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1. Statement of Comprehensive Income 58
2. Statement of Financial Position 59
3. Statement of Changes in Equity 60
4. Cash Flow Statement 61
5. Notes to the Financial Statements 62
6. Statement by the General Manager 95
7. Audit Report 96
section FouR
launceston city council
Financial statements
year ended 30 June 2011
58 Launceston city counciL AnnuAl RepoRt 2010/11
statement oF comPReHensiVe income
Year ended 30 June 2011
2011 2010
Notes $ $
ReVenues
Rates 2 50,228,222 47,012,725
Fees and charges 16,959,386 17,494,938
Revenue grants and contributions 6,484,360 7,079,522
Interest 3,953,955 3,638,774
Investment revenue (Ben Lomond Water) 2,106,983 -
Other 2,325,653 2,408,510
82,058,559 77,634,469
eXPenses
Maintenance of facilities and provision of services 4 59,521,459 54,708,582
Borrowing costs 4 1,077,746 899,104
Depreciation and amortisation 7 16,253,931 15,854,560
State Government Fire Service Levy 5,712,302 5,193,002
Rate remissions and abatements 74,756 104,458
82,640,194 76,759,706
oPeRatinG suRPlus (DeFicit) (581,635) 874,763
Capital grants 8,332,903 27,281,840
Infrastructure take up adjustments 5 1,022,566 (1,950,126)
Museum take up adjustment 31 - 231,913,156
net suRPlus BeFoRe otHeR comPReHensiVe income 8,773,834 258,119,633
Investment write down 23 (16,580,000) (132,648,498)
Investment revaluation increase 23 2,730,000 -
Actuarial gains (losses) (715,010) 2,307,428
Infrastructure assets revaluation increase (decrease) 21e 142,808,477 -
comPReHensiVe Result 137,017,301 127,778,563
The accompanying notes form an integral part of these financial statements.
S E C T IO N f O u r financial statements 59
statement oF Financial Position
aS aT 30 June 2011
2011 2010
Notes $ $
eQuity
Capital reserves 8 136,413,132 128,086,782
Revenue reserves 8 858,983,645 875,930,788
Asset revaluation reserves 8 419,034,037 273,495,560
Trusts and bequests 8 1,504,251 1,404,634
total eQuity 1,415,935,065 1,278,917,764
Represented by:-
cuRRent assets
Cash at bank and on hand 9 734,366 1,625,080
Rate and sundry receivables 10 5,120,186 5,106,308
Short term investments 11 59,660,261 66,120,692
Inventories 611,069 615,173
66,125,882 73,467,253
non-cuRRent assets
Deferred receivables 19 257,556 257,556
Investment (Ben Lomond Water) 11 255,800,000 269,650,000
Intangible assets 21 4,045,547 2,330,371
Infrastructure and other assets 21 923,521,823 764,340,327
Museum collection 31 231,913,206 231,913,206
1,415,538,132 1,268,491,460
total assets 1,481,664,014 1,341,958,713
cuRRent liaBilities
Deposits and prepayments 11 6,703,998 2,128,326
Employee provisions 13 5,636,058 5,408,102
Interest bearing liabilities 15 2,335,882 1,754,020
Sundry payables and accruals 18 23,031,477 26,670,842
37,707,415 35,961,290
non-cuRRent liaBilities
Employee provisions 13 781,954 734,983
Superannuation obligation 14 3,623,027 2,666,955
Interest bearing liabilities 15 13,041,553 13,326,721
Other provisions 20 10,575,000 10,351,000
28,021,534 27,079,659
total liaBilities 65,728,949 63,040,949
net assets 1,415,935,065 1,278,917,764
Commitments for capital expenditure 17 5,066,892 12,005,598
Contingent liabilities 30 - -
The accompanying notes form an integral part of these financial statements.
60
statement oF cHanGes in eQuity
Year ended 30 June 2011
Asset ReVALUAtIoN
CAPItAL ReseRVes ReVeNUe ReseRVes ReseRVes tRUsts AND BeQUests totAL eQUItY
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
$ $ $ $ $ $ $ $ $ $
Launceston city counciL
Balance 1 July 128,086,782 100,816,187 875,930,788 640,558,226 273,495,560 408,597,817 1,404,634 1,166,971 1,278,917,764 1,151,139,201
Net surplus 8,326,350 27,270,595 347,867 230,611,375 99,617 237,663 8,773,834 258,119,633
-
Asset revaluations -
Infrastructure assets 142,808,477 142,808,477 -
BLW write down
(Note 23) (16,580,000) (132,648,498) 2,730,000 (13,850,000) (132,648,498)
Actuarial gains (losses) (715,010) 2,307,428 (715,010) 2,307,428
AnnuAl RepoRt 2010/11
Water and sewer assets 135,102,257 (135,102,257) -
Balance 30 June 136,413,132 128,086,782 858,983,645 875,930,788 419,034,037 273,495,560 1,504,251 1,404,634 1,415,935,065 1,278,917,764
Note – For further information regarding changes in reserves refer to Note 8.
The accompanying notes form an integral part of these financial statements.
S E C T IO N f O u r financial statements 61
casH Flow statement
Year ended 30 June 2011
2011 2010
$ $
INfLows INfLows
Notes (oUtfLows) (oUtfLows)
casH Flows FRom oPeRatinG actiVities
Payments
Provision of goods and services (including GST) (60,732,773) (60,485,055)
Interest paid (870,772) (627,890)
State Government Fire Levy (5,712,302) (5,193,002)
Receipts
Rates 50,184,987 48,149,914
Fees and charges 16,731,597 16,961,710
Grants and contributions – Capital 13,502,902 5,861,840
Grants and contributions – Revenue 6,484,368 7,079,531
Interest received 3,637,898 3,638,774
Other (including GST) 6,127,539 4,974,785
net cash from operating activities 22 29,353,444 20,360,607
casH Flows useD in inVestinG actiVities
Payments
Capital works (39,787,542) (28,032,856)
Receipts
Sale of assets 679,276 537,346
Distributions from investments 2,106,983 709,218
net cash used in investing activities (37,001,283) (26,786,292)
casH Flows useD in FinancinG actiVities
Payments
Loan repayments (1,779,306) (1,532,275)
Receipts
Loan proceeds 2,076,000 6,000,000
net cash from financing activities 296,694 4,467,725
Net increase (decrease) in cash held (7,351,145) (1,957,960)
Cash transferred to Ben Lomond Water 23 - (1,168,688)
Cash and cash equivalents at 1 July 67,745,773 70,872,421
cash and cash equivalents at 30 June 22 60,394,628 67,745,773
The accompanying notes form an integral part of these financial statements.
62 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
contents
1. Statement of Accounting Policies 63 10. Rate and sundry receivables 74
a) Reporting entity 63 11. Investments 75
b) Statement of Compliance 63
12. Conditions over contributions 75
c) Adoption of new and revised accounting standards 63
d) Accounting estimates 63 13. Employee provisions and statistics 76
e) Changes in accounting policies 63 14. Superannuation 76
f ) Financial instruments 63
15. Interest bearing liabilities (secured loans) 80
g) Grants and donations 63
h) Investments 63 16. Lease commitments 80
i) Inventories 64 17. Commitments for capital expenditure 81
j) Recognition of non-current assets 64 18. Sundry payables and accruals 81
k) Impairment 64
19. Deferred receivables 81
l) Depreciation and write off of non-current assets 64
m) Intangible assets 64 20. Other provisions 81
n) Provision for rehabilitation 64 21. Infrastructure assets 82
o) Taxation 65
22. Cash flow 86
p) Employee benefits 65
q) Competition Policy Compliance 65 23. Investment 87
r) Component functions or programs 66 24. Financial instruments 88
2. Valuation and rating 67 25. Authorities 92
3. Municipal programs 68 26. Special committees 92
4. Expenditure included in the 27. Related party transactions 93
determination of operating surplus 70 28. Annual remuneration of senior officers 93
5. Infrastructure take up adjustments 71 29. Subsequent events 93
6. Profit/(loss) on disposal of fixed assets 71 30. Contingent liabilities 93
7. Depreciation and amortisation expense 71 31. Museum collection 93
8. Movements in equity 72 32. Early adoption of accounting standards 94
9. Cash at bank and on hand 74
S E C T IO N f O u r financial statements 63
notes to tHe Financial statements
Year ended 30 June 2011
1 statement oF accountinG Policies d) accounting estimates
In the application of Australian Accounting Standards,
a) Reporting entity
the Council is required to make judgements, estimates
This Report is a general purpose financial report. All entities and assumptions about carrying values of some assets
through which the Council controls resources to carry out and liabilities.
its functions (including the special committees detailed in
Judgements made by the Council that have significant effects
Note 26) have been included in these financial statements.
on the Financial Reports are disclosed in the relevant notes.
Inter-entity balances and transactions have been eliminated.
An estimate may need revision if changes occur in the
b) statement of compliance circumstances on which the estimate was based. The effect
This Financial Report has been prepared to comply with of any changes in estimates are brought to account in the
Australian Accounting Standards, other pronouncements reporting period the changes are made.
of the Australian Accounting Standards Board (AASB) At the reporting date there were no material changes in the
and the Local Government Act 1993 (as amended). It has accounting estimates used in the preparation of the Report.
been prepared on an accrual and going concern basis
under the convention of historical cost accounting, with e) changes in accounting policies
the exception that certain non-current assets (other than The Council’s accounting policies have been consistently
deferred debtors), are included at valuation (refer to applied to all the years reported, unless otherwise stated.
Notes 1(f ), 21, 23 and 24). Except as disclosed below the
Unless otherwise stated, there have also been no changes
accounting policies adopted are consistent with those of
in accounting policies when compared with previous
the previous year.
financial statements.
c) adoption of new and revised accounting standards
f ) Financial instruments
In the current year the Council has adopted all of the new
Rate debtors - All rates levied during the reporting
and revised Standards and Interpretations issued by the
period are recognised as revenues. Uncollected rates are
Australian Accounting Standards Board (AASB) that are
recognised as receivables (refer to Notes 2 and 10).
relevant to its operations and effective for the current
annual reporting period. other debtors - Receivables are carried at nominal amounts
due less any allowance for impaired debts. The Council
The adoption of these new and revised standards has had
provides in respect of any amount for which collection is
no material effect on the Council’s accounting policies.
considered doubtful.
At the reporting date updates to the following standards
sundry creditors - Sundry creditors represent liabilities for
were available for early adoption, relevant to the Council’s
goods and services provided prior to the end of the financial
operations and adopted by the Council.
year and which are unpaid. The amounts are unsecured and
aasB 101 Presentation of Financial statements are paid within normal credit terms.
Amendments to this standard relate to the inclusion of Deposits - The Council holds deposits lodged by other
Australian specific reporting requirements. organisations and security deposits lodged by individuals
and entities performing work which may adversely affect
aasB 124 Related Party Disclosures Council assets. The deposits are repayable on demand or
Amendments to this standard simplify the definition of a where certain conditions have been met. They are recorded
related party. at nominal value.
At the reporting date updates to a number of accounting managed funds - Investments in managed funds (if held)
standards were available for early adoption and relevant to are valued at the redemption price at balance date as
the Council’s operations but were not applied by the Council. advised by the investment managers and are based on the
market value of the underlying investments. Movements in
These are listed at Note 32. redemption values are recognised as revenue or expense in
At the reporting date AASB 9 Financial Instruments the period to which they relate. Net income for the year is
was issued to replace AASB 139 Financial Instruments included as “Interest income”.
Recognition and Measurement.
g) Grants and donations
This standard was not available for early adoption at the
reporting date. All grants and donations are recognised as revenue when
received or when the Council obtains control over the assets
comprising the contributions. Grants held where the Council
has not gained full control of the funds are held as deposits
(refer to Notes 11 and 12).
64 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
1 statement oF accountinG Policies (cont’d) k) impairment
At each reporting date the Council reviews the carrying
h) investments
amount of its tangible and intangible assets to determine
Ben Lomond Water whether there is any indication that those assets have
AASB 127 requires a reporting entity to prepare suffered an impairment loss.
consolidated financial reports to include the assets and Non commercial assets are reviewed using the Australian
liabilities of subsidiaries under their control. paragraphs to AASB 136 where future economic benefits
At the reporting date the Council owned more than 50% are measured on future net cash inflows and whether, if
of Tasmanian Water and Sewerage Corporation (Northern deprived of the asset, the Council would replace its future
Region) Pty Limited, trading as Ben Lomond Water (BLW). economic benefit. At the reporting date no assets were
However, under the provisions of the Water and Sewer identified as being materially impaired.
Corporations Act 2008, the Council does not have the power
to govern the financial and operating policies of BLW. l) Depreciation and write-off of non-current assets
The investment in BLW is recorded at the fair value of the Depreciation has been charged in recognition of the
Council’s share of the underlying assets (refer to Note 23). diminution in value of non-current assets through use. No
depreciation is charged in relation to land, nor for non-
The Council will receive returns from this investment in the current assets that are maintained such that their future
form of dividends, guarantee fees, income tax equivalents useful life remains constant (for example sports fields and
and distributions. All returns will be taken up as income in garden beds).
the year in which received.
Museum collection
i) inventories The museum collection assets have been assessed to
Stores and materials are valued at average cost or net have indefinite lives. These heritage and cultural assets
realisable value whichever is the lower. Issues are at are stored, managed, displayed, repaired and restored in
average cost. ways that will maintain their cultural or heritage value over
time. Where conservation, restoration and preservation
j) Recognition of non-current assets activities demonstrate that an asset will be maintained
The Council has completed its recognition of assets with the for an indefinite period, these items are considered to
exception of street furniture. The Queen Victoria Museum have indefinite useful lives and therefore not subject to
and Art Gallery collection was valued as at 30 June 2010 depreciation. Revaluations will be made with sufficient
(Refer to Note 31). regularity to maintain the collection at fair value.
In accordance with AASB 1051 the Council elected not to Where depreciation is charged, it is on the straight line
recognise as an asset, land under roads acquired before 1 basis using rates that recognise the useful life of the asset.
July 2009. Land acquired from 1 July 2009 is capitalised. BAsIs of
While the process of infrastructure asset recognition is DePReCIAtIoN UsefUL LIfe
largely complete, the Council does find it necessary on
Freehold land Not depreciated Unlimited
occasion to take up assets as they are identified. This
relates particularly to underground assets and to newly Leased land Not depreciated Lease term
constructed assets where value on completion is compared Museum collection Not depreciated Unlimited
to cost. Any adjustment arising from this process is treated
as an “infrastructure take-up adjustment” (Refer to Note 5). Freehold buildings Straight line 100 - 250 years
Plant and equipment assets acquired are recorded at the Leasehold buildings Straight line/ 60 - 100 years
cost of acquisition. lease
Light vehicles Straight line 3 - 4 years
Major plant Straight line 5 - 15 years
Minor plant Straight line 2 - 20 years
Computer equipment Straight line 3 - 5 years
Furniture and equipment Straight line 4 - 50 years
INfRAstRUCtURe
Road pavement Straight line 100 - 150 years
Road sealed surfaces Straight line 15 - 25 years
Road kerb and channel Straight line 100 years
Road footpaths Straight line 50 years
Bridges Straight line 20 - 100 years
Parks and recreation Straight line 10 - 150 years
Stock sales market Straight line 10 - 50 years
Refuse disposal area Straight line 30 - 50 years
Where buildings are demolished to permit new construction,
the written down value of the building at the point of
demolition is written off in the year of demolition.
S E C T IO N f O u r financial statements 65
notes to tHe Financial statements
Year ended 30 June 2011
1 statement oF accountinG Policies (cont’d) p) employee benefits
annual and long service leave - Provision is made in
m) intangible assets
respect of the liability for annual leave and long service
Data systems - Costs incurred in developing data systems, leave at 30 June 2011. The remuneration rate expected
acquiring software and software licenses are capitalised. to apply at the time of settlement has been used in
Amortisation is calculated on a straight line basis over the calculation of the entitlements. In the case of long service
expected useful life or licence duration, currently five years. leave the provision has been established at balance date
municipal revaluation - The Valuer General conducts having regard to the present value of estimated future
periodic revaluations of the municipality for rating cash outflows. Commonwealth bond rates are used for
purposes. Costs associated with revaluation are capitalised. discounting future cash flows.
Amortisation is calculated on a straight line basis over the sick leave - No provision is made for sick leave as the
expected period to the next revaluation, currently six years. entitlement is non-vesting and it is probable that the sick
leave expected to be taken in future periods will not exceed
n) Provision for rehabilitation the entitlements expected to accrue in those future periods.
The Council operates a refuse disposal area (Launceston Defined benefit fund - The Council contributes to defined
Waste Facility) which imposes obligations for rehabilitation benefit plans on behalf of its employees. An asset or
in the future. Provision is made for rehabilitation costs to liability is recognised in respect of the difference between
be incurred in future years by estimating the future costs plan assets and the obligations for entitlements as detailed
based on current legislative requirements. This future in Note 14.
cost is discounted back to present value at balance date.
At each balance date the discounting is unwound with q) competition Policy compliance
the movement in the liability charged to the Statement of
Section 84(2)(da) of the Local Government Act 1993
Comprehensive Income as part of “borrowing costs”.
requires the Council’s financial statements to contain
o) taxation a statement of the “operating, capital and competitive
neutrality costs” in respect of each significant business
The Council is exempt from all forms of income taxation. The activity. The Council has chosen to disclose these costs in
major taxation expenses for the Council are Fringe Benefits respect of all functions. This disclosure has been included
Tax, Payroll Tax, Land Tax and the Goods and Services Tax. in Note 3.
Fringe Benefits tax - Fringe Benefits Tax is expensed as an The following items have been disclosed:
expense in the year it is incurred.
Full cost attribution - Service costs applied to all Council
Payroll tax - Payroll Tax is expensed in the year it is operations in respect of internal services provided (e.g.
incurred. Accrued employee liabilities are recognised accounting and computer support).
inclusive of Payroll Tax.
competitive neutrality costs - Notional charges for
Goods and services tax - Revenue, expenses and assets expenses not normally incurred by councils (e.g. council
are recognised net of Goods and Services Tax (GST) rates). As these costs are not actually incurred, the Council’s
except for the case of receivables and payables which are “General Public Services” function has been credited with
recognised inclusive of GST. Cash flows are included in the collection of these notional items.
Cash Flow Statement on a gross basis. The GST component
of cash flows arising from investing and financing activities capital costs - Depreciation has been allocated to
is classified as operating cash flows. functional areas within the operating statement.
66 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
1 statement oF accountinG Policies (cont’d)
r) component functions or programs
The Council categorises its programs into eight categories
for the purpose of the operating summary in Note 3.
Categories are as follows:
General Public service - Management of the administrative
and financial operation of the Council organisation
including elected representatives.
Public order and safety - Supervision of various by-laws,
animal control and public nuisances. The collection of the
fire levy on behalf of the State Fire Commission.
Health - Administration of health legislation on behalf of
the State Government including food handling control and
public health issues. Provision of immunisation services.
welfare - Maintenance of properties used for childcare and
kindergarten.
Housing and community amenities - Provision of building
and development approvals services including planning
schemes. Solid waste services including garbage collection
and disposal. Funding for the provision of street lighting.
Maintenance of a range of public buildings and facilities
including cemeteries. Maintenance of the stormwater
drainage network including flood mitigation works.
Provision of street cleaning services.
Recreation and culture - Maintenance of parks and
reserves, sports grounds, playgrounds, swimming
pools, halls and related recreational facilities. Funding
of the Queen Victoria Museum and Art Gallery and the
Princess Theatre.
Roads and traffic - Construction and maintenance of roads,
footpaths and bridges. Operation of parking facilities
including off street car parks and on street metered spaces.
other - A range of services and facilities including the
provision of economic development and promotional
services and a livestock sale yard.
S E C T IO N f O u r financial statements 67
notes to tHe Financial statements
Year ended 30 June 2011
2 Valuation anD RatinG
2011 2010
$ $
Gross Assessed Annual Value of the City 447,369,788 444,808,477
Rates cents/$aaV cents/$aaV
General rate 8.7235 8.2923
General rate (CBD variation) 10.2083 9.7037
service rates
Fire protection - Urban 1.5023 1.3907
Fire protection - Rural 0.3436 0.3054
Fire protection - Lilydale District 0.4452 0.3738
$ $
General charge (fixed amount) 115.00 110.00
Minimum rates apply:-
Fire Levy 34.00 33.00
2011 2010
seRVICe ChARges $ Range $ Range
Waste management - on bin size 95.00 - 200.00 90.00 - 190.00
Onsite disposal system 570.00 - 640.00 570.00 - 640.00
The Assessed Annual Value of the City is as determined by the Valuer-General and for the year ended 30 June, 2011 rates were based
on valuations effective from 1 July, 2005, and indexed at 1 July 2010.
The rate to be raised from an individual property is calculated by applying the rate in the $AAV upon the Assessed Annual Value of
the property and adding other applicable charges. The rates raised are also subject to minimum amounts.
2011 2010
$ $
Revenue from rating
General 40,550,138 38,071,745
CBD (variation amount) 442,757 426,936
Fire Services Levy 5,759,766 5,250,321
Waste Management Charge 3,475,561 3,263,723
Total rating revenue 50,228,222 47,012,725
68
notes to tHe Financial statements
Year ended 30 June 2011
3 municiPal PRoGRams
(a) Revenues and expenses have been directly attributed to the following municipal programs.
geNeRAL PUBLIC hoUsINg &
PUBLIC oRDeR & CoMMUNItY ReCReAtIoN RoADs & 2011 BUDget
Launceston city counciL
seRVICes sAfetY heALth weLfARe AMeNItIes & CULtURe tRAffIC otheR totAL (unaudited)
$ $ $ $ $ $ $ $ $ $
ReVenues
Rates 40,550,138 5,759,766 - - 3,475,561 - - 442,757 50,228,222 49,546,222
Fees and charges 695,015 231,273 225,659 8,826 5,830,621 3,100,983 5,871,793 995,216 16,959,386 17,124,128
Revenue grants 1,311,024 1,500 1,500 150,169 512,877 1,277,188 2,955,446 274,656 6,484,360 5,882,390
Interest 3,080,437 12,012 - - 409,611 451,895 - - 3,953,955 1,848,000
Investment revenue (Ben Lomond Water) 2,106,983 - - - - - - - 2,106,983 1,000,000
Other 329,726 110 954 2,902 323,820 1,476,946 14,526 176,669 2,325,653 2,063,786
48,073,323 6,004,661 228,113 161,897 10,552,490 6,307,012 8,841,765 1,889,298 82,058,559 77,464,526
AnnuAl RepoRt 2010/11
eXPenses
Provision of services 10,682,175 493,810 873,848 951,097 14,630,116 19,662,975 8,234,876 3,992,562 59,521,459 58,337,376
Borrowing costs 853,746 - - - 224,000 - - - 1,077,746 1,459,415
Depreciation and amortisation 964,251 11,809 598 - 3,834,927 3,733,498 6,634,204 1,074,644 16,253,931 15,717,981
Government levy - 5,712,302 - - - - - - 5,712,302 5,712,302
Remissions and abatements 72,676 38 - - 2,042 - - - 74,756 87,500
Full cost attribution (Note 1q) (1,836,009) 70,461 124,277 60,456 (180,842) 909,086 502,257 350,314 - -
Competitive neutrality (Note 1q) (242,641) - - - 51,515 102,252 73,566 15,308 - -
10,494,198 6,288,420 998,723 1,011,553 18,561,758 24,407,811 15,444,903 5,432,828 82,640,194 81,314,574
operating surplus (deficit) 37,579,125 (283,759) (770,610) (849,656) (8,009,268) (18,100,799) (6,603,138) (3,543,530) (581,635) (3,850,048)
Non-operating items
Capital grants and contributions 89,016 - - - 317,000 6,704,579 1,222,308 - 8,332,903 8,542,339
Adjustments - - - - 2,202,406 (81,691) (1,098,149) - 1,022,566 -
net surplus (deficit) before
other comprehensive income 37,668,141 (283,759) (770,610) (849,656) (5,489,862) (11,477,911) (6,478,979) (3,543,530) 8,773,834 4,692,291
infrastructure assets 41,918,041 1,085,725 - 1,363,352 209,969,047 256,407,111 351,381,056 1,955,129 864,079,461
work in progress 953,795 - - - 43,442,370 16,592,427 2,565,778 - 63,554,370
other assets 322,116,977 - - - - 231,913,206 - - 554,030,183
total assets 364,988,813 1,085,725 - 1,363,352 253,411,417 504,912,744 353,946,834 1,955,129 1,481,664,014
notes to tHe Financial statements
Year ended 30 June 2011
3 municiPal PRoGRams (cont’d)
(b) comparative figures for the year ended 30 June 2010.
geNeRAL PUBLIC hoUsINg &
PUBLIC oRDeR & CoMMUNItY ReCReAtIoN RoADs & 2010 BUDget
seRVICes sAfetY heALth weLfARe AMeNItIes & CULtURe tRAffIC otheR totAL (unaudited)
$ $ $ $ $ $ $ $ $ $
ReVenues
Rates 38,071,745 5,250,321 - - 3,263,723 - - 426,936 47,012,725 46,446,002
Fees and charges 1,896,770 239,209 247,778 - 5,618,605 2,720,295 5,728,264 1,044,017 17,494,938 18,146,196
Revenue grants 1,590,026 2,500 10,580 348,926 437,890 1,249,300 3,208,867 231,433 7,079,522 6,579,030
Interest 2,499,303 11,122 - - 775,289 353,060 - - 3,638,774 1,928,000
Other 384,730 284 727 123 283,002 1,597,222 10,065 132,357 2,408,510 1,857,075
44,442,574 5,503,436 259,085 349,049 10,378,509 5,919,877 8,947,196 1,834,743 77,634,469 74,956,303
eXPenses
Provision of services 10,693,280 434,418 731,466 828,976 12,478,115 18,157,319 7,696,219 3,688,789 54,708,582 54,292,324
Borrowing costs 679,104 - - - 220,000 - - - 899,104 1,297,498
Depreciation and amortisation 780,020 11,285 826 - 3,735,231 3,651,327 6,652,070 1,023,801 15,854,560 16,153,253
Government levy - 5,193,002 - - - - - - 5,193,002 5,193,002
Remissions and abatements 101,357 766 - - 2,335 - - - 104,458 785,000
Full cost attribution (Note 1q) (1,197,922) 56,962 130,405 59,663 (353,088) 740,886 403,781 159,313 - -
Competitive neutrality (Note 1q) (242,641) - - - 51,515 102,252 73,566 15,308 - -
10,813,198 5,696,433 862,697 888,639 16,134,108 22,651,784 14,825,636 4,887,210 76,759,706 77,721,077
operating surplus (deficit) 33,629,376 (192,997) (603,612) (539,590) (5,755,599) (16,731,907) (5,878,440) (3,052,466) 874,763 (2,764,774)
Non-operating Items
Capital grants and contributions 36,495 - - - 20,000,000 5,592,949 1,652,396 - 27,281,840 27,656,127
Adjustments 231,913,590 - - - (506,375) - (1,444,185) - 229,963,030 -
net surplus (deficit) before
S E C T IO N f O u r
other comprehensive income 265,579,461 (192,997) (603,612) (539,590) 13,738,026 (11,138,958) (5,670,229) (3,052,466) 258,119,633 24,891,353
infrastructure assets 36,338,659 965,596 - 1,119,708 190,940,608 217,060,185 265,790,307 1,891,122 714,106,185
work in progress 1,103,924 - - - 45,086,939 5,221,025 1,073,027 79,596 52,564,511
other assets 343,374,811 - - - - 231,913,206 - - 575,288,017
total assets 380,817,394 965,596 - 1,119,708 236,027,547 454,194,416 266,863,334 1,970,718 1,341,958,713
financial statements
69
70 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
4 eXPenDituRe incluDeD in DeteRmination oF oPeRatinG suRPlus
2011 2010
$ $
(a) maintenance of facilities and provision of services
Labour costs 28,502,228 26,128,268
Materials and services 31,019,231 28,580,314
59,521,459 54,708,582
labour costs
Wages and salaries 21,204,150 19,462,393
Superannuation and retiring allowance 3,629,250 2,773,314
Employee leave entitlements 3,349,966 3,176,498
Payroll tax 1,739,042 1,624,333
Workers Compensation Insurance 278,505 311,945
Other costs 322,677 343,129
30,523,590 27,691,612
Less amounts capitalised 2,021,362 1,563,344
28,502,228 26,128,268
expenditure items included in materials and contracts
Street lighting 1,448,975 1,302,254
Garbage collection 2,506,034 2,395,217
Loss on disposal of fixed assets (Note 6) 51,242 375,885
Aldermanic and Mayoral allowances 445,275 426,558
Community Assistance Grants 64,822 59,811
External auditor’s remuneration:
- Auditing financial statements 53,181 38,900
Internal auditor’s remuneration 23,980 23,452
Impaired debts 37,915 114,509
Land Tax 354,925 597,890
Provision of services 26,032,882 23,245,838
31,019,231 28,580,314
(b) Borrowing costs
Interest on borrowings 853,746 679,104
Unwinding of discount on provision for rehabilitation of refuse disposal site (Note 20) 224,000 220,000
1,077,746 899,104
S E C T IO N f O u r financial statements 71
notes to tHe Financial statements
Year ended 30 June 2011
5 inFRastRuctuRe taKe uP aDJustments
2011 2010
$ $
Adjustments to Infrastructure Assets (Note 1j):
Assets recognised (derecognised):
Gross value 4,614,195 (154,750)
Accumulated depreciation (173,464) 122,867
Completed works:
Accumulated depreciation adjustment 2,085,731 1,511,795
Expenditure not capitalised (5,503,896) (3,430,037)
1,022,566 (1,950,125)
6 PRoFit/(loss) on DisPosal oF FiXeD assets
2011 2010
$ $
Proceeds from disposal 679,276 537,314
Less carrying amounts 730,518 913,231
Profit / (loss) (51,242) (375,917)
7 DePReciation anD amoRtisation eXPense
2011 2010
$ $
Buildings 1,499,636 1,485,166
Plant and equipment 2,685,807 2,473,074
Roads and bridges 6,362,514 6,385,253
Drainage systems 2,575,538 2,562,544
Flood protection systems 459,261 385,985
Recreation facilities 1,947,953 1,921,621
Stock sales market 31,089 31,089
Refuse disposal area 383,146 375,547
Data systems 308,987 234,281
Total depreciation 16,253,931 15,854,560
72 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
8 moVements in eQuity
BALANCe Net sURPLUs CoMPReheNsIVe BALANCe
JULY 1, 2010 foR YeAR INCoMe tRANsfeRs JUNe 30, 2011
$ $ $ $ $
(a) capital reserves
Government grants 122,933,091 7,355,140 130,288,231
Other contributions 5,153,691 971,210 6,124,901
128,086,782 8,326,350 - 136,413,132
(b) Revenue reserves
General 876,310,690 439,372 (16,580,000) 860,170,062
CBD 8,144 1,757 9,901
Special committees 134,189 (17,278) 116,911
Public open space 29,240 6,552 35,792
Self insurance 2,115,480 158,527 2,274,007
Employee benefits (2,666,955) (241,063) (715,010) (3,623,028)
875,930,788 347,867 (17,295,010) - 858,983,645
(c) asset revaluation reserves
General 273,495,560 142,808,477 416,304,037
Investment Ben Lomond Water 2,730,000 2,730,000
273,495,560 - 145,538,477 - 419,034,037
(d) trusts and bequests
Cliff Grounds 4,855 4,855
John Hart 20,000 20,000
John Hart (interest) 6,016 1,176 7,192
Mary Nichols Bequest 2,000 2,000
Mary Nichols (interest) 6,065 118 6,183
Plomley Foundation - Capital 1,154,433 90,000 1,244,433
Plomley Foundation - Management 6,493 91,547 (90,000) 8,040
Museum - Thomas Knowles 2,123 125 2,248
Museum - Bessant Bequest 202,599 6,651 209,250
Museum - Library 50 50
1,404,634 99,617 - - 1,504,251
1,278,917,764 8,773,834 128,243,467 - 1,415,935,065
2
S E C T IO N f O u r financial statements 73
notes to tHe Financial statements
Year ended 30 June 2011
8 moVements in eQuity (comparative figures for the year ended 30 June 2010)
BALANCe Net sURPLUs CoMPReheNsIVe BALANCe
JULY 1, 2009 foR YeAR INCoMe tRANsfeRs JUNe 30, 2010
$ $ $ $ $
(a) capital reserves
OTHER CONTRIBUTIONS
General 4,166,560 519,199 467,932 5,153,691
Sewerage 303,690 (303,690) -
Water 164,242 (164,242) -
GOVERNMENT GRANTS
General 73,674,674 26,751,396 22,507,021 122,933,091
Sewerage 22,489,859 (22,489,859) -
Water 17,162 (17,162) -
100,816,187 27,270,595 - - 128,086,782
(b) Revenue reserves
RATING
General 399,619,904 230,035,626 (132,648,498) 379,303,658 876,310,690
Sewerage 173,375,180 (173,375,180) -
Water 72,153,364 (72,153,364) -
CBD 1,203 6,941 8,144
OTHER REVENUE
Special committees 134,211 (22) 134,189
Public open space 17,995 11,245 29,240
Self insurance 1,971,303 144,177 2,115,480
Employee benefits (6,714,932) 413,405 2,307,428 1,327,144 (2,666,955)
640,558,228 230,611,373 (130,341,070) 135,102,257 875,930,788
(c) asset revaluation reserves
General 273,495,560 273,495,560
Sewerage 62,414,649 (62,414,649) -
Water 72,687,608 (72,687,608) -
408,597,817 - - (135,102,257) 273,495,560
(d) trusts and bequests
Cliff Grounds 4,855 4,855
John Hart 20,000 20,000
John Hart (interest) 5,076 940 6,016
Mary Nichols Bequest 2,000 2,000
Mary Nichols (interest) 5,971 94 6,065
Plomley Foundation - Capital 1,124,433 30,000 1,154,433
Plomley Foundation - Management 2,558 33,935 (30,000) 6,493
Museum - Thomas Knowles 2,028 95 2,123
Museum - Bessant Bequest 202,599 202,599
Museum - Library 50 50
1,166,971 237,663 - - 1,404,634
1,151,139,203 258,119,631 (130,341,070) - 1,278,917,764
74 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
9 casH at BanK anD on HanD
2011 2010
$ $
Cash on hand 14,785 15,185
Cash at bank 602,670 1,475,706
Special committees 116,911 134,189
734,366 1,625,080
10 Rate anD sunDRy ReceiVaBles
2011 2010
$ $
(a) current receivables
Rate debtors 910,840 626,304
Accrued revenue 274,351 532,566
Sundry debtors 3,226,691 2,938,128
Prepayments 134,353 469,988
Parking infringement debtors 2,617,229 2,546,705
7,163,764 7,113,691
Impairment of debtors
Sundry debtors (182,239) (155,880)
Parking infringement debtors (1,861,039) (1,851,503)
(2,043,278) (2,007,383)
5,120,186 5,106,308
Movement in impaired debts 35,895 (310,835)
(b) collection performance – rate receivables
Rate revenue 50,228,222 47,012,725
Interest on rates 316,057 288,178
50,544,279 47,300,903
Percentage rate debtors outstanding 1.80% 1.32%
S E C T IO N f O u r financial statements 75
notes to tHe Financial statements
Year ended 30 June 2011
11 inVestments
2011 2010
$ $
current
Bank Guaranteed Bills and Deposits 59,660,261 66,120,692
Managed investments at valuation (Note 1(f )) - -
59,660,261 66,120,692
Restricted assets and deposits
Restricted assets
a) Included in the above and invested on behalf of:-
i) Trusts and bequests 1,504,251 1,404,633
ii) Grants and contributions (Note 12) 3,190 11,141
iii) River dredging and flood protection contributions 922,603 520,073
b) Provision for retiring allowance 152,532 142,888
2,582,576 2,078,735
Grant funds brought to account as income but not fully expended and held in
specific bank deposits at year end 6,740,675 17,944,780
Total restricted assets 9,323,251 20,023,515
Deposits
Grant funds not yet recorded as income and shown
as a deposit liability at balance date (Note 1(f )) 5,750,000 -
Other deposits 953,998 2,128,326
Total deposits 6,703,998 2,128,326
Total restricted assets and deposits 16,027,249 22,151,841
non-current
Ben Lomond Water (Note 23) 255,800,000 269,650,000
12 conDitions oVeR contRiButions
2011 2010
$ $
Museum project grants received conditionally and recognised as revenue where that
condition has not been met at balance date 3,190 11,141
Museum project grants recognised as revenue in previous years and expended during
the current year 11,141 28,895
Net increase (decrease) in restricted assets resulting from grants and contributions (7,951) (17,754)
76 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
13 emPloyee PRoVisions anD statistics
2011 2010
Full Time Equivalent employee numbers at year end 429 407
$ $
Current provisions
Accrued time 131,559 136,270
Annual leave 2,375,693 2,406,072
Long service leave 3,128,806 2,865,760
5,636,058 5,408,102
Non-current provisions
Long service leave 629,422 592,095
Retiring allowance 152,532 142,888
781,954 734,983
14 suPeRannuation
The Council contributes, in respect of its employees, to two defined benefit superannuation funds. One was established for
employees of the Council and now includes some employees transferred to water corporations. The other was established in
respect of employees of all local government authorities in the State, some of whom are employees of this Council.
In accordance with statutory requirements the Council contributes, to both funds, amounts determined by the actuaries. As such,
assets accumulate in the funds to meet member’s benefits as they accrue. If the assets of the funds were insufficient to satisfy
benefits payable to its beneficiaries the Council would be required to meet its share of the deficiency.
The details of the two funds’ actuarial reviews are:
Quadrant Defined Benefit Superannuation Scheme
The Council makes superannuation contributions for a number of its employees to the Quadrant Defined Benefits Fund, which is a
sub-fund of the Quadrant Superannuation Scheme. The Defined Benefits Fund has been classified as a multi-employer sponsored
plan. As the Fund’s assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to allocate benefit
liabilities, assets and costs between employers. As provided under paragraph 32(b) of AASB 119, the Council does not use defined
benefit accounting for these contributions, and accordingly no asset or liability is recognised in these accounts in respect of the
scheme.
Details of the overall fund status as extracted from the actuarial assessments by Bendzulla Actuarial Pty Ltd as at 30th June 2008
are as follows:
$
Accrued benefits 81,397,960
Net market value 84,786,241
Less vested benefits 77,078,401
Net market value less vested benefits
surplus/(deficit) 7,707,840
(Note – The Quadrant Superannuation Scheme includes contributions by other organisations and the benefits noted above include
benefits due to the employees of those organisations).
S E C T IO N f O u r financial statements 77
notes to tHe Financial statements
Year ended 30 June 2011
14 suPeRannuation (cont’d)
City of Launceston Employees Superannuation Fund
With effect from 1 July 2006, the assets and members of the City of Launceston fund transferred to a sub-fund of the Quadrant
Superannuation Scheme on a “successor fund” basis.
In accordance with Note 1(p) the Council has taken up a liability of $3,623,027 (2010 $2,666,955) in respect of the excess of benefit
liabilities over assets in the Fund. The Council does not have any immediate requirement to fund the shortfall and continues to fund
at the level of contributions assessed by the Scheme’s actuary as being required to meet the long term requirements of the Fund.
The calculation of the liability is based on an actuarial review for the purpose of AASB 119 performed by David B Quinn Watson
F.I.A.A. on behalf of DeeDeeRa Actuaries Pty Ltd, as at 30 June 2011.
The amount taken up as an employee benefit obligation is made up as follows:
2011 2010
$ $
Balance sheet asset calculation
Fair value of plan assets 38,445,940 35,929,787
Less present value of defined benefit obligation 42,068,967 38,596,742
Employee benefit asset (obligation) (3,623,027) (2,666,955)
Reconciliation of obligation
Present value of defined benefit obligation at start of year 38,596,742 45,514,932
Current service cost 2,644,850 1,828,857
Interest cost 1,575,173 2,001,343
Member contributions and transfers from other funds 3,264,881 2,796,827
Actuarial (gains)/losses (437,206) 7,686,697
Benefits and tax paid (3,575,473) (11,755,000)
Past service cost - -
Curtailments - (9,476,914)
Settlements - -
Exchange rate changes - -
Present value of defined benefit obligation at end of year 42,068,967 38,596,742
Reconciliation of assets
Reconciliation of the fair value of plan assets
Fair value of plan assets at start of year 35,929,787 38,800,000
Expected return on plan assets 2,199,843 2,141,782
Actuarial gains/(losses) (1,152,216) 10,515,403
Employer contributions 1,779,118 1,580,545
Member contributions and transfers from other funds 3,264,881 2,796,827
Benefits and tax paid (3,575,473) (11,755,000)
Settlements and curtailments - (8,149,770)
Business combinations - -
Exchange rate changes - -
Fair value of plan assets at end of year 38,445,940 35,929,787
78 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
14 suPeRannuation (cont’d)
2011 2010
$ $
amounts recognised in comprehensive income
The total expense recognised in comprehensive income as
maintenance of facilities and provision of services includes:
expense recognised in operating surplus
Current service cost 2,644,850 1,828,857
Interest cost 1,575,173 2,001,343
Expected return on plan assets (2,199,843) (2,141,782)
Actuarial (gains) losses - -
Past service cost - -
Curtailment and settlement costs - (521,278)
superannuation expense 2,020,180 1,167,140
The total expense recognised in other comprehensive income
as actuarial gains (losses) is as follows.
expense recognised in other comprehensive income
Actuarial (gains) losses 715,010 (2,307,428)
General plan information Revenue reserves – Gain recognised
Members of the Fund are entitled to receive lump sum
2011 2010
benefits on leaving service due to retirement, death, total
$ $
and permanent disablement and resignation. The most recent
actuarial investigation into the Fund in accordance with the Actuarial gains (losses) (715,010) 2,307,428
Superannuation Industry (Supervision) Act was carried out as at (715,010) 2,307,428
1 July 2008 by Geoff Morley BSc BComm FIAA FIA of Bendzulla
Actuarial Pty Ltd. The investigation showed the following figures
determined in accordance with AAS 25 Financial Reporting by asset allocation
Superannuation Plans: The table below shows the benchmark (target) asset allocation
of the Fund assets as at 30 June 2011 together with the actual
$ allocation for the current and prior year.
Present Value of Defined Benefits 35,562,112
BeNChMARk As At 30 As At 30
Accumulation Benefits 10,983,255 stRAtegIC Asset ALLoCAtIoN JUNe 2011 JUNe 2010
Value of Accrued Benefits 46,545,367 ALLoCAtIoN % % %
Vested Benefits 41,964,971 Australian shares 32.5 30.8 30.0
International shares 28.0 27.3 25.6
Principal actuarial assumptions and recommendations Unlisted property 10.0 12.2 10.5
The actuary recommended that the Employer contribute at Growth alternatives 7.0 2.8 1.6
the rate of 7% of salaries until 31 January 2009 and then
9% of salaries thereafter. The funding method used to Fixed interest 16.0 12.9 0.9
make the contribution recommendation was the “entry age Defensive
normal method”. The economic assumptions used in the alternatives 3.0 4.8 5.7
investigation were:
Cash 3.5 9.1 25.7
Rate of investment return: Negative 17.0% to
30 June 2009 total 100.0 100.0 100.0
and then 7.0% pa
thereafter method of determining expected return on plan assets
Rate of inflationary salary increases: 4.00% pa The expected return on assets assumption is determined by
weighting the expected long-term return for each asset class by
the expected long-term allocation of assets to each asset class.
Returns are net of investment tax and investment fees.
S E C T IO N f O u r financial statements 79
notes to tHe Financial statements
Year ended 30 June 2011
14 suPeRannuation (cont’d)
2011 2010 2009
$ $ $
actual return on plan assets
Present value of defined benefit obligation at end of year 42,068,967 38,596,742 45,514,932
Fair value of plan assets at end of year (38,445,940) (35,929,787) (38,800,000)
(Surplus)/deficit in plan 3,623,027 2,666,955 6,714,932
Experience adjustments - plan liabilities 494,075 2,930,473 2,268,085
Experience adjustments - plan assets (1,152,216) 2,365,633 (8,418,549)
Actual return on Fund assets 1,047,627 4,507,415 (5,589,944)
2011 2010
Principal assumptions
Discount rate p.a. (net of allowance for tax) 4.30% 4.30%
Return on investments 7.00% 6.00%
3.50% in
2010/2011
and
4.00% p.a.
Salary increases p.a. 4.00% thereafter
2012
$
expected contributions
Based on the data provided to us and the recommended contributions, we
calculate that the expected contributions to the Fund for the year ending 30
June 2012 are as follows:
Expected employer contributions (for defined benefits only) 1,905,354
Expected member contributions (incl. deemed member contributions) 1,269,487
80 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
15 inteRest – BeaRinG liaBilities (secuReD loans)
(a) currency of loans
2011 2010
$ $
Current 2,335,882 1,754,020
Non-current 13,041,553 13,326,721
15,377,435 15,080,741
(b) movement in loans
BALANCe LoAN New BALANCe
JULY 1, 2010 RePAYMeNts LoANs JUNe 30, 2011
$ $ $ $
General 15,080,741 1,779,306 2,076,000 15,377,435
15,080,741 1,779,306 2,076,000 15,377,435
comparative figures for the year ended 30 June 2010
BALANCe LoAN New BALANCe
JULY 1, 2009 RePAYMeNts LoANs JUNe 30, 2010
$ $ $ $
General 10,613,016 1,532,275 6,000,000 15,080,741
Sewerage 6,088,353 6,088,353 - -
16,701,369 7,620,628 6,000,000 15,080,741
The loans are secured over the future revenue of the Council.
Public Bodies Assistance Act (PBAA) loan balances are net of subsidies due from the State Government as noted below.
2011 2010
$ $
Gross PBAA loans due 199,213 247,894
Less subsidy 199,213 247,894
Year end net balance - -
16 lease commitments
At the reporting date, the Council had no obligations under leases.
S E C T IO N f O u r financial statements 81
notes to tHe Financial statements
Year ended 30 June 2011
17 commitments FoR caPital eXPenDituRe
2011 2010
$ $
At the reporting date, the Council had entered
into contracts for the following capital expenditures:
Plant and equipment 413,077 289,492
Refuse infrastructure 39,282 3,975
Roads infrastructure 1,442,786 143,959
Parks and recreation infrastructure 213,549 459,512
Drainage infrastructure 192,318 695,134
Flood protection infrastructure 1,903,297 3,536,033
Buildings 862,583 6,877,493
5,066,892 12,005,598
These expenditures are due for payment:
Not later than one year 5,066,892 12,005,598
18 sunDRy PayaBles anD accRuals
2011 2010
$ $
Accrued expenses 22,016,692 26,129,967
Unearned income 824,985 445,944
Contract retentions - 16,465
Sundry creditors 189,800 78,466
23,031,477 26,670,842
19 DeFeRReD ReceiVaBles
2011 2010
$ $
Loans - Australia Pacific Airports (Launceston) Pty Ltd 257,556 257,556
257,556 257,556
20 otHeR PRoVisions
2011 2010
$ $
Provision for rehabilitation
Balance at 1 July 10,351,000 10,131,000
Unwinding of discount - expensed to borrowing costs (Note 1n) 224,000 220,000
Balance at 30 June 10,575,000 10,351,000
The Council operates a refuse disposal area which is recognised as an asset. Operation of a disposal area carries legal obligations
for rehabilitation of the area at the conclusion of the site’s useful life. The provision represents the net present value of future
obligations already incurred (Note 1n).
82 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
21 inFRastRuctuRe assets
2011 2010
$ $
Intangible assets at written down value 4,045,547 2,330,371
Tangible assets at written down value 923,521,823 764,340,327
Written down value 30 June 927,567,370 766,670,698
(a) capital expenditure
Completed works 23,126,679 16,605,424
Change in work in progress 10,923,398 6,239,898
34,050,077 22,845,322
(b) movement in asset values
Written down value 1 July 766,670,698 1,094,365,236
Capital expenditure 34,050,077 22,845,322
Depreciation and amortisation (16,253,931) (15,854,560)
Disposals at written down value (730,518) (913,231)
Asset recognition adjustment 1,022,566 (1,950,125)
Asset revaluation increment (decrement) 142,808,478 -
Transfer to Ben Lomond Water (Note 23) - (331,821,944)
Written down value 30 June 927,567,370 766,670,698
(c) total infrastructure carrying amount
Infrastructure and other assets at cost 46,538,125 42,246,194
Infrastructure and other assets at valuation 1,273,590,963 1,069,460,544
1,320,129,088 1,111,706,738
Less accumulated depreciation 456,049,627 397,600,552
864,079,461 714,106,187
Work in progress at cost 63,487,909 52,564,511
Written down value 30 June 927,567,370 766,670,698
(d) infrastructure by function
General public services
Freehold land at valuation 2,720,000 1,832,000
Buildings at valuation 20,156,466 17,712,185
Plant and equipment at cost 40,376,732 36,889,018
Intangibles at cost 6,161,393 5,357,176
69,414,591 61,790,379
Less accumulated depreciation 27,496,548 25,451,720
41,918,043 36,338,659
Public order and safety
Freehold buildings at valuation 1,326,640 1,165,765
Less accumulated depreciation 240,915 200,169
1,085,725 965,596
Roads and traffic
Freehold land at valuation 13,923,000 8,362,649
Freehold buildings at valuation 11,567,096 10,164,407
Roads infrastructure at valuation 544,524,821 434,078,226
570,014,917 452,605,282
Less accumulated depreciation 217,838,765 186,814,975
352,176,152 265,790,307
S E C T IO N f O u r financial statements 83
notes to tHe Financial statements
Year ended 30 June 2011
21 inFRastRuctuRe assets (cont’d)
2011 2010
$ $
Housing and community amenities
Freehold land at valuation 9,911,000 6,132,000
Leasehold land at valuation 270,000 176,000
Freehold buildings at valuation 11,281,266 10,479,940
Leasehold buildings at valuation - 41,899
Stormwater infrastructure at valuation 252,124,812 230,012,612
Flood protection infrastructure at valuation 41,229,732 37,358,320
Cemetery and crematoria infrastructure at valuation 2,384,747 2,384,747
Refuse disposal infrastructure at valuation 19,455,144 14,763,897
336,656,701 301,349,415
Less accumulated depreciation 126,687,654 110,408,806
209,969,047 190,940,609
welfare
Freehold land at valuation 435,000 293,000
Freehold buildings at valuation 1,372,883 1,206,400
Leasehold buildings at valuation 345,861 303,920
2,153,744 1,803,320
Less accumulated depreciation 790,392 683,612
1,363,352 1,119,708
Recreation and culture
Freehold land at valuation 78,962,500 50,664,973
Leasehold land at valuation 1,776,000 6,074,000
Freehold buildings at valuation 153,113,077 130,237,401
Leasehold buildings at valuation - 2,913,613
Parks and recreation infrastructure
- Swim centres at valuation 26,103,187 26,103,187
- Parks at valuation 76,694,266 70,658,417
- Leased land at valuation - 2,553,266
336,649,030 289,204,857
Less accumulated depreciation 81,037,015 72,144,672
255,612,015 217,060,185
other economic affairs
Freehold land at valuation 380,000 335,000
Freehold buildings at valuation 374,375 328,976
Leasehold buildings at valuation 291,474 256,128
Stock sales market infrastructure at valuation 2,867,616 2,867,616
3,913,465 3,787,720
Less accumulated depreciation 1,958,336 1,896,598
1,955,129 1,891,122
summary of assets at written down value
General public services 41,918,043 36,338,659
Public order and safety 1,085,725 965,596
Roads and traffic 352,176,152 265,790,307
Housing and community amenities 209,969,047 190,940,609
Welfare 1,363,352 1,119,708
Recreation and culture 255,612,015 217,060,185
Other economic affairs 1,955,129 1,891,122
864,079,463 714,106,186
The Council has adopted either the cost basis or fair value basis for the valuation of property, plant and equipment depending upon
asset class. This is in accordance with Accounting Standard AASB 116. Assets listed as being at cost include some assets disclosed
at valuation prior to 30 June 2001 but deemed to be at cost as at that date.
Where assets are recorded at valuation, the valuation has been performed by Council officers with the exception of land which has
been valued using values supplied by the State Valuer-General as at July 2010. Infrastructure assets at valuation are at written down
replacement cost. Replacement cost is the current cost of a new asset that could provide the same service as the existing asset.
Accumulated depreciation or amortisation recognises the amount of the replacement cost that is pro-rata to the proportion of the
asset’s useful life that has expired.
Infrastructure valuations are based on component replacement values dated as 30 June 2011.
84
notes to tHe Financial statements
Year ended 30 June 2011
21 inFRastRuctuRe assets (cont’d)
(e) infrastructure movements in carrying amounts
PLANt & RoADs &
LAND BUILDINgs eQUIPMeNt BRIDges DRAINAge 2011
Launceston city counciL
$ $ $ $ $ otheR $
opening Balance
At cost 42,246,194 42,246,194
At valuation 73,869,622 174,810,634 434,078,226 230,012,611 156,689,450 1,069,460,544
Accumulated depreciation (64,019,004) (16,887,924) (184,245,141) (84,856,769) (47,591,701) (397,600,540)
additions 42,614 2,022,077 7,029,612 243,619 818,417 7,466,444 17,622,783
AnnuAl RepoRt 2010/11
adjustments
Gross 1,936,333 2,789,756 (111,894) 4,614,195
Accumulated depreciation 2,055,528 (173,464) 30,203 1,912,267
transfers
Gross
Accumulated depreciation (9) (9)
Revaluations
Gross 34,605,264 23,210,795 108,266,642 18,760,776 4,545,000 189,388,476
Depreciation (8,694,608) (26,738,667) (7,207,645) (3,939,078) (46,579,998)
Disposals
Gross (140,000) (214,368) (2,737,681) (111,057) (3,203,106)
Accumulated depreciation 145,333 2,249,540 77,714 2,472,588
Depreciation expense (1,499,636) (2,994,794) (6,362,514) (2,575,538) (2,821,449) (16,253,931)
total 108,377,500 125,761,223 28,904,948 329,234,026 157,568,134 114,233,632 864,079,463
notes to tHe Financial statements
Year ended 30 June 2011
21 inFRastRuctuRe assets (cont’d)
(e) infrastructure movements in carrying amounts - comparative figures for the year ended 30 June 2010
PLANt & RoADs & seweR &
LAND BUILDINgs eQUIPMeNt BRIDges wAteR DRAIN otheR 2010
$ $ $ $ $ $ $ $
opening Balance
At Cost 44,894,778 44,894,778
At valuation 77,716,000 174,216,285 430,954,979 225,467,224 596,836,197 153,347,590 1,658,538,275
Accumulated depreciation (62,622,268) (18,465,057) (179,439,440) (95,518,130) (254,312,534) (45,035,052) (655,392,481)
additions 381,622 1,159,282 3,710,847 3,226,533 1,571,933 3,125,213 13,175,430
adjustments
Gross (4,228,000) (564,933) (3,190,289) (225,467,224) (367,948,469) 305,797 (601,093,118)
Accumulated depreciation 88,430 1,737,761 1,511,361 95,518,130 171,895,419 270,751,100
transfers
Gross (447,049) 447,049
Accumulated depreciation 122,891 (122,891)
Revaluations
Gross
Depreciation
Disposals
S E C T IO N f O u r
Gross (3,169,143) (103,287) (536,199) (3,808,628)
Accumulated depreciation 2,546,727 91,367 257,304 2,895,398
Depreciation expense (1,485,166) (2,707,354) (6,408,430) (2,562,544) (2,691,062) (15,854,556)
total 73,869,622 110,791,630 25,358,270 249,833,083 - 145,155,842 109,097,749 714,106,198
financial statements
85
86 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
22 casH Flow
(a) Reconciliation of net cash from operating activities to net surplus
2011 2010
$ $
Net surplus 8,773,834 258,119,633
non-cash charges
Depreciation 16,253,931 15,854,560
Employee provisions 515,989 (3,300,865)
Provision for rehabilitation discount unwound 224,000 220,000
Allowance for impaired debts 35,895 (310,836)
Loss (profit) on sale of non-current assets 51,242 375,885
changes in assets and liabilities
Rate and sundry receivables (49,773) (20,237,446)
Inventories 4,104 299,155
Sundry creditors 2,098,099 (799,616)
Deposits 4,575,672 -
non-cash income
Esk Water equity accounting income - 802,424
Infrastructure take-up adjustments (1,022,566) 1,250,869
Museum take up (Note 31) - (231,913,156)
investing activities
Distributions from investments (2,106,983) -
Net cash from operating activities 29,353,444 20,360,607
(b) Reconciliation of cash and cash equivalents
For the purposes of the Cash Flow Statement, the Council considers cash to include cash on hand and in banks and investments
in money market instruments. Cash at the end of the reporting period as shown in the Cash Flow Statement is reconciled to the
related items in the Statment of Financial Position as follows:
2011 2010
$ $
Cash 734,366 1,625,080
Short-term investments 59,660,262 66,120,692
60,394,627 67,745,772
As at the balance date the following credit standby arrangement was accessible:
Bank overdraft facility $250,000 limit.
The total amount available was unused at balance date.
There were no loan facilities available at balance date.
S E C T IO N f O u r financial statements 87
notes to tHe Financial statements
Year ended 30 June 2011
23 inVestment – Ben lomonD wateR
Formation of Ben lomond water
In February of 2008 State and Local Government reached agreement to establish three local government owned, vertically
integrated businesses providing bulk, distribution and retail water and sewerage services, and a common service provider
subsidiary company. The Water and Sewerage Corporations Act 2008 (Corporations Act) was subsequently enacted and received
Royal Assent on 13 June 2009. As a result of the operation of that Act the water and sewerage assets of the Council (including
certain funds held for capital works) vested in Ben Lomond Water as at 1 July 2009. On that date the Council became a part
owner of that authority with an ownership share calculated in accordance with the asset value transferred and determined by an
Allocation Order from the State Treasurer.
The Council’s share of Ben Lomond Water was initially assessed in the Treasurer’s 2009 Draft Treasurer’s Allocation Order as
being 55.3%. This was the ownership share used in the 2010 Council financial statements. In February 2011 the Treasurer
issued a revised Allocation Order which altered the Council’s ownership share to 51.9% of Ben Lomond Water.
initial recognition of investment in Ben lomond water
Subsequent to the transfer, Ben Lomond Water adopted a different asset valuation basis for the assets acquired from the
councils. This change was a result of the accounting standards applying to Ben Lomond Water being different to those applying
to the councils.
The result of this change and the application to those values of the Council’s ownership percentage was to reduce the value of
the Council’s investment.
Valuation of the council’s investment in Ben lomond water
In addition to the initial write down of the valuation of the investment which occurred in the 2010 financial statements, the
Council recorded an additional write down of $13,850,000 in the 2011 financial year due to the need to adjust the Council’s
ownership percentage based on the Treasurer’s Revised Allocation Order.
2011 2010
$ $
Ben Lomond Water net equity 492,954,000 487,614,000
Year end report used for determining net assets 30 June 2011 30 June 2010
Launceston City Council ownership percentage 51.9% 55.3%
Fair value of the Council’s share of Ben Lomond Water 255,800,000 269,650,000
Previously assessed value - taken up 1 July 2009 n/a 402,298,498
Previously assessed value - year end 30 June 2010 269,650,000 n/a
Net Increase (decrease) in fair value (13,850,000) (132,648,498)
88 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
24 Financial instRuments
Risk management
The Council holds cash and cash equivalent assets and liabilities for current and future capital and operational requirements.
These assets are exposed to a variety of financial risks including:
(i) market risk
(ii) credit risk
(iii) liquidity risk
(iv) interest rate risk
The Council’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Council.
The Council does not engage in significant transactions expressed in foreign currencies and is therefore not subject to foreign
currency risk.
Financial risk management is carried out internally under policies approved by the Council.
A comparison by category of the carrying amounts and fair values of the Council’s Financial Assets and Financial Liabilities
recognised in the financial statements is presented below.
CARRYINg VALUe fAIR VALUe
2011 2010 2011 2010
$ $ $ $
Financial assets
Cash and cash equivalents 60,394,627 67,745,772 60,394,627 67,745,772
Fair value through profit or loss
Interest in Ben Lomond Water 255,800,000 269,650,000 255,800,000 269,650,000
Current receivables 5,120,186 5,106,308 5,120,186 5,106,308
Deferred receivables 257,556 257,556 257,556 257,556
total financial assets 321,572,369 342,759,636 321,572,369 342,759,636
Financial liabilities
At amortised cost 45,112,910 43,879,909 45,112,910 43,879,909
total financial liabilities 45,112,910 43,879,909 45,112,910 43,879,909
net total 276,459,459 298,879,727 276,459,459 298,879,727
Fair Value is determined as follows:
cash and cash equivalents, receivables, payables are estimated to be the carrying value which approximates market value.
Held-to-maturity investments are based upon their face value plus any accrued earnings.
Borrowings are based upon their current discharge value.
Financial Assets classified
(i) “at fair value through profit and loss” or
(ii) “available-for-sale”
are based upon quoted market prices at the reporting date or independent valuation.
S E C T IO N f O u r financial statements 89
notes to tHe Financial statements
Year ended 30 June 2011
24 Financial instRuments (cont’d)
(a) cash and cash equivalents, financial assets “at fair value through the Profit and loss”, “available-for-sale” financial assets
and “Held-to-maturity” investments
The Council’s objective is to optimise its return on cash and investments within the restraints of its investment policy and risk
profile, whilst maintaining an adequate level of liquidity and preserving capital.
The Council’s Corporate Services Directorate manages its Cash and Investments Portfolio.
The Council has an Investment Policy that sets minimum investment ratings and maximum exposure levels to ratings, fund,
and institution.
This Policy is regularly reviewed by the Council and its staff and an Investment Report is prepared on a monthly basis setting out the
portfolio breakup and its performance.
The major risk associated with fair value at profit and loss investments is price risk - the risk that the capital value of investments
may fluctuate due to changes in market prices, whether these changes are caused by factors specific to individual financial
instruments or their issuers or are caused by factors affecting similar instruments traded in a market.
Cash and Investments are also subject to interest rate risk - the risk that movements in interest rates could affect returns and income.
A further risk associated with Cash and Investments is credit risk - the risk that the counterparty (to an investment) will not
complete their obligations particular to a financial instrument, resulting in a financial loss to the Council – be it of a capital or
income nature.
The Council manages these risks (amongst other measures) by diversifying its portfolio and only purchasing investments with high
investment ratings.
The following represents a summary of the sensitivity of the Council’s Statement of Comprehensive Income and Accumulated
Surplus (during the reporting period) due to a change in either the price of a financial asset or the interest rates applicable.
It is assumed that the change in interest rates would have been constant throughout the reporting period.
INCReAse of VALUes/RAtes DeCReAse of VALUes/RAtes
PRofIt eQUItY PRofIt eQUItY
$ $ $ $
2011
Impact of a 10% movement in Market Values - - - -
Impact of a 1% movement in Interest Rates 450,172 450,172 (450,172) (450,172)
2010
Impact of a 10% movement in Market Values - - - -
Impact of a 1% movement in Interest Rates 526,650 526,650 (526,650) (526,650)
90 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
24 Financial instRuments (cont’d)
(b) Receivables
Council’s major receivables comprise
(i) Rates and Annual Charges and
(ii) User Charges and Fees.
The major risk associated with these receivables is credit risk - the risk that debts due and payable to the Council may not be
repaid in full. The Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures.
Credit risk on rates and annual charges is minimised by the ability of the Council to secure a charge over property relating to the
debts. i.e., the property can be sold to recover the debt. The Council is also able to charge interest on overdue rates and annual
charges which further encourages the payment of debt.
Infringement debtors are determined by the incidence of infringement rather than the Council decision. Since 2009 the Council
has given the Monetary Penalties Enforcement Service of the Department of Justice responsibility to collect outstanding
infringement debtors. The Council has a policy of booking extensive impairment for loss on infringement debtors.
The level of outstanding receivables is reported monthly and monitored for acceptable collection performance. The Council
makes provision for doubtful receivables as required and carries out credit checks on most non-rate debtors excluding
infringements. There are no material receivables that have been subjected to a re-negotiation of repayment terms.
A profile of the Council’s receivables credit risk at balance date follows:
Receivables credit risk
(i) ageing of receivables
2011 2010
CURReNt oVeRDUe CURReNt oVeRDUe
$ $ $ $
Rate debtors 423,050 487,789 229,481 396,823
Accrued revenue 274,351 - 532,566 -
Sundry debtors 2,808,282 418,409 1,749,656 1,188,472
Prepayments 134,353 - 469,987 -
Parking infringement debtors 52,295 2,564,934 47,125 2,499,581
3,692,331 3,471,132 3,028,815 4,084,876
(ii) movement in provision for impairment of receivables
2011 2010
$ $
Balance at the beginning of the year (2,007,384) (2,318,218)
Add new provisions recognised during the year (37,997) (29,173)
Less amounts already provided for and written back this year 2,103 340,007
Balance at the end of the year (2,043,278) (2,007,384)
(c) Fair value hierarchy
The table below analyses financial instruments carried at fair value by valuation method:
Level 1 Quoted prices (unadjusted) in active markets for identical assets/liabilities
Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly (i.e. prices) or
indirectly (i.e. derived from prices)
Level 3 Inputs for the asset or liability that are not based on observable market data.
2011 2010
$ $
Level 3 - Ben Lomond Water 255,800,000 269,650,000
S E C T IO N f O u r financial statements 91
notes to tHe Financial statements
Year ended 30 June 2011
24 Financial instRuments (cont’d)
(d) Payables and borrowings
Payables and borrowings are both subject to liquidity risk – the risk that insufficient funds may be on hand to meet payment
obligations as and when they fall due.
The Council manages this risk by cash forecasting to maintain adequate liquidity levels and cash holdings. The Council also has
an unused overdraft facility.
The contractual undiscounted cash outflows (i.e. Principal only) of the Council’s payables and borrowings are set out in the
Liquidity Table below:
fIxeD RAte MAtURItY
totAL ACtUAL
VARIABLe Less thAN 1 NoN CAsh CARRYINg
INteRest YeAR 1 to 5 YeARs INteRest oUtfLows AMoUNt
LIQUIDItY tABLe $ $ $ $ $ $
2011
Deposits - - - 6,703,998 6,703,998 6,703,998
Sundry creditors 15,179,000 - - 7,852,477 23,031,477 23,031,477
Secured loans - 2,335,882 13,041,553 - 15,377,435 15,377,435
total financial liabilities 15,179,000 2,335,882 13,041,553 14,556,475 45,112,910 45,112,910
2010
Deposits - - - 1,369,875 1,369,875 1,369,875
Sundry creditors 20,900,000 - - 6,529,293 27,429,293 27,429,293
Secured loans - 1,754,020 13,326,721 - 15,080,741 15,080,741
total financial liabilities 20,900,000 1,754,020 13,326,721 7,899,168 43,879,909 43,879,909
Borrowings are also subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs and
debt servicing requirements. The Council manages this risk by monitoring the lending market and taking opportunities to fix rates at
below market in rising markets and taking short term borrowing in high interest markets.
The following interest rates were applicable to the Council’s Liabilities at balance date:
2011 2010
AVeRAge AVeRAge
CARRYINg VALUe INteRest RAte CARRYINg VALUe INteRest RAte
$ % $ %
Bank overdraft - 10.74% - 10.49%
Trade/other payables 15,179,000 5.14% 20,900,000 5.30%
Secured loans 15,377,435 6.13% 15,080,741 5.89%
30,556,435 35,980,741
92 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
25 autHoRities
During the financial year the Council had two authorities set up under the Local Government Act. The income and expenditure of
these authorities is included in the Council’s financial statements.
york Park and inveresk Precinct authority (controlling authority)
The principal objective of the Authority is to “help develop the Inveresk Precinct as an international centre for art, education,
tourism and recreation.”
launceston Flood authority (single authority)
This authority was formed by the Council resolution on 1 September 2008 and was established by gazettal on 10 September 2008.
The authority was established to “…perform all tasks necessary for the construction and maintenance of flood levees, to initiate and
manage effective emergency management procedures and to take all necessary measures, so as to address the flood risk to the
‘flood risk area’ …..”
2011 2010
ReVeNUe AND exPeNses $ $
York Park and Inveresk Precinct Authority
- Revenues 1,258,349 1,274,898
- Expenses (2,603,537) (2,530,654)
Launceston Flood Authority
- Revenues 729,515 1,135,611
- Expenses (309,659) (1,094,371)
26 sPecial committees
BALANCe ADD Less Net
1 JULY ReCeIPts exPeNses MoVeMeNt 2011 2010
$ $ $ $ $ $
committee name
Dilston Hall 533 890 640 250 783 533
Karoola Hall and Recreation Ground 4,734 1,466 905 561 5,295 4,734
Lebrina Progress Association 4,611 100 - 100 4,711 4,611
Lilydale District Swimming Pool 20,666 4,823 2,246 2,577 23,243 20,666
Lilydale Memorial Hall Committee 7,911 2,759 3,165 (406) 7,505 7,911
Lilydale Recreational Ground 3,719 3,535 3,188 347 4,066 3,719
Myrtle Park Hall and Recreational Ground 60,905 22,400 39,148 (16,748) 44,157 60,905
North Esk Memorial Hall and
Recreational Ground 10,111 1,370 791 579 10,690 10,111
Nunamara Hall 2,931 525 998 (473) 2,458 2,931
Ravenswood Memorial Hall 17,538 3,574 7,109 (3,535) 14,003 17,538
White Hills Memorial Hall 530 177 707 (530) - 530
134,189 41,619 58,897 (17,278) 116,911 134,189
The White Hills Memorial Hall Committee closed in June 2011.
S E C T IO N f O u r financial statements 93
notes to tHe Financial statements
Year ended 30 June 2011
27 RelateD PaRty tRansactions
The Council has dealings from time to time with its Aldermen in both their private and business capacities. Transactions
between the Council and its related parties are on normal commercial terms and conditions no more favourable than those
available to other parties.
Aldermen are required to disclose pecuniary interests in matters which come before the Council. In addition, under Section
84(2) of the Local Government Act 1993, the Council is required to “specify any interests as notified to the General Manager of
any Councillor in respect of any body or organisation with which the Council has major financial dealings.”
Relevant matters notified are:
Alderman A M Van Zetten (Mayor) No relevant disclosures
Alderman F R Nott (Deputy) No relevant disclosures
Alderman R L Armitage No relevant disclosures
Alderman J D Ball No relevant disclosures
Alderman I N Dean No relevant disclosures
Alderman R L McKendrick No relevant disclosures
Alderman I S Norton No relevant disclosures
Alderman A C Peck No relevant disclosures
Alderman R J Sands No relevant disclosures
Alderman R W Shipp No relevant disclosures
Alderman R I Soward No relevant disclosures
Alderman A L Waddle No relevant disclosures
28 annual RemuneRation oF senioR oFFiceRs
Under Section 72(1)(cd) of the Local Government Act 1993, the Council is required to report the total annual remuneration
paid to employees who hold positions designated by the Council as senior positions. The Council has determined that senior
positions comprise Director and General Manager positions. Accordingly, the following information is provided in respect of the
year ended 30 June 2011.
ReMUNeRAtIoN BAND NUMBeR of eMPLoYees
$140,001 - $160,000 2
$160,001 - $180,000 3
$240,001 - $260,000 1
Remuneration is defined in the Act as including salary payable, employer contributions to superannuation, the value of the use of
any motor vehicle provided to the employee, and the value of any other allowances or benefits paid or payable to, or provided for
the benefit of the employee. So as to represent the normal remuneration which applies to the six senior positions, the amounts
have been annualised where necessary. The report excludes officers no longer employed at year end.
29 suBseQuent eVents
There were no events occurring after the reporting date that would materially affect any of the amounts or disclosures in
these accounts.
30 continGent liaBilites
At the reporting date of 30 June 2011 the Council had no contingent liabilities that would materially affect any of the amounts or
disclosures in these accounts.
31 museum collection
The independent valuation of the Queen Victoria Museum and Art Gallery by Simon Storey FAVAA of Simon Storey Valuations
was completed during the financial year to 30 June 2010.
The collection is valued at $231,913,206. This amount has been disclosed as a separate asset class in the Statement of
Financial Position. The Council’s financial statements showed an equivalent amount as non operating income in the Statement
of Comprehensive Income for the year ended 30 June 2010.
94 Launceston city counciL AnnuAl RepoRt 2010/11
notes to tHe Financial statements
Year ended 30 June 2011
32 eaRly aDoPtion oF accountinG stanDaRDs aasB 2010-6
At the reporting date updates the following standards were Amendments to Australian Accounting Standards –
available for early adoption and relevant to the Council’s Disclosures on Transfers of Financial Assets [AASB 1 &
operations but were not applied by the Council. AASB 7]
AAsB 1054 This standard relates to amendments to AASB 7 Financial
Instrument Disclosures as a result of the implementation of
Australian Additional Disclosures ED 177 Derecognition.
AAsB 2011-1 AAsB 2010-3
Amendments to Australian Accounting Standards arising Amendments to Australian Accounting Standards arising
from the Trans-Tasman Convergence Project [aaSB 1, aaSB from the Annual Improvements Project [aaSB 3, aaSB 7,
5, aaSB 101, aaSB 107, aaSB 108, aaSB 121, aaSB 128, aaSB 121, aaSB 128, aaSB 131, aaSB 132 & aaSB 139]
aaSB 132 & aaSB 134 and Interpretations 2, 112 & 113]
AAsB 2010-4
AAsB 2011-2
Further Amendments to Australian Accounting Standards
Amendments to Australian Accounting Standards arising arising from the Annual Improvements Project [aaSB 1,
from the Trans-Tasman Convergence Project – Reduced aaSB 7, aaSB 101 & aaSB 134 and Interpretation 13]
Disclosure Requirements [AASB 101 & AASB 1054]
These standards relate to the introduction of non urgent but
These standards relate to the harmonisation of Australian necessary amendments to the standards.
and New Zealand accounting standards.
AAsB 2009-12
AAsB 2010-07
Amendments to Australian Accounting Standards [aaSBs
Amendments to Australian Accounting Standards arising 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and
from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, Interpretations 2, 4, 16, 1039 & 1052]
108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139,
1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] This standard makes amendments to a number of standards
as a result of changes to aaSB 8 Operating Segments
This standard relates to amendments relating to the
introduction of AASB 9 which is applicable for reporting AAsB 2010-5
periods starting after 1 January 2013 and is not available for Amendments to Australian Accounting Standards [aaSB 1,
early adoption. 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137,
AAsB 2010-2 139, 140, 1023 & 1038 and Interpretations 112, 115, 127,
132 & 1042]
Amendments to Australian Accounting Standards arising
from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, This standard amends the listed standards resulting from
8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, editorial corrections made by the International Accounting
123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, Standards Board (IASB) to its Standards and Interpretations
141, 1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, (IFRSs) and by the AASB to its pronouncements.
129 & 1052] No material effects are expected as a result of the adoption
This standards relates to amendments to AASB 1053 of these standards
Reduced Disclosure Requirements.
S E C T IO N f O u r financial statements 95
statement By tHe GeneRal manaGeR
The accompanying financial statements of the Launceston City Council set out on pages 58 to 94 has been drawn up in accordance
with the requirements of the Local Government Act 1993 and Australian Accounting Standards and to the best of our knowledge and
belief fairly represents –
a) the financial position of the Council
b) the results of the Council’s operations
c) the cash flow of the Council.
Date 15/08/2011 Robert Dobrzynski
(General Manager)
96 Launceston city counciL AnnuAl RepoRt 2010/11
S E C T IO N f O u r financial statements 97
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