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2012
2011
Note 3: Current Assets
Cash & Cash Equivalents
Cash at Bank – Cheque Account
325,691
1,199,746
Cash at Bank – Investment Account
2,060,904
0
Investments with LGFA
9,478
615,295
2,396,073
1,815,041
Receivables
Member Council Contributions
799,633
2,568,233
799,633
2,568,233
3,195,706
4,383,274
Note 4: Non Current Assets
Plant & Equipment at Cost
24,395
24,395
Less: Accumulated Depreciation
(24,395)
(22,996)
0
1,399
Note 5: Current Liabilities
Provision for Landfill Restoration (refer to Note 6)
2,231,387
2,191,477
2,231,387
2,191,477
Other Current Liabilities
Goods and Services
80,817
1,096
Accrued Expenses
242,775
GST Payable
(8,864)
(25,025)
71,953
218,846
2,303,340
2,410,323
Note 6: Non Current Liabilities
Provision for Landfill Restoration
1,731,495
2,893,881
1,731,495
2,893,881
The Authority operated a landfill on Garden Island under a licence with the Urban Renewal Authority, (URA),
formerly the Land Management Corporation, up until February 2001. An Environment Performance Agreement
between URA and the Environment Protection Authority (EPA) and the Authority was signed in October 2005. The
major obligations for the Authority in that agreement are to supply clay and soil to cap the site; to revegetate the
site; to environmentally monitor the site and install a landfill gas extraction system across the site. The
rehabilitation works are required by the EPA to be completed by October 2013 with a 2 year post-closure
maintenance period. On the satisfactory completion of the works required in the agreement, the landfill site is
handed back to the URA, without any ongoing liability to the Authority.
A Civil Works Contract was signed in October 2005 with Leed Engineering to undertake the civil works including
the supply of clay and soil as required in the Environment Performance Agreement. This work is progressing in line
with the milestone dates set in the Environment Performance Agreement. The Civil Works Agreement also has
clauses allowing for the Authority to share in cost savings for clay or soil that the Authority sources and for 50% of
identified cost savings for early completion or technological change.
The contract sum of $12m was initially used as the basis for the total provision for the cost of WRWMA meeting
their obligation to rehabilitate the landfill site.
The Board of WRWMA appointed KPMG Actuaries Pty Ltd to review this provision and to provide an estimate as
at June 2008, in accordance with Australian Accounting Standards AASB 137.
The amount recognised as a provision shall be the best estimate of the expenditure required to settle the present
obligation as at the reporting date whereby AASB 137 states that a provision is not required in respect of
obligations that will only be confirmed by uncertain future events that are not wholly within the control of the
entity. Where the time value of money is material, the amount of the provision shall be the present value of the
expenditures expected to settle the obligation.
Using the assumptions adopted, and allowing for risk, an estimated provision of $14.3m has been determined
consistent with the requirements of AASB137. A risk discount rate of 7.25% has been used to discount the
projected rehabilitation costs.
Consistent with AASB137, this provision does not allow for possible future events such as ground water, or air
contamination. Should these contingent events occur the ultimate cost of rehabilitating the site may be
significantly higher than the provision recognised as at 30 June 2012.
Western Region Waste Management Authority Annual Report 2011/2012
Member Councils: Charles Sturt; Holdfast Bay; Port Adelaide Enfield; West Torrens
For the Year Ended 30 June 2012