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Annual Financial Statements for year ended 30 June 2012
40
7 Payables
7.1 Goods & Services
Creditors are amounts due to external parties for the supply
of goods and services and are recognised as liabilities when
the goods and services are received. Creditors are normally
paid at the end of the month of invoice. No interest is
payable on these amounts.
7.2 Payments Received in Advance & Deposits
Amounts received from external parties in advance of service
delivery, and security deposits held against possible damage
to Council assets, are recognised as liabilities until the service
is delivered or damage reinstated, or the amount is refunded
as the case may be.
8 Borrowings
Loans are carried at their amortised cost which represents the
present value of future cash flows associated with servicing
the debt. Interest is accrued over the period to which it
relates, and is recorded as part of “Payables”.
9 Employee Benefits
9.1 Salaries, Wages & Compensated Absences
Liabilities for employees’ entitlements to salaries, wages and
compensated absences expected to be paid or settled within
12 months of reporting date are accrued at nominal amounts
(including payroll based oncosts) measured in accordance
with AASB 119.
Liabilities for employee benefits not expected to be paid or
settled within 12 months are measured as the present value
of estimated future cash out flows (including payroll based
oncosts) to be made in respect of services provided by
employees up to the reporting date. Present values are
calculated using government guaranteed securities rates with
similar maturity terms.
9.2 Superannuation
The Council makes employer superannuation contributions in
respect of its employees to the Local Government
Superannuation Scheme. The Scheme has two types of
membership, each of which is funded differently. Since 2011-
2012, Council has also been making contributions to other
funds as per the “choices of fund” legislation. No changes in
accounting policy have occurred during either the current or
previous reporting periods. Details of the accounting policies
applied and Council’s involvement with the schemes are
reported in Note 26.
9.3 Productivity Incentive Allowance
Historically, this was a payment on termination of an
employee based upon 50% of available sick leave and their
current rate of pay. This applied to both Field staff and
Administration staff and was recognised by Council as a
liability in the manner described in 9.1 above.
Council finalised workplace agreements with both the Field
and Administration staff in late 2011 and early 2012. This
resulted in changes to the approach in calculating the
provision for the Administration staff.
The new workplace agreement for Administrative staff
prescribes the following changes to the following elements of
calculation:
• Hours Applicable - 50% of the employee’s sick leave
hours have been capped as at 31 December 2011 and
are preserved until the employee leaves service or needs
to access the hours in times of illness.
• Hourly Rate Applicable - As opposed to previous
workplace/enterprise bargaining agreements where the
hourly rate increases on each anniversary date; the
hourly rate applicable now will be as at 31 December
each year until 31 December 2013 whereby the rate will
be fixed at that rate thereafter. (For example, should an
employee leave service in 2018, he/she will receive a
productivity incentive payment based upon the preserved
hours multiplied by the applicable hourly rate as at 31
December 2013 and not at their current hourly rate of
pay in 2018.)
Notes to the Financial Statements
Total Infrastructure, Property, Plant & Equipment
Total Infrastructure, Property, Plant & Equipment
2011 (Revised) $
Movement
2011 (Original) $
Infrastructure, Property, Plant & Equipment at cost*
52,613,406
(308,354)
52,921,760
Infrastructure, Property, Plant & Equipment at valuation
1,682,974,315
73,912,758
1,609,061,557
Accumulated depreciation*
(611,533,390)
2,103
(611,535,493)
Book value June 30
1,124,054,331
73,606,507
1,050,447,824
Infrastructure, Property, Plant & Equipment –
Change in Book Value
2011 (Revised)
$
Movement
2011 (Original )
$
Opening written down balance July 1*
1,049,154,081
(18,744)
1,049,172,825
Acquisitions for the year*
30,666,301
(289,610)
30,955,911
Disposals at book value
(1,228,259)
0
(1,228,259)
Disposals at revalued amount
(1,025,653)
0
(1,025,653)
Depreciation for the year*
(21,700,983)
2,103
(21,703,086)
Revaluations
68,188,844
73,912,758
(5,723,914)
Closing balance June 30
1,124,054,331
73,606,507
1,050,447,824
*The difference between Infrastructure, Property, Plant & Equipment at cost [$308,354], Accumulated depreciation [($2,103)],
Opening written down balance July 1 [$18,744], Acquisitions for the year [$289,610] and Depreciation for the year [($2,103)];
is due to the restating of software assets from Furniture & Fittings to Major Software. There is an offsetting change in the relevant
lines of Non-Current Assets – Other.