000 780,000 652,446

Net cash provided by (used in) investment activities (1,369,401) (6,751,903) 1,636,166

CASH FLOWS FROM FINANCING ACTIVITIESRepayment of debentures (475,433) (510,682) (487,181)

Proceeds from new debentures 0 550,000 0

Net cash provided by (used In) financing activities (475,433) 39,318 (487,181)

Net increase (decrease) in cash held (6,328,843) (11,128,676) 387,889

Cash at beginning of year 14,947,141 14,947,141 14,559,252

Cash and cash equivalents at the end of the year 13(a) 8,618,298 3,818,465 14,947,141


Page 7

SHIRE OF CARNARVONRATE SETTING STATEMENT


2016 2016 2015NOTE Actual Budget Actual

$ $ $

Net current assets at July 1 b/fwd - surplus/(deficit) 5,196,939 5,202,043 1,131,0545,196,939 5,202,043 1,131,054

Governance 262,300 134,885 473,247General purpose funding 2,654,145 2,735,927 7,689,401Law, order, public safety 312,012 579,339 966,486Health 80,607 37,907 133,643Education and welfare 798,996 739,726 560,609Housing 55,134 91,480 81,515Community amenities 1,990,693 1,780,500 1,618,372Recreation and culture 345,627 302,626 325,332Transport 1,145,084 1,268,669 2,058,849Economic services 760,451 694,500 619,100Other property and services 596,960 570,749 1,158,499

9,002,009 8,936,308 15,685,053

Governance (1,139,422) (1,393,320) (1,519,590)General purpose funding (207,592) (220,352) (165,437)Law, order, public safety (954,437) (1,064,854) (1,696,202)Health (691,951) (750,334) (600,318)Education and welfare (1,038,138) (1,597,634) (997,896)Housing (123,665) (151,602) (182,916)Community amenities (2,177,158) (2,490,274) (2,430,826)Recreation and culture (4,662,431) (5,970,901) (4,414,277)Transport (10,273,388) (8,492,735) (17,804,569)Economic services (1,078,860) (1,353,394) (1,272,775)Other property and services (106,274) (117,377) (15,536)

(22,453,316) (23,602,777) (31,100,342)

Operating activities excluded from budgetLoss on Revaluation of Non-Current Assets 0 0 7,422,287(Profit) on disposal of assets 20 (553,010) (546,999) (570,135)Loss on disposal of assets 20 45,411 0 79,350Movement in deferred pensioner rates (non-current) (7,799) 0 (5,760)Movement in employee benefit provisions (non-current) (207,443) 0 (78,369)Movement in prepaid income (included in restricted cash) (800,000) 0 (2,200,000)Depreciation and amortisation on assets 2(a) 7,093,927 6,341,023 6,355,354Amount attributable to operating activities (2,683,282) (3,670,402) (3,281,508)

INVESTING ACTIVITIESNon-operating grants, subsidies and contributions 2,346,048 3,139,048 4,730,148Proceeds from disposal of assets 20 780,000 780,000 652,446Purchase of property, plant and equipment 6(b) (839,510) (4,765,163) (834,666)Purchase and construction of infrastructure 7(b) (3,655,939) (5,905,788) (2,911,762)Amount attributable to investing activities (1,369,401) (6,751,903) 1,636,166

FINANCING ACTIVITIESRepayment of debentures 21(a) (475,433) (510,682) (487,181)Proceeds from new debentures 21(a) 0 550,000 0Transfers to reserves (restricted assets) 11 (3,969,791) (2,522,424) (3,677,880)Transfers from reserves (restricted assets) 11 5,236,343 8,449,057 6,866,447Amount attributable to financing activities 791,119 5,965,951 2,701,386

Surplus(deficiency) before general rates (3,261,564) (4,456,354) 1,056,044

Total amount raised from general rates 22 4,470,145 4,456,354 4,140,895

Net current assets at June 30 c/fwd - surplus/(deficit) 23 1,208,581 0 5,196,939


Revenue from operating activities (excluding rates)

Expenditure from operating activities

Page 8

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of PreparationThe financial report comprises general purpose financial statements which have been prepared in

accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit

entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian

Accounting Standards Board, the Local Government Act 1995 and accompanying regulations. Material

accounting policies which have been adopted in the preparation of this financial report are presented

below and have been consistently applied unless stated otherwise.

Except for cash flow and rate setting information, the report has been prepared on the accrual basis

and is based on historical costs, modified, where applicable, by the measurement at fair value of selected

non-current assets, financial assets and liabilities.

Critical accounting estimatesThe preparation of a financial report in conformity with Australian Accounting Standards requires

management to make judgements, estimates and assumptions that effect the application of policies and

reported amounts of assets and liabilities, income and expenses.

The estimates and associated assumptions are based on historical experience and various other factors

that are believed to be reasonable under the circumstances; the results of which form the basis of making

the judgements about carrying values of assets and liabilities that are not readily apparent from other

sources. Actual results may differ from these estimates.

The local government reporting entityAll Funds through which the Shire controls resources to carry on its functions have been included in the

financial statements forming part of this financial report.

In the process of reporting on the local government as a single unit, all transactions and balances

between those Funds (for example, loans and transfers between Funds) have been eliminated.

All monies held in the Trust Fund are excluded from the financial statements. A separate statement of

those monies appears at Note 19 to these financial statements.

(b) Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of

GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of GST receivable or payable.

The net amount of GST recoverable from, or payable to, the ATO is included with receivables or payables

in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or

financing activities which are recoverable from, or payable to, the ATO are presented as operating

cash flows.

(c) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, cash at bank, deposits available on demand with

banks and other short term highly liquid investments that are readily convertible to known amounts of

cash and which are subject to an insignificant risk of changes in value and bank overdrafts.

Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial

position.

SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT


Page 9

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(d) Trade and Other ReceivablesTrade and other receivables include amounts due from ratepayers for unpaid rates and service charges

and other amounts due from third parties for goods sold and services performed in the ordinary course

of business.

Receivables expected to be collected within 12 months of the end of the reporting period are classified

as current assets. All other receivables are classified as non-current assets.

Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be

uncollectible are written off when identified. An allowance for doubtful debts is raised when there is

objective evidence that they will not be collectible.

(e) Inventories

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

Net realisable value is the estimated selling price in the ordinary course of business less the estimated

costs of completion and the estimated costs necessary to make the sale.

Land held for saleLand held for development and sale is valued at the lower of cost and net realisable value. Cost includes

the cost of acquisition, development, borrowing costs and holding costs until completion of development.

Finance costs and holding charges incurred after development is completed are expensed.

Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if

significant risks and rewards, and effective control over the land, are passed on to the buyer at this point.

Land held for sale is classified as current except where it is held as non-current based on the Council’s

intentions to release for sale.

(f) Fixed AssetsEach class of fixed assets within either property, plant and equipment or infrastructure, is carried at cost

or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Mandatory requirement to revalue non-current assetsEffective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and

the measurement of non-current assets at Fair Value became mandatory.

During the year ended 30 June 2013, the Shire commenced the process of adopting Fair Value

in accordance with the Regulations.

Whilst the amendments initially allowed for a phasing in of fair value in relation to fixed assets over three

years, as at 30 June 2015 all non-current assets were carried at Fair Value in accordance with the

the requirements.

Thereafter, each asset class must be revalued in accordance with the regulatory framework established and

Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have been

made in the financial report as necessary.


the Shire revalues its asset classes in accordance with this mandatory timetable.


Page 10


(f) Fixed Assets (Continued)

Land under controlIn accordance with Local Government (Financial Management) Regulation 16(a), the Shire was required

to include as an asset (by 30 June 2013), Crown Land operated by the local government as a golf course,

showground, racecourse or other sporting or recreational facility of State or Regional significance.

Upon initial recognition, these assets were recorded at cost in accordance with AASB 116. They were

then classified as Land and revalued along with other land in accordance with the other policies detailed

in this Note.

Initial recognition and measurement between mandatory revaluation datesAll assets are initially recognised at cost and subsequently revalued in accordance with the mandatory

measurement framework detailed above.

In relation to this initial measurement, cost is determined as the fair value of the assets given as

consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal

consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets

constructed by the Shire includes the cost of all materials used in construction, direct labour on the project

and an appropriate proportion of variable and fixed overheads.

Individual assets acquired between initial recognition and the next revaluation of the asset class in

accordance with the mandatory measurement framework detailed above, are carried at cost less

accumulated depreciation as management believes this approximates fair value. They will be subject to

subsequent revaluation at the next anniversary date in accordance with the mandatory measurement

framework detailed above.

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

equity. Decreases that offset previous increases of the same asset are recognised against revaluation

surplus directly in equity. All other decreases are recognised in profit or loss.

Land under roadsIn Western Australia, all land under roads is Crown Land, the responsibility for managing which, is

vested in the local government.

Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired

on or before 30 June 2008. This accords with the treatment available in Australian Accounting

Standard AASB 1051 Land Under Roads and the fact Local Government (Financial Management)

Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.

In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government

(Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land

as an asset.

Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government

(Financial Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local

Government (Financial Management) Regulations prevail.

Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the

Shire.



Page 11


(f) Fixed Assets (Continued)

DepreciationThe depreciable amount of all fixed assets including buildings but excluding freehold land, are depreciated

on a straight-line basis over the individual asset’s useful life from the time the asset is held ready for use.

Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the

estimated useful life of the improvements.

When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of

the revaluation is treated in one of the following ways:

a) Restated proportionately with the change in the gross carrying amount of the asset so that the carrying

amount of the asset after revaluation equals its revalued amount; or

b) Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued

amount of the asset.

Major depreciation periods used for each class of depreciable asset are:

Buildings 10 to 100 years

Furniture and Equipment 3 to 10 years

Plant and Equipment 5 to 20 years

Sealed roads and streets

formation not depreciated

pavement 50 years

seal

- bituminous seals 20 years

- asphalt surfaces 25 years

Gravel roads

formation not depreciated

pavement 50 years

gravel sheet 12 years

Formed roads (unsealed)

clearing and earthworks not depreciated

construction/roadbase 50 years

Footpaths - slab 50 years

Bridges 50 years

Levee System 50 years

Tools 5 years

Water supplying piping & drainage systems 75 years

Other Infrastructure Various

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each

reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying

amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount.

These gains and losses are included in the statement of comprehensive income in the period in which

they arise.

Capitalisation thresholdExpenditure on items of equipment under $5,000 is not capitalised. Rather, it is recorded on an

asset inventory listing.



Page 12


(g) Fair Value of Assets and LiabilitiesWhen performing a revaluation, the Shire uses a mix of both independent and management valuations

using the following as a guide:

Fair Value is the price that the Shire would receive to sell the asset or would have to pay to transfer a

liability, in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market

participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is

used to determine fair value. Adjustments to market values may be made having regard to the

characteristics of the specific asset or liability. The fair values of assets that are not traded in an active

market are determined using one or more valuation techniques. These valuation techniques maximise, to

the extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principal market for the asset or

liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the

absence of such a market, the most advantageous market available to the entity at the end of the

reporting period (i.e. the market that maximises the receipts from the sale of the asset after taking into

account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant’s ability

to use the asset in its highest and best use or to sell it to another market participant that would use the

asset in its highest and best use.

Fair value hierarchyAASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which

categorises fair value measurement into one of three possible levels based on the lowest level that an

input that is significant to the measurement can be categorised into as follows:

Level 1Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities

that the entity can access at the measurement date.

Level 2Measurements based on inputs other than quoted prices included in Level 1 that are observable for the

asset or liability, either directly or indirectly.

Level 3Measurements based on unobservable inputs for the asset or liability.

The fair values of assets and liabilities that are not traded in an active market are determined using one or

more valuation techniques. These valuation techniques maximise, to the extent possible, the use of

observable market data. If all significant inputs required to measure fair value are observable, the asset or

liability is included in Level 2. If one or more significant inputs are not based on observable market data,

the asset or liability is included in Level 3.

Valuation techniquesThe Shire selects a valuation technique that is appropriate in the circumstances and for which sufficient

data is available to measure fair value. The availability of sufficient and relevant data primarily depends on

the specific characteristics of the asset or liability being measured. The valuation techniques selected by

the Shire are consistent with one or more of the following valuation approaches:

Market approachValuation techniques that use prices and other relevant information generated by market transactions for

identical or similar assets or liabilities.

NOTES TO AND FORMING PART OF THE FINANCIAL REPORTFOR THE YEAR ENDED 30TH JUNE 2016

SHIRE OF CARNARVON

Page 13


(g) Fair Value of Assets and Liabilities (Continued)Valuation techniques (Continued)

Income approachValuation techniques that convert estimated future cash flows or income and expenses into a single

discounted present value.

Cost approachValuation techniques that reflect the current replacement cost of an asset at its current service capacity.

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use

when pricing the asset or liability, including assumptions about risks. When selecting a valuation

technique, the Shire gives priority to those techniques that maximise the use of observable inputs and

minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly

available information on actual transactions) and reflect the assumptions that buyers and sellers would

generally use when pricing the asset or liability are considered observable, whereas inputs for which

market data is not available and therefore are developed using the best information available about such

assumptions are considered unobservable.

As detailed above, the mandatory measurement framework imposed by the Local Government

(Financial Management) Regulations requires, as a minimum, all assets carried at a revalued amount to

be revalued in accordance with the regulatory framework.

(h) Financial Instruments

Initial recognition and measurementFinancial assets and financial liabilities are recognised when the Shire becomes a party to the

contractual provisions to the instrument. For financial assets, this is equivalent to the date that the

Shire commits itself to either the purchase or sale of the asset (i.e. trade date accounting is

adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the

instrument is classified 'at fair value through profit or loss', in which case transaction costs are

expensed to profit or loss immediately.

Classification and subsequent measurementFinancial instruments are subsequently measured at fair value, amortised cost using the effective

interest rate method, or at cost.

Amortised cost is calculated as:

(a) the amount in which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments and any reduction for impairment; and

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

initially recognised and the maturity amount calculated using the effective interest rate method.

The effective interest method is used to allocate interest income or interest expense over the relevant

period and is equivalent to the rate that discounts estimated future cash payments or receipts

(including fees, transaction costs and other premiums or discounts) through the expected life (or when

this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying

amount of the financial asset or financial liability. Revisions to expected future net cash flows will

necessitate an adjustment to the carrying value with a consequential recognition of an income or expense

in profit or loss.



Page 14


(h) Financial Instruments (Continued)

Classification and subsequent measurement (continued)

(i) Financial assets at fair value through profit and loss Financial assets are classified at “fair value through profit or loss” when they are held for trading for the

purpose of short-term profit taking. Such assets are subsequently measured at fair value with changes

in carrying amount being included in profit or loss. Assets in this category are classified as current assets.

(ii) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are

not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are

recognised in profit or loss.

Loans and receivables are included in current assets where they are expected to mature within 12 months

after the end of the reporting period.

(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or

determinable payments that the Shire has the positive intention and ability to hold to maturity. They

are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.

Held-to-maturity investments are included in current assets, where they are expected to mature

within 12 months after the end of the reporting period. All other investments are classified as non-

current.

(iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be

classified into other categories of financial assets due to their nature, or they are designated as such

by management. They comprise investments in the equity of other entities where there is neither a

fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses)

recognised in other comprehensive income (except for impairment losses). When the financial asset

is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other

comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are included in current assets, where they are expected to be sold

within 12 months after the end of the reporting period. All other available-for-sale financial assets are

classified as non-current.

(v) Financial liabilitiesNon-derivative financial liabilities (excluding financial guarantees) are subsequently measured at

amortised cost. Gains or losses are recognised in profit or loss.



Page 15


(h) Financial Instruments (Continued)

ImpairmentA financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as

a result of one or more events (a “loss event”) having occurred, which will have an impact on the estimated

future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of

the instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately.

Also, any cumulative decline in fair value previously recognised in other comprehensive income is

reclassified to profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the

debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in

interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation;

and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance

account is used to reduce the carrying amount of financial assets impaired by credit losses. After

having taken all possible measures of recovery, if management establishes that the carrying amount

cannot be recovered by any means, at that point the written-off amounts are charged to the allowance

account or the carrying amount of impaired financial assets is reduced directly if no impairment amount

was previously recognised in the allowance account.

DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expire or the

asset is transferred to another party whereby the Shire no longer has any significant continual

involvement in the risks and benefits associated with the asset.

Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired.

The difference between the carrying amount of the financial liability extinguished or transferred to

another party and the fair value of the consideration paid, including the transfer of non-cash assets or

liabilities assumed, is recognised in profit or loss.

(i) Impairment of AssetsIn accordance with Australian Accounting Standards the Shire's assets, other than inventories,

are assessed at each reporting date to determine whether there is any indication they may be impaired.

Where such an indication exists, an impairment test is carried out on the asset by comparing the

recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in

use, to the asset's carrying amount.

Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in

profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard

(e.g. AASB 116) whereby any impairment loss of a revalued asset is treated as a revaluation decrease in

accordance with that other Standard.

For non-cash generating assets such as roads, drains, public buildings and the like, value in use is

represented by the depreciated replacement cost of the asset.

(j) Trade and Other PayablesTrade and other payables represent liabilities for goods and services provided to the Shire prior to the

end of the financial year that are unpaid and arise when the Shire becomes obliged to make future

payments in respect of the purchase of these goods and services. The amounts are unsecured, are

recognised as a current liability and are normally paid within 30 days of recognition.



Page 16


(k) Employee BenefitsShort-term employee benefits Provision is made for the Shire’s obligations for short-term employee benefits. Short-term employee

benefits are benefits (other than termination benefits) that are expected to be settled wholly before

12 months after the end of the annual reporting period in which the employees render the related service,

including wages, salaries and sick leave. Short-term employee benefits are measured at the

(undiscounted) amounts expected to be paid when the obligation is settled.

The Shire’s obligations for short-term employee benefits such as wages, salaries and sick leave are

recognised as a part of current trade and other payables in the statement of financial position. The

Shire’s obligations for employees’ annual leave and long service leave entitlements are recognised as

provisions in the statement of financial position.

Other long-term employee benefitsProvision is made for employees’ long service leave and annual leave entitlements not expected to be

settled wholly within 12 months after the end of the annual reporting period in which the employees

render the related service. Other long-term employee benefits are measured at the present value of the

expected future payments to be made to employees. Expected future payments incorporate anticipated

future wage and salary levels, durations of service and employee departures and are discounted at rates

determined by reference to market yields at the end of the reporting period on government bonds that

have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in

assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the

periods in which the changes occur.

The Shire’s obligations for long-term employee benefits are presented as non-current provisions in its

statement of financial position, except where the Shire does not have an unconditional right to defer

settlement for at least 12 months after the end of the reporting period, in which case the obligations are

presented as current provisions.

(l) Borrowing CostsBorrowing costs are recognised as an expense when incurred except where they are directly attributable

to the acquisition, construction or production of a qualifying asset. Where this is the case, they are

capitalised as part of the cost of the particular asset until such time as the asset is substantially ready

for its intended use or sale.

(m) ProvisionsProvisions are recognised when the Shire has a present legal or constructive obligation, as a result of

past events, for which it is probable that an outflow of economic benefits will result and that outflow can

be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the

end of the reporting period.

(n) LeasesLeases of fixed assets where substantially all the risks and benefits incidental to the ownership of the

asset, but not legal ownership, are transferred to the Shire, are classified as finance leases.

Finance leases are capitalised recording an asset and a liability at the lower amounts equal to the fair

value of the leased property or the present value of the minimum lease payments, including any

guaranteed residual values. Lease payments are allocated between the reduction of the lease liability

and the lease interest expense for the period.

Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or

the lease term.

Lease payments for operating leases, where substantially all the risks and benefits remain with the

lessor, are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight line

basis over the life of the lease term.



Page 17


(o) Investment in AssociatesAn associate is an entity over which the Shire has significant influence. Significant influence is the

power to participate in the financial operating policy decisions of that entity but is not control or joint

control of those policies. Investments in associates are accounted for in the financial statements by

applying the equity method of accounting, whereby the investment is initially recognised at cost and

adjusted thereafter for the post-acquisition change in the Shire’s share of net assets of the associate.

In addition, the Shire’s share of the profit or loss of the associate is included in the Shire’s profit or loss.

The carrying amount of the investment includes, where applicable, goodwill relating to the associate.

Any discount on acquisition, whereby the Shire’s share of the net fair value of the associate exceeds

the cost of investment, is recognised in profit or loss in the period in which the investment is acquired.

Profits and losses resulting from transactions between the Shire and the associate are eliminated to

the extent of the Shire’s interest in the associate.

When the Shire’s share of losses in an associate equals or exceeds its interest in the associate, the

Shire discontinues recognising its share of further losses unless it has incurred legal or constructive

obligations or made payments on behalf of the associate. When the associate subsequently makes

profits, the Shire will resume recognising its share of those profits once its share of the profits equals

the share of the losses not recognised.

(p) Interests in Joint ArrangementsJoint arrangements represent the contractual sharing of control between parties in a business

venture where unanimous decisions about relevant activities are required.

Separate joint venture entities providing joint venturers with an interest to net assets are classified as a

joint venture and accounted for using the equity method. Refer to note 1(o) for a description of the equity

method of accounting.

Joint venture operations represent arrangements whereby joint operators maintain direct interests in

each asset and exposure to each liability of the arrangement. The Shire’s interests in the assets,

liabilities, revenue and expenses of joint operations are included in the respective line items of the financial

statements. Information about the joint ventures is set out in Note 16.

(q) Rates, Grants, Donations and Other ContributionsRates, grants, donations and other contributions are recognised as revenues when the local government

obtains control over the assets comprising the contributions.

Control over assets acquired from rates is obtained at the commencement of the rating period or, where

earlier, upon receipt of the rates.

Where contributions recognised as revenues during the reporting period were obtained on the condition

that they be expended in a particular manner or used over a particular period, and those conditions were

undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged

conditions are disclosed in Note 2(c) . That note also discloses the amount of contributions recognised

as revenues in a previous reporting period which were obtained in respect of the local government's

operations for the current reporting period.

(r) SuperannuationThe Shire contributes to a number of Superannuation Funds on behalf of employees. All funds to

which the Shire contributes are defined contribution plans.


SHIRE OF CARNARVON

Page 18


(s) Current and Non-Current ClassificationIn the determination of whether an asset or liability is current or non-current, consideration is given to the

time when each asset or liability is expected to be settled. The asset or liability is classified as current if

it is expected to be settled within the next 12 months, being the Shire’s operational cycle. In the case

of liabilities where the Shire does not have the unconditional right to defer settlement beyond 12 months,

such as vested long service leave, the liability is classified as current even if not expected to be settled

within the next 12 months. Inventories held for trading are classified as current even if not expected to be

realised in the next 12 months except for land held for sale where it is held as non-current based on the

Shire’s intentions to release for sale.

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

dollar.

(u) Comparative FiguresWhere required, comparative figures have been adjusted to conform with changes in presentation for the

current financial year.

When the Shire applies an accounting policy retrospectively, makes a retrospective restatement or

reclassifies items in its financial statement, an additional (third) statement of financial position as at the

beginning of the preceding period in addition to the minimum comparative financial statements is

presented.

(v) Budget Comparative FiguresUnless otherwise stated, the budget comparative figures shown in this annual financial report relate to the

original budget estimate for the relevant item of disclosure.


SHIRE OF CARNARVON

Page 19

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dA

pplic

able

(1)

Impa

ct

(iv)

AA

SB

2014-3

Am

endm

ents

to A

ustr

alia

nA

ugust

2014

1 J

anuary

2016

This

Sta

ndard

am

ends A

AS

B 1

1:

Join

t Arr

ange

men

ts t

o r

equire t

he

Accounting S

tandard

s -

Accounting f

or

acquirer

of

an inte

rest

(both

initia

l and a

dditio

nal) in a

join

t opera

tion

Acq

uis

itio

ns o

f In

tere

sts

in

Jo

int

Op

era

tio

ns

in w

hic

h t

he a

ctivity c

onstitu

tes a

busin

ess,

as d

efined in A

AS

B 3

:

Bus

ines

s C

ombi

natio

ns,

to a

pply

all

of

the p

rincip

les o

n b

usin

ess

[AA

SB

1 &

AA

SB

11

]com

bin

ations a

ccounting in A

AS

B 3

and o

ther

Austr

alia

n

Acco

un

tin

g S

tan

da

rds e

xce

pt

for

tho

se

prin

cip

les t

ha

t co

nflic

t w

ith

the g

uid

ance in A

AS

B 1

1;

and d

isclo

se t

he info

rmation r

equired

by A

AS

B 3

and o

ther

Austr

alia

n A

ccounting S

tandard

s f

or

busin

ess

com

bin

ations.

Sin

ce a

doption o

f th

is S

tandard

would

im

pact

only

acquis

itio

ns o

f

inte

rests

in join

t opera

tions o

n o

r after

1 J

anuary

2016,

managem

ent

belie

ves it

is im

pra

cticable

at

this

sta

ge t

o p

rovid

e a

reasonable

estim

ate

of

such im

pact

on t

he S

hire's

fin

ancia

l

sta

tem

en

ts.

(v)

AA

SB

2014-4

Am

endm

ents

to A

ustr

alia

n

August

2014

1 J

anuary

2016

This

Sta

ndard

am

ends A

AS

B 1

16 a

nd A

AS

B 1

38 t

o e

sta

blis

h t

he

Accounting S

tandard

s -

Cla

rification o

f princip

le f

or

the b

asis

of

depre

cia

tion a

nd a

mort

isation a

s b

ein

g t

he

Accepta

ble

Meth

ods o

f D

epre

cia

tion a

nd

expecte

d p

attern

of

consum

ption o

f th

e f

utu

re e

conom

ic b

enefits

of

Am

ort

isation

an

asse

t. I

t a

lso

cla

rifie

s t

he

use

of

reve

nu

e-b

ase

d m

eth

od

s t

o

calc

ula

te t

he d

epre

cia

tion o

f an a

sset

is n

ot

appro

priate

nor

is

[AA

SB

116 &

138]

revenue g

enera

lly a

n a

ppro

priate

basis

for

measuring t

he

consum

ption o

f th

e e

conom

ic b

enefits

em

bodie

d in a

n inta

ngib

le

asse

t.

Giv

en t

he S

hire c

ure

ntly u

ses t

he e

xpecte

d p

attern

of

consum

ption

of

the

fu

ture

eco

no

mic

be

ne

fits

of

an

asse

t a

s t

he

ba

sis

of

ca

lcu

latio

n

of

de

pre

cia

tio

n,

it is n

ot

exp

ecte

d t

o h

ave

a s

ign

ific

an

t im

pa

ct.

(vi)

AA

SB

2014-5

Am

endm

ents

to A

ustr

alia

n

Decem

ber

2014

1 J

anuary

2017

Consequential changes t

o v

arious S

tandard

s a

risin

g f

rom

the

Accounting S

tandard

s a

risin

g f

rom

AA

SB

15

issuance o

f A

AS

B 1

5.

It w

ill r

eq

uire

ch

an

ge

s t

o r

efle

ct

the

im

pa

ct

of

AA

SB

15

.

Page 2

1

SHIR

E O

F C

AR

NA

RVO

NN

OTE

S TO

AN

D F

OR

MIN

G P

AR

T O

F TH

E FI

NA

NC

IAL

REP

OR

TFO

R T

HE

YEA

R E

ND

ED 3

0TH

JU

NE

2016

1. S

IGN

IFIC

AN

T A

CC

OU

NTI

NG

PO

LIC

IES

(Con

tinue

d)

(w)

New

Acc

ount

ing

Stan

dard

s an

d In

terp

reta

tions

for A

pplic

atio

n in

Fut

ure

Perio

ds (C

ontin

ued)

Title

Issu

ed /

Com

pile

dA

pplic

able

(1)

Impa

ct

(vii)

AA

SB

2015-2

Am

endm

ents

to A

ustr

alia

n

January

2015

1 J

anuary

2016

This

Sta

ndard

am

ends A

AS

B 1

01 t

o p

rovid

e c

larification r

ega

rdin

g

Accounting S

tandard

s –

Dis

clo

sure

the d

isclo

sure

requirem

ents

in A

AS

B 1

01.

Specific

ally

, th

e

Initia

tive

: A

me

nd

me

nts

to

Sta

ndard

pro

poses n

arr

ow

-focus a

mendm

ents

to a

ddre

ss s

om

e o

f

AA

SB

10

1th

e c

oncern

s e

xpre

ssed a

bout

exis

ting p

resenta

tion a

nd d

isclo

sure

requirem

ents

and t

o e

nsure

entities a

re a

ble

to u

se judgem

ent

[AA

SB

7,

10

1,

13

4 &

10

49

]w

hen a

pply

ing a

Sta

ndard

in d

ete

rmin

ing w

hat

info

rmation t

o

dis

clo

se in t

heir f

inancia

l sta

tem

ents

.

This

Sta

ndard

als

o m

akes e

ditorial and c

onsequential am

endm

ents

as a

re

su

lt o

f a

me

nd

me

nts

to

th

e S

tan

da

rds lis

ted

in

th

e t

itle

colu

mn.

It is n

ot

an

ticip

ate

d it

will

ha

ve

an

y s

ign

ific

an

t im

pa

ct

on

dis

clo

sure

s a

s t

hey c

urr

ently e

xis

t and a

ny c

hanges w

ill r

ela

te t

o

pre

senta

tion.

(viii

)A

AS

B 2

015-6

Am

endm

ents

to A

ustr

alia

n

Marc

h 2

015

1 J

uly

2016

The o

bje

ctive o

f th

is S

tandard

is t

o e

xte

nd t

he s

cope o

f A

AS

B 1

24

Accounting S

tandard

s -

Exte

ndin

g R

ela

ted

Rel

ated

Par

ty D

iscl

osur

esto

in

clu

de

no

t-fo

r-p

rofit

se

cto

r e

ntitie

s.

Pa

rty D

isclo

su

res t

o N

ot-

for-

Pro

fit

Pu

blic

Se

cto

r E

ntitie

sT

he S

tandard

is e

xpecte

d t

o h

ave a

sig

nific

ant

dis

clo

sure

im

pact

on

the f

inancia

l re

port

of

the S

hire a

s b

oth

Ele

cte

d M

em

bers

and S

enio

r

[AA

SB

10,

124 &

1049]

Managem

ent

will

be d

eem

ed t

o b

e K

ey M

anagem

ent

Pers

onnel

and r

esultant

dis

clo

sure

s w

ill b

e n

ecessary

.

Note

s:

(1) A

pp

licable

to r

ep

ort

ing

periods c

om

mencin

g o

n o

r a

fte

r th

e g

iven d

ate

.

Page 2

2

SHIR

E O

F C

AR

NA

RVO

NN

OTE

S TO

AN

D F

OR

MIN

G P

AR

T O

F TH

E FI

NA

NC

IAL

REP

OR

TFO

R T

HE

YEA

R E

ND

ED 3

0TH

JU

NE

2016

1. S

IGN

IFIC

AN

T A

CC

OU

NTI

NG

PO

LIC

IES

(Con

tinue

d)

(x)

Ado

ptio

n of

New

and

Rev

ised

Acc

ount

ing

Stan

dard

s

These n

ew

and r

evis

ed s

tandard

s w

ere

as f

ollo

ws:

(i)

AA

SB

2015-3

Am

endm

ents

to A

ustr

alia

n

Accounting S

tandard

s a

risin

g f

rom

the

withdra

wal of

AA

SB

1031 M

ate

rialit

y

(ii)

AA

SB

2015-7

Am

endm

ents

to A

ustr

alia

n

Accounting S

tandard

s -

Fair V

alu

e D

isclo

sure

s

of

No

t-fo

r-P

rofit

Pu

blic

Se

cto

r E

ntitie

s

and w

hic

h w

ere

applic

able

to its

opera

tions.

During t

he c

urr

ent

year,

the S

hire a

dopte

d a

ll of

the n

ew

and r

evis

ed A

ustr

alia

n A

ccounting S

tandard

s a

nd I

nte

rpre

tations w

hic

h w

ere

com

pile

d,

becam

e m

andato

ry

Page 2

3



2. REVENUE AND EXPENSES 2016 2015$ $

(a) Net Result

The Net result includes:

(i) Charging as an expense:

Significant expense and revenueGeneral purpose funding 2,451,238 3,522,946

This significant expense in 2015 and 2016 relates to the

construction of levee banks for Flood Mitigation.

Auditors remuneration- Audit of the Annual Financial Report 22,949 20,869

- Assistance with the finalisation of the annual financial report 5,500 4,000

- Other services 23,079 19,140

DepreciationBuildings - non-specialised 64,811 64,811

Buildings - specialised 805,314 801,005

Furniture and equipment 30,836 27,367

Plant and equipment 313,691 348,495

Infrastructure - roads 4,883,095 3,930,913

Infrastructure - footpaths 34,131 50,679

Infrastructure - drainage 87,808 61,777

Infrastructure - parks and ovals 278,041 543,582

Infrastructure - other 195,126 184,949

Infrastructure - Bridges 159,600 155,585

Infrastructure - Levee System 44,750 30,617

Infrastructure - Airport 174,774 111,324

Infrastructure - Car Parks 21,950 44,250

7,093,927 6,355,354

Interest expenses (finance costs)Debentures (refer Note 21 (a)) 48,619 62,684

48,619 62,684

Rental charges- Operating leases 285,859 288,243

285,859 288,243

(ii) Crediting as revenue:

Other revenueReimbursements and recoveries 384,922 1,433,954

Other 229,288 290,908

614,210 1,724,862

2016 2016 2015Actual Budget Actual

$ $ $Interest earnings- Reserve funds 148,463 209,301 204,362

- Other funds 58,743 100,000 49,774

Other interest revenue (refer note 27) 75,498 54,000 65,003

282,704 363,301 319,139

Page 24



2. REVENUE AND EXPENSES (Continued)

(b) Statement of Objective

In order to discharge its responsibilities to the community, the Shire has developed a set of

operational and financial objectives. These objectives have been established both on an overall

basis, reflected by the Shire’s Community Vision, and for each of its broad activities/programs.

COMMUNITY VISION

of the members of the community and enable them to enjoy a pleasant and healthy way of life.

Shire operations as disclosed in these financial statements encompass the following service

orientated activities/programs.

GOVERNANCEObjective:To provide a decision making process for the efficient allocation of resources.

Activities:Administration and operations of facilities and services to members of Council.

Other costs that relate to the tasks of assisting elected members and ratepayers on

matters which do not concern specific council services.

GENERAL PURPOSE FUNDINGObjective:

Activities:

LAW, ORDER, PUBLIC SAFETYObjective:

Activities:

HEALTHObjective:To provide an operational framework for environmental and community health.

Activities:Food quality and pest control, inspections and infant health. This function also

provides for the implentation of the Healthy Lifestyles model.

EDUCATION AND WELFAREObjective:To meet the needs of the community in these areas.

Activities:Support pre school facilities and assistance of seniors and retirement villages

This function also provides for Youth Strategy and the accounting of the Carnarvon

Youth Co ordinating Networks finance as part of an agreement.

security, administration of the Crime Prevention Plan.

The Shire will endeavour to provide the community services and facilities to meet the needs

To collect general reveunue to allow for the provision of services.

Rates activity, general purpose grants, banking costs and interest revenue.

To provide services to help ensure safer community.

Supervision of various local laws, fire prevention, emergency services, CBD

Page 25

2. REVENUE AND EXPENSES (Continued)

(b) Statement of Objective (Continued)

HOUSINGObjective:To meet the needs of the Shire of Carnarvon Staff.

Activities:Staff Housing.

COMMUNITY AMENITIESObjective:To provide sanitary and essential services required by the community.

To provide land development strategies and to process land development activities.

Environmental sustainability.

Activities:Refuse collection service, operation of refuse site, administration of town

planning scheme, cemetery service and maintenance, environmental protection

services and land development services.

RECREATION AND CULTUREObjective:To establish and manage efficiently infrastructure and resources which will

help the social well being of the community.

Activities:Operations of Civic Centre (Camel Lane), aquatic centre and beach areas,

regional libray service, cultural and heritage services and facilities, reserves parks

and gardens.

TRANSPORTObjective:To provide effective and efficient transport services to the community.

Activities:Maintenance of streets, roads, footpaths, street lighting, airport. Agency for

Department of Planning and Infrastructures On Line Vehicle Licensing Service.

ECONOMIC SERVICESObjective:To help promote and market the Shire of Carnarvon to the world and impove

the economic well being. To ensure building development regulations are adhered to.

Activities:Noxious weed control, tourism and area promotion, building control and services.

OTHER PROPERTY AND SERVICESObjective:To ensure works programs are operating efficiently.

Activities:Private works operations, public works operations and plant operations.



Page 26

SHIR

E O

F C

ARN

ARVO

NN

OTE

S TO

AN

D F

OR

MIN

G P

ART

OF

THE

FIN

ANC

IAL

REP

OR

TFO

R T

HE

YEAR

EN

DED

30T

H J

UN

E 20

16

2.R

EVEN

UE

AND

EXP

ENSE

S (C

ontin

ued)

(c)

Con

ditio

ns O

ver G

rant

s/C

ontr

ibut

ions

Ope

ning

Clo

sing

Clo

sing

Bal

ance

(1)

Rec

eive

d (2

)Ex

pend

ed(3

)B

alan

ce(1

)R

ecei

ved

(2)

Expe

nded

(3)

Bal

ance

Func

tion/

1/07

/14

2014

/15

2014

/15

30/0

6/15

2015

/16

2015

/16

30/0

6/16

Gra

nt/C

ontr

ibut

ion

Activ

ity$

$$

$$

$$

Blo

whole

s (

bala

nce o

f $1,8

00,0

00)

Recre

ation a

nd c

ulture

1,0

20,9

74

2,0

62

(24,4

77)

998,

559

1,4

58

(6,8

41)

993,

176

Youth

DC

P &

DC

SE

ducation a

nd w

elfare

90,5

42

66,1

68

(78,3

42)

78,3

6838,5

38

(21,1

44)

95,7

62F

lood M

itig

ation (

Sta

te)

Tra

nsport

4,4

33,9

47

17,3

11

(3,5

22,9

46)

928,

312

1,2

69,5

31

(2,1

97,8

43)

0F

lood M

itig

ation (

Federa

l)T

ransport

253,2

26

516

025

3,74

2353

(254,0

95)

0W

aste

Facili

ty (

Regio

nal C

LG

F)

Com

munity a

menitie

s19,9

92

0(1

9,9

92)

00

00

Kid

sport

Com

munity a

menitie

s28,6

50

50

(12,6

75)

16,0

254,0

23

(14,0

98)

5,95

0D

epart

ment of

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overn

ment (R

CG

)A

dm

inis

tration

53,7

20

110

(15,6

47)

38,1

8353

(38,2

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lan

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3,3

02,0

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70,6

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13,7

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WA

(m

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19,7

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9,38

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s15,4

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405

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rary

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295,6

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221,

950

309

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ay T

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tation

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117

(300)

79,8

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gein

g in P

lace -

GD

C R

FR

Education a

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050,0

00

050

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88

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lub D

evelo

pm

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R)

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00

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C S

usta

inabili

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rant (T

ourism

WA

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nal A

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Tow

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00

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ate

r M

anagem

ent S

trate

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lan (

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conom

ic S

erv

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00

00

70,0

00

070

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Public

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pace S

trate

gy P

roje

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conom

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erv

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00

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Civ

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evelo

ment P

lan (

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)E

conom

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erv

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00

00

20,0

00

020

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Indig

enous A

dvancem

ent S

trate

gy (

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&C

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ducation a

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elfare

00

00

100,0

00

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55)

25,9

45

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l10

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2,10

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,502

,133

)7,

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2,60

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Not

es:

(1) -

Gra

nts

/contr

ibutions r

ecognis

ed a

s r

evenue in a

pre

vio

us r

eport

ing p

eriod w

hic

h w

ere

not expended a

t th

e c

lose o

f th

e p

revio

us r

eport

ing p

eriod.

(2) -

New

gra

nts

/contr

ibutions w

hic

h w

ere

recognis

ed a

s r

evenues d

uring the r

eport

ing p

eriod a

nd w

hic

h h

ad n

ot yet been f

ully

expe

nded in the m

anner

specifie

d

b

y the c

ontr

ibuto

r.

(3) -

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nts

/contr

ibutions w

hic

h h

ad b

een r

ecognis

ed a

s r

evenues in a

pre

vio

us r

eport

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eriod o

r re

ceiv

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urr

ent re

port

ing p

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nd w

hic

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ere

e

xpended in the c

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port

ing p

eriod in the m

anner

specifie

d b

y the c

ontr

ibuto

r.

Page 2

7



Note 2016 2015$ $

3. CASH AND CASH EQUIVALENTS

Unrestricted 574,386 5,636,677

Restricted 8,043,912 9,310,464

8,618,298 14,947,141

The following restrictions have been imposed by

regulations or other externally imposed requirements:

Leave reserve 11 127,945 131,417

Plant Reserve 11 133,582 125,619

Waste Disposal Reserve 11 186,791 37,513

Property Infrastructure Reserve 11 1,753 1,692

Staff Housing Reserve 11 724,307 694,189

Civic Centre Reserve 11 303,596 102,499

I.T. Replacement Reserve 11 53,622 51,416

Airport Reserve 11 826,502 30,074

Coral Bay Tip Reserve 11 21,721 21,617

Surge/Fascine Wall Reserve 11 7,441 6,195

Town planning Scheme Reserve 11 23,382 22,957

Fascine Dredging Reserve 11 124,750 1,320

Flood Mitigation Reserve 11 11,804 10,405

OCT/NASA Reserve 11 8,793 7,828

Blowholes Reserve 11 22,735 21,282

Unspent Grants and Contributions Reserve 11 4,639,633 7,062,057

Land and Infrastructure Development Reserve 11 744,246 956,335

Asset Replacement Reserve 11 28,696 26,049

Emergency Response Reserve 11 51,701 0

Mosquito Management Reserve 11 912 0

8,043,912 9,310,464

4. TRADE AND OTHER RECEIVABLES

CurrentRates outstanding 557,990 362,118

Sundry debtors 525,823 627,465

GST receivable 42,045 150,225

ESL receivable 33,842 31,465

Accrued income 23,576 14,186

Bond Staff Housing 2,066 2,050

1,185,342 1,187,509

Non-currentRates outstanding - pensioners 64,049 56,250

64,049 56,250

5. INVENTORIES

CurrentFuel and materials 16,560 51,259

Civic Centre 3,178 8,120

Visitors Centre 21,318 36,484

41,056 95,863

Page 28



2016 2015$ $

6 (a). PROPERTY, PLANT AND EQUIPMENT

Land and buildings

Land - freehold at:

- Independent valuation 2014 - level 2 3,510,000 3,510,000


- Additions after valuation - cost 254,151 254,151

6,911,526 6,911,526

Land - vested in and under the control of Council at:

- Management valuation 2014 - level 3 275,000 275,000

275,000 275,000

7,186,526 7,186,526

Buildings - non-specialised at:


Less: accumulated depreciation (129,622) (64,811)

1,390,378 1,455,189

Buildings - specialised at:


- Additions after valuation - cost 1,053,645 323,683

Less: accumulated depreciation (1,606,319) (801,005)

20,740,740 20,816,092

22,131,118 22,271,281

Total land and buildings 29,317,644 29,457,807

Furniture and equipment at:

- Independent valuation 2014 - level 3 0 75,800

- Management valuation 2014 - level 3 0 80,809

- Independent valuation 2016 - level 3 280,900 0

- Management valuation 2016 - level 3 83,470 0

- Additions after valuation - cost 0 24,647

Less accumulated depreciation 0 (27,367)

364,370 153,889

Plant and equipment at:

- Management valuation 2013 - level 3 0 76,178

- Independent valuation 2013 - level 2 0 1,547,802

- Independent valuation 2016 - level 2 1,996,700 0

- Management valuation 2016 - level 3 55,949 0

- Additions after valuation - cost 0 1,033,595

Less accumulated depreciation 0 (562,205)

2,052,649 2,095,370

31,734,663 31,707,066

The fair value of property, plant and equipment is determined at least every three years in accordance

with the regulatory framework. Additions since the date of valuation are shown as cost, given they

were acquired at arms length and any accumulated depreciation reflects the usage of service

potential, it is considered the recorded written down value approximates fair value. At the end of each

intervening period the valuation is reviewed and where appropriate the fair value is updated to

reflect current market conditions. This process is considered to be in accordance with Local Government

(Financial Management) Regulation 17A (2) which requires property, plant and equipment to be shown

at fair value.Page 29

SHIR

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Page 3

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During t

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alu

ation t

echniq

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air v

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.

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E O

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AR

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NN

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OR

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AR

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Ass

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Furn

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and

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Land -

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Build

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non-s

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Build

ings -

specia

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Page 3

1



2016 2015$ $

7 (a). INFRASTRUCTURE

Infrastructure - roads

- Management valuation 2015 - level 3 315,173,553 315,173,553

- Additions after valuation - cost 1,507,305 0

Less accumulated depreciation (4,883,095) 0

311,797,763 315,173,553

Infrastructure - footpaths


- Additions after valuation - cost 3,081 0

Less accumulated depreciation (34,131) 0

2,060,399 2,091,449

Infrastructure - drainage



6,691,858 6,779,666

Infrastructure - parks and ovals


- Additions after valuation - cost 2,121,629 0


16,504,642 14,661,054

Infrastructure - other


- Additions after valuation - cost 300 0


10,347,174 10,542,000

Infrastructure - Bridges



7,820,400 7,980,000

Infrastructure - Levee System




8,906,530 8,950,000

Infrastructure - Airport




8,896,472 9,048,902

Infrastructure - Car Parks

- Management valuation 2015 - level 3 231,036 458,026


209,086 458,026

373,234,324 375,684,650

Page 32



7 (a). INFRASTRUCTURE (Continued)

The fair value of infrastructure is determined at least every three years in accordance with the

regulatory framework. Additions since the date of valuation are shown as cost. Given they were

acquired at arms length and any accumulated depreciation reflects the usage of service potential,

it is considered the recorded written down value approximates fair value. At the end of each

intervening period the valuation is reviewed and, where appropriate, the fair value is updated to

reflect current market conditions. This process is considered to be in accordance with Local

Government (Financial Management)Regulation 17A (2) which requires infrastructure to be

shown at fair value.

Page 33

SHIR

E O

F C

AR

NA

RVO

NN

OTE

S TO

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OR

MIN

G P

AR

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7.IN

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roads

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Page 3

4

7.IN

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epre

cia

ted

repla

cem

ent

cost

Managem

ent

Valu

ation

June 2

015

Constr

uction c

osts

and c

urr

ent

conditio

n (

Level 2)

resid

ual

valu

es a

nd r

em

ain

ing u

sefu

l lif

e a

ssessm

ents

(Level 3)

inputs

Level 3 inputs

are

based o

n a

ssum

ptions w

ith r

egard

s t

o f

utu

re v

alu

es a

nd p

attern

s o

f consum

ption u

tilis

ing c

urr

ent

info

rmation

. If t

he b

asis

of

these a

ssum

ptions w

ere

varied ,

they h

ave t

he p

ote

ntial to

result in a

sig

nific

antly h

igher

or

low

er

fair v

alu

e m

easure

ment.

During t

he p

eriod t

here

were

no c

hanges in t

he v

alu

ation t

echniq

ues u

sed t

o d

ete

rmin

e t

he f

air v

alu

e o

f in

frastr

uctu

re u

sin

g le

vel 3 inputs

.

SHIR

E O

F C

AR

NA

RVO

NN

OTE

S TO

AN

D F

OR

MIN

G P

AR

T O

F TH

E FI

NA

NC

IAL

REP

OR

TFO

R T

HE

YEA

R E

ND

ED 3

0TH

JU

NE

2016

Page 3

5



2016 2015$ $

8. TRADE AND OTHER PAYABLES

CurrentSundry creditors 563,039 1,421,537

Accrued interest on debentures 4,986 3,052

Accrued salaries and wages 24,178 193,780

ATO liabilities 0 104,741

Prepaid Income 600,000 1,400,000

1,192,203 3,123,110

9. LONG-TERM BORROWINGS

CurrentSecured by floating charge

Debentures 356,605 475,433

356,605 475,433

Non-currentSecured by floating charge

Debentures 293,185 649,790

293,185 649,790

Additional detail on borrowings is provided in Note 21.

10. PROVISIONS

Provision for Provision forAnnual Long ServiceLeave Leave Total

$ $ $Opening balance at 1 July 2015Current provisions 548,939 198,867 747,806

Non-current provisions 0 87,412 87,412

548,939 286,279 835,218

Additional provision (202,898) (4,545) (207,443)

Balance at 30 June 2016 346,041 281,734 627,775

ComprisesCurrent 346,041 185,972 532,013

Non-current 0 95,762 95,762

346,041 281,734 627,775

Page 36

11R

ESER

VES

- CA

SH B

AC

KED

Act

ual

Act

ual

Act

ual

Act

ual

Bud

get

Bud

get

Bud

get

Bud

get

Act

ual

Act

ual

Act

ual

Act

ual

2016

2016

2016

2016

2016

2016

2016

2016

2015

2015

2015

2015

Ope

ning

Bal

ance

Tran

sfer

toTr

ansf

er

(from

)C

losi

ngB

alan

ceO

peni

ngB

alan

ceTr

ansf

er to

Tran

sfer

(fr

om)

Clo

sing

Bal

ance

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ning

Bal

ance

Tran

sfer

toTr

ansf

er

(from

)C

losi

ngB

alan

ce$

$$

$$

$$

$$

$$

$Leave r

eserv

e131,4

17

4,7

70

(8,2

42)

127,9

45

131,4

17

5,1

80

0136,5

97

126,3

94

5,0

23

0131,4

17

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nt

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e125,6

19

7,9

63

0133,5

82

125,6

19

104,9

51

0230,5

70

120,8

18

4,8

01

0125,6

19

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posal R

eserv

e37,5

13

149,2

78

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91

37,5

14

153,7

20

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00)

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34

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80

1,4

33

037,5

13

Pro

pert

y I

nfr

astr

uctu

re R

eserv

e1,6

92

61

01,7

53

1,6

93

67

01,7

60

1,6

28

64

01,6

92

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ff H

ousin

g R

eserv

e694,1

89

30,1

18

0724,3

07

694,1

88

171,9

82

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70

662,9

58

31,2

31

0694,1

89

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ic C

entr

e R

eserv

e102,4

99

201,0

97

0303,5

96

102,4

99

201,9

40

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39

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17

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99

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. R

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ent

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2,2

06

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22

51,4

16

12,0

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24

64,4

81

1,9

18

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83)

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16

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e30,0

74

796,4

28

0826,5

02

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74

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l B

ay T

ip R

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all

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95

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e R

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e22,9

57

425

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od M

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ation R

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82

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ent

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of

the r

eserv

e a

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are

support

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oney h

eld

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inancia

l in

stitu

tions a

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atc

h t

he

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ount

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n a

s r

estr

icte

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ote

3 t

o t

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l re

port

.

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E O

F C

AR

NA

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NN

OTE

S TO

AN

D F

OR

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G P

AR

T O

F TH

E FI

NA

NC

IAL

REP

OR

TFO

R T

HE

YEA

R E

ND

ED 3

0TH

JU

NE

2016

Page 3

7

11R

ESER

VES

- CA

SH B

AC

KED

(CO

NTI

NU

ED)

In a

ccord

ance w

ith c

ouncil

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tions in r

ela

tion t

o e

ach r

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e a

ccount, t

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re s

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s f

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eve

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erv

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ents

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nt

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ple

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nt

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ent

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pa

rtm

en

t o

f H

ea

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.

SHIR

E O

F C

AR

NA

RVO

NN

OTE

S TO

AN

D F

OR

MIN

G P

AR

T O

F TH

E FI

NA

NC

IAL

REP

OR

TFO

R T

HE

YEA

R E

ND

ED 3

0TH

JU

NE

2016

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ibute

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m.

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& c

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ation o

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e O

TC

site.

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t in

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anagem

ent

within

the S

hire o

f C

arn

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h inclu

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g f

rom

the

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sed t

o a

ssis

t w

ith t

he r

em

oval of

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ebris a

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ost

dem

olit

ion r

ehabili

tation o

f shack a

rea.

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e u

sed t

o isola

te g

rants

and c

ontr

ibutions f

or

specific

purp

oses t

o b

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pent

at

a late

r date

or

in s

ubsequent

years

.

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e u

sed f

or

the p

urc

hase o

f la

nd a

nd d

evelo

pm

ent

of

infr

astr

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re w

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arn

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on.

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ent

and im

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of

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hire o

f C

arn

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on in a

ccord

ance w

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hire's

Asset

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ent

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he p

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and p

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f and r

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to t

he c

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munity in r

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o a

n E

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the

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on.

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tenance o

r capital expenditure

at

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ange R

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ite.

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cem

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of

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blig

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g t

ow

n p

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e r

evie

ws,

new

schem

e &

rele

vant

tow

n p

lannin

g p

urp

oses.

Page 3

8

12.R

EVA

LUA

TIO

N S

UR

PLU

S20

1620

1520

1620

1620

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tal

2016

2015

2015

2015

Tota

l20

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peni

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eval

uatio

nR

eval

uatio

nM

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losi

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peni

ngR

eval

uatio

nR

eval

uatio

nM

ovem

ent o

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losi

ngB

alan

ceIn

crem

ent

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rem

ent

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alua

tion

Bal

ance

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ance

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emen

tD

ecre

men

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eval

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alan

ce$

$$

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$Land a

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uild

ings

13,9

00,7

41

00

013,9

00,7

41

13,9

00,7

41

00

013,9

00,7

41

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iture

and e

quip

ment

0145,0

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0145,0

79

145,0

79

00

00

0

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nt

and e

quip

ment

783,7

53

303,0

71

0303,0

71

1,0

86,8

24

783,7

53

00

0783,7

53

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astr

uctu

re -

roads

291,1

25,8

62

00

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25,8

62

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48

00

06,9

07,9

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as p

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AS

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16 A

us 4

0.1

.

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E O

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AR

NA

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NN

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AN

D F

OR

MIN

G P

AR

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F TH

E FI

NA

NC

IAL

REP

OR

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R T

HE

YEA

R E

ND

ED 3

0TH

JU

NE

2016

Movem

ents

on r

evalu

ation o

f fixed a

ssets

are

not

able

to b

e r

elia

bly

attribute

d t

o a

pro

gra

m a

s t

he a

ssets

were

revalu

ed b

y c

lass

Page 3

9



13. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of Cash

For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents,

net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the

related items in the Statement of Financial Position as follows:

20162016 Budget 2015

$ $ $

Cash and cash equivalents 8,618,298 3,818,465 14,947,141

(b) Reconciliation of Net Cash Provided ByOperating Activities to Net Result

Net result (6,635,114) (7,071,067) (6,544,246)

Non-cash flows in Net result:

Depreciation 7,093,927 6,341,023 6,355,354

(Profit)/Loss on sale of asset (507,599) (546,999) (490,785)

Loss on revaluation of fixed assets 0 0 7,422,287

Changes in assets and liabilities:

(Increase)/Decrease in receivables (5,632) 0 127,942

(Increase)/Decrease in inventories 54,807 0 (15,076)

Increase/(Decrease) in payables (1,930,907) 0 (2,808,055)

Increase/(Decrease) in provisions (207,443) 0 (78,369)

Grants contributions for

the development of assets (2,346,048) (3,139,048) (4,730,148)

Net cash from operating activities (4,484,009) (4,416,091) (761,096)

2016 2015(c) Undrawn Borrowing Facilities $ $

Credit Standby ArrangementsBank overdraft limit 200,000 200,000

Bank overdraft at balance date 0 0

Credit card limit 40,000 40,000

Credit card balance at balance date (2,808) (2,816)

Total amount of credit unused 237,192 237,184

Loan facilitiesLoan facilities - current 356,605 475,433

Loan facilities - non-current 293,185 649,790

Total facilities in use at balance date 649,790 1,125,223

Unused loan facilities at balance date NIL NIL

14. CONTINGENT LIABILITIES

The Shire is not aware of any contingent liabilities as at 30th June 2016.

Page 40



2016 201515. CAPITAL AND LEASING COMMITMENTS $ $

(a) Operating Lease Commitments

Non-cancellable operating leases contracted for but not capitalised in the accounts.

Payable:

- not later than one year 220,984 211,280

- later than one year but not later than five years 299,460 495,473

- later than five years 0 0

520,444 706,753

(b) Capital Expenditure Commitments

16. JOINT VENTURE ARRANGEMENTS

17. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY2016 2015

$ $

Governance 3,788,774 3,647,266

Law, order, public safety 444,873 472,827

Health 127,366 133,636

Education and welfare 1,744,498 1,812,899

Housing 854,250 887,125

Community amenities 11,593,690 11,693,489

Recreation and culture 41,457,782 39,106,263

Transport 337,437,026 343,387,445

Economic services 5,900 0

Other property and services 2,493,989 2,635,620

Unallocated 14,929,584 19,901,909

414,877,732 423,678,479

The Shire is not involved in any joint venture arrangements.

The Shire did not have any future capital expenditure commitments at the reporting date.

Page 41



2016 2015 201418. FINANCIAL RATIOS

Current ratio 0.92 1.64 0.48

Asset sustainability ratio 0.58 0.54 1.14

Debt service cover ratio (3.51) (8.83) (72.31)

Operating surplus ratio (0.97) (1.14) (3.53)

Own source revenue coverage ratio 0.41 0.42 0.17

The above ratios are calculated as follows:

Current ratio current assets minus restricted assets

current liabilities minus liabilities associated

with restricted assets

Asset sustainability ratio

Depreciation expenses

Debt service cover ratio annual operating surplus before interest and depreciation

principal and interest

Operating surplus ratio operating revenue minus operating expenses

own source operating revenue

Own source revenue coverage ratio own source operating revenue

operating expenses

Notes:

(a) Information relating to the asset consumption ratio and the asset renewal funding ratiocan be found at Supplementary Ratio Information on Page 59 of this document.

(b) For 2016,

(i) The Debt Service Cover and Operating Surplus ratios as disclosed above were distorted by the

early receipt of half of the allocation of the 2015-16 Financial Assistance Grant on 30 June 2015.

The early payment of the grant decreased operating revenue in 2016 by $2,469,631.

(ii) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as disclosed

were all distorted by an item of significant expenditure totalling $2,451,238 relating to flood mitigation work

of which the corresponding revenue was above recognised in 2012.

(c) For 2015,

(i) The Current, Debt Service Cover and the Operating Surplus ratios as disclosed above were distorted

by an item of significant revenue relating to the early payment of 2015/16 Financial Assistance Grants

(FAGs) of $2,469,631 which was received prior to year end.

(ii) The Debt Service Cover, Operating Surplus and Own Service Revenue Coverage ratios as disclosed

above were all distorted by an item of significant expenditure totalling $2,254,707 (Net of revenue)

relating to flood mitigation work of which the corresponding revenue was recognised in 2012.

(iii) The Debt Service Cover and Operating Surplus ratios as disclosed above were distorted by an

item of significant expenditure totalling $7,422,287 relating to the loss on revaluation of infrastructure

assets.

(iv) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as disclosed

above were all distorted by an item of significant revenue totalling $1,206,489 relating to financial

support and insurance reimbursements for cyclone damage.

capital renewal and replacement expenditure

Page 42



18. FINANCIAL RATIOS (Continued)

(d) For 2014,

(i) The Current, Debt Service Cover and Operating Surplus ratios as disclosed above were distorted by the change

to the payment of FAGs during the year ended 30 June 2014 which saw the advance payment of the first

quarter of the following year cease. This created a timing difference which resulted in an amount of some

$2,475,700 less revenue for the year.

(ii) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as disclosed

above were all distorted by an item of significant expenditure totalling $24,241,244 (Net of revenue) relating to

flood mitigation work of which the corresponding revenue was recognised in 2012.

Items (b) to (d) mentioned above are considered "one-off" timing/non cash in nature and, if they are ignored,

the calulations disclosed in the columns above would be as follows:

2,016 2,015 2,014Current ratio 0.92 1.06 0.83

Debt service cover ratio 5.88 2.08 5.76

Operating surplus ratio (0.44) (0.61) (0.43)

Own source revenue coverage ratio 0.46 0.43 0.47

Page 43



19. TRUST FUNDS

Funds held at balance date over which the Shire has no control and which are not included in

the financial statements are as follows:

1 July 2015

Amounts Received

Amounts Paid

30 June 2016

$ $ ($) $

Civic Centre Hire 6,129 29,080 (28,850) 6,359

Footpath Deposits 20,299 0 (200) 20,099

Private Works Deposits 1,000 1,000 0 2,000

Shire Facility Deposits 5,550 2,880 (2,430) 6,000

Public Open Space 110,374 0 0 110,374

Other Sundry Trust 8,822 154 (1,000) 7,976

Suspense 5,220 34,446 (916) 38,750

Unclaimed Monies 5,462 0 (1,320) 4,142

Civic Centre Airconditioning 51 0 0 51

Perth Glory 12,500 0 0 12,500

Footpath Cash in Lieu 7,200 0 0 7,200

Building in Training Fund 0 50,525 (50,525) 0

Nomination Deposit 0 1,040 (1,040) 0

182,607 215,451

20. DISPOSALS OF ASSETS - 2015/16 FINANCIAL YEAR

The following assets were disposed of during the year.

Actual Actual Budget BudgetNet Book Sale Actual Actual Net Book Sale Budget Budget

Value Proceeds Profit Loss Value Proceeds Profit Loss$ $ $ $ $ $ $ $

Plant and EquipmentLaw, order, public safety

1CQE196 P172 Toyota Landcruiser 45,411 0 0 (45,411) 0 0 0 0

Infrastruture - Car ParksOther property and services

Lot 1004 Olivia Terrace 226,990 780,000 553,010 0 233,001 780,000 546,999 0

272,401 780,000 553,010 (45,411) 233,001 780,000 546,999 0

Page 44

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Page 4

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6



23. NET CURRENT ASSETS

2016 2016 2015(30 June 2016

Carried Brought CarriedForward) Forward) Forward)

$ $ $

Surplus/(Deficit) 1,208,581 5,196,939 5,196,939

CURRENT ASSETSCash and cash equivalents

Unrestricted 574,386 5,636,677 5,636,677

Restricted 8,043,912 9,310,464 9,310,464

Receivables

Rates outstanding 557,990 362,118 362,118

Sundry debtors 525,823 627,465 627,465

GST receivable 42,045 150,225 150,225

ESL receivable 33,842 31,465 31,465

Accrued income 23,576 14,186 14,186

Bond Staff Housing 2,066 2,050 2,050

Inventories

Fuel and materials 16,560 51,259 51,259

Civic Centre 3,178 8,120 8,120

Visitors Centre 21,318 36,484 36,484

LESS: CURRENT LIABILITIESTrade and other payables

Sundry creditors (563,039) (1,421,537) (1,421,537)

Accrued interest on debentures (4,986) (3,052) (3,052)

Accrued salaries and wages (24,178) (193,780) (193,780)

ATO liabilities 0 (104,741) (104,741)

Prepaid Income (600,000) (1,400,000) (1,400,000)

Current portion of long term borrowings

Secured by floating charge (356,605) (475,433) (475,433)

Provisions

Provision for annual leave (346,041) (548,939) (548,939)

Provision for long service leave (185,972) (198,867) (198,867)

Unadjusted net current assets 7,763,875 11,884,164 11,884,164AdjustmentsLess: Reserves - restricted cash (8,043,912) (9,310,464) (9,310,464)

Add: Secured by floating charge 356,605 475,433 475,433

Add: Provision for annual leave 346,041 548,939 548,939

Add: Provision for long service leave 185,972 198,867 198,867

Prepaid Income 600,000 1,400,000 1,400,000

Adjusted net current assets - surplus/(deficit) 1,208,581 5,196,939 5,196,939

Difference

in the 2016 audited financial report and the surplus/(deficit) carried forward position as disclosed

in the 2015 audited financial report.

Composition of net current assets

(30 June 2015

There was no difference between the surplus/(deficit) 1 July 2015 brought forward position used

(1 July 2015

Page 47

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Page 4

9

2016 201528. FEES & CHARGES $ $

Governance 21,348 35

General purpose funding 46,229 27,745


Health 30,636 30,906

Education and welfare 0 2,269

Community amenities 1,650,263 1,405,144

Recreation and culture 215,495 155,916

Transport 838,452 784,542

Economic services 464,136 534,395

Other property and services 39,064 13,236

3,337,022 2,980,770

There were no changes during the year to the amount of the fees or charges detailed in the original

29. GRANT REVENUEGrants, subsidies and contributions are included as operating

revenues in the Statement of Comprehensive Income:

2016 2015By Nature or Type: $ $Operating grants, subsidies and contributionsGovernance 45,371 0

General purpose funding 2,321,150 7,337,685


Health 49,971 1,284

Education and welfare 761,720 550,760

Community amenities 120,000 26,606

Recreation and culture 99,201 103,358

Transport 294,822 1,737,923

Economic services 189,268 19,232

4,019,385 9,910,094

Non-operating grants, subsidies and contributionsRecreation and culture 832,000 2,200,000

Transport 1,514,048 652,876

Other property and services 0 1,877,272

2,346,048 4,730,148

30. EMPLOYEE NUMBERS

The number of full-time equivalent

employees at balance date 79 80

201631. ELECTED MEMBERS REMUNERATION 2016 Budget 2015

$ $ $The following fees, expenses and allowances were

paid to council members and/or the president.

Meeting Fees 112,375 116,000 112,375

President’s allowance 34,400 34,400 34,400

Deputy President’s allowance 7,883 8,600 8,600

Travelling expenses 784 12,500 784

Telecommunications allowance 3,461 4,020 4,227

158,903 175,520 160,386



budget.

Page 50

32. MAJOR LAND TRANSACTIONS

The Shire did not participate in any major land transactions during the 2015/16 financial year.

33. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS

the Shire did not participate in any trading undertakings or major trading undertakings during the 2015/16

financial year.



Page 51



34. FINANCIAL RISK MANAGEMENT

foreign currency risk.

Carrying Value Fair Value2016 2015 2016 2015

$ $ $ $Financial assetsCash and cash equivalents 8,618,298 14,947,141 8,618,298 14,947,141

Receivables 1,249,391 1,243,759 1,249,391 1,243,759

9,867,689 16,190,900 9,867,689 16,190,900

Financial liabilitiesPayables 1,192,203 3,123,110 1,192,203 3,123,110

Borrowings 649,790 1,125,223 557,912 1,020,207

1,841,993 4,248,333 1,750,115 4,143,317

Fair value is determined as follows:

• Cash and cash equivalents, receivables, payables - estimated to the carrying value which

approximates net market value.

• Borrowings - estimated future cash flows discounted by the current

market interest rates applicable to assets and liabilities with similar risk profiles.

The Shire’s activities expose it to a variety of financial risks including price risk, credit risk, liquidity risk and

The Shire does not engage in transactions expressed in foreign currencies and is therefore not subject to

Financial risk management is carried out by the finance area under policies approved by the Council.

The Shire held the following financial instruments at balance date:

interest rate risk. The Shire’s overall risk management focuses on the unpredictability of financial

markets and seeks to minimise potential adverse effects on the financial performance of the Shire.

Page 52



34. FINANCIAL RISK MANAGEMENT (Continued)(a) Cash and Cash Equivalents

could affect returns.

2016 2015$ $

Impact of a 1% (1)

movement in interest rates on cash

- Equity 86,183 147,532

- Statement of Comprehensive Income 86,183 147,532

Notes:(1)

level of liquidity and preserving capital. The finance area manages the cash portfolio

with the assistance of independent advisers (where applicable). Council has an investment policy and

the policy is subject to review by Council. An Investment Report is provided to Council on a monthly

basis setting out the make-up and performance of the portfolio.

obligations under a financial instrument resulting in a financial loss to the Shire.

by Local Government (Financial Management) Regulation 19C . Council also seeks advice from

independent advisers (where considered necessary) before placing any cash and investments.

Sensitivity percentages based on management's expectation of future possible market movements.

Cash is subject to interest rate risk - the risk that movements in interest rates

Another risk associated with cash is credit risk – the risk that a contracting entity will not complete its

The Shire manages these risks by diversifying its portfolio and only investing ininvestments authorised

The Shire’s objective is to maximise its return on cash whilst maintaining an adequate

Page 53



34. FINANCIAL RISK MANAGEMENT (Continued)(b) Receivables

most non-rate debtors.

2016 2015

Percentage of rates and annual charges

- Current 0% 0%

- Overdue 100% 100%

Percentage of other receivables

- Current 90% 88%

- Overdue 10% 12%

The level of outstanding receivables is reported to Council monthly and benchmarks are set and

risk associated with these receivables is credit risk – the risk that the debts may not be repaid. The

The profile of the Shire’s credit risk at balance date was:

The Shire makes suitable provision for doubtful receivables as required and carries out credit checks on

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

encourages ratepayers to pay rates by the due date through incentives.

a secured charge over the land – that is, the land can be sold to recover the debt. The Shire is also able

to charge interest on overdue rates and annual charges at higher than market rates, which further

encourages payment.

monitored for acceptable collection performance.

Credit risk on rates and annual charges is minimised by the ability of the Shire to recover these debts as

Shire manages this risk by monitoring outstanding debt and employing debt recovery policies. It also

The Shire’s major receivables comprise rates and annual charges and user charges and fees. The major

Page 54

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Page 5

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Page 5

6

RATIO INFORMATION

2016 2015 2014

Asset consumption ratio 0.98 0.57 0.70

Asset renewal funding ratio 0.62 0.69 0.55

The above ratios are calculated as follows:

Asset consumption ratio

Asset renewal funding ratio

depreciated replacement costs of assets

current replacement cost of depreciable assets

NPV of planning capital renewal over 10 years

NPV of required capital expenditure over 10 years

SHIRE OF CARNARVONSUPPLEMENTARY RATIO INFORMATION

The following information relates to those ratios which only require attestation they have been checked

and are supported by verifiable information. It does not form part of the audited financial report


Page 59