Annual Report 2003/04 - archive.lls.nsw.gov.au · Combined NSW Catchment Management Authorities Annual Report 2003/04 Volume 2: Statutory and Financial Reports

Combined NSW Catchment Management Authorities Annual Report 2003/04 Volume 2: Statutory and Financial Reports

ABOUT THIS DOCUMENT

In October 2003 the NSW Premier announced the NSW natural resource management reformpackage based primarily on the recommendations of the Native Vegetation ReformImplementation Group. A key component of the reform package was the establishment ofthirteen Catchment Management Authorities (CMAs) within NSW. These Authorities wereformally established on 23 January 2004 with the introduction of the Catchment ManagementAuthorities Act 2003.

In accordance with section 17(2) of the Catchment Management Authorities Act 2003, thisdocument is a combined Annual Report for the NSW Catchment Management Authorities. Forthe purposes of this document Sydney Metropolitan CMA Local Establishment Team refers tothe interim CMA Board established under the Catchment Management Authorities (Savingsand Transitional) Regulation 2004.

2003/04 Combined NSW Catchment Management Authorities Annual ReportVolume 1: CMA Activities and AchievementsVolume 2: Statutory and Financial Reports

1000 copies printed of Volume 1; Unit cost of Volume 1 is $4.731000 copies printed of Volume 2; Unit cost of Volume 2 is $11.81

This report is available on individual CMA websites linked through www.cma.nsw.gov.au and also on the DIPNRwebsite: www.dipnr.nsw.gov.au

ISBN 0 7347 5556 2

Contents

CONSULTANTS ENGAGED ......................................................................................................1Hunter-Central Rivers Catchment Management Authority .................................................................... 1

PAYMENT OF ACCOUNTS........................................................................................................3Quarterly Schedule Of Accounts Payable ............................................................................................. 3

Table 21: Timing of payments (in actual $) for individual CMAs - March 2004 quarter .......................................3Table 22: Timing of payments (in actual $) for individual CMAs - June 2004 quarter .........................................3

Accounts Paid On Time Within Each Quarter ....................................................................................... 4Table 23: Timing of payments (in %) for individual CMAs – March 2004 quarter.................................................4Table 24: Timing of payments (in %) for individual CMAs – June 2004 quarter...................................................4

Initiatives To Improve Payment Performance ....................................................................................... 4INVESTMENT PERFORMANCE ................................................................................................5

Table 25: Amount invested by CMAs as at 30 June 2004. .................................................................................5CMA BUDGETS..........................................................................................................................7

Table 26: Amounts paid to individual CMAs under the NAP and NHT programs during the reporting period......7CMA FINANCIAL STATEMENTS ..............................................................................................9

Border Rivers-Gwydir Catchment Management Authority................................................................... 10Central West Catchment Management Auhtority ................................................................................ 23Hawkesbury-Nepean Catchment Management Authority ................................................................... 36Hunter-Central Rivers Catchment Management Authority .................................................................. 51Lachlan Catchment Management Authority ........................................................................................ 69Lower Murray Darling Catchment Management Authority................................................................... 83Murray Catchment Management Authority.......................................................................................... 97Murrumbidgee Catchment Management Authority............................................................................ 111Namoi Catchment Management Authority ........................................................................................ 125Northern Rivers Catchment Management Auhtority.......................................................................... 139Southern Rivers Catchment Management Authority ......................................................................... 153Sydney Metropolitan Local Catchment Management Authority Local Establishment Team.............. 167Western Catchment Management Authority ..................................................................................... 181

AcronymsCAP Catchment Action Plan

CMA Catchment Management Authority

CMB Catchment Management Board

CET Central Establishment Team

DIPNR Department of Infrastructure, Planning and Natural Resources

HCC Hunter Catchment Contributions

IPP Interim Priority Project

LET Local Establishment Team

NAP National Action Plan for Salinity and Water Quality

NHT Natural Heritage Trust

NLP National Landcare Program

TMF Treasury Managed Funds

Contents

Page 1

Consultants EngagedHunter-Central Rivers Catchment Management Authority (CMA) was the only CMA to engageconsultants during the reporting period.

HUNTER-CENTRAL RIVERS CATCHMENT MANAGEMENT AUTHORITYBetween 23 January 2004 and 30 June 2004 the Hunter-Central Rivers CMA engaged 4consultants to undertake work valued at $81,796.00. The following two consultancies, totalling$68,354.00, were each equal to or more that $30,000.00 in consultancy fees and within theEnvironmental category:

� Department of Commerce ($31,462) for surveys, valuations and water quality monitoringas part of the Hexham Swamp Rehabilitation Project

� WBM Pty Ltd ($36,892) for development of an environmental impact statement as part ofthe Hexham Swamp Rehabilitation Project

Between 23 January 2004 and 30 June 2004, two other consultancies worth a total of$13,442.00 were engaged by the Hunter-Central Rivers CMA in the following areas:

� Environmental ($13,442.00)

Consultants E

ngaged

Page 2

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Page 3

Payment of AccountsQUARTERLY SCHEDULE OF ACCOUNTS PAYABLETable 21 and 22 below outline the timing of payments (in actual $) for individual CMAs during thereporting period.

Table 21: Timing of payments (in actual $) for individual CMAs - March 2004 quarter

CATCHMENTMANAGEMENTAUTHORITY

CURRENT(IE WITHINDUE DATE)

$

LESS THAN30 DAYS

OVERDUE

$

BETWEEN30 AND 60

DAYSOVERDUE

$

BETWEEN60 AND 90

DAYSOVERDUE

$

MORETHAN 90

DAYSOVERDUE

$

Border Rivers-Gwydir 0 1,177.00 0 0 0

Central West 0 295.00 0 0 0

Hawkesbury Nepean 0 1,596.00 0 0 0

Hunter-Central Rivers 23,143.00 27,076.00 386,422.00 2,764.00 52,842.00

Lachlan 0 1,106.00 0 0 0

Lower Murray Darling 0 1,146.00 0 0 0

Murray 0 0 0 0 0

Murrumbidgee 162.00 1,519.00 0 0 0

Namoi 0 1,125.00 0 0 0

Northern Rivers 0 686.00 0 0 0

Southern Rivers 0 0 0 0 0

Sydney Metropolitan 0 1,045.00 0 0 0

Western 0 2,697.00 0 0 0

Table 22: Timing of payments (in actual $) for individual CMAs - June 2004 quarter


CURRENT(IE WITHINDUE DATE)

$

LESS THAN30 DAYS

OVERDUE

$

BETWEEN30 AND 60

DAYSOVERDUE

$

BETWEEN60 AND 90

DAYSOVERDUE

$

MORETHAN 90

DAYSOVERDUE

$

Border Rivers-Gwydir 62.00 0 0 0 0

Central West 0 0 0 0 0

Hawkesbury Nepean 0 0 0 0 0

Hunter-Central Rivers 23,369.00 208.00 0 0 238,838.00

Lachlan 0 0 0 0 0

Lower Murray Darling 0 0 0 0 0

Murray 22,202.00 0 0 0 0

Murrumbidgee 343.00 0 0 0 0

Namoi 0 0 0 0 0

Northern Rivers 0 0 0 0 0

Southern Rivers 22,202.00 0 0 0 0

Sydney Metropolitan 0 0 0 0 0

Western 0 0 0 0 0

Paym

ent of Accounts

Page 4

ACCOUNTS PAID ON TIME WITHIN EACH QUARTERTables 23 and 24 below outline the timing of payments (in %) for individual CMAs during thereporting period.

Table 23: Timing of payments (in %) for individual CMAs – March 2004 quarter

TOTAL ACCOUNTS PAID ON TIMECATCHMENTMANAGEMENTAUTHORITY

TARGET % OFINVOICES PAID

ACTUAL % OFINVOICES PAID

VALUE ($) OFINVOICES PAID

TOTALAMOUNT PAID

$

Border Rivers-Gwydir 90 100 4,405.00 4,405.00

Central West 90 100 959.00 959.00

Hawkesbury Nepean 90 100 7,250.00 7,250.00

Hunter-Central Rivers 90 95.14 336,526.00 356,439.00

Lachlan 90 100 4,503.00 4,503.00

Lower Murray Darling 90 100 4,989.00 4,989.00

Murray 90 100 25,000.00 25,000.00

Murrumbidgee 90 100 6,000.00 6,000.00

Namoi 90 100 3,615.00 3,615.00

Northern Rivers 90 100 2,686.00 2,686.00

Southern Rivers 90 100 25,000.00 25,000.00

Sydney Metropolitan 90 100 3,845.00 3,845.00

Western 90 100 2,270.00 2,270.00

Table 24: Timing of payments (in %) for individual CMAs – June 2004 quarter

TOTAL ACCOUNTS PAID ON TIMECATCHMENTMANAGEMENTAUTHORITY TARGET % OF

INVOICES PAIDACTUAL % OFINVOICES PAID

VALUE ($) OFINVOICES PAID

TOTALAMOUNT PAID

$

Border Rivers-Gwydir 90 100 13,003.00 13,003.00

Central West 90 100 14,849.00 14,849.00

Hawkesbury Nepean 90 95.24 105,133.00 105,303.00

Hunter-Central Rivers 90 80.47 513,843.00 745,146.00

Lachlan 90 96.3 15,341.00 16,886.00

Lower Murray Darling 90 100 9,289.00 9,289.00

Murray 90 95.23 144,613.00 166,613.00

Murrumbidgee 90 95.83 23,459.00 23,817.00

Namoi 90 100 11,220.00 11,220.00

Northern Rivers 90 100 14,772.00 14,772.00

Southern Rivers 90 95.23 144,613.00 166,613.00

Sydney Metropolitan 90 100 10,091.00 10,091.00

Western 90 100 14,923.00 14,923.00

INITIATIVES TO IMPROVE PAYMENT PERFORMANCE� Tightened controls to ensure correct data entry of payment terms and invoice dates in

System, Applications and Processes.� Prioritise vouchers as they are received in Finance Division so invoices due for payment first

get processed first.� Use of extra resources, including temporary assistance and overtime, to ensure smooth

workflow during peak periods.

Page 5

Investment PerformanceThe CMAs has invested $13,030,000 in Treasury Corporation – Hourglass Facility at 30 June2004 at an average (per annum) interest rate of 5.52%.

The Hunter-Central Rivers CMA also had $4,407,000 invested in term deposits at 30 June 2004at an average (per annum) interest rate of 5.05%.

Table 25: Amount invested by CMAs as at 30 June 2004.


TREASURY CORPORATION –HOURGLASS FACILITY. AVG.

INT RATE 5.52%

$

TERM DEPOSIT. AVG INTRATE 5.05%

$

Border Rivers-Gwydir 307,000.00 -

Central West 1,070,000.00 -

Hawkesbury-Nepean - -

Hunter-Central Rivers 1,436,000.00 4,407,000.00

Lachlan 949,000.00 -

Lower Murray Darling 2,275,000.00 -

Murray 1,950,000.00 -

Murrumbidgee 2,719,000.00 -

Namoi 290,000.00 -

Northern Rivers 1,015,000.00 -

Southern Rivers 590,000.00 -

Sydney Metropolitan - -

Western 429,000.00 -

Investment P

erformance

Page 6

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Page 7

CMA Budgets

In addition to the $436.6 million allocated for the NSW Natural Resource ManagementReforms, over $100 million (operating budgets) will be transferred to the NSW CMAs between2003/04 and 2006/07 from the Department of Infrastructure, Planning and Natural Resources.

During 2003/04 a total amount of $44.714 million was paid to the CMAs as the approvedbudget for investment funds in relation to the National Action Plan for Salinity and WaterQuality (NAP) and Natural Heritage Trust (NHT) programs.

Table 26: Amounts paid to individual CMAs under the NAP and NHT programs duringthe reporting period.

CATCHMENT MANAGEMENT AUTHORITY AMOUNT IN $

Border Rivers-Gwydir 1,993,000.00Central West 4,431,000.00Hawkesbury Nepean 2,907,000.00Hunter-Central Rivers 2,523,000.00Lachlan 4,860,000.00Lower Murray Darling 4,388,000.00Murray 7,615,000.00Murrumbidgee 7,239,000.00Namoi 1,216,000.00Northern Rivers 3,896,000.00Southern Rivers 1,654,000.00Sydney Metropolitan 577,000.00Western 1,415,000.00TOTAL 44,714,000.00

CM

A B

udgets

Page 8

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Page 9

CMA Financial StatementsC

MA

Financial Statem

ents

Page 10

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY

INDEPENDENT AUDIT REPORT

Page 11

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY cont’

Page 12

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF CMA BOARD MEMBERS

Page 13


STATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000

Revenues from ordinary activities 4 2,065

Administration Expenses (8)Board Member Fees (47)Other expenses (825)Expenses from ordinary activities 3 (880)

Surplus from Ordinary Activities 1,185

Total revenues, expenses and valuationadjustments recognised directly in equity -

Total changes in equity other than resulting fromtransactions with owners as owners

1,185

The accompanying notes form part of these financial statements.

Page 14


STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000

Current Assets Cash assets 6 1,599 Receivables 7 419

Total Current Assets 2,018

Total Assets 2,018

Current Liabilities Payables 8 833Total Current Liabilities 833

Total Liabilities 833

Net Assets 1,185

Equity Retained surplus 9 1,185

1,185


Page 15


STATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating ActivitiesRecurrent Government Contributions Received 1,650Interest ReceivedOther Income 4Employee Related Payments (52)Others (3)

Net cash flows provided by/(used in) operating activities10 1,599

Cash Flows From Investing ActivitiesPayment for purchase of plant and equipmentProceeds from sale of plant and equipmentNet cash flows from/(used in) investing activities

Net increase/(decrease) in cash held 1,599Cash at the beginning of the financial period -

Cash at the end of the financial period 1,599


Page 16


NOTES TO THE FINANCIAL STATEMENTS

1. Reporting Entity

The Border Rivers - Gwydir Catchment Management Authority was established pursuant to theCatchment Management Authorities Act 2003 on 23 January 2004. This Act provided for theestablishment of 13 Catchment Management Authorities across NSW as part of the NSWGovernment’s broad ranging reform of natural resource management.

These financial statements are for the period 23 January 2004 to 30 June 2004 with nocomparative figures disclosed.

Pursuant to clause 4(1) of the Catchment Management Authorities (Saving and Transitional)Regulation, the Border Rivers - Gwydir Catchment Management Authority Local EstablishmentTeam was appointed by the Minister as the board of the Border Rivers - Gwydir CatchmentManagement Authority until the Minister appointed the board in accordance with section 8 of theCatchment Management Authorities Act 2003.

2. Summary of significant accounting policies

(a) Basis of accounting

The Authority's financial statements are a general purpose financial report, which has beenprepared on an accrual basis and in accordance with:� applicable Australian Accounting Standards;� other authoritative pronouncements of the Australian Accounting Standards Board (AASB);� Urgent Issues Group (UIG) Consensus Views; and� the requirements of the Public Finance and Audit Act and Regulations.

Where there are inconsistencies between the above requirements, the legislative provisions haveprevailed.

In the absence of a specific Accounting Standard, other authoritative pronouncement of the AASBor UIG Consensus View, the hierarchy of other pronouncements as outlined in AAS 6"Accounting Policies" is considered.

The financial statements are prepared in accordance with the historical cost convention. Allamounts are rounded to the nearest one thousand dollars and are expressed in Australiancurrency.

(b) Revenue recognition

Revenue is recognised when the Authority has control of the good or right to receive, it isprobable that the economic benefits will flow to the Authority and the amount of revenue can bemeasured reliably. Additional comments regarding the accounting policies for the recognition ofrevenues are discussed below. All revenues arising from operating activities are consistent withcore activities.

Contributions from State and Commonwealth Governments – These are grants andcontributions from the NSW and Commonwealth Governments for catchment managementactivities in the region. Revenue is recognised when the Authority has a right to receive the funds,or upon receipt of funds, whichever occurs first.

Investment income - Interest revenue is recognised as it accrues.

Page 17

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY cont’ (c) Tax status

The Authority is liable for fringe benefits tax, payroll tax and GST. All other activities are exemptfrom taxation. The Authority is a member of a GST Group with other Catchment ManagementAuthorities, with the Department of Infrastructure, Planning & Natural Resources (DIPNR), andwith certain other entities to whom DIPNR provides accounting support. To the extent that thereare transactions between members of the GST Group, they are not subject to GST.

(d) Accounting for goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except:� The amount of GST incurred by the Authority as a purchaser that is not recoverable from the

Australian Taxation Office is recognised as part of the cost of acquisition of an asset or part ofan item of expense.

� Receivables and payables that include GST are stated with the amount of GST included. TheState Government funding is GST free.

(e) Employee Benefits and other provisions

(i) Salaries and Wages, Annual Leave, Sick Leave and OncostsLiabilities for salaries and wages (including non-monetary benefits) annual leave and vesting sickleave are recognised and measured in respect of employees’ services up to the reporting date atnominal amounts based on the amounts expected to be paid when the liabilities are settled.Unused non-vesting sick leave does not give rise to a liability as it is not considered probable thatsick leave taken in the future will be greater than the benefits accrued in the future.

The outstanding amounts of payroll tax, workers’ compensation insurance premiums and fringebenefits tax, which are consequential to employment, are recognised as liabilities and expenseswhere the employee benefits to which they relate have been recognised.

(ii) Long Service Leave and SuperannuationThe Authority’s liabilities for long service leave and superannuation are assumed by the CrownEntity. Long service leave is measured at present value, based on the application of factorsprescribed by Treasury Circular 03/08, to the amounts calculated using the actual remunerationrates for all employees with five or more years of service.

Superannuation expense for the financial year is determined by using the formulae specified inthe Treasurer’s Directions. The expense for certain superannuation schemes (ie Basic Benefitand First State Super) is calculated as a percentage of the employees’ salary. For othersuperannuation schemes (ie State Superannuation Scheme and State AuthoritiesSuperannuation Scheme), the expense is calculated as a multiple of the employees’superannuation contributions.

(iii) Other ProvisionsOther provisions exist when the entity has a present legal, equitable or constructive obligation tomake a future sacrifice of economic benefits to other entities as a result of past transactions orother past events. These provisions are recognised when it is probable that a future sacrifice ofeconomic benefits will be required and the amount can be measured reliably.

(f) Impact of adopting Australian Equivalents to International Financial ReportingStandards

(i) Explanation of how the transition to AIFRS is being managed

The Authority will apply the Australian Equivalents to International Financial Reporting Standards(AIFRS) from the reporting period beginning 1 July 2005.

Page 18

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY cont’The Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:

The Authority’s accounting functions are carried out by the Department of Infrastructure Planningand Natural Resources (DIPNR). Therefore steps taken to manage the transition by DIPNR isapplicable to the authority. A special project team is to be established by DIPNR, which reports totheir Chief Finance Officer on progress against the plan. DIPNR’s Internal Audit Committee alsowill provide input to the process. The following phases that need to be undertaken have beenidentified:� Scope and identify impact of the changes� Determine changes to be made to systems, processes, policies.� Train staff� Implement changes and review

We anticipate all changes including the requisite changes to systems will be completed by theend of November 2004.

NSW Treasury is assisting agencies to manage the transition by developing policies, includingmandate of options; presenting training seminars to all agencies; providing a website with up-to-date information to keep agencies informed of any new developments; and establishing an IASAgency Reference Panel to facilitate a collaborative approach to manage the change.

(ii) Key Differences in Accounting Policies

The Authority has identified a number of significant differences in accounting policies that willarise from adopting AIFRS. Some differences arise because AIFRS requirements are differentfrom existing AASB requirements. Other differences could arise from options in AIFRS. Toensure consistency at the whole of government level, NSW Treasury has advised the Authority ofoptions it is likely to mandate, and will confirm these during 2004-05. This disclosure reflectsthese likely mandates.

The agency’s accounting policies may also be affected by a proposed standard designed toharmonise accounting standards with Government Finance Statistics (GFS). This standard islikely to change the impact of AIFRS and significantly affect the presentation of the incomestatement. However, the impact is uncertain, because it depends on when this standard isfinalised and whether it can be adopted in 2005-06. Based on current information, the followingkey differences in accounting policies are expected to arise from adopting AIFRS:

� AASB 1 First-time Adoption of Australian Equivalents to International Financial ReportingStandards requires retrospective application of the new AIFRS from 1 July 2004, with limitedexemptions. Similarly, AASB Accounting Policies, Changes in Accounting Estimates andErrors requires voluntary changes in accounting policy and correction of errors to beaccounted for retrospectively by restating comparatives and adjusting the opening balancesof accumulated funds. This differs from current Australian requirements, because suchchanges must be recognised in the current period through profit or loss, unless a newstandard mandates otherwise.

� AASB 110 Events after the balance sheet date states that only dividends “declared” orappropriately “authorised before the reporting date can be recognised. This is morerestrictive that the current approach which is based on ‘valid expectations”. However, thischange is not expected to impact on dividend recognition as the signing of the statement ofCorporate Intent/Statement of Business Intent before the reporting date to which it relates,“authorises” the dividend and any change in the amount of the dividend after the reportingdate constitutes an “adjusting event after the reporting date”.

Page 19

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY cont’However, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and the amountand volatility of profit/loss.

� AASB 116 Property, Plant and Equipment requires the cost and fair value of property, plantand equipment to be increased to include restoration costs, where restoration provisions arerecognised under AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

Major inspection costs must be capitalised and this will require the fair value and depreciationof the related asset to be re-allocated.

� AASB 117 Leases requires operating lease contingent rentals to be recognised as anexpense on a straight-line basis over the lease term rather than expensing in the financialyear incurred.

� AASB 119 Employee Benefits requires the defined benefit obligation to be discounted usingthe government bond rate at each reporting date rather than the long term expected rate ofreturn on plan assets. This will increase the amount and the future volatility of the unfundedsuperannuation liability and the volatility of the employee benefit expenses.

� AASB 120 Accounting for Government Grants and Disclosure of Government Assistance.For profit entities will either apply the current AASB 120 or early adopt a revised AASB 120,based on the grant requirements in AASB 141 Agriculture. The current AASB 120 spreadsincome over the period necessary to match related costs. A revised AASB 120 based onAASB 141 is likely to require revenue recognition when conditions are satisfied. Both of thesealternatives may have the effect of delaying revenue recognition.

� AASB 123 Borrowing Costs provides the option to expense or capitalise borrowing costs.NSW Treasury is likely to mandate expensing of borrowing costs to harmonise with GFS.Previously, borrowing costs related to qualifying assets were capitalised.

� AASB 1004 Contributions applies to not-for-profit entities only. Entities will either continue toapply the current requirements in AASB 1004 where grants are normally recognised onreceipt, or alternatively apply the proposals on grants included in ED 125 Financial Reportingby Local Governments. If the ED 125 approach is applied, revenue and/or expenserecognition will be delayed until the agency supplies the related goods and services (wheregrants are in-substance agreements for the provision of goods and services) or untilconditions are satisfied.

� AASB 132 Financial Instrument Disclosure and Presentation prohibits in-substancedefeasance. Agencies can no longer offset financial assets and financial liabilities whenfinancial assets are set aside in trust by a debtor for the purposes of discharging anobligation, without assets having been accepted by the creditor in settlement of the obligation.This will have the effect of increasing both assets and liabilities but will have no net impact onequity.

� AASB 136 Impairment of Assets requires an entity to assess at each reporting date whetherthere is any indication that an asset (or cash generating unit) is impaired and if suchindication exists, the entity must estimate the recoverable amount. However, the effect of thisStandard should be minimal because all the substantive principles in AASB 136 are alreadyincorporated in Treasury’s policy Valuation of Physical Non-Current Assets at Fair Value.

� AASB 138 Intangibles requires that all research costs must be expensed and restrictscapitalisation of development costs. Some previously recognised internally generatedintangible assets may need to be derecognised. Further, intangibles assets can only berevalued where there is an active market, which is unlikely to occur. As a result, it is likelythat any revaluation increments will need to be derecognised and intangible assetsrecognised at cost.

Page 20

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY cont’(g) Insurance

The authority’ s insurance activities are to be conducted through the NSW Treasury ManagedFund Scheme of self-insurance for Government agencies. The expense (premium) is determinedby the Fund Manager based on past experience and external benchmarking.

(h) Receivables

Receivables are recognised and carried at cost based on the original invoice amount less aprovision for any uncollectable debts. An estimate for doubtful debts is made when collection ofthe full amount is no longer probable. Bad debts are written off as incurred.

(i) Cash assets

Cash assets include investments in the Tcorp Hour-Glass Facility Managed fund investments,which are measured at market value. Revaluation increments or decrements are recognised inthe Statement of Financial Performance.

(j) Payables

These amounts represent liabilities for goods and services provided to the authority and otheramounts, including interest. Interest is accrued over the period it becomes due.

(k) Grants and subsidies

Grants and subsidies are recognised in the financial statements when conditions attached to theoffers are met by the intended recipient.

3. Expenses from ordinary activities 2004$000

Board Member Fees 47Administration Expenses 8Fees for Services- Department of Infrastructure, Planning andNatural Resources (Note 5) 743Audit fee 3Other Expenses 79

880

4. Revenues from ordinary activitiesGrants from Department of Infrastructure, Planning and NaturalResources (Note 5) - Operating Funds 68 - Investment Funds (Commonwealth & State Contributions) 1,993Interest 4

2,065

5. Investment Funding and Fee for Service

Implementation of the National Action Plan for Salinity and Water Quality (NAP program) and theNatural Heritage Trust (NHT program) is jointly administered by the Commonwealth Governmentof Australia and the New South Wales Government by way of a Joint Steering Committee (JSC)comprising NSW and Commonwealth representatives.

The NSW government introduced a comprehensive package of natural resource managementreforms in October 2003, including the creation of 13 Catchment Management Authorities (CMAs)as statutory organisations.

Page 21

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY cont’The Department of Infrastructure, Planning and Natural Resources, and in one case a CatchmentManagement Trust, undertook the activities under the NAP and NHT programs prior to thecreation of Catchment Management Authorities, on 23 January 2004. The CMA did not havestaff to carry out the NAP and NHT programs. As a result the Department of Infrastructure,Planning and Natural Resources undertook the work. The activities were in accordance withCatchment Management Blueprints, or other approved projects, established for each catchmentby the previous relevant Catchment Management Boards or Catchment Management Trust.

The Ministers from both NSW and the Commonwealth approve all funding for activities, detailedin the respective accredited Blueprints or other approved projects, to be undertaken in thecatchments.

Accordingly, the accounts of the Authority include investment funds received in relation to theNAP and NHT programs (revenue) of $1,993,000 (included in Note 4) and fees for servicesrendered by the Department in respect of the work (expense) of $295,000 (included in Note 3) forthe period prior to 23 January 2004.

6. Cash assets 2004$’000

Cash at bank 1,292Cash held with Treasury Corporation 307

1,599

For the purpose of the Statement of Cash Flows, cash includes cash at bank and short-terminvestments held with Treasury Corporation in the Hour-Glass Facility.

7. ReceivablesGrants from Department of Infrastructure, Planning andNatural Resources

411

Goods & Services Tax recoverable from ATO 8419

8. PayablesAccruals - amounts payable to Department of Infrastructure,Planning and Natural Resources

743

Accruals - other 90833

9. EquityAccumulated fundsAccumulated funds at 23 January 2004 -Net surplus from ordinary activities 1,185Accumulated funds at 30 June 2004 1,185Total equity 1,185

10. Reconciliation of surplus from ordinary activities to net cash usedin ordinary activities:

Surplus from ordinary activities 1,185Increase in employee related provisionsIncrease in accounts payable 833Increase in accounts receivable (419)

Net cash provided by/(used in) ordinary activities 1,599

Page 22

BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY cont’11. Contingent liabilities

The Authority is not aware of any contingent liability that would materially impact the Authority.

12. Financial instruments

Cash: Cash comprises bank balances. The Border Rivers - Gwydir Catchment Managementdoes not have any bank overdraft facility.

Investments: The Authority has an investment in TCorp Hourglass Facility - cash investmentaccount. Interest is reported in the financial statements as it is earned.

Accounts receivable: All debtors are recognised as amounts receivable at balance date.Collectability of debtors is reviewed on an ongoing basis. Debts, which are known to beuncollectable, are written off. A provision for doubtful debts is raised when some doubt exists asto collection. The credit risk is the carrying amount (net of any provision for doubtful debts). Nointerest is earned on debtors. The carrying amount approximates net fair value.

Accounts payable: Liabilities are recognised for amounts due to be paid in the future for goodsor services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured)are settled in accordance with the policy set out in Treasurer’s Direction 219.01. If trade termsare not specified, payment is made within 30 days. Treasurer’s Direction 219.01 allows theMinister to award interest for late payment. No interest was applied during the year.

Hour-Glass Investment Facilities

The Authority has investments in TCorp’s Hour-Glass Investment Facilities. The Authority’sinvestments are represented by a number of units in a managed investment within the facility.Each facility has different investment horizons and comprises a mix of asset classes appropriateto that investment horizon. TCorp appoints and monitors fund managers and establishes andmonitors the application of appropriate investment guidelines.

(a) Interest rate risk Fixed interest rateMaturing

Weighted

averageeffectiveinterest

rate

Floatinginterest

rate

$

1 year orless

$

1 to 5years

$

Noninterest-bearing

$

Total carryingamount as per the

Statement ofFinancial Position

$

Financial assets30 June 2004

Cash 4.25% 1,292 - - - 1,292Tcorp Hour GlassFacility

5.52% 307 - - - 307

Receivables - - - - 419 419Total financial assets - 1,599 - 419 2,018

Financial liabilitiesAccounts payable - - - - 833 833

Total financial liabilities - - - - 833 833

END OF AUDITED FINANCIAL REPORT FOR BORDER RIVERS-GWYDIR CATCHMENT MANAGEMENT AUTHORITY

Page 23

CENTRAL WEST CATCHMENT MANAGEMENT AUHTORITY


Page 24

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continued

Page 25

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CMA BOARD MEMBERS

Page 26

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Administration Expenses 37Depreciation expenses -Other expenses 736Expenses from ordinary activities 3 773




3,743


Page 27



2003

Note$’000



Total Assets 4,479

Current Liabilities Payables 8 736Total Current Liabilities


Net Assets 3,743



Page 28



2004Note $’000

Cash Flows From Operating ActivitiesRecurrent Government Contribution Received 3,920Interest Received 12Other IncomeEmployee Related Payments (35)Others (5)


Cash Flows From Investing ActivitiesPayment for purchase of plant and equipmentProceeds from sale of plant and equipmentNet cash flows from/(used in) investing activities




Page 29



1. Reporting Entity

The Central West Catchment Management Authority was established pursuant to the CatchmentManagement Authorities Act 2003 on 23 January 2004. This Act provided for the establishment of13 Catchment Management Authorities across NSW as part of the NSW Government’s broadranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Saving and Transitional)Regulation, the Central West Catchment Management Authority Local Establishment Team wasappointed by the Minister as the board of the Central West Catchment Management Authorityuntil the Minister appointed the board in accordance with section 8 of the CatchmentManagement Authorities Act 2003.











Page 30

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continued (c) Tax status













(i) Explanation of how the transition to AIFRS is being managedThe Authority will apply the Australian Equivalents to International Financial Reporting Standards(AIFRS) from the reporting period beginning 1 July 2005.

Page 31

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continuedThe Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:

The Authority’s accounting functions are carried out by the Department of Infrastructure Planningand Natural Resources (DIPNR). Therefore steps taken to manage the transition by DIPNR isapplicable to the authority. A special project team is to be established by DIPNR, which reports totheir Chief Finance Officer on progress against the plan. DIPNR’s Internal Audit Committee ifany, also will provide input to the process. The following phases that need to be undertaken havebeen identified:� Scope and identify impact of the changes� Determine changes to be made to systems, processes, policies.� Train staff� Implement changes and review








Page 32

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continuedHowever, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and theamount and volatility of profit/loss.











Page 33

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continued(g) Insurance


(h) Receivables


(i) Cash assets


(j) Payables





Audit fee 3Fees for Services- Department of Infrastructure, Planning andNatural Resources ( Investment Strategy Projects) – (Note 5) 697Fees for Services - Others 9Other Expenses 34Board Member Fees 30

773

4. Revenues from ordinary activities

Grants from Department of Infrastructure, Planning and NaturalResources (Note 5) - Operating Funds 73 - Investment (Commonwealth & State Contributions) 4,431

Interest 124,516




Page 34

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continuedThe Department of Infrastructure, Planning and Natural Resources, and in one case a CatchmentManagement Trust, undertook the activities under the NAP and NHT programs prior to thecreation of Catchment Management Authorities, on 23 January 2004. The CMA did not havestaff to carry out the NAP and NHT programs. As a result the Department of Infrastructure,Planning and Natural Resources undertook the work. The activities were in accordance withCatchment Management Blueprints, or other approved projects, established for each catchmentby the previous relevant Catchment Management Boards or Catchment Management Trust.



6. Cash assets2004$000

Cash at bank 2,822Cash held with Treasury Corporation 1,070

3,892


7. Receivables

Accrued income-amounts receivable from Department ofInfrastructure, Planning and Natural Resources (InvestmentStrategy Projects)

584

Goods and Services Tax recoverable from ATO 3587

8. Payables

Accruals - amounts payable to Department of Infrastructure,Planning and Natural Resources (Investment Strategy Projects)

697



10. Reconciliation of Net Cash Flows from Operating Activities toSurplus

Net Cash Flow from Operating Activities 3,743Increase in accounts payable 736Increase in accounts receivable (587)


Page 35

CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY continued11. Contingent liabilitiesThe Authority is not aware of any contingent liability that wouldmaterially impact the Authority.


Cash: Cash comprises bank balances. The Central West Catchment Management does not haveany bank overdraft facility.







Weightedaverageeffectiveinterest

rate

Floatinginterest

rate

$

1 yearor less

$

1 to 5years

$

Noninterest

-bearing

$

Total carryingamount as perthe Statement

of FinancialPosition

$Financial assets30 June 2004

Cash 4.25% 2,822 - - - 2,822Tcorp Hour GlassFacility

5.52% 1,070 - - - 1,070




END OF AUDITED FINANCIAL REPORT FOR CENTRAL WEST CATCHMENT MANAGEMENT AUTHORITY.

Page 36

- blank page -

Page 37

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY


Page 38

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’

Page 39

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF CMA BOARD MEMBERS

Page 40

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Administration Expenses 69Grants and Subsidies 68Other expenses 1,044Expenses from ordinary activities 3 1,181

Surplus from ordinary activities 1,825



1,825


Page 41

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000

Current Assets Cash assets 6 1,754 Receivables 7 1,101


Non-Current Assets Plant and Equipment 8 14Total Non-Current Assets 14

Total Assets 2,869

Current Liabilities Payables 9 1,044

Total Current Liabilities 1,044

Total Liabilities 1,044

Net Assets 1,825


1,825


Page 42

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating ActivitiesInterest Received 8Recurrent Government contribution received 1,906Payment to Suppliers (146)

Net cash flows provided by operating activities11 1,768

Cash Flows From Investing ActivitiesPayment for purchase of plant and equipment (14)Net cash flows used in investing activities (14)


Cash at the end of the financial year 6 1,754


Page 43

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’NOTES TO THE FINANCIAL STATEMENTS

1. REPORTING ENTITY

The Hawkesbury Nepean Catchment Management Authority was established pursuant to theCatchment Management Authorities Act 2003 on 23 January 2004. This Act provided for theestablishment of 13 Catchment Management Authorities across NSW as part of the NSWGovernment’s broad ranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Savings and Transitional)Regulation the Hawkesbury Nepean Catchment Management Authority Local EstablishmentTeam was appointed by the Minister as the Board of the Hawkesbury Nepean CatchmentManagement Authority until the Minister appointed the Board in accordance with section 8 of theCatchment Management Authorities Act 2003.

The Hawkesbury Nepean Catchment Management Authority has been provided with financialrecording and reporting services by the Department of Infrastructure, Planning and NaturalResources under transitional arrangements. The Department has provided certain assurances inthe form of a Letter of Comfort to the Board in respect to those functions which have beenconsidered in the finalisation of these statutory accounts

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES









Page 44

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’Investment income - Interest revenue is recognised as it accrues.

(c) Tax status

The Authority is liable for fringe benefits tax, payroll tax and GST. All other activities are exemptfrom taxation.

The Authority is a member of a GST Group with other Catchment Management Authorities, theDepartment of Infrastructure, Planning and Natural Resources (DIPNR) and with certain otherentities to whom DIPNR provides accounting support. To the extent that there are transactionsbetween members of the GST Group, they are not subject to GST.













Page 45

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’The Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:

The Authority’s accounting functions are carried out by the Department of Infrastructure Planningand Natural Resources (DIPNR). Therefore steps taken to manage the transition by DIPNR isapplicable to the authority. A special project team is to be established by DIPNR, which reports totheir Chief Financial Officer on progress against the plan. DIPNR’s Internal Audit Committee willalso provide input to the process. The following phases have been identified:� Scope and identify impact of the changes� Determine changes to be made to systems, processes, policies.� Train staff� Implement changes and review

It is anticipated all changes, including the requisite changes to systems, will be completed by theend of November 2004.







Page 46

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’However, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and theamount and volatility of profit/loss.











Page 47

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’(g) Insurance


(h) Acquisition of Assets

The cost method of accounting is used for the initial recording of all acquisitions of assetscontrolled by the authority. Cost is determined as the fair value of the assets given asconsideration plus costs incidental to the acquisition

(i) Plant and equipment

Plant and equipment costing $5,000 and above individually are capitalised.

(j) Depreciation

The depreciable amounts of non-current assets are depreciated over their estimated useful livesto the Authority. The rates of depreciation for motor vehicles are 15% straight-line. The rates ofdepreciation for all other depreciable items are calculated on a straight-line basis at 25% forcomputer equipment, 3% for buildings and 10% for other assets.

(k) Receivables


(l) Payables


(m) Grants and subsidies


3. EXPENSES FROM ORDINARY ACTIVITIES 2004$’000

Administration Expenses Board member fees * 69

Grants and Subsidies 68

Other ExpensesFees for Services – Department of Infrastructure,Planning and Natural Resources (Note 5) 1,018Audit fee 3Other 23

1,181* Board members received no other benefits

Page 48


4. REVENUE FROM ORDINARY ACTIVITIES 2004$’000

Grants from Department of Infrastructure, Planning andNatural Resources(Note 5): - Operating funds 91 - Investment funds (Commonwealth & Statecontributions) 2,907Interest on deposits 8

3,006

5. INVESTMENT FUNDING AND FEE FOR SERVICE



The Department of Infrastructure, Planning and Natural Resources, and in one case a CatchmentManagement Trust, undertook the activities under the NAP and NHT programs prior to thecreation of Catchment Management Authorities, on 23 January 2004. The CMA did not havestaff to carry out the NAP and NHT programs. As a result the Department of Infrastructure,Planning and Natural Resources undertook the work. The activities were in accordance withCatchment Management Blueprints, or other approved projects, established for each catchmentby the previous relevant Catchment Management Boards or Catchment Management Trust.



6. CURRENT ASSETS – CASH 2004$’000

Cash at bank and on hand 1,754

7. RECEIVABLESCurrent Receivables:

Goods and Services Tax recoverable from ATO 9Accrued income – amounts receivable fromDepartment of Infrastructure, Planning and NaturalResources

1,092

1,101

Page 49


8. NON-CURRENT ASSETS – PROPERTY, PLANTAND EQUIPMENT

2004$’000

PLANT AND EQUIPMENTAt Fair Value 14Less:Accumulated Depreciation -

14

Total Property, Plant and Equipment at Net BookValue

14

9. CURRENT LIABILITIES-PayablesAccruals – Amounts payable to Department of Infrastructure,Planning and Natural Resources

1,018

Accruals – Other 261,044

10. EQUITYAccumulated fundsAccumulated funds at 23 January 2004 -Net surplus from ordinary activities 1,825Accumulated funds at 30 June 2004 1,825Total equity 1,825

11. RECONCILIATION OF NET CASH FLOWS FROMOPERATING ACTIVITIES TO SURPLUSNet Cash flow from Operating Activities 1,768

DepreciationEmployee related provisionsNet Gain on sale of non-current assetsIncrease in Accounts receivable 1,101(Increase) in Current liabilities (1,044)

Surplus 1,825

12. CONTINGENT LIABILITIESThe Authority is not aware of any contingent liability that would materially impact the Authority.

13. FINANCIAL INSTRUMENTSCashCash comprises bank balances within the Treasury Banking System. Interest is earned on dailybank balances at the monthly average NSW Treasury Corporation 11.00 am unofficial cash rateadjusted for a management fee to Treasury.

ReceivablesAll trade and other debtors are recognised as amounts receivable at balance date. Collectabilityof all debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectable, arewritten off. A provision for doubtful debts is raised when some doubt as to collection exists. Thecredit risk is the carrying amount (net of any provision for doubtful debts). No interest is earnedon trade debtors. The carrying amount approximates net fair value. Sales are generally made on30 days terms.

Page 50

HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY cont’Bank OverdraftThe Authority does not have any bank overdraft facility.

Trade Creditors and AccrualsThe liabilities are recognised for amounts due to be paid in the future for goods or servicesreceived whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settledin accordance with the policy set out in Treasurer’s Direction 219.01. If trade terms are notspecified, payment is made not later than the end of the month following the month in which aninvoice or a statement is received. Treasurer’s Direction 219.01 allows the Minister to awardinterest for late payment. No interest was paid during the period. The carrying amountapproximates net fair value.

(a) Interest rate risk

Fixed interest rateMaturing


rate

Floatinginterest

rate

$

1 yearor less

$

1 to 5years

$

Noninterest-bearing

$

Total carryingamount as per

the Statement ofFinancialPosition


Cash 4.25 1,754 1,754Receivables - 1,101 1,101

Total financial assets - 1,754 1,101 2,855Financial liabilities

Accounts payable - 1,044 1,044Total financial liabilities - 1,044 1,044

END OF AUDITED FINANCIAL REPORT FOR HAWKESBURY-NEPEAN CATCHMENT MANAGEMENT AUTHORITY

Page 51

HUNTER-CENTRAL RIVERS CATCHMENT MANAGEMENT AUTHORITY


Page 52

HUNTER-CENTRAL RIVERS CATCHMENT MANAGEMENT AUTHORITY cont’

Page 53


STATEMENT OF CMA BOARD MEMBERS

Page 54


STATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Administration Expenses 785Depreciation expenses 61Grants and Subsidies 633Other expenses 3,447Expenses from ordinary activities 4 4,926



Total changes in equity other than resulting fromtransactions with owners as owners 1,123


Page 55



2004

Note$’000

Current Assets Cash assets 6 6,995 Receivables 7 2,925 Other 8 83Total Current Assets 10,003

Non-Current Assets Land and Buildings 9 3,588 Motor Vehicles 9 241 Plant and Equipment 9 66Total Non-Current Assets 3,895

Total Assets 13,898

Current Liabilities Payables 10 3,613 Provisions 11 173Total Current Liabilities 3,786

Non-Current Liabilities Provisions 11 24

24


Net Assets 10,088

Equity Retained Surplus 12 10,088

10,088


Page 56



2004Note $’000

Cash Flows From Operating ActivitiesCatchment Contributions/Grants 3,598Interest Received 136GST received from ATO 19Other Income 439Payment to Suppliers (2,055)


Cash Flows From Investing ActivitiesPayment for purchase of plant and equipment 9 (45)Proceeds from sale of plant and equipment 51Net cash flows from investing activities

6

Net increase in cash held 2,143Cash at the beginning of the financial period 4,852

Cash at the end of the financial period 6 6,995


Page 57



1. Reporting Entity

The Hunter-Central Rivers Catchment Management Authority was established pursuant to theCatchment Management Authorities Act 2003 on 23 January 2004. This Act provided for theestablishment of 13 Catchment Management Authorities across NSW as part of the NSWGovernment’s broad ranging reform of natural resource management.







All amounts are rounded to the nearest dollar and are expressed in Australian currency.





(c) Tax status


The Authority is a member of GST Group with other Catchment Management Authorities, with theDepartment of Infrastructure, Planning and Natural Resources (DIPNR), and with certain otherentities to whom DIPNR provides accounting support. To the extent that there are transactionsbetween members of the GST Group, they are not subject to GST.

Page 58





� Receivables and payables that include GST are stated with the amount of GST included. TheCommonwealth government funding is GST free and some State Government funding is GSTfree.


(i) Salaries and Wages, Annual Leave, Sick Leave and OncostsLiabilities for salaries and wages (including non-monetary benefits) and annual leave arerecognised and measured in respect of employees’ services up to the reporting date at nominalamounts based on the amounts expected to be paid when the liabilities are settled. Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leavetaken in the future will be greater than the benefits accrued in the future.


(ii) Long Service Leave and SuperannuationThe Authority’s liabilities for long service leave and superannuation are assumed by the CrownEntity. Long service leave is measured at present value, based on the application of factorsprescribed by Treasury Circular TC03/08, to the amounts calculated using the actualremuneration rates for all employees with five or more years of service.





The Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:

Page 59


The Authority’s accounting functions are carried out by the Department of Infrastructure Planningand Natural Resources. Therefore steps taken to manage the transition by DIPNR is applicable tothe authority. A special project team is to be established by DIPNR, which reports to their ChiefFinance Officer on progress against the plan. DIPNR’s Internal Audit Committee if any, also willprovide input to the process. The following phases have been identified:� Scope and identify impact of the changes� Determine changes to be made to systems, processes, policies.� Train staff� Implement changes and review








However, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and theamount and volatility of profit/loss.

Page 60












Page 61


(g) Insurance

The authority’ s insurance activities are conducted through the NSW Treasury Managed FundScheme of self-insurance for Government agencies. The expense (premium) is determined bythe Fund Manager based on past experience and external benchmarking.

(h) Acquisition of Assets

The cost method of accounting is used for the initial recording of all acquisitions of assetscontrolled by the authority. Land is measured on the cost basis and does not include anyincidental purchasing costs or legal expenses, but represents the contract purchase price only. Allland was purchased under the Hexham Swamp Rehabilitation project. Buildings are reported atfair values. The State Valuation Office assessed the buildings at the estimated written downreplacement cost at 30 June 2003.

Assets acquired at no cost or for nominal consideration are initially recognised as assets andrevenues at their fair value at the date of acquisition. Fair value means the amount for which anasset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willingseller in an arm’s length transaction.

Where settlement of any part of cash consideration is deferred, the amounts payable in the futureare discounted to their present value at the acquisition date. The discount rate used is theincremental borrowing rate being the rate at which a similar borrowing could be obtained.

(i) Plant and equipment

Plant and equipment costing $5,000 and above individually are capitalised.

(j) Depreciation

The depreciable amounts of non-current assets are depreciated over their estimated useful livesto the Authority. The rates of depreciation for motor vehicles are 15% straight-line. The rates ofdepreciation for all other depreciable items are calculated on a straight-line basis at 25% forcomputer equipment, 3% for buildings and 15% or 12% for all other assets.

(k) Revaluation of Physical Non-Current Assets

Physical non-current assets are valued in accordance with the “Guidelines for the Valuation ofPhysical Non-Current Assets at Fair Value (TPP 03-02)”. This policy adopts fair value inaccordance with AASB 1041 from the financial years beginning on or after 1 July 2002. There isno substantive difference between the fair value valuation methodology and the previousvaluation methodology adopted in the NSW public sector.

Where available, fair value is determined having regard to the highest and best use of the asseton the basis of current market selling prices for the same or similar assets. Where market sellingprice is not available, the asset’s fair value is measured as its market buying price ie thereplacement cost of the asset’s remaining future economic benefit. The agency is a not for profitentity with no cash generating operations.

Each class of physical non-current assets is revalued every five years and with sufficientregularity to ensure that the carrying amount of each asset in the class does not differ materiallyfrom its fair value at reporting date.

When revaluing non-current assets by reference to current prices for assets newer than thosebeing revalued (adjusted to reflect the present condition of the assets), the gross amount and therelated accumulated depreciation is separately restated. Otherwise, any balances of accumulateddepreciation existing at the revaluation date in respect of those assets are credited to the assetaccounts to which they relate. The net asset accounts are then increased or decreased by therevaluation increments or decrements.

Page 62


Revaluation increments are credited directly to the asset revaluation reserve, except that, to theextent that an increment reverses a revaluation decrement in respect of that class of assetpreviously recognised as an expense in the surplus/deficit, the increment is recognisedimmediately as revenue in the surplus/deficit.

Revaluation decrements are recognised immediately as expenses in the surplus/deficit, exceptthat, to the extent that a credit balance exists in the asset revaluation reserve in respect of thesame class of assets, they are debited directly to the asset revaluation reserve. Buildings arerevalued at least every five years. Revaluation increments and decrements are offset against oneanother within a class of non-current assets but not otherwise.Where an asset that has previouslybeen revalued is disposed of, any balance remaining in the asset revaluation reserve in respectof that asset is transferred to accumulated funds.

(l) Assets Not Able to be Reliably Measured

The Authority does not hold assets that have not been recognised in the Statement of FinancialPosition.

(m) Maintenance and Repairs

The costs of maintenance are charged as expenses as incurred, except where they relate to thereplacement of a component of an asset, in which case the costs are capitalised and depreciated.

(n) Leased Asset

A distinction is made between finance leases which effectively transfer from the lessor to thelessee substantially all the risks and benefits incidental to ownership of leased assets, andoperating leases under which the lessor effectively retains all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is recognised at itsfair value at the inception of the lease. The corresponding liability is established at the sameamount. Lease payments are allocated between the principal component and the interestexpense. The Authority does not have any finance leases. Operating lease payments arecharged to the Statement of Financial Performance in the periods in which they are incurred.

(o) Receivables


(p) Cash assets

"Cash assets" include investments in the Tcorp Hour-Glass Facility Managed fund investments,which are measured at market value. Revaluation increments or decrements are recognised inthe Statement of Financial Performance.

(q) Trust Funds

The authority does not receive any money in a trustee capacity.

(r) Payables

These amounts represent liabilities for goods and services provided to the authority and otheramounts.

Page 63


(s) Equity transfers

The transfer of net assets between agencies as a result of an administrative restructure, transferof programs / functions and parts thereof between NSW public sector agencies are designated asa contribution by owners by NSWTC 01/11 and are recognised as an adjustment to "AccumulatedFunds". This treatment is consistent with Urgent Issues Group Abstract UIG 38 "Contributions byOwners Made to Wholly Owned Public Sector Entities".

Transfers arising from an administrative restructure between government authorities arerecognised at the amount at which the asset was recognised by the transferor prior to therestructure. In most instances this will approximate fair value. All other equity transfers arerecognised at fair value.

(t) Grants and subsidies


3. REVENUE FROM ORDINARY ACTIVITIES2004

$’000Grants from Department of Infrastructure, Planning andNatural Resources (Note 5) 2,523Grants from Other NSW Government Agencies 1,360Income from Catchment Contributions 1,561Interest Income 122Net Gain on Sale of Non Current Assets 2Other 481

6,049

4. EXPENSES FROM ORDINARY ACTIVITIES

Administration ExpensesStaffing Salaries 522Board Member fees 46Staff on-costs 217

785 Depreciation expenses 61 Grants and Subsidies 633 Other Expenses Auditor's remuneration - audit of the financial report 14

Consultants 82Contractors 1,279Fees for Services-Department of Infrastructure,Planning and Natural Resources (Note 5) 1,286Fees for Services - Other 494Cost of Cattle sales 19Other 273

3,447Total Expenses from Ordinary Activities 4,926

Board members received no other benefits.

Page 64








6. CURRENT ASSETS - CASH2004

$’000 Cash at bank and on hand 1,152 TCorp Hour Glass and Other Investments 5,843

6,995

For the purpose of the Statement of Cash Flows, cash includes “cash on hand”, “cash at bank”,“short-term investments” held with Treasury Corporation in the Hour Glass facility and “Interestbearing bank term deposits” .

7. RECEIVABLESCurrent Receivables:Debtors 677Less: Provision for doubtful debts -

677Goods and Services Tax recoverable from ATO 28Accrued income 2,218Other 2

2,925

8. OTHERCattle – at net market value per CMA valuation 83

There were 127 head of cattle on hand at 30 June 2004. There is no restriction on the CMA’s useor capacity to sell cattle.

Page 65


9. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENTLAND AND BUILDINGSAt Fair Value 3,724Less:Accumulated Depreciation (136)

3,588MOTOR VEHICLESAt Fair Value 310Less:Accumulated Depreciation (69)

241PLANT AND EQUIPMENTAt Fair Value 396Less:Accumulated Depreciation (330)

66Total Property, Plant and Equipment at Net BookValue

3,895

ReconciliationReconciliation of the carrying amounts of each class of property plant and equipment at thebeginning and end of the current financial period are set out below:

Land andBuildings

Plant andEquipment

MotorVehicle

s

Total

$'000 $'000 $'000 $'000

Carrying amount at 23/1/04 3,603 87 270 3,960Additions - - 45 45Disposals - - (49) (49)Depreciation expense (15) (21) (25) (61)Carrying amount at 30/06/2004 3,588 66 241 3,895

10. CURRENT LIABILITIES-PAYABLES2004

$’000Accrued salaries, wages and on-costs 57Creditors 262Accruals – Other 3,294

3,613

11. CURRENT/NON-CURRENT LIABILITIES - PROVISIONSRecreation leave 159Oncosts on Employee Benefit liability 38Total Provisions 197

Current 173Non-Current 24Total 197

Page 66


12. CHANGES IN EQUITY Accumulated

Funds Total

Equity 2004 2004 $’000 $’000 Opening Balance - - Transactions with owners as owners Increase in net assets from administrativerestructuring (Note 12)

8,965

8,965

Total Other than transactions with owners as owners Surplus for the period 1,123 1,123 At 30 June 2004 10,088 10,088 The asset revaluation reserve records the revaluation of buildings. 13. INCREASE / DECREASE IN NET ASSETS FROM EQUITY TRANSFERS Fair value of net assets transferred from former Hunter Catchment Management Trust as perNote 11. 2004 $’000 Cash 4,852 Current Receivables 1,077 Cattle 72 Motor Vehicles 270 Plant and Equipment 87 Land and Buildings 3,603TOTAL ASSETS 9,961Other Current Liabilities 742Other Non-Current Liabilities 254TOTAL LIABILITIES 996NET ASSETS ACQUIRED 8,965

14. RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES TOSURPLUS

2004$’000

Net Cash flow from Operating Activities (2,137)Depreciation 61Employee related provisions (201)

Net gain on sale of non-current assets (2)(Increase) in Accounts receivable (1,847)(Increase) in Other (10)Increase in Current liabilities 3,013


15. COMMITMENTS

(a) Capital commitmentsAggregate capital expenditure contracted for at balance date and not provided for:

Not later than one year -Total (including GST) -

(b) Other expenditure commitmentsNot later than one year -Total (including GST) -

Page 67


The Authority has a 25-year lease, with the CB Alexander Foundation at a peppercorn rental, forthe land on which its administrative building is constructed. It also has a five-year licence, at nilrental, on Ash Island with the Department of Commerce, to facilitate the Koorgang WetlandRehabilitation Project.

16. Contingent liabilitiesThe Authority is not aware of any contingent liability that would materially impact the Authority.


CashCash comprises cash on hand and bank balances within the Treasury Banking System and termdeposits. Interest is earned on daily bank balances at the monthly average NSW TreasuryCorporation 11.00 am unofficial cash rate adjusted for a management fee to Treasury.

ReceivablesAll trade and other debtors are recognised as amounts receivable at balance date. Collectabilityof all debtors is reviewed on an ongoing basis. A provision for doubtful debts is raised whensome doubt as to collection exists. The credit risk is the carrying amount (net of any provision fordoubtful debts). No interest is earned on trade debtors. The carrying amount approximates netfair value. Sales are generally made on 30 days terms.

Bank OverdraftThe Authority does not have any bank overdraft facility.


Hour Glass Investment Facilities


Page 68




rate

Floatinginterest

rate

$’000

1 yearor less

$’000

1 to 5years

$’000

Noninterest-bearing

$’000


of FinancialPosition$’000


Cash 4.25 1,152 1,152Term Deposits 5.05 4,407 4,407Hour Glass facilities 5.528 1,436 1,436Receivables - 2,925 2,925

Total financial assets - 2,588 4,407 2,925 9,920Financial liabilities


END OF AUDITED FINANCIAL REPORT FOR HUNTER-CENTRAL RIVERS CATCHMENT MANAGEMENT AUTHORITY.

Page 69

LACHLAN CATCHMENT MANAGEMENT AUTHORITY


Page 70

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continued

Page 71

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CMA BOARD MEMBERS

Page 72

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Board Member fees (50)Administration Expenses (12)Other expenses (880)Expenses from ordinary activities 3 (942)




4,009


Page 73

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000

Current Assets Cash assets 6 4,300 Receivables 7 591Total Current Assets 4,891

Total Assets 4,891



Net Assets 4,009



Page 74

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating ActivitiesRecurrent Government Contribution Received 4352Interest Received 11Payments - employee related (58)Payments to Suppliers (5)Net cash flows provided by operating activities 10 4,300




Page 75

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continuedNOTES TO THE FINANCIAL STATEMENTS

1. Reporting Entity

The Lachlan Catchment Management Authority was established pursuant to the CatchmentManagement Authorities Act 2003 on 23 January 2004. This Act provided for the establishment of13 Catchment Management Authorities across NSW as part of the NSW Government’s broadranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Savings and Transitional)Regulation, the Lachlan Catchment Management Authority Local Establishment Team wasappointed by the Minister as the board of the Lachlan Catchment Management Authority until theMinister appointed the board in accordance with section 8 of the Catchment ManagementAuthorities Act 2003



The Authority's financial statements are a general purpose financial report, which has beenprepared on an accrual basis and in accordance with:� applicable Australian Accounting Standards;� other authoritative pronouncements of the Australian Accounting Standards Board (AASB);� Urgent Issues Group (UIG) Consensus Views and� the requirements of the Public Finance and Audit Act and Regulations.








Page 76

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continued (c) Tax status

The Authority is liable for fringe benefits tax, payroll tax and GST. All other activities are exemptfrom taxation. The Authority is a member of a GST Group with other Catchment ManagementAuthorities, the Department of Infrastructure, Planning and Natural Resources (DIPNR) and withcertain other entities to whom DIPNR provides accounting support. To the extent that there aretransactions between members of the GST Group, they are not subject to GST.








(ii) Long Service Leave and SuperannuationThe Authority’s liabilities for long service leave and superannuation are assumed by the CrownEntity. The Authority accounts for the liability as having been extinguished resulting in the amountassumed being shown as part of the non-monetary revenue item described as “Acceptance bythe Crown Entity of Employee Entitlements and other Liabilities”.

Long service leave is measured at present value, based on the application of factors prescribedby Treasury Circular 03/08, to the amounts calculated using the actual remuneration rates for allemployees with five or more years of service.



Page 77

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continued(f) Impact of adopting Australian Equivalents to International Financial Reporting

Standards



The Authority’s accounting functions are carried out by the Department of Infrastructure, Planningand Natural Resources (DIPNR). Therefore steps taken to manage the transition by DIPNR isapplicable to the authority. A special project team is to be established by DIPNR, which reports totheir Chief Finance Officer on progress against the plan. DIPNR’s Internal Audit Committee alsowill provide input to the process. The following phases have been identified:� Scope and identify impact of the changes� Determine changes to be made to systems, processes, policies.� Train staff� Implement changes and review

It is anticipated all changes including the requisite changes to systems will be completed by theend of November 2004.


(ii) Key Differences in Accounting PoliciesThe Authority has identified a number of significant differences in accounting policies that willarise from adopting AIFRS. Some differences arise because AIFRS requirements are differentfrom existing AASB requirements. Other differences could arise from options in AIFRS. Toensure consistency at the whole of government level, NSW Treasury has advised the Authority ofoptions it is likely to mandate, and will confirm these during 2004-05. This disclosure reflectsthese likely mandates.



Page 78

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continued











Page 79

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continued� AASB 136 Impairment of Assets requires an entity to assess at each reporting date whether

there is any indication that an asset (or cash generating unit) is impaired and if suchindication exists, the entity must estimate the recoverable amount. However, the effect of thisStandard should be minimal because all the substantive principles in AASB 136 are alreadyincorporated in Treasury’s policy Valuation of Physical Non-Current Assets at Fair Value.


(g) Insurance


(h) Receivables


(i) Cash assets

Cash assets include investments in the TCorp Hour-Glass Facility Managed fund investments,which are measured at market value. Revaluation increments or decrements are recognised inthe Statement of Financial Performance.

(j) Payables


(k Grants and subsidies


2004$'000

3. Expenses from ordinary activitiesAudit fee 3Board member fees* 50Fees for services - Department of Infrastructure, Planning andNatural Resources (Note 5) 854Administration expenses 12Other expenses 23

942 *Board members received no other fees

4. Revenue from ordinary activities Grants from Department of Infrastructure, Planning and Natural

Resources (Note 5) - Operating Funds 81

- Investment funds (Commonwealth & State contributions) 4,860Interest Income 10

4,951

Page 80

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continued5. Investment Funding and Fee for Service







Cash at bank 3,351Cash Investment Account 949

4,300

For the purpose of the Statement of Cash Flows, cash includes cash at bank and short terminvestments held with Treasury Corporation in the Hour-Glass Facility

7. Receivables

Grants from Department of Infrastructure, Planning andNatural Resources

589

Australian Taxation Office - GST 2591

8. Payables Accrued expenses - Department of Infrastructure, Planning and

Natural Resources 854Accrued expenses - other 24Accrued salaries, wages and on-costs 4

882

Page 81

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continued9. EquityReserves -

Accumulated fundsAccumulated funds at 23 January 2004 -Net surplus from ordinary activities 4,009Accumulated funds at 30 June 2004 4,009Total equity 4,009


Surplus from ordinary activities 4,009Increase in accounts payable 882Increase in accounts receivable (591)

Net cash provided by ordinary activities 4,300

11. Contingent liabilities



CashCash comprises cash on hand and bank balances within the Treasury Banking System. Interestis earned on daily bank balances at the monthly average NSW Treasury Corporation 11.00 amunofficial cash rate adjusted for a management fee to Treasury.




Page 82

LACHLAN CATCHMENT MANAGEMENT AUTHORITY continuedHour Glass Investment FacilitiesThe Authority has investments in TCorp's Hour-Glass Investment Facilities. The Authority’sinvestments are represented by a number of units in a managed investment within the facility.Each facility has different investment horizons and comprises a mix of asset classes appropriateto that investment horizon. TCorp appoints and monitors fund managers and establishes andmonitors the application of appropriate investment guidelines.

Interest rate risk Fixed interest rateMaturing


rate

Floatinginterest

rate

$'000

1 yearor less

$'000

1 to 5years

$'000

Noninterest

-bearing

$'000


the Statement ofFinancialPosition

$'000Financial assets30 June 2004

Cash 4.25% 3,350 - - - 3,350Hour-Glass facility 5.528% 950 - - 950Receivables - - - - 591 591

Total financial assets - 4,300 591 4,891



END OF AUDITED FINANCIAL REPORT FOR LACHLAN CATCHMENT MANAGEMENT AUTHORITY.

Page 83

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY


Page 84

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’

Page 85

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF CMA BOARD MEMBERS

Page 86

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Administration Expenses 51Other expenses 2,267Expenses from ordinary activities 3 2,318




2,166


Page 87

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000



Total Assets 4,436




Net Assets 2,166


2,166


Page 88

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’STATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000



Cash Flows From Investing ActivitiesPayment for purchase of plant and equipmentProceeds from sale of plant and equipmentNet cash flows used in investing activities




Page 89

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’NOTES TO THE FINANCIAL STATEMENTS

1. REPORTING ENTITY

The Lower Murray Darling Catchment Management Authority was established pursuant to theCatchment Management Authorities Act 2003 on 23 January 2004. This Act provided for theestablishment of 13 Catchment Management Authorities across NSW as part of the NSWGovernment’s broad ranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Savings and Transitional)Regulation the Lower Murray Darling Catchment Management Authority Local EstablishmentTeam was appointed by the Minister as the Board of the Lower Murray Darling CatchmentManagement Authority until the Minister appointed the Board in accordance with section 8 of theCatchment Management Authorities Act 2003.

The Lower Murray Darling Catchment Management Authority has been provided with financialrecording and reporting services by the Department of Infrastructure, Planning and NaturalResources under transitional arrangements. The Department has provided certain assurances inthe form of a Letter of Comfort to the Board in respect to those functions which have beenconsidered in the finalisation of these statutory accounts










Page 90

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’Investment income - Interest revenue is recognised as it accrues.

(c) Tax status








(i) Salaries and Wages, Annual Leave, Sick Leave and Oncosts

Liabilities for salaries and wages (including non-monetary benefits) annual leave and vesting sickleave are recognised and measured in respect of employees’ services up to the reporting date atnominal amounts based on the amounts expected to be paid when the liabilities are settled.Unused non-vesting sick leave does not give rise to a liability as it is not considered probable thatsick leave taken in the future will be greater than the benefits accrued in the future.





Page 91

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’(f) Impact of adopting Australian Equivalents to International Financial Reporting

Standards











Page 92

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’� AASB 110 Events after the balance sheet date states that only dividends “declared” or

appropriately “authorised before the reporting date can be recognised. This is morerestrictive that the current approach which is based on ‘valid expectations”. However, thischange is not expected to impact on dividend recognition as the signing of the statement ofCorporate Intent/Statement of Business Intent before the reporting date to which it relates,“authorises” the dividend and any change in the amount of the dividend after the reportingdate constitutes an “adjusting event after the reporting date”.











Page 93

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’� AASB 138 Intangibles requires that all research costs must be expensed and restricts

capitalisation of development costs. Some previously recognised internally generatedintangible assets may need to be derecognised. Further, intangibles assets can only berevalued where there is an active market, which is unlikely to occur. As a result, it is likelythat any revaluation increments will need to be derecognised and intangible assetsrecognised at cost.

(g) Insurance


(h) Receivables


(i) Cash assets

Cash assets include investments in the New South Wales Treasury Corporation (TCorp) Hour-Glass Facility Managed fund investments, which are measured at market value. Revaluationincrements or decrements are recognised in the Statement of Financial Performance.

(j) Payables





Administration Expenses Board member fees * 51

Other ExpensesFees for Services – Department of Infrastructure,Planning and Natural Resources (Note 5)

2,243

Audit fee 3Other 21


4. REVENUE FROM ORDINARY ACTIVITIESGrants from Department of Infrastructure, Planning andNatural Resources (Note 5) : - Operating funds 72 - Investment funds (Commonwealth & Statecontributions)

4,388

Interest 24

4,484

Page 94

LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY cont’5. INVESTMENT FUNDING AND FEE FOR SERVICE







Cash at bank 1,253Cash held with TCorp 2,275

3,528For the purpose of the Statement of Cash Flows, cash includes cash at bank and short-terminvestments held with TCorp in the Hour-Glass Facility.

7. RECEIVABLESCurrent Receivables:Goods and Services Tax recoverable from ATO 1Accrued income – amounts receivable fromDepartment of Infrastructure, Planning and NaturalResources

907

908

8. CURRENT LIABILITIES – PAYABLESAccruals – amounts payable to Department ofInfrastructure, Planning and Natural Resources

2,243

Accruals – other 272,270

9. EQUITY 2004$’000


Page 95


10. RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES TOSURPLUS

Net Cash flow from Operating Activities 3,528Increase in Accounts receivable 908(Increase) in Current liabilities (2,270)Surplus 2,166

11. CONTINGENT LIABILITIES


12. FINANCIAL INSTRUMENTS

CashCash comprises bank balances within the Treasury Banking System. Interest is earned on dailybank balances at the monthly average NSW Treasury Corporation 11.00 am unofficial cash rateadjusted for a management fee to Treasury.

Hour-Glass Investment FacilitiesThe Authority has investments in TCorp’s Hour-Glass Investment facilities. The Authority’sinvestments are represented by a number of units in a managed investment within the facility.Each facility has different investment horizons and comprises a mix of asset classes appropriateto the unit investment horizon. TCorp appoints and monitors fund managers and establishes andmonitors the application of appropriate investment guidelines.

ReceivablesAll trade and other debtors are recognised as amounts receivable at balance date. Collectabilityof all debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectable, arewritten off. A provision for doubtful debts is raised when some doubt as to collection exists. Thecredit risk is thecarrying amount (net of any provision for doubtful debts). No interest is earned on trade debtors.The carrying amount approximates net fair value. Sales are generally made on 30 days terms.



Page 96


(a) Interest rate riskFixed interest rateMaturing


rate

Floatinginterest

rate

$

1 yearor less

$

1 to 5years

$

Noninterest-bearing

$




Cash 4.25 1,253 1,253Hour-Glass facility 5.528 2,275 2,275Receivables - 908 908

Total financial assets - 3,528 908 4,436Financial liabilities


END OF AUDITED FINANCIAL REPORT FOR LOWER MURRAY DARLING CATCHMENT MANAGEMENT AUTHORITY

Page 97

MURRAY CATCHMENT MANAGEMENT AUTHORITY


Page 98

MURRAY CATCHMENT MANAGEMENT AUTHORITY continued

Page 99

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CMA BOARD MEMBERS

Page 100

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Board Member fees (65)Administration Expenses (18)Other expenses (3,118)Expenses from ordinary activities 3 (3,201)





Page 101

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000

Current Assets Cash assets 6 7,024

Receivables 7 863Total Current Assets 7,887

Total Assets 7,887




Net Assets 4,537



Page 102

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating ActivitiesRecurrent Government Contribution Received 7,064Interest Received 21Payments – employee related (60)Payment to Suppliers (1)Net cash flows provided by operating activities 11 7,024

Net increase in cash held 7,024Cash at the beginning of the financial period NIL



Page 103

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedNOTES TO THE FINANCIAL STATEMENTS

1. Reporting Entity

The Murray Catchment Management Authority was established pursuant to the CatchmentManagement Authorities Act 2003 on 23 January 2004. This Act provided for the establishment of13 Catchment Management Authorities across NSW as part of the NSW Government’s broadranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Savings and Transitional)Regulation, the Murray Catchment Management Authority Local Establishment Team wasappointed by the Minister as the board of the Murray Catchment Management Authority until theMinister appointed the board in accordance with section 8 of the Catchment ManagementAuthorities Act 2003



The Authority’s financial statements are a general purpose financial report, which has beenprepared on an accrual basis and in accordance with:� applicable Australian Accounting Standards;� other authoritative pronouncements of the Australian Accounting Standards Board (AASB);� Urgent Issues Group (UIG) Consensus Views and� the requirements of the Public Finance and Audit Act and Regulations.


In the absence of a specific Accounting Standard, other authoritative pronouncement of the AASBor UIG Consensus View, the hierarchy of other pronouncements as outlined in AAS 6“Accounting Policies” is considered.





Investment income – Interest revenue is recognised as it accrues.

Page 104

MURRAY CATCHMENT MANAGEMENT AUTHORITY continued(c) Tax status


d) Accounting for goods and services tax (GST)












The Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internal

Page 105

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:

The Authority’s accounting functions are carried out by the Department of Infrastructure, Planningand Natural Resources (DIPNR). Therefore steps taken to manage the transition by DIPNR isapplicable to the authority.

A special project team is to be established by DIPNR, which reports to their Chief Finance Officeron progress against the plan. DIPNR’s Internal Audit Committee also will provide input to theprocess. The following phases have been identified:� Scope and identify impact of the changes� Determine changes to be made to systems, processes, policies.� Train staff� Implement changes and review

It is anticipated all changes including the requisite changes to systems will be completed by theend of November 2004. NSW Treasury is assisting agencies to manage the transition bydeveloping policies, including mandate of options; presenting training seminars to all agencies;providing a website with up-to-date information to keep agencies informed of any newdevelopments; and establishing an IAS Agency Reference Panel to facilitate a collaborativeapproach to manage the change.






Page 106

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedHowever, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and theamount and volatility of profit/loss.











Page 107

MURRAY CATCHMENT MANAGEMENT AUTHORITY continued(g) Insurance


(h) Receivables


(i) Cash assets

Cash assets include investments in the Tcorp Hour-Glass Facility Managed fund investments,which are measured at market value. Revaluation increments or decrements are recognised inthe Statement of Financial Performance..(j) Payables




3. Expenses from ordinary activities 2004$’000

Fees for services – Department of Infrastructure, Planning andNatural Resources (Note 5) 1,009Fees for services - Other 2,069Board Member fees* 65Administration costs 18Other expenses 37Audit fee 3

3,201 *Board members received no other fees

4. Revenue from ordinary activitiesGrants from Department of Infrastructure, Planning and NaturalResources (Note 5)

- Operating Funds 102- Investment funds (Commonwealth & State contributions) 7,615Interest Income 21

7,738




Page 108

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedThe Department of Infrastructure, Planning and Natural Resources, and in one case a CatchmentManagement Trust, undertook the activities under the NAP and NHT programs prior to thecreation of Catchment Management Authorities, on 23 January 2004. The CMA did not havestaff to carry out the NAP and NHT programs. As a result the Department of Infrastructure,Planning and Natural Resources undertook the work. The activities were in accordance withCatchment Management Blueprints, or other approved projects, established for each catchmentby the previous relevant Catchment Management Boards or Catchment Management Trust.



6. Cash assetsCash at bank 5,074Cash investment account 1,950

7,024



653


8. Payables

2004$’000

Accrued expenses – other 2,306 Accrued expenses - Department of Infrastructure, Planning and

Natural Resources 1,009Accrued salaries wages and on-costs 23Trade Creditors 12

3,350

Aggregate employee benefits and related on-costs Accrued salaries, wages and on costs 23

9. EquityReserves -


Page 109

MURRAY CATCHMENT MANAGEMENT AUTHORITY continued

10. Lease Commitments

Lease commitments contracted for at balance date and not provided for:

Not later than one year 11Later than one year but not later than five years 46Later than five years 1Total (including GST) 58


Surplus from ordinary activities 4,537Depreciation -Increase in employee related provisions 3Increase in accounts payable 3,347Increase in accounts receivable (863)


12. Contingent liabilitiesThe Authority is not aware of any contingent liability that would materially impact the Authority.






Page 110

MURRAY CATCHMENT MANAGEMENT AUTHORITY continuedHour Glass Investment FacilitiesThe Authority has investments in TCorp's Hour-Glass Investment Facilities. The Authority’sinvestments are represented by a number of units in a managed investment within the facility.Each facility has different investment horizons and comprises a mix of asset classes appropriateto that investment horizon. TCorp appoints and monitors fund managers and establishes andmonitors the application of appropriate investment guidelines.



rate

Floatinginterest

rate

$'000

1 year orless

$'000

1 to 5years

$'000

Noninterest-bearing

$'000




Cash 4.25% 5,074 - - - 5,074Hour-Glass facility 5.52% 1,950 - - - 1,950Receivables - - - - 863 863

Total financial assets - 7,024 - 863 7,887

Financial liabilitiesAccounts payable - - - - 3,350 3,350

Total financialliabilities

- - - - 3,350 3,350

END OF AUDITED FINANCIAL REPORT FOR MURRAY CATCHMENT MANAGEMENT AUTHORITY.

Page 111

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY


Page 112

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continued

Page 113

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CMA BOARD MEMBERS

Page 114

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Board Member fees (53)Administration Expenses (45)Other expenses (774)Expenses from ordinary activities 3 (872)

Surplus from Ordinary Activities 6.505



6,505


Page 115

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000

Current Assets

Cash assets 6 7,059 Receivables 7 262Total Current Assets 7,321

Total Assets 7,321

Current Liabilities Payables 8 789 Provisions 9 16Total Current Liabilities 805

Non-current liabilities Provisions 9 11Total Non-Current Liabilities 11


Net Assets 6,505



Page 116

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating ActivitiesRecurrent Government Contribution Received 7,087Interest Received 29Other Income 1Payments - employee related (54)Payment to Suppliers (4)Net cash flows provided by operating activities 11 7,059

Net increase in cash held 7,059Cash at the beginning of the financial period NIL



Page 117

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedNOTES TO THE FINANCIAL STATEMENTS

1. Reporting Entity

The Murrumbidgee Catchment Management Authority was established pursuant to theCatchment Management Authorities Act 2003 on 23 January 2004. This Act provided for theestablishment of 13 Catchment Management Authorities across NSW as part of the NSWGovernment’s broad ranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Savings and Transitional)Regulation the Murrumbidgee Catchment Management Authority Local Establishment Team wasappointed by the Minister as the board of the Murrumbidgee Catchment Management Authorityuntil the Minister appointed the board in accordance with section 8 of the CatchmentManagement Authorities Act 2003.

2 Summary of significant accounting policies










Page 118

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continued(c) Tax status





� Receivables and payables that include GST are stated with the amount of GST included.The State Government funding is GST free.




(ii) Long Service Leave and SuperannuationThe Authority’s liabilities for long service leave and superannuation are assumed by the CrownEntity. The Authority accounts for the liability as having been extinguished resulting in the amountassumed being shown as part of the non-monetary revenue item described as “Acceptance bythe Crown Entity of Employee Entitlements and other Liabilities”.Long service leave is measured at present value, based on the application of factors prescribedby Treasury Circular 03/08, to the amounts calculated using the actual remuneration rates for allemployees with five or more years of service.





Page 119

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedThe Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:









Page 120

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedHowever, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and theamount and volatility of profit/loss.











Page 121

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continued(g) Insurance


(h) Receivables


(i) Cash assets

Cash assets include investments in the TCorp Hour-Glass Facility Managed fund investments,which are measured at market value. Revaluation increments or decrements are recognised inthe Statement of Financial Performance.2. Summary of significant accounting policies (continued)

(j) Payables


k) Grants and subsidies


3. Expenses from ordinary activities 2004$'000

Audit fee 3Board Member fees* 53Fees for services - Department of Infrastructure, Planning andNatural Resources (Note 5) 747Administration costs 45Other expenses 24

872 * Board members received no other benefits

4. Revenue from ordinary activities Grants from Department of Infrastructure, Planning and Natural

Resources (Note 5)

- Operating Funds 109

- Investment funds (Commonwealth & State contributions) 7,239 Interest Income 29

7,377



Page 122

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedThe NSW government introduced a comprehensive package of natural resource managementreforms in October 2003, including the creation of 13 Catchment Management Authorities (CMAs)as statutory organisations.




6. Cash assets2004$'000

Cash at bank 4,340Cash investment account 2,719

7,059

For the purpose of the Statement of Cash Flows, cash includes cash at bank and short terminvestments held with Treasury Corporation in the Hour-Glass Facility.


260


8. Payables Accrued expenses - Department of Infrastructure, Planning and

Natural Resources 747

Accrued salaries wages and on-costs 17Accrued expenses - other 25

789

Page 123

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continued9. ProvisionsEmployee benefits and related costsCurrent Liabilities Recreation leave 14 On-costs on Employee Benefit Liability 2

16Non-current liabilities On-costs on Employee Benefit Liability 11

Total Provisions 27

Aggregate employee benefits and related on-costs Provisions - current 16 Provisions - non-current 11 Accrued salaries, wages and on costs 17

44

10. EquityReserves -



2004$’000

Surplus from ordinary activities 6,505Increase in employee related provisions 32Increase in accounts payable 784Increase in accounts receivable (262)








Page 124

MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY continuedTrade Creditors and AccrualsThe liabilities are recognised for amounts due to be paid in the future for goods or servicesreceived whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settledin accordance with the policy set out in Treasurer’s Direction 219.01. If trade terms are notspecified, payment is made not later than the end of the month following the month in which aninvoice or a statement is received. Treasurer’s Direction 219.01 allows the Minister to awardinterest for late payment. No interest was paid during the period. The carrying amountapproximates net fair value.

Hour Glass Investment FacilitiesThe Authority has investments in TCorp's Hour-Glass Investment Facilities. The Authority’sinvestments are represented by a number of units in a managed investment within the facility.Each facility has different investment horizons and comprises a mix of asset classes appropriateto that investment horizon. TCorp appoints and monitors fund managers and establishes andmonitors the application of appropriate investment guidelines.



rate

Floatinginterest

rate

$'000

1 yearor less

$'000

1 to 5years

$'000

Noninterest-bearing

$'000


the Statement ofFinancial Position


Cash 4.25% 4,340 - - - 4,340Investments 5.52% 2,719 - - - 2,719Receivables - - - - 262 262

Total financial assets - 7,059 - 262 7,321Financial liabilities

Accounts payable - - - - 789 789Total financial liabilities - - - - 789 789

END OF AUDITED FINANCIAL REPORT FOR MURRUMBIDGEE CATCHMENT MANAGEMENT AUTHORITY.

Page 125

NAMOI CATCHMENT MANAGEMENT AUTHORITY


Page 126

NAMOI CATCHMENT MANAGEMENT AUTHORITY continued

Page 127

NAMOI CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CMA BOARD MEMBERS

Page 128

NAMOI CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Administration Expenses (53)Depreciation expenses -Other expenses (412)Expenses from ordinary activities 3 (465)

Surplus from Ordinary Activities 818



818


Page 129

NAMOI CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000



Total Assets 1,234



Net Assets 818

Equity Retained surplus 9 818

818


Page 130

NAMOI CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating ActivitiesRecurrent Government Contribution Received 1,161Interest Received 3Other Income -Employee Related Payments (49)Others -


Cash Flows From Investing ActivitiesPayment for purchase of plant and equipment -Proceeds from sale of plant and equipment -Net cash flows from/(used in) investing activities 1,115




Page 131

NAMOI CATCHMENT MANAGEMENT AUTHORITY continuedNOTES TO THE FINANCIAL STATEMENTS

1. Reporting Entity

The Namoi Catchment Management was established pursuant to the Catchment ManagementAuthorities Act 2003 on 23 January 2004. This Act provided for the establishment of 13Catchment Management Authorities across NSW as part of the NSW Government’s broadranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Saving and Transitional)Regulation, the Namoi Catchment Management Authority Local Establishment Team wasappointed by the Minister as the board of the Namoi Catchment Management Authority until theMinister appointed the board in accordance with section 8 of the Catchment ManagementAuthorities Act 2003.











Page 132

NAMOI CATCHMENT MANAGEMENT AUTHORITY continued(c) Tax status














Page 133

NAMOI CATCHMENT MANAGEMENT AUTHORITY continuedThe Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:

The Authority’s accounting functions are carried out by the Department of Infrastructure Planningand Natural Resources (DIPNR). Therefore steps taken to manage the transition by DIPNR isapplicable to the authority. A special project team is to be established by DIPNR, which reports totheir Chief Finance Officer on progress against the plan. DIPNR’s Internal Audit Committee alsowill provide input to the process. The following phases that need to be undertaken have beenidentified:� Scope and identify impact of the changes� Determine changes to be made to systems, processes, policies.� Train staff� Implement changes and review








Page 134

NAMOI CATCHMENT MANAGEMENT AUTHORITY continuedHowever, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and theamount and volatility of profit/loss.











Page 135

NAMOI CATCHMENT MANAGEMENT AUTHORITY continued(g) Insurance


(h) Receivables


(i) Cash assets


(j) Payables





Board Members Fees 44Administrative Expenses 9Audit fee 3Fees for Services- Department of Infrastructure, Planning andNatural Resources (Note 5) 398Other Expenses 11

465

4. Income from ordinary activities

Grants from Department of Infrastructure, Planning and NaturalResources (Note 5) - Operating Funds 64 - Investment Funds (Commonwealth & State Contributions) 1,216Interest from Banks/Investments 3

1,283




Page 136

NAMOI CATCHMENT MANAGEMENT AUTHORITY continuedThe Department of Infrastructure, Planning and Natural Resources, and in one case a CatchmentManagement Trust, undertook the activities under the NAP and NHT programs prior to thecreation of Catchment Management Authorities, on 23 January 2004. The CMA did not havestaff to carry out the NAP and NHT programs. As a result the Department of Infrastructure,Planning and Natural Resources undertook the work. The activities were in accordance withCatchment Management Blueprints, or other approved projects, established for each catchmentby the previous relevant Catchment Management Boards or Catchment Management Trust.




Cash at bank 825Cash held with Treasury Corporation 290

1,115


7. ReceivablesAccrued income-amounts receivable from Department ofInfrastructure, Planning and Natural Resources

119

Goods and Services Tax recoverable from ATO -119

8. Payables

Accruals - amounts payable to Department of Infrastructure,Planning and Natural Resources

398


9. EquityAccumulated fundsAccumulated funds at 23 January 2004 -Net surplus from ordinary activities 818Accumulated funds at 30 June 2004 818Total equity 818


Surplus from ordinary activities 818Increase in employee related provisions 0Increase in accounts payable 416Increase in accounts receivable (119)


Page 137

NAMOI CATCHMENT MANAGEMENT AUTHORITY continued11. Contingent liabilitiesThe Authority is not aware of any contingent liability that would materially impact the Authority.


Cash: Cash comprises bank balances. The Namoi Catchment Management does not have anybank overdraft facility.



Trade Creditors and Accruals: The liabilities are recognised for amounts due to be paid in thefuture for goods or services received whether or not invoiced. Amounts owing to suppliers (whichare unsecured) are settled in accordance with the policy set out in Treasurer’s Direction 219.01. Iftrade terms are not specified, payment is made not later than the end of the month following themonth in which an invoice or a statement is received. Treasurer’s Direction 219.01 allows theMinister to award interest for late payment. No interest was paid during the period. The carryingamount approximates net fair value.

Hour-Glass Investment FacilitiesThe Authority has investments in TCorp’s Hour-Glass Investment Facilities. The Authority’sinvestments are represented by a number of units in a managed investment within the facility.Each facility has different investment horizons and comprises a mix of asset classes appropriateto that investment horizon. TCorp appoints and monitors fund managers and establishes andmonitors the application of appropriate investment guidelines.



rate

Floatinginterest

rate

$

1 yearor less

$

1 to 5years

$

Noninterest-bearing

$




Cash 4.25% 825 - - - 825Tcorp Hour GlassFacility

5.52% 290 - - - 290




END OF AUDITED FINANCIAL REPORT FOR NAMOI CATCHMENT MANAGEMENT AUTHORITY.

Page 138

- blank page -

Page 139

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY


Page 140

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continued

Page 141

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continuedSTATEMENT OF CMA BOARD MEMBERS

Page 142

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Board Members fees (48)Administration Expenses (28)Other expenses (2,651)Expenses from ordinary activities 3 (2,727)





Page 143

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continuedSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000

Current Assets Cash assets 6 2,072 Receivables 7 1,865Total Current Assets 3,937

Total Assets 3,937

Current Liabilities Payables 8 2,664 Provisions 9 1Total Current Liabilities 2,665


Net Assets 1,272



Page 144

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continuedSTATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating Activities

Recurrent Government Contribution Received 2,126

Interest Received 10

Payments - Employee Related (63)Payments - Other

(1)Net cash flows provided by operating activities 12 2,072

Net increase in cash held 2,072

Cash at the beginning of the financial period NIL



Page 145

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continuedNOTES TO THE FINANCIAL STATEMENTS

1. Reporting Entity

The Northern Rivers Catchment Management Authority was established pursuant to theCatchment Management Authorities Act 2003 on 23 January 2004. This Act provided for theestablishment of 13 Catchment Management Authorities across NSW as part of the NSWGovernment’s broad ranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Savings and Transitional)Regulation, the Northern Rivers Catchment Management Authority Local Establishment Teamwas appointed by the Minister as the board of the Northern Rivers Catchment ManagementAuthority until the Minister appointed the board in accordance with section 8 of the CatchmentManagement Authorities Act 2003











Page 146

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continued (c) Tax status


d) Accounting for goods and services tax (GST)





(i) Salaries and Wages, Annual Leave, Sick Leave and Oncosts

Liabilities for salaries and wages (including non-monetary benefits) annual leave and vesting sickleave are recognised and measured in respect of employees’ services up to the reporting date atnominal amounts based on the amounts expected to be paid when the liabilities are settled.Unused non-vesting sick leave does not give rise to a liability as it is not considered probable thatsick leave taken in the future will be greater than the benefits accrued in the future.


(ii) Long Service Leave and SuperannuationThe Authority’s liabilities for long service leave and superannuation are assumed by the CrownEntity. The Authority accounts for the liability as having been extinguished resulting in the amountassumed being shown as part of the non-monetary revenue item described as “Acceptance bythe Crown Entity of Employee Entitlements and other Liabilities”.

Long service leave is measured at present value, based on the application of factors prescribedby Treasury Circular 03/08, to the amounts calculated using the actual remuneration rates for allemployees with five or more years of service.



Page 147

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continued(f) Impact of adopting Australian Equivalents to International Financial Reporting

Standards










Page 148

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continued� AASB 110 Events after the balance sheet date states that only dividends “declared” or

appropriately “authorised before the reporting date can be recognised. This is morerestrictive that the current approach which is based on ‘valid expectations”. However, thischange is not expected to impact on dividend recognition as the signing of the statement ofCorporate Intent/Statement of Business Intent before the reporting date to which it relates,“authorises” the dividend and any change in the amount of the dividend after the reportingdate constitutes an “adjusting event after the reporting date”.










Page 149

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continued� AASB 136 Impairment of Assets requires an entity to assess at each reporting date whether

there is any indication that an asset (or cash generating unit) is impaired and if suchindication exists, the entity must estimate the recoverable amount. However, the effect of thisStandard should be minimal because all the substantive principles in AASB 136 are alreadyincorporated in Treasury’s policy Valuation of Physical Non-Current Assets at Fair Value.


(g) Insurance


(h) Receivables


(i) Cash assets

Cash assets include investments in the TCorp Hour-Glass Facility Managed fund investments,which are measured at market value. Revaluation increments or decrements are recognised inthe Statement of Financial Performance.

(j) Payables




3. Expenses from ordinary activities2004

$’000Audit fee 3Board Member fees* 48Fees for services - Department of Infrastructure, Planning andNatural Resources (Note 5) 2,632Administration expenses 28Other administrative expenses 16

2,727 * Board members received no other benefits

Page 150

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continued4. Revenue from ordinary activities

Grants from Department of Infrastructure, Planning and NaturalResources (Note 5)

- Operating Funds 93- Investment funds (Commonwealth & State contributions) 3,896

Interest Income 103,999






Accordingly, the accounts of the Authority include investment funds received in relation to theNAP and NHT programs (revenue) of $3,896,000 (included in Note 4) and fees for servicesrendered by the Department in respect of the work (expense) of $1,694,000 (included in Note 3)for the period prior to 23 January 2004.


Cash at bank 1,057Cash investment account 1,015

2,072


7. ReceivablesGrants from Department of Infrastructure, Planning and NaturalResources 1,863Australian Taxation Office - GST 2

1,8658. Payables

Accrued salaries wages and on-costs 12Accrued expenses - Department of Infrastructure, Planning andNatural Resources 2,632Accrued expenses - other 20

2,664

Page 151

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continued9. Provisions Current Liability Provision for employee leave entitlements 1

Aggregate employee benefits and related on-costs Provisions - current 1 Accrued salaries, wages and on costs 12

13

10. EquityReserves -


11. Commitments

Lease commitmentsLease commitments contracted for at balance date and not provided for:

Not later than one year 3Total (including GST) 3

12. Reconciliation of surplus from ordinary activities to net cash used in ordinaryactivities:

Surplus from ordinary activities 1,272Depreciation -Increase in employee related provisions 1Increase in accounts payable 2,664Increase in accounts receivable (1,865)





CashCash comprises cash on hand and bank balances within the Treasury Banking System. Interestis earned on daily bank balances at the monthly average NSW Treasury Corporation 11.00 amunofficial cash rate adjustedfor a management fee to Treasury.


Page 152

NORTHERN RIVERS CATCHMENT MANAGEMENT AUHTORITY continuedBank OverdraftThe Authority does not have any bank overdraft facility.


Hour Glass Investment Facilities

The Authority has investments in TCorp's Hour-Glass Investment Facilities. The Authority’sinvestments are represented by a number of units in a managed investment within the facility.Each facility has different investment horizons and comprises a mix of asset classes appropriateto that investment horizon. TCorp appoints and monitors fund managers and establishes andmonitors the application of appropriate investment guidelines.



rate

Floatinginterest

rate

$000's

1 yearor less

$000's

1 to 5years

$000's

Noninterest-bearing

$000's


of FinancialPosition$000's


Cash 4.25% 1,057 - - - 1,057Hour-Glass facility 5.52% 1,015 - - - 1,015Receivables - - - - 1,865 1,865

Total financial assets - 2,072 - 1,865 3,937Financial liabilities

Accounts payable - - - - 2,664 2,664Total financial liabilities - - - - 2,664 2,664

END OF AUDITED FINANCIAL REPORT FOR NORTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY.

Page 153

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITYINDEPENDENT AUDIT REPORT

Page 154

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continued

Page 155

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CMA BOARD MEMBERS

Page 156

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Administration Expenses 55Grants and Subsidies 156Other expenses 869Expenses from ordinary activities 3 1,080

Surplus from ordinary activities 658



658


Page 157

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000



Total Assets 2,356




Net Assets 658


658


Page 158

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000






Page 159

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continuedNOTES TO THE FINANCIAL STATEMENTS

1. REPORTING ENTITY

The Southern Rivers Catchment Management Authority was established pursuant to theCatchment Management Authorities Act 2003 on 23 January 2004. This Act provided for theestablishment of 13 Catchment Management Authorities across NSW as part of the NSWGovernment’s broad ranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Savings and Transitional)Regulation the Southern Rivers Catchment Management Authority Local Establishment Teamwas appointed by the Minister as the Board of the Southern Rivers Catchment ManagementAuthority until the Minister appointed the Board in accordance with section 8 of the CatchmentManagement Authorities Act 2003.











Page 160

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continued(c) Tax status















Page 161

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continuedThe Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:








Page 162

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continuedHowever, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and theamount and volatility of profit/loss.











Page 163

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continued(g) Insurance


(h) Receivables


(i) Cash assets

Cash assets include investments in the New South Wales Treasury Corporation (TCorp) Hour-Glass Facility Managed fund investments, which are measured at market value. Revaluationincrements or decrements are recognised in the Statement of Financial Performance.

(j) Payables




2004$’000

3. EXPENSES FROM ORDINARY ACTIVITIES Administration Expenses Board Member fees* 55

Grants and Subsidies 156

Other ExpensesFees for Services – Department of infrastructure,Planning and Natural Resources (Note 5) 843Audit fees 3Other 23


4. REVENUE FROM ORDINARY ACTIVITIESGrants from Department of Infrastructure, Planning andNatural Resources (Note 5) : - Operating funds 78 - Investment funds (Commonwealth & Statecontributions) 1,654Interest on deposits 6

1,738

Page 164

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continued5. INVESTMENT FUNDING AND FEE FOR SERVICE







Cash at bank 1,180Funds held with TCorp 590

1,770

For the purpose of the Statement of Cash Flows, cash includes cash at bank and short-terminvestments held with Treasury Corporation in the Hourglass facility.

7. RECEIVABLESCurrent Receivables:Goods and Services Tax recoverable from ATO 17Accrued income – amounts receivable fromDepartment of Infrastructure, Planning and NaturalResources

569

586

8. CURRENT LIABILITIES-PayablesCreditors 23Accruals – amounts payable to Department of Infrastructure,Planning and Natural Resources

843

Accruals – Other 33Prepaid income 800

1,698

Page 165

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continued9. EQUITY 2004

$’000

Accumulated fundsAccumulated funds at 23 January 2004 -Net surplus from ordinary activities 658Accumulated funds at 30 June 2004 658Total equity 658

10. RECONCILIATION OF NET CASH FLOWS FROMOPERATING ACTIVITIES TO SURPLUSNet Cash flow from Operating Activities 1,770Increase in Accounts receivable 586(Increase) in Current liabilities (1,698)Surplus 658

11. CONTINGENT LIABILITIESThe Authority is not aware of any contingent liability that would materially impact the Authority.

12. FINANCIAL INSTRUMENTS


Hour-Glass Investment FacilitiesThe Authority has investments in TCorp’s Hour-Glass Investment facilities. The Authority’sinvestments are represented by a number of units in a managed investment within the facility.Each facility has different investment horizons and comprises a mix of asset classes appropriateto the unit investment horizon. TCorp appoints and monitors fund managers and establishes andmonitors the application of appropriate investment guidelines.




Page 166

SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY continued(a) Interest rate risk Fixed interest rate

MaturingWeightedaverageeffectiveinterest

rate

Floatinginterest

rate

$

1 yearor less

$

1 to 5years

$

Noninterest-bearing

$




Cash 4.25 1,180 1,180Hour-Glass facility 5.528 590 590Receivables - 586 586

Total financial assets - 1,770 586 2,356Financial liabilities


END OF AUDITED FINANCIAL REPORT FOR SOUTHERN RIVERS CATCHMENT MANAGEMENT AUTHORITY.

Page 167

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM


Page 168

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continued

Page 169

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continuedSTATEMENT OF CMA BOARD MEMBERS

Page 170

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000

Revenues from ordinary activities 4 631

Administration Expenses 49Other expenses 171Expenses from ordinary activities 3 220

Surplus from ordinary activities 411



411


Page 171

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continuedSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000

Current Assets Cash assets 6 499 Receivables 7 82

Total Current Assets 581

Total Assets 581

Current Liabilities Payables 8 170

Total Current Liabilities 170


Net Assets 411


411


Page 172

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continuedSTATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating ActivitiesRecurrent Government contribution received 549Payment to Suppliers (50)

Net cash flows provided by operating activities10 499

Net increase/(decrease) in cash held 499Cash at the beginning of the financial period -

Cash at the end of the financial year 6 499


Page 173

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continuedNOTES TO THE FINANCIAL STATEMENTS

1. REPORTING ENTITY

The Sydney Metropolitan Catchment Management Authority was established pursuant to theCatchment Management Authorities Act 2003 on 23 January 2004. This Act provided for theestablishment of 13 Catchment Management Authorities across NSW as part of the NSWGovernment’s broad ranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Savings and Transitional)Regulation the Sydney Metropolitan Catchment Management Authority Local EstablishmentTeam was appointed by the Minister as the Board of the Sydney Metropolitan CatchmentManagement Authority until the Minister appointed the Board in accordance with section 8 of theCatchment Management Authorities Act 2003.











Page 174

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continued(c) Tax status















Page 175

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continuedThe Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:








Page 176

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continued











Page 177

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continued� AASB 138 Intangibles requires that all research costs must be expensed and restricts

capitalisation of development costs. Some previously recognised internally generatedintangible assets may need to be derecognised. Further, intangibles assets can only berevalued where there is an active market, which is unlikely to occur. As a result, it is likelythat any revaluation increments will need to be derecognised and intangible assetsrecognised at cost.

(g) Insurance


(h) Receivables


(i) Payables


(j) Grants and subsidies



Administration Expenses Board member fees * 49 Other Expenses

Fees for Services – Department of Infrastructure,Planning and Natural Resources (Note 5)

163

Audit fees 3Other 5

220* Board members received no other benefits

4. REVENUE FROM ORDINARY ACTIVITIESGrants from Department of Infrastructure, Planning andNatural Resources (Note 5) : - Operating funds 54 - Investment funds (Commonwealth & Statecontributions) 577

631



Page 178

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continuedThe NSW government introduced a comprehensive package of natural resource managementreforms in October 2003, including the creation of 13 Catchment Management Authorities (CMAs)as statutory organisations.



Accordingly, the accounts of the Authority include investment funds received in relation to theNAP and NHT programs (revenue) of $577,000 (included in Note 4) and fees for servicesrendered by the Department in respect of the work (expense) of $22,000 (included in Note 3) forthe period prior to 23 January 2004.


Cash at bank 499

7. RECEIVABLESCurrent Receivables:

Accrued income-amounts receivable fromDepartment of Infrastructure, Planning and NaturalResources

82

8. CURRENT LIABILITIES-PayablesAccruals – amounts payable to Department ofInfrastructure, Planning and Natural Resources

163

Accruals – other 7170

9. EQUITYAccumulated fundsAccumulated funds at 23 January 2004 -Net surplus from ordinary activities 411Accumulated funds at 30 June 2004 411Total equity 411

10. RECONCILIATION OF NET CASH FLOWS FROMOPERATING ACTIVITIES TO SURPLUSNet Cash flow from Operating Activities 499Increase in Accounts receivable 82(Increase) in Current liabilities (170)Surplus 411

11. CONTINGENT LIABILITIES


Page 179

SYDNEY METROPOLITAN LOCAL CATCHMENT MANAGEMENTAUTHORITY LOCAL ESTABLISHMENT TEAM continued12. FINANCIAL INSTRUMENTS







rate

Floatinginterest

rate

$

1 yearor less

$

1 to 5years

$

Noninterest-bearing

$




Cash 4.25 499 499Receivables - 82 82

Total financial assets - 499 82 581Financial liabilities

Accounts payable - 170 170Total financial liabilities - 170 170

END OF AUDITED FINANCIAL REPORT FORSYDNEY METROPOLITAN CATCHMENT MANAGEMENT AUTHORITY LOCAL ESTABLISHMENT TEAM.

Page 180

- blank page -

Page 181

WESTERN CATCHMENT MANAGEMENT AUTHORITYINDEPENDENT AUDIT REPORT

Page 182

WESTERN CATCHMENT MANAGEMENT AUTHORITY continued

Page 183

WESTERN CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CMA BOARD MEMBERS

Page 184

WESTERN CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL PERFORMACE FOR 23 JANUARY TO 30 JUNE 2004

2004Note $’000


Administration Expenses (14)Board Member Fees (49)Other expenses (388)Expenses from ordinary activities 3 (451)




1,045


Page 185

WESTERN CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004

2004

Note$’000



Non Current Assets -

Total Assets 1,442



Net Assets 1,045


1,045


Page 186

WESTERN CATCHMENT MANAGEMENT AUTHORITY continuedSTATEMENT OF CASH FLOWS AS AT 30 JUNE 2004

2004Note $’000

Cash Flows From Operating ActivitiesRecurrent Government Contribution Received 1,331Interest Received 5Other Income 5Employee Related Payment (60)





Page 187

WESTERN CATCHMENT MANAGEMENT AUTHORITY continuedNOTES TO THE FINANCIAL STATEMENTS

1. Reporting Entity

The Western Catchment Management was established pursuant to the Catchment ManagementAuthorities Act 2003 on 23 January 2004. This Act provided for the establishment of 13Catchment Management Authorities across NSW as part of the NSW Government’s broadranging reform of natural resource management.


Pursuant to clause 4(1) of the Catchment Management Authorities (Saving and Transitional)Regulation, the Western Catchment Management Authority Local Establishment Team wasappointed by the Minister as the board of the Western Catchment Management Authority until theMinister appointed the board in accordance with section 8 of the Catchment ManagementAuthorities Act 2003.







(b) Revenue recognitionRevenue is recognised when the Authority has control of the good or right to receive, it isprobable that the economic benefits will flow to the Authority and the amount of revenue can bemeasured reliably. Additional comments regarding the accounting policies for the recognition ofrevenues are discussed below. All revenues arising from operating activities are consistent withcore activities.



Page 188

WESTERN CATCHMENT MANAGEMENT AUTHORITY continued(c) Tax status













i) Explanation of how the transition to AIFRS is being managedThe Authority will apply the Australian Equivalents to International Financial Reporting Standards(AIFRS) from the reporting period beginning 1 July 2005.

Page 189

WESTERN CATCHMENT MANAGEMENT AUTHORITY continuedThe Authority is in the process of commencing transitioning its accounting policies and financialreporting from current Australian Standards to Australian equivalents of International FinancialReporting Standards (AIFRS). To manage the transition the Authority will be allocating internalresources and/or engaging consultants to analyse and identify key areas regarding policies,procedures, systems and financial impacts affected by the transition. The Authority has taken thefollowing steps to manage the transition to the new standards:

The Authority’s accounting functions are carried out by the Department of Infrastructure Planningand Natural Resources (DIPNR). Therefore steps taken to manage the transition by DIPNR isapplicable to the authority. A special project team is to be established by DIPNR, which reports totheir Chief Finance Officer on progress against the plan. DIPNR’s Internal Audit Committee ifany, also will provide input to the process. The following phases that need to be undertaken havebeen identified:� Scope and identify impact of the changes� Determine changes to be made to systems, processes, policies.� Train staff� Implement changes and review



ii) Key Differences in Accounting Policies





Page 190

WESTERN CATCHMENT MANAGEMENT AUTHORITY continuedHowever, the amount of the dividend may be affected by other AIFRS, such as AASB 139Financial Instrument Recognition and Measurement and AASB 119 Employee Benefits (referbelow) as these standards may impact on retained earnings (on first adoption) and theamount and volatility of profit/loss.











Page 191

WESTERN CATCHMENT MANAGEMENT AUTHORITY continued(g) Insurance


(h) Receivables


(i) Cash assets


(j) Payables





Board Member Fees 49Administration Expenses 14Fees for Services- Department of Infrastructure, Planning andNatural Resources (Note 5) 372Audit fee 3Other expenses 13

451

4. Revenue from ordinary activitiesGrants from Department of Infrastructure, Planning and NaturalResources (Note 5) - Operating Funds 76 - Investment Funds (Commonwealth & State Contributions) 1,415Interest 5

1,496

5. Investment Funding and Fee for ServiceImplementation of the National Action Plan for Salinity and Water Quality (NAP program) and theNatural Heritage Trust (NHT program) is jointly administered by the Commonwealth Governmentof Australia and the New South Wales Government by way of a Joint Steering Committee (JSC)comprising NSW and Commonwealth representatives.


Page 192

WESTERN CATCHMENT MANAGEMENT AUTHORITY continuedThe Department of Infrastructure, Planning and Natural Resources, and in one case a CatchmentManagement Trust, undertook the activities under the NAP and NHT programs prior to thecreation of Catchment Management Authorities, on 23 January 2004. The CMA did not havestaff to carry out the NAP and NHT programs. As a result the Department of Infrastructure,Planning and Natural Resources undertook the work. The activities were in accordance withCatchment Management Blueprints, or other approved projects, established for each catchmentby the previous relevant Catchment Management Boards or Catchment Management Trust.



6. Cash assets2004$000

Cash at bank 852Cash held with Treasury Corporation 429

1,281


7. ReceivablesAccrued income-amounts receivable from Department ofInfrastructure, Planning and Natural Resources

160

Goods and Services Tax recoverable from ATO 1161

8. Payables

Accruals - amounts payable to Department of Infrastructure,Planning and Natural Resources

372




Surplus from ordinary activities 1,045Depreciation -Increase in employee related provisions 0Increase in accounts payable 397Increase in accounts receivable (161)


Page 193

WESTERN CATCHMENT MANAGEMENT AUTHORITY continued11. Contingent liabilities



Cash: Cash comprises bank balances. The Western Catchment Management does not have anybank overdraft facility.








rate

Floatinginterest

rate

$

1 yearor less

$

1 to 5years

$

Noninterest-bearing

$




Cash 4.25% 852 - - - 852Tcorp Hour GlassFacility

5.52% 429 - - - 429




END OF AUDITED FINANCIAL REPORT FOR WESTERN CATCHMENT MANAGEMENT AUTHORITY.

Page 194

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Documents

Annual Report 2003/04 - archive.lls.nsw.gov.au · Combined NSW Catchment Management Authorities Annual Report 2003/04 Volume 2: Statutory and Financial Reports