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Note 6: Non Current Liabilities (continued)
Of the $14.3m total provision, and in accordance with the establishment of the provision by KPMG,
$1,122,476 has been expensed against the provision during the 2012 Financial Year. This includes direct
remediation expenses incurred by Leed Engineering under the contract, the Local Government Finance
Authority (LGFA) Financial Guarantee, and the administration and other associated expenses of the WRWMA.
Of the $3,962,882 total provision remaining, $2,231,387 has been recognised as the current liability, based on
a reassessment of the works completed in 2011/12, and the forecast of work for the future years undertaken by
Tonkin Engineering. The balance of $1,731,495 will be brought to account based on projected works to be
undertaken in future years.
Summary of Provision for Landfill Restoration
Note
2012
2011
Movement
Opening Balance
Current
2,191,477
6,160,569
Non Current
2,893,881
2,323,793
5,085,358
8,484,362
Less expenditure
Cash
Leed Engineering and LGFA Guarantee
(823,073)
(3,101,198)
WRWMA Management
(63,000)
(63,000)
Consulting/Superintendent
(212,739)
(212,432)
Sundry
(3,310)
(3,182)
External Audit and Audit Committee Costs
(5,100)
(5,095)
Insurance
(12,856)
(12,435)
Legal Expenses
(1,000)
(50)
Total Cash
(1,121,078)
(3,397,562)
Non cash Adjustments
Depreciation
(1,398)
(1,442)
Total Non cash Adjustments
(1,398)
(1,442)
Total Expensed against provision
(1,122,476)
(3,399,004)
Closing Balance
3,962,882
5,085,358
Summarised as follows
Current liability
2,231,387
2,191,477
Non Current Liability
1,731,495
2,893,881
3,962,882
5,085,358
Note 7: Contingencies, Assets & Liabilities not recognised in the Balance Sheet
The Authority has a $12m bank guarantee pursuant to the Environment Performance Agreement arranged
through the Local Government Finance Authority in favour of the Land Management Corporation. This
guarantee can be progressively reduced in line with completed works under the Civil Works Contract.
A Local Government Circular stated that different tiers of Government should no longer be required to obtain
bank guarantees. The Authority has been advised by the URA that the bank guarantee will not be cancelled.
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