City of Charles Sturt · Certificates of Audit Independence - Council Certificate of Audit Independence - Audit Certificate of Audit Independence. 55. Page. 4 5 3 6 7 54 2 50 52

City of Charles Sturt GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2015

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City of Charles Sturt

General Purpose Financial Statements for the year ended 30 June 2015

Contents

1. Council Certificate

2. Primary Financial Statements:

- Statement of Comprehensive Income- Statement of Financial Position- Statement of Changes in Equity- Statement of Cash Flows

3. Notes to the Financial Statements

4. Independent Auditor's Report - Financial Statements

5. Independent Auditor's Report - Internal Controls

6. Certificates of Audit Independence

- Council Certificate of Audit Independence- Audit Certificate of Audit Independence 55

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45

3

6

7

54

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John O'Connor

Rectangle

The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. page 3


Statement of Comprehensive Income for the year ended 30 June 2015

$ '000

IncomeRates RevenuesStatutory ChargesUser ChargesGrants, Subsidies and ContributionsInvestment IncomeReimbursementsOther IncomeNet Gain - Equity Accounted Council Businesses

Total Income

ExpensesEmployee CostsMaterials, Contracts & Other ExpensesDepreciation, Amortisation & ImpairmentFinance CostsNet loss - Equity Accounted Council Businesses

Total Expenses

Operating Surplus / (Deficit)

Asset Disposal & Fair Value AdjustmentsAmounts Received Specifically for New or Upgraded AssetsPhysical Resources Received Free of Charge

Net Surplus / (Deficit) 1

Other Comprehensive IncomeAmounts which will not be reclassified subsequently to operating resultChanges in Revaluation Surplus - I,PP&EAmounts which will be reclassified subsequently to operating resultNil

Total Other Comprehensive Income

Total Comprehensive Income

1 Transferred to Equity Statement

19

2g 1,925

Notes

2a2b2c2g

2f

2015

3c

2e

3a39,809 3b

2d

19

4,019 2,413

24,528

9,835

2014

92,720 89,098

30 -

35,099 37,600

5,630 9,002

188

708

3,993 7,319

382

23,117

9,255 2i

9a 7,319 3,993

7,163

16,266

103,381

13,248

4

23,585

3,143

3,608

(2,976) (2,402)

99,059

693

103,095

4,036

1,254

128

1,414

110,544

125

39,589

2,502

279 250

3d

6,691



Statement of Financial Position as at 30 June 2015

$ '000

ASSETSCurrent AssetsCash and Cash EquivalentsTrade & Other ReceivablesInventoriesTotal Current Assets

Non-Current AssetsEquity Accounted Investments in Council BusinessesInfrastructure, Property, Plant & EquipmentOther Non-Current AssetsTotal Non-Current Assets

TOTAL ASSETS

LIABILITIESCurrent LiabilitiesTrade & Other PayablesBorrowingsProvisionsTotal Current Liabilities

Non-Current LiabilitiesBorrowingsProvisionsTotal Non-Current Liabilities

TOTAL LIABILITIESNet Assets

EQUITYAccumulated SurplusAsset Revaluation Reserves

Total Council Equity

24 8a8b

1,094,951

5d

5a

1,105,174

1,121,876

6c 9,988

16,702

1,047,897

23,054

31,084

1,082,228 11,670

1,109,743

1,094,085

9a

29,276

235

8c 6,919 360

7,670

626,635

1,609 29,153

30,762

61,846 1,047,897

421,262

2015

15,658

2014

9,923 61

5,674

53 7,111 5b9,538

Notes

22,333

187

29,446

1,061,145

60,731

430,517

2,009 31,455

630,628

1,061,145

6b7a

8b8c



Statement of Changes in Equity for the year ended 30 June 2015

AssetAccumulated Revaluation Other Total

$ '000 Notes Surplus Reserve Reserves Equity

2015Balance at the end of previous reporting period 421,262 626,635 - 1,047,897

a. Net Surplus / (Deficit) for Year 9,255 - - 9,255

b. Other Comprehensive Income- Gain (Loss) on Revaluation of I,PP&E 7a - 3,993 - 3,993 Other Comprehensive Income - 3,993 - 3,993

Total Comprehensive Income 9,255 3,993 - 13,248

Balance at the end of period 430,517 630,628 - 1,061,145

2014Balance at the end of previous reporting period 404,996 619,316 - 1,024,312

a. Net Surplus / (Deficit) for Year 16,266 - - 16,266

b. Other Comprehensive Income- Gain (Loss) on Revaluation of I,PP&E 7a - 7,319 - 7,319 Other Comprehensive Income - 7,319 - 7,319

Total Comprehensive Income 16,266 7,319 - 23,585

Balance at the end of period 421,262 626,635 - 1,047,897



Statement of Cash Flows for the year ended 30 June 2015

$ '000

Cash Flows from Operating ActivitiesReceiptsOperating ReceiptsInvestment ReceiptsPaymentsOperating Payments to Suppliers and EmployeesFinance Payments

Net Cash provided by (or used in) Operating Activities

Cash Flows from Investing ActivitiesReceiptsAmounts Received Specifically for New/Upgraded AssetsSale of Replaced AssetsPaymentsExpenditure on Renewal/Replacement of AssetsExpenditure on New/Upgraded Assets

Net Cash provided by (or used in) Investing Activities

Cash Flows from Financing ActivitiesReceiptsProceeds from BorrowingsProceeds from Aged Care Facility DepositsPaymentsRepayments of BorrowingsRepayment of Bonds & DepositsRepayment of Aged Care Facility Deposits

Net Cash provided by (or used in) Financing Activities

Net Increase (Decrease) in Cash Held

plus: Cash & Cash Equivalents at beginning of period

Cash & Cash Equivalents at end of period

Notes 2015 2014

117,986 115,311 279 250

(83,572) (92,485)

1,925 9,002 1,002 289

(1,414) (951)

11b 33,279 22,125

(24,641) (15,718) (7,770) (30,729)

(29,484) (37,156)

12,140 10,378 430 191

(12,183) (19) (1) (13)

(317) (628)

11 9,538 5,674

69 9,909

3,864 (5,122)

11 5,674 10,796

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Notes to and forming part of the Financial Statements for the year ended 30 June 2015

Contents of the Notes accompanying the Financial Statements

Details

Significant Accounting PoliciesIncomeExpensesAsset Disposal & Fair Value AdjustmentsCurrent AssetsCash & Cash EquivalentsTrade & Other ReceivablesOther Financial Assets (Investments)InventoriesNon-Current AssetsFinancial AssetsEquity Accounted Investments in Council's BusinessesOther Non-Current AssetsFixed AssetsInfrastructure, Property, Plant & EquipmentValuation of Infrastructure, Property, Plant & EquipmentLiabilitiesTrade & Other PayablesBorrowingsProvisionsReservesAsset Revaluation ReserveAssets Subject to RestrictionsReconciliation to Statement of CashflowsFunctionsComponents of FunctionsFinancial InstrumentsCommitments for ExpenditureFinancial IndicatorsUniform Presentation of FinancesOperating LeasesSuperannuationInterests in Other EntitiesNon Current Assets Held for Sale & Discontinued OperationsContingencies & Assets/Liabilities Not Recognised in the Balance SheetEvents After the Balance Sheet Date

Additional Council Disclosures

Equity - Retained Earnings and Revaluation Reserves AdjustmentsCouncil Information & Contact Details

n/a - not applicable

4748

48 n/a

20

23

21

24

22

49

46 n/a

Page

1

Note

7a

43

19

20

22

5a

8

6a

21

2 1518

21

16

43

41

30

38

32

12a

1514

17

1312b

1918

37

31

40

42

278b 278c

8a

1011

27

289a2828

5b 205c 20 n/a5d 20

7b 23

6b 216c

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City of Charles Sturt Notes to and forming part of the Financial Statements for the year ended 30 June 2015 Note 1. Summary of Significant Accounting Policies

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The principal accounting policies adopted by Council in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 1 Basis of Preparation 1.1 Compliance with Australian Accounting Standards This general purpose financial report has been prepared in accordance with Australian Accounting Standards as they apply to not-for-profit entities, other authoritative pronouncements of the Australian Accounting Standards Board, Interpretations and relevant South Australian legislation. The financial report was authorised for issue by certificate under regulation 14 of the Local Government (Financial Management) Regulations 2011 dated 27 October 2015. 1.2 Historical Cost Convention Except as stated below, these financial statements have been prepared in accordance with the historical cost convention. 1.3 Critical Accounting Estimates The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates, and requires management to exercise its judgement in applying Council’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are specifically referred to in the relevant sections of these Notes. 1.4 Rounding All amounts in the financial statements have been rounded to the nearest thousand dollars ($’000).

2 The Local Government Reporting Entity City of Charles Sturt is incorporated under the South Australian Local Government Act 1999 and has its principal place of business at 72 Woodville Road Woodville. These financial statements include the Council’s direct operations and all entities through which Council controls resources to carry on its functions. In the process of reporting on the Council as a single unit, all transactions and balances between activity areas and controlled entities have been eliminated. Other entities in which Council has an interest but does not control are reported in Note 19. Trust monies and property held by Council but subject to the control of other persons have been excluded from these reports. Funds held at 30 June 2015: $241,090 (2014: $235,480). 3 Income Recognition Income is measured at the fair value of the consideration received or receivable. Income is recognised when the Council obtains control over the assets comprising the income, or when the amount due constitutes an enforceable debt, whichever first occurs. Where grants, contributions and donations recognised as incomes during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the amounts subject to those undischarged conditions are disclosed in these notes. Also disclosed is the amount of grants, contributions and receivables recognised as incomes in a previous reporting period which were obtained in respect of the Council's operations for the current reporting period. In the month of June in recent years the Federal Government has paid amounts of untied financial assistance grants, which are recognised on receipt, in advance of the year of allocation. In June 2011, one quarter of the 2011/12 allocation amounting to $856k was paid in advance; in June 2012, two quarters of the 2012/13 allocation: $1,766k; and in June 2013, again two quarters of the 2013/14 allocation: $1,803k. Accordingly, the operating results of these periods have been distorted

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City of Charles Sturt Notes to and forming part of the Financial Statements for the year ended 30 June 2015 Note 1. Summary of Significant Accounting Policies (continued)

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compared to those that would have been reported had the grants been paid in a consistent manner. These amounts in advance were adjusted in the 2013/14 financial year and therefore only $1,618k was recognised which has adversely affected the operating result for the year. Again in the 2014/15 financial year, two quarters of the 2015/16 allocation amounting to $1,811k was paid in advance resulting in a distortion of the operating result for 2014/15. The actual amounts of untied grants received during the reporting periods are disclosed in Note 2. 4 Cash, Cash Equivalents and other Financial Instruments Cash Assets include all amounts readily convertible to cash on hand at Council’s option with an insignificant risk of changes in value with a maturity of three months or less from the date of acquisition. Receivables for rates and annual charges are secured over the subject land, and bear interest at rates determined in accordance with the Local Government Act 1999. Other receivables are generally unsecured and do not bear interest. All receivables are reviewed as at the reporting date and adequate allowance made for amounts the receipt of which is considered doubtful. All financial instruments are recognised at fair value at the date of recognition. A detailed statement of the accounting policies applied to financial instruments forms part of Note 13. 5 Inventories Inventories held in respect of stores have been valued by using the weighted average cost on a continual basis, after adjustment for loss of service potential. Inventories held in respect of business undertakings have been valued at the lower of cost and net realisable value. 5.1 Other Real Estate Held for Resale Properties not acquired for development, but which Council has decided to sell as surplus to requirements, are recognised at the carrying value at the time of that decision.

Certain properties, auctioned for non‐payment of rates in accordance with the Local Government Act but which failed to meet the reserve set by Council and are available for sale by private treaty, are recorded at the lower of the unpaid rates and charges at the time of auction or the reserve set by Council. Holding costs in relation to these properties are recognised as an expense when incurred. 6 Infrastructure, Property, Plant & Equipment 6.1 Initial Recognition All assets are initially recognised at cost. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. All non‐current assets purchased or constructed are capitalised as the expenditure is incurred and depreciated as soon as the asset is held “ready for use”. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including architects' fees and engineering design fees and all other costs incurred. The cost of non‐current assets constructed by Council includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overhead. 6.2 Materiality Assets with an economic life in excess of one year are only capitalised where the cost of acquisition exceeds materiality thresholds established by Council for each type of asset. In determining (and in annually reviewing) such thresholds, regard is had to the nature of the asset and its estimated service life. Examples of capitalisation thresholds applied during the year are given below. Land $5,000 Buildings $5,000 Computer Equipment $1,000 Office Furniture and Fittings $500 Roads $5,000 Stormwater $5,000 Recycled Water $5,000 Bridges $5,000 Footpaths $5,000 Plant and Equipment $1,000 Vehicles $5,000

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6.3 Subsequent Recognition All material asset classes are revalued on a regular basis such that the carrying values are not materially different from fair value. Fair value valuations are determined in accordance with a valuation hierarchy. Changes in the valuation hierarchy will only occur if an external change in the restrictions or limitations of use of an asset result in changes to the permissible or practical highest and best use of the asset. Significant uncertainties exist in the estimation of fair value of a number of asset classes including land, buildings and associated structures and infrastructure. Further detail of these uncertainties, and of existing valuations, methods and valuers are provided at Note 7. In addition, Council undertakes a formal revaluation of land, buildings and infrastructure assets on a regular basis ranging from 3 to 5 years. The revaluation is performed either by experienced council officers or independent experts. 6.4 Depreciation of Non-Current Assets Other than land, all infrastructure, property, plant and equipment assets recognised are systematically depreciated over their useful lives on a straight‐line basis which, in the opinion of Council, best reflects the consumption of the service potential embodied in those assets. Depreciation methods, useful lives and residual values of classes of assets are reviewed annually. Major depreciation periods for each class of asset are listed below. Depreciation periods for infrastructure assets have been estimated based on the best information available to Council, but appropriate records covering the entire life cycle of these assets are not available, and extreme care should be used in interpreting financial information based on these estimates. Plant, Furniture & Equipment 2 to10 years

Furniture and Fittings including IT equipment 2 to 10 years Building & Other Structures

Buildings – Exterior 40 to 100 years Buildings – Interior 15 to 75 years Building Services 40 to 50 years Building Structure 40 to 100 years Buildings - Exterior works 30 years Playgrounds, Park furniture and Park Structures etc. 10 to 80 years

Infrastructure

Bridges 35 to 100 years Roads - Base 76 years Roads - Kerbing 55 years Roads - Seal 33 years Paving & Footpaths, Kerb & Gutter 15 to 60 years Stormwater - Recycled water 60 to 80 years Stormwater - Drains 60 to 100 years Stormwater - Pits 50 to 80 years 6.5 Impairment Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount (which is the higher of the present value of future cash inflows or value in use). For assets whose future economic benefits are not dependent on the ability to generate cash flows, and where the future economic benefits would be replaced if Council were deprived thereof, the value in use is the depreciated replacement cost. In assessing impairment for these assets, a rebuttable assumption is made that the current replacement cost exceeds the original cost of acquisition. Where an asset that has been revalued is subsequently impaired, the impairment is first offset against such amount as stands to the credit of that class of assets in the Asset Revaluation Reserve, any excess being recognised as an expense. 6.6 Borrowing Costs Borrowing costs in relation to qualifying assets (net of offsetting investment revenue) have been capitalised in accordance with AASB 123 “Borrowing Costs”. The amounts of borrowing costs recognised as an expense or as part of the carrying amount of qualifying assets are disclosed in Note 3, and the amount (if any) of interest revenue offset against borrowing costs in Note 2. 7 Payables 7.1 Goods & Services Creditors are amounts due to external parties for the supply of goods and services and are recognised as liabilities when the goods and services are received.

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Creditors are normally paid 30 days after the month of invoice. No interest is payable on these amounts. 7.2 Payments Received in Advance & Deposits Amounts other than grants received from external parties in advance of service delivery, and security deposits held against possible damage to Council assets, are recognised as liabilities until the service is delivered or damage reinstated, or the amount is refunded as the case may be. 8 Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred and are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement over the period of the borrowings using the effective interest method. Borrowings are carried at their principal amounts which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period to which it relates, and is recorded as part of “Payables”. Interest free loans are carried at their nominal amounts; interest revenues foregone by the lender effectively being a reduction of interest expense in the period to which it relates. 9 Employee Benefits 9.1 Salaries, Wages & Compensated Absences Liabilities for employees’ entitlements to salaries, wages and compensated absences expected to be paid or settled within 12 months of reporting date are accrued at nominal amounts (including payroll based on-costs) measured in accordance with AASB 119. Liabilities for employee benefits not expected to be paid or settled within 12 months are measured as the present value of the estimated future cash outflows (including payroll based on-costs) to be made in respect of services provided by employees up to the reporting date. Present values are calculated using government guaranteed securities rates with similar maturity terms.

Annual Leave: Weighted avg. discount rate 2.67% (2014, 3.4%) Weighted avg. settlement period 1.38 years (2014, 1.38 years) LSL: Weighted avg. discount rate 4.63% (2014, 5.65%) Weighted avg. settlement period 2.18 years (2014, 2.14 years) No accrual is made for sick leave as Council experience indicates that, on average, sick leave taken in each reporting period is less than the entitlement accruing in that period, and this experience is expected to recur in future reporting periods. Council does not make payment for untaken sick leave. 9.2 Superannuation The Council makes employer superannuation contributions in respect of its employees to the Statewide Superannuation Scheme. The Scheme has two types of membership, each of which is funded differently. No changes in accounting policy have occurred during either the current or previous reporting periods. Details of the accounting policies applied and Council’s involvement with the schemes are reported in Note 18. 10 Provisions 10.1 Provisions for Reinstatement, Restoration and Rehabilitation Close down and restoration costs include the dismantling and demolition of infrastructure and the removal of residual materials and remediation and rehabilitation of disturbed areas. Estimated close down and restoration costs are provided for in the accounting period when the obligation arising from the related disturbance occurs, and are carried at the net present value of estimated future costs. Although estimated future costs are based on a closure plan, such plans are based on current environmental requirements which may change. Council’s policy to maximise recycling is extending the operational life of these facilities, and significant uncertainty exists in the estimation of the future closure date.

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10.2 Provision for Carbon Tax Council is part of a regional subsidiary, Waste Care SA which, as per the Clean Energy Act 2011, was liable for carbon taxation until 30 June 2014. On 17 July 2014 the Australian Government abolished the carbon tax with effect from 1 July 2014. In assessing Council’s future liability to “carbon tax”, regard has been given to the quantity and types of refuse received, estimated future CO2e type gas emissions, estimates of the likely timing of such emissions, the potential offsets by collection of emitted gases and other methods, and estimates of future CO2e permit prices. The resulting estimated liability and timing of future payments has been converted to present value using government guaranteed securities rates with similar terms. 11 Leases Lease arrangements have been accounted for in accordance with Australian Accounting Standard AASB 117. In respect of finance leases, where Council substantially carries all of the risks incident to ownership, the leased items are initially recognised as assets and liabilities equal in amount to the present value of the minimum lease payments. The assets are disclosed within the appropriate asset class, and are amortised to expense over the period during which the Council is expected to benefit from the use of the leased assets. Lease payments are allocated between interest expense and reduction of the lease liability, according to the interest rate implicit in the lease. In respect of operating leases, where the lessor substantially retains all of the risks and benefits incident to ownership of the leased items, lease payments are charged to expense over the lease term. 12 Construction Contracts Construction works undertaken by Council for third parties are generally on an agency basis where the third party reimburses Council for actual costs incurred, and usually do not extend beyond the reporting period. As there is no profit component, such works are treated as 100% completed.

Reimbursements not received are recognised as receivables and reimbursements received in advance are recognised as “payments received in advance”. For works undertaken on a fixed price contract basis, revenues and expenses are recognised on a percentage of completion basis. Costs incurred in advance of a future claimed entitlement are classified as work in progress in inventory. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. 13 Equity Accounted Council Businesses Council participates in cooperative arrangements with other councils for the provision of services and facilities. Council’s interests in cooperative arrangements, which are only recognised if material, are accounted for in accordance with AASB 128 and set out in detail in Note 19 for Western Region Waste Management Authority, Waste Care SA and Council Solutions. 14 GST Implications In accordance with UIG Abstract 1031 “Accounting for the Goods & Services Tax”: Receivables and Creditors include GST

receivable and payable.

Except in relation to input taxed activities, revenues and operating expenditures exclude GST receivable and payable.

Non-current assets and capital expenditures include GST net of any recoupment.

Amounts included in the Statement of Cash Flows are disclosed on a gross basis.

15 Non Interest Bearing Liabilities Accommodation Bonds are amounts payable under the Aged Care Act 1997 and are controlled by legislation and individual contracts. Funds received from the occupants entering Council’s aged accommodation complexes are shown as liabilities. Revenue is brought to account as it accrues. These complexes are included in non-current assets as land and buildings.

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The repayment of the loan balances is required within a short period of time of the resident leaving the retirement unit. To recognise this requirement all accommodation bonds are recorded as a current liability as per AASB 101: Presentation of Financial Statements even though historical experience indicates the bonds may not be repaid within one year. 16 New Accounting Standards and UIG Interpretations Certain new (or amended) accounting standards and interpretations have been published that are not mandatory for reporting periods ending 30 June 2015. Council has not adopted any of these standards early. Council’s assessment of the impact of these new standards and interpretations is set out below. Apart from the AASB disclosures below, there are no other standards that are “not yet effective” which are expected to have a material impact on Council in the current or future reporting periods and on foreseeable future transactions. Applicable to Local Government: AASB 9 - Financial Instruments (and associated amending standards) AASB 9 replaces AASB 139 Financial Instruments: Recognition and Measurement and has an effective date for reporting periods beginning on or after 1 January 2018 (and must be applied retrospectively). The overriding impact of AASB 9 is to change the requirements for the classification, measurement and disclosures associated with financial assets. Under the new requirements the four current categories of financial assets stipulated in AASB 139 will be replaced with two measurement categories: fair value and

amortised cost (where financial assets will only be able to be measured at amortised cost where very specific conditions are met).

AASB 2014-5 - Revenue from contracts with customers and associated amending standards AASB 15 introduces a five step process for revenue recognition with the core principle of the new Standard being that entities recognise revenue so as to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the entity expects to be entitled in exchange for those goods or services. The changes in revenue recognition requirements in AASB 15 may cause changes to accounting policies relating to the timing and amount of revenue recorded in the financial statements as well as additional disclosures. The full impact of AASB 15 has not yet been ascertained or quantified. AASB 15 will replace AASB 118 which covers contracts for goods and services and AASB 111 which covers construction contracts. The effective date of this standard is for annual reporting periods beginning on or after 1 January 2017. AASB 124 - Related Party Disclosures From 1 July 2016, AASB 124 Related Party Disclosures will apply to Council. This means that Council will be required to disclose information about related parties and Council transactions with those related parties. Related parties will more than likely include the Mayor, Councillors and certain Council staff. In addition, the close family members of those people and any organisations that they control or are associated with will be classified as related parties (and fall under the related party reporting requirements). AASB 2014-10 Sale or contribution of Assets between an Investor and its Associate or Joint Venture The amendments address an acknowledged inconsistency between the requirements in AASB 10 and those in AASB 128 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.

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The main consequence of the amendments is that a full gain or loss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. The effective date of this standard is for annual reporting periods beginning on or after 1 January 2016. This standard will only impact Council where there has been a sale or contribution of assets between the entity and the associate/joint venture. AASB 2014 - Amendments to Australian Accounting Standards - Accounting for Acquisitions of Interests in Joint Operations [AASB 1 and AASB 11] This Standard amends AASB 11 to provide guidance on the accounting for acquisitions of interests in joint operations in which the activity constitutes a business. The amendments require: (a) the acquirer of an interest in a joint operation in

which the activity constitutes a business, as defined in AASB 3 Business Combinations, to apply all of the principles on business combinations accounting in AASB 3 and other Australian Accounting Standards except for those principles that conflict with the guidance in AASB 11; and

(b) the acquirer to disclose the information required by AASB 3 and other Australian Accounting Standards for business combinations.

This Standard also makes an editorial correction to AASB 11. The effective date of this standard is for annual reporting periods beginning on or after 1 January 2016. If a joint operation is acquired during the reporting period, then this standard clarifies the accounting for the acquisition to be in accordance with AASB 3, i.e. assets and liabilities acquired to be measured at fair value.

Not applicable to Local Government per se: None 17 Comparative Figures To ensure comparability with the current reporting period’s figures, some comparative period line items and amounts may have been reclassified or individually reported for the first time within these financial statements and/or the notes. 18 Disclaimer Nothing contained within these statements may be taken to be an admission of any liability to any person under any circumstance.

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Note 2. Income

$ '000

(a). Rates Revenues

General RatesGeneral RatesLess: Mandatory RebatesLess: Discretionary Rebates, Remissions & Write OffsTotal General Rates

Other Rates (Including Service Charges)Natural Resource Management LevyTotal Other Rates

Other ChargesPenalties for Late PaymentLegal & Other Costs RecoveredTotal Other Charges

Total Rates Revenues

(b). Statutory Charges

Development Act FeesHealth & Septic Tank Inspection FeesAnimal Registration Fees & FinesParking Fines / Expiation FeesEnvironmental Control FinesOther Registration FeesOther Licences, Fees & FinesTotal Statutory Charges

(c). User Charges

Commercial Activity RevenueAged Facilities RentalFacilities & Equipment HireHall & Equipment HireManagement Fee WRWMAWaste Management FeesOtherTotal User Charges

12

1,723

212 286 212

541

- 1

2,413 2,502

312 304

63

672 670

(423)

88,070

4,019

89,098

1,136

200

488 1,557

717

3,608

14

2014Notes

(1,206) (1,267)

86,370

2,219

91,549

2015

(494)

509

2,219

70 439

89,859

2,262

599

92,720

2,262

392 207

1,245

795

49 41

541 575

59 54

63

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Note 2. Income (continued)

$ '000

(d). Investment Income

- Local Government Finance Authority - Banks & OtherTotal Investment Income

(e). Reimbursements

Private WorksGeneralTotal Reimbursements

(f). Other Income

Insurance & Other Recoupments - Infrastructure, IPP&ESundryOtherTotal Other Income

(g). Grants, Subsidies, Contributions

Amounts Received Specifically for New or Upgraded AssetsOther Grants, Subsidies and ContributionsIndividually Significant Item - Additional Grants Commission Payment (refer below)Total Grants, Subsidies, Contributions

The functions to which these grants relate are shown in Note 12.

(i) Sources of grantsCommonwealth GovernmentState GovernmentOtherTotal

(ii) Individually Significant ItemsCommonwealth Financial Assistance Grant Water Proofing the West Stage 1 Funding

279 250

152

Notes 2015 2014

14

123 127 127

15 152

11,760 15,693

- 7,486 1,811

693

-

49 50

3

318 491

185 114

3,282 3,193 7,747 6,111

8,024 1,811 -

6,691 1,925 9,002

382

188 128

15,693 11,760

731 6,389

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Note 2. Income (continued)

$ '000

(h). Conditions over Grants & Contributions

Grants and contributions which were obtained on the condition that theybe expended for specified purposes or in a future period, but which arenot yet expended in accordance with those conditions, are as follows:

Unexpended at the close of the previous reporting period

Less:Expended during the current period from revenuesrecognised in previous reporting periodsRoads InfrastructureGeneral PurposeOpen Space InfrastructureCommunity ServicesSubtotal

Plus:Amounts recognised as revenues in this reportingperiod but not yet expended in accordance with the conditionsRoads InfrastructureGeneral PurposeSubtotal

Unexpended at the close of this reporting period

Net increase (decrease) in assets subject to conditionsin the current reporting period

(i). Physical Resources Received Free of Charge

Land & ImprovementsRoads, Bridges & FootpathsStormwater DrainageBuildingsPlant & EquipmentTotal Physical Resources Received Free of Charge

- (669)

1,132

1,804

7 -

1,811 -

- (3,862)

679 -

1,811 -

17 446 1,782

1,811 (3,862)

3,027 1,337

Notes 2015 2014

(1,135)

-

- 353

3,143 5,630

3,862

-

-

- (1,988) - (70)

page 18



Note 3. Expenses

$ '000

(a). Employee Costs

Salaries and WagesEmployee Leave ExpenseSuperannuation - Defined Benefit and Accumulation Fund ContributionsWorkers' Compensation InsuranceOther Less: Capitalised and Distributed CostsTotal Operating Employee CostsTotal Number of Employees (full time equivalent at end of reporting period)

(b). Materials, Contracts and Other Expenses

(i) Prescribed ExpensesAuditor's Remuneration - Auditing the Financial Reports - Other Services - Other AuditorsBad and Doubtful DebtsElected Members' ExpensesOperating Lease Rentals - Cancellable LeasesOperating Lease Rentals - Non-Cancellable Leases - Minimum Lease PaymentsSubtotal - Prescribed Expenses

(ii) Other Materials, Contracts and ExpensesAdvertising / PromotionalAgency StaffCommunicationConsultantsContractorsDonations/ContributionsEnergyInsuranceLegal ExpensesLevies Paid to Government (including NRM levy)Levies - OtherMaintenanceParts, Accessories, Consumables & SuppliesProfessional ServicesSundryTraining / Seminars & ConferencesWaste CostsWaterSubtotal - Other Material, Contracts & Expenses

Total Materials, Contracts and Other Expenses

396 386

1,175 763 643 544 671

801

662 291

1,132

3,244

455 463

18

547

3,251

531

817

17

35,099 456

1,110

1,810 6,561

38,350

6,837 2,144

891 822

9,540 10,574

705 2,686

2,127 3,581 1,195

1 -

23

- 185 443 402

1,400 1,400

96 89

38,046

39,809 39,589

3,082 1,633

844 955

(1,728) (2,243) 107 86

2,504

5 11

446

34

37,600

735

1,459 1,543

34,104

3,149 3,001 1,145

Notes 2015 2014

716 32,563

page 19



Note 3. Expenses (continued)

$ '000

(c). Depreciation, Amortisation and Impairment

(i) Depreciation and AmortisationBuildings & Other Structures - SpecialisedStormwaterRoadsFootpathsBridgesPlant & EquipmentFurniture & FittingsSubtotal

(ii) ImpairmentBuildingsSubtotal

Total Depreciation, Amortisation and Impairment

(d). Finance Costs

Interest on LoansTotal Finance Costs

Note 4. Asset Disposal & Fair Value Adjustments

Infrastructure, Property, Plant & Equipment

(i) Assets Renewed or Directly ReplacedProceeds from DisposalLess: Carrying Amount of Assets SoldGain (Loss) on Disposal

Net Gain (Loss) on Disposal or Revaluation of Assets

- 642

24,528 22,475

(2,976) (2,402)

23,117

1,414 1,254 1,414 1,254

289 1,002 (3,978) (2,691)

24,528

- 642

335 8 2,540 2,594 1,726 958

6,817

5,033

3,620 3,512 6,885

5,180

(2,976) (2,402)

Notes 2015 2014

4,389 3,406

page 20



Note 5. Current Assets

$ '000

(a). Cash & Cash Equivalents

Cash on Hand at BankDeposits at CallTotal Cash & Cash Equivalents

(b). Trade & Other Receivables

Rates - General & OtherCouncil Rates Postponement SchemeDebtors - GeneralGST RecoupmentPrepaymentsSundrySubtotal

Less: Allowance for Doubtful DebtsTotal Trade & Other Receivables

(c). Other Financial Assets (Investments)

Nil

(d). Inventories

Stores & MaterialsTotal Inventories

Notes 2015 2014

2,378 772

9,538 5,674 7,160 4,902

2,901 3,321

759 528 1,387 1,053

2,391 5,232 33 29

44 77

7,111 9,923

7,515 10,240

(404) (317)

53 61 53 61

page 21



Note 6. Non-Current Assets

$ '000

(a). Financial Assets

Nil

(b). Equity Accounted Investments in Council Businesses

Waste CareCouncil SolutionsWestern Region Waste Management AuthorityTotal Equity Accounted Investments in Council Businesses

(c). Other Non-Current Assets

(i) InventoriesNil

(ii) OtherCapital Works-in-ProgressTotal Other

Total Other Non-Current Assets

Notes 2015 2014

235 187

19 55 66 19 102 121 19 78 -

9,988 11,670

9,988 11,670

9,988 11,670

page 22



Note 7a. Infrastructure, Property, Plant & Equipment

Fair Value At At Carrying At At Carrying

$ '000 Level Fair Value Cost Dep'n Impairment Value Fair Value Cost Dep'n Impairment Value

Land 2 264,644 11,145 - - 275,789 1,118 56 - - - - - - 264,644 12,319 - - 276,963 Buildings & Other Structures - Specialised 3 198,051 13,495 93,926 795 116,825 3,001 4,072 (142) (5,001) - 47 - - 197,643 19,927 98,616 152 118,802 Buildings & Other Structures - Non Specialised 2 2,228 - 1,284 - 944 - - - (32) - - - - 2,228 - 1,316 - 912 Stormwater 3 311,391 55,853 148,346 - 218,898 3,790 1,439 (316) (4,389) - - - - 310,659 61,081 152,318 - 219,422 Roads 3 583,177 10,155 229,195 - 364,137 3,663 6,441 (2,083) (6,885) - - - - 579,378 20,259 234,364 - 365,273 Footpaths 3 181,723 6,349 104,379 - 83,693 3,601 3,076 (1,213) (3,620) - - - - 178,206 13,026 105,695 - 85,537 Bridges 3 16,209 4,086 9,541 - 10,754 54 3,047 - (335) - - - 3,993 20,203 7,186 9,876 - 17,513 Plant & Equipment - 17,294 10,884 - 6,410 170 3,286 (224) (2,540) - - - - - 18,843 11,741 - 7,102 Furniture & Fittings - 15,041 10,263 - 4,778 150 272 - (1,726) - (47) - - - 15,416 11,989 - 3,427 Total Infrastructure, Property, Plant& Equipment

Comparatives 1,542,789 29,081 576,298 - 995,572 88,458 16,687 (2,691) (22,475) (642) - (211) 7,530 1,557,423 133,418 607,818 795 1,082,228 page xx

1,094,951 - 625,915 152 168,057 1,557,423 133,418 1,552,961 795 (24,528) - 3,993 -

New / Upgrade Renewals

Asset Movements during the Reporting Periodas at 30/6/2015

Depreciation Expense (Note 3c)

WDVof Asset

Disposals

Adjustments& Transfers

607,818

Revaluation Incrementsto Equity

(ARR) (Note 9)

Revaluation Decrements

to Equity (ARR)

(Note 9)AccumulatedAccumulated

as at 30/6/2014

1,082,228

Impairment Loss

(recognisedin P/L)

(Note 3c)

15,547 (3,978) 21,689

Asset Additions

page 23



Note 7b. Valuation of Infrastructure, Property, Plant & Equipment & Investment Property

$ '000

Valuation of Assets

The fair value of assets and liabilities must be estimated in accordance with various Accounting Standards for eitherrecognition and measurement requirements or for disclosure purposes.

AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a "level"in the fair value hierarchy as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Refer to Note 7a for the disclosure of the Fair Value Levels of Infrastructure, Property, Plant and Equipment Assets.

Information on Valuations

Certain land, and the buildings and structures thereon, are shown above as being based on fair value hierarchylevel 2 valuation inputs. They are based on prices for similar assets in an active market, with directly or indirectlyobservable adjustments for specific advantages or disadvantages attaching to the particular asset.

Valuations of Crown land, community land and land subject to other restrictions on use or disposal, shown above as being based on fair value hierarchy level 3 valuation inputs, are based on prices for similar assets in an active market, but include adjustments for specific advantages or disadvantages attaching to the particular asset that are not directly or indirectly observable in that market, or the number and/or amount of observable adjustments of which are so great that the valuation is more fairly described as being based on level 3 valuation inputs.

There is no known market for buildings, infrastructure and other assets. These assets are valued at depreciatedcurrent replacement cost. This method involves:

- The determination of the cost to construct the asset (or its modern engineering equivalent) using current prices for materials and labour, the quantities of each being estimated based on recent experience of this or similar councils, or on industry construction guides where these are more appropriate.

- The calculation of the depreciation that would have accumulated since original construction using current estimates of residual value and useful life under the prime cost depreciation method adopted by Council.

This method has significant inherent uncertainties, relying on estimates of quantities of materials and labour, residual values and useful lives, and the possibility of changes in prices for materials and labour, and the potential for development of more efficient construction techniques.

page 24



Note 7b. Valuation of Infrastructure, Property, Plant & Equipment & Investment Property (continued)

$ '000

Valuation of Assets (continued)

Other Information

At 1 July 2004 upon the transition to AIFRS, Council elected pursuant to AASB 1.19 to retain a previously establisheddeemed cost under GAAP as its deemed cost. With subsequent addition at cost, this remains as the basis ofrecognition of non-material asset classes.

Upon revaluation, the current new replacement cost and accumulated depreciation are re‐stated such that the difference represents the fair value of the asset determined in accordance with AASB 13 Fair Value Measurement: accumulated depreciation is taken to be the difference between current new replacement cost and fair value. In the case of land, current replacement cost is taken to be the fair value.

Highest and best use

All of Council's non financial assets are considered as being utilised for their highest and best use.

Current use is presumed to be its highest and best use unless market or other factors suggest a different use bymarket participants would maximise the value of the asset.

For land which Council has an unfettered right to sell, the "highest and best use" recognises the possibility ofdemolition or substantial modification of some or all of the existing buildings and structures affixed to the land.Much of the land under Council's care and control is Crown land or has been declared as community land under the provisions of the Local Government Act 1999. Other types of restriction also exist. For land subject to these restrictions, "highest and best use" is taken to be the "highest and best use" available to Council with a rebuttable presumption that the current use is the "highest and best use". The reason for the current use of a large proportion of Council's assets being other than the "highest and best use" relates to Council's principal role as the provider of services to the community, rather than the use of those assets for the generation of revenue. For buildings and other structures on the land, including infrastructure "highest and best use" is determined in accordance with the land on and in which they are situated.

Transition to AASB 13 - Fair Value Measurement

The requirements of AASB 13: Fair Value Measurement have been applied to all valuations undertaken since 1 July 2013 as shown by the valuation dates by individual asset classes below.

page 25




$ '000


Land & Land Improvements

Non specialised land are valued using the market based direct comparison method. Under this valuation method,assets are compared to comparable transactions involving the sale of similar assets. Specialised land is valued using the same valuation method although adjustments are subsequently made for specific attributes including but not limited to size, topography and zoning to determine the value of the subject property.

Fair value assessments have been performed as at June 2015 which demonstrated that fair value was materiallysimilar to carrying value, and therefore a full revaluation was not required this year. An independent valuation ofcouncils land and land improvements was performed by Maloney Field Services as at 30 June 2013.

All land and land improvements are classified as level 2 under the market based direct comparison method.

Buildings & Other Structures

Non specialised buildings are valued using the market based direct comparison method. Under this valuation method, assets are compared to comparable transactions involving the sale of similar assets. Non specialised buildings are classified as level 2 under the market based direct comparison method.

For Council specialised buildings and other structures, depreciated replacement cost is used. Depreciatedreplacement cost is the cost of replacing the asset with its modern equivalent using market observations by the independent Valuer with regard to current costs and depreciation rates. Specialised buildings contain significant unobservable adjustments, therefore these assets are classified as level 3 fair value measurements.

Fair value assessments have been performed as at June 2015 which demonstrated fair value was materially similarto carrying value, and therefore a full revaluation was not required this year. An independent valuation of council's buildings and other structures was performed by Maloney Field Services as at June 2013 where the valuation wasperformed using either direct market based comparison method or depreciated replacement cost, adjusted forrestrictions in use.

Infrastructure

Roads, FootpathsRoads and Footpaths are valued using the depreciated replacement cost method.

This method involves the determination of the cost to construct the asset (or its modern engineering equivalent) usingcurrent prices for materials and labour, the quantities of each being based on recent experience of this Council.

The calculation of the depreciation that would have accumulated since original construction using current estimatesof residual value and useful life under the prime cost deprecation method adopted by Council. This method has significant inherent uncertainties, relying on estimates of quantities of materials and labour, residual values anduseful lives, and the possibility of changes in prices for labour and materials, and the potential for development of more efficient construction techniques.

page 26




$ '000


Infrastructure (continued)

Fair value assessments have been performed as at June 2015 which demonstrated fair value was materially similarto carrying value, and therefore a full revaluation was not required this year. As at June 2014, on-street carparks have been recognised within the Road infrastructure class of assets as at depreciated replacement cost. This methodinvolves the determination of the cost to construct the asset (or its modern engineering equivalent) using currentprices for materials and labour, the quantities of each being based on recent experience of this Council.

Roads and Footpaths contain significant unobservable inputs, therefore these assets are classified as level 3.

Stormwater DrainageStormwater assets are valued using the depreciated replacement cost method.

This method involves the determination of the cost to construct the asset (or its modern engineering equivalent) usingcurrent prices for materials and labour, the quantities of each being based on contract rates from Tonkin Consulting.

The calculation of the depreciation that would have accumulated since original construction using current estimatesof residual value and useful life under the prime cost deprecation method adopted by Council. This method has significant inherent uncertainties, relying on estimates of quantities of materials and labour, residual values anduseful lives, and the possibility of changes in prices for labour and materials, and the potential for development of more efficient construction techniques.

Fair value assessments have been performed as at June 2015 which demonstrated fair value was materially similarto carrying value, and therefore a full revaluation was not required this year.

Stormwater assets contain significant unobservable inputs, therefore these assets are classified as level 3

Bridges Bridges are valued using the depreciated replacement cost method.

This method involves the determination of the cost to replace the asset with its modern equivalent less deductionsfor physical deterioration and relevant forms of obsolescence.

Fair value assessments have been performed as at June 2015 which demonstrated fair value was materially similarto carrying value, and therefore a full revaluation was not required this year.

An independent valuation of Council bridges was performed by Maloney Field Services as at June 2014 based on depreciated replacement cost of the asset using market observations by the Valuer with regard to current costs and depreciation rates. As Bridges contain significant unobservable inputs, these assets are classified as level 3.

Plant & Equipment

Plant and Equipment is carried at cost, less any accumulated depreciation and impairment losses.

Furniture & Fittings

Furniture and Fittings which includes IT equipment is carried at cost, less any accumulated depreciation andimpairment losses.

page 27



Note 8. Liabilities

$ '000

(a). Trade and Other Payables

Goods & ServicesPayments Received in AdvanceAccrued Expenses - Employee EntitlementsAccrued Expenses - OtherAged Care Facility DepositsDeposits, Retentions & BondsTotal Trade and Other Payables

(b). Borrowings

LoansTotal Borrowings

All interest bearing liabilities are secured over the future revenues of the Council

(c). Provisions

Employee Entitlements (including oncosts)Provision for Taxation - Carbon TaxIndependent Living Unit MaintenanceWestern Region Waste Management (WRWMA)Ray Street Remediation WorksTotal Provisions

Movements in Provisions

$ '000

2015 (current & non-current)

Opening BalanceAdd Additional Amounts Recognised(Less) PaymentsClosing Balance

(15) 15

- - - 510

Independent Living Unit

Maintenance

Western Region Waste Management

(WRWMA)

Ray Street Remediation

Works

136 630 510

CarbonTax

30

101 - -

(35) (630) - - - (510)

-

2015Current

20142014Non Current Current

4,725 -

- 23,054

2,009

Future Reinstatement

-

29,153

Notes2015

- 3,619

Insurance Losses

6,919 7,670

CarbonTax

101

22,333

24 360 29,446

2,009 6,874

Other

- - 630 -

1,099

- 136

360

-

3,933 8,017

- 2,275

29,153

9 - 10 5,685

1,116 -

-

- 957

5,798

24

- 30 - 6,803

15

29,446

Non Current

- -

1,609

-

9,243

-

-

page 28



Note 9. Reserves

$ '000

(a). Asset Revaluation Reserve

Buildings & Other Structures - SpecialisedInfrastructureInfrastructure - RoadsInfrastructure - BridgesTotal Asset Revaluation ReserveComparatives

PURPOSES OF RESERVESAsset Revaluation ReservesThe asset revaluation reserve is used to record increments and decrements arising from changes in fair value ofnon current assets (less any subsequent impairment losses, where applicable).

Note 10. Assets Subject to Restrictions

$ '000

The uses of the following assets are restricted, wholly or partially, by legislation or other externally imposed requirements. The assets are required to be utilised for the purposes for which control was transferred to Council, or for which the revenues were originally obtained.

Cash & Financial AssetsUnexpended amounts received from Federal GovernmentContribution to Specific Work ProgrammesHindmarsh Town MissionTotal Cash & Financial AssetsTotal Assets Subject to Externally Imposed Restrictions

Note 11. Reconciliation to Statement of Cash Flows

(a). Reconciliation of Cash

Cash Assets comprise highly liquid investments with short periods tomaturity subject to insignificant risk of changes of value. Cash at theend of the reporting period as shown in the Statement of Cash Flowsis reconciled to the related items in the Balance Sheet as follows:

Total Cash & Equivalent AssetsBalances per Statement of Cash Flows

Notes

(211)

3,454 - - - 3,454

626,635 619,316

619,316

7,319 -

Transfers Impairments

- -

588

63

2014

(211) - -

-

- -

Notes

- 619,316

30/6/2015

525

626,635 630,628

2015

5 5,674 9,538 9,538 5,674

3,993

1/7/2014 Increments (Decrements)

601 588 601

-

63 538

4,076 3,993 - - 8,069

page 29



Note 11. Reconciliation to Statement of Cash Flows (continued)

$ '000

(b). Reconciliation of Change in Net Assets to Cash from Operating Activities

Net Surplus/(Deficit)Non-Cash Items in Income Statements Depreciation, Amortisation & Impairment Equity Movements in Equity Accounted Investments (Increase)/Decrease Non-Cash Asset Acquisitions Grants for Capital Acquisitions (Treated as Investing Activity Receipts) Net (Gain) Loss on Disposals

Add (Less): Changes in Net Current Assets Net (Increase)/Decrease in Receivables Change in Allowances for Under-Recovery of Receivables Net (Increase)/Decrease in Inventories Net (Increase)/Decrease in Other Current Assets Net Increase/(Decrease) in Trade & Other Payables Net Increase/(Decrease) in Unpaid Employee Benefits Net Increase/(Decrease) in Other ProvisionsNet Cash provided by (or used in) operations

(c). Non-Cash Financing and Investing Activities

Acquisition of assets by means of: - Physical Resources Received Free of ChargeAmounts recognised in Income StatementTotal Non-Cash Financing & Investing Activities

(d). Financing Arrangements

Unrestricted access was available at balance date to the following lines of credit:

Bank OverdraftsCorporate Credit CardsLGFA Cash Advance Debenture Facility

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.

48,956 48,956

(3,143)

200 200 500 500

(123)

3,143 5,630 3,143 5,630

33,279 22,125 (1,190)

(833) (4,911)

2,976 2,402 31,643 27,050

2,725

8 (8) 174 42

839 (235)

331 (21)

(678) (103) (5,630)

(1,925) (9,002)

(87)

9,255 16,266

23,117

2i 3,143 5,630

24,528

Notes 2015 2014

page 30



Note 12a. Functions

Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual$ '000 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

Community Services 2,891 2,367 4,650 5,258 (1,759) (2,891) 2,517 2,215 13,854 13,724 Contracted Services 73 36 13,425 13,520 (13,352) (13,484) - - - - Customer Relations - 6 1,357 1,301 (1,357) (1,295) - - - - Engineering and Construction 4,708 3,532 31,459 28,765 (26,751) (25,233) 3,552 4,785 701,266 683,574 Libraries 1,324 1,064 6,283 6,359 (4,959) (5,295) 871 802 6,505 4,975 Open Space and Recreation 329 301 14,845 13,446 (14,516) (13,145) 570 165 263,022 240,318 Planning and Development 1,892 1,467 4,689 4,548 (2,797) (3,081) - - 20 10 Property Mgt & Maint 1,595 1,473 10,387 11,167 (8,792) (9,694) - - 127,255 156,546 Public Health and Safety 4,065 3,280 4,324 4,242 (259) (962) 78 110 1,291 898 Urban Projects 60 82 2,305 951 (2,245) (869) 12 37 93 - Governance and Risk 179 264 9,627 9,502 (9,448) (9,238) - - - - Unallocated (incl. Rates Income) 92,720 89,098 - - 92,720 89,098 3,429 1,190 8,570 9,698

Total Functions/Activities 109,836 102,970 103,351 99,059 6,485 3,911 11,029 9,304 1,121,876 1,109,743 Revenues and expenses exclude net gain (loss) on disposal or revaluation of assets, net gain (loss) from joint ventures & associated entities, amounts received specifically for new or upgraded assets and physical resources received free of charge.

Details of these Functions/Activities are provided in Note 12(b).

Functions/Activities

Income, Expenses and Assets have been directly attributed to the following Functions / Activities.

INCOME EXPENSES OPERATINGSURPLUS (DEFICIT)

TOTAL ASSETS HELD (CURRENT &

NON-CURRENT)

GRANTS INCLUDEDIN INCOME

page 27

page 31



Note 12b. Components of Functions

$ '000

The activities relating to Council functions are as follows:

COMMUNITY SERVICES

CONTRACTED SERVICES

CUSTOMER RELATIONS

ENGINEERING AND CONSTRUCTION

GOVERNANCE

LIBRARIES

OPEN SPACE AND RECREATION

PLANNING AND DEVELOPMENT

PROPERTY MANAGEMENT AND MAINTENANCEManagement and maintenance of Council's commercial, community and residential properties. The handling of customer requests to make roads and footpaths safe and the maintenance of bus shelters, aged care accommodation and sporting facilities.

PUBLIC HEALTH AND SAFETYMonitoring and control of Council's By-Laws, including dog and parking control. Protection and promotion of the health and wellbeing of Council's residents through programs designed to provide awareness, and through the provision of immunisation services, public health and pest control.

URBAN PROJECTS

UNALLOCATED

Maintenance and development of Council's parks, reserves, trees and to foster the development of an aestheticallypleasing environment development throughout the City.

Services provided to the elderly and disabled through community centres and other government funded communityprograms. It also includes programs to support youth, sporting clubs and crime prevention programs.

Management and supervision of contracts for public toilets, verge mowing and waste management services.

Management of the relationship between Council and the community via Council's internal and external communicationactivities and community events. It also includes management of Council call centres.

Maintenance and construction of Council's Infrastructure which includes Council's roads, footpaths, pedestrian/cyclepaths, stormwater drainage systems and bridges. Includes cost of Council's waste transfer station and Council's share inassociated entities (WRWMA, Waste Care, Council solutions).

Administrative of governance activities including elected members allowances, elections.

Provision of 5 libraries and mobile library services.

Council is responsible for development and control of urban planning, thereby ensuring a successful blend of lifestyle and economic development throughout the City.

Provision of regulatory activities under the Development Act.

Facilitates council's response to major urban development projects and drives the City's strategic land use and development policies. Encourages future economic development initiatives that will seek to generate positive local investment and employment outcomes.

Where cost allocations cannot be reliably and consistently determined no allocation of cost has been made.

page 32



Note 13. Financial Instruments

$ '000

Recognised Financial Instruments

Bank, Deposits at Call, Short Term Deposits Accounting Policy:Carried at lower of cost and net realisable value; Interest isrecognised when earned.

Terms & Conditions:Deposits are returning fixed interest rates at an average interestrate of 2.63% (2014: 3%). Short term deposits are invested in theLGFA or in at call bank accounts depending on the interest ratesat the time of the investment.

Carrying Amount:Approximates fair value due to the short term to maturity.

Receivables Accounting Policy:Rates & Associated Charges Carried at nominal values less any allowance for doubtful debts.(including legals & penalties for late payment) An allowance for doubtful debts is recognised (and re-assessed

annually) when collection in full is no longer probable.Note: These receivables do not meet the definitionof "financial instruments" and have been excluded Terms & Conditions:from the following disclosures. Secured over the subject land, arrears attract interest of 7.75%

(2014: 8.0%). Council is not materially exposed to any individualdebtor, credit risk exposure is concentrated within the Council's boundaries in the State.

Carrying Amount:Approximates fair value (after deduction of any allowance).

Receivables Accounting Policy:Fees & Other Charges Carried at nominal values less any allowance for doubtful debts.

An allowance for doubtful debts is recognised (and re-assessed annually) when collection in full is no longer probable.

Terms & Conditions:Unsecured, and do not bear interest. Council is not materiallyexposed to any individual debtor, credit risk exposure isconcentrated within the Council's boundaries.


page 33



Note 13. Financial Instruments (continued)

$ '000


Receivables Accounting Policy:Other Levels of Government Carried at nominal value.

Terms & Conditions:Amounts due have been calculated in accordance with theterms and conditions of the respective programs followingadvice of approvals, and do not bear interest. All amountsare due by Departments and Agencies of State and FederalGovernments.

Carrying Amount:Approximates fair value.

Receivables Accounting Policy:Retirement Home Contributions Carried at nominal values less any allowance for doubtful debts.

An allowance for doubtful debts is recognised (and re-assessed annually) when collection in full is no longer probable.

Terms & Conditions:Amounts due have been calculated in accordance with the termsand conditions of the respective legislation.


Liabilities Accounting Policy:Creditors and Accruals Liabilities are recognised for amounts to be paid in the future for

goods and services received, whether or not billed to the Council.

Terms & Conditions:Liabilities are normally settled on 30 day terms.


page 34




$ '000


Liabilities Accounting Policy:Retirement Home Contributions To avoid inconvenience when complying with the separate audit

requirements imposed by the relevant legislation, amounts arecarried at nominal values.

Terms & Conditions:Pursuant to Commonwealth legislation certain intending residents are required to contribute amounts on an interest free basis. The amounts are subject to certain deductions as prescribed by the legislation, the balance being repaid ontermination of tenancy.

Carrying Amount:Approximates fair value for short tenancies; may be non-materially overstated for longer tenancies.

Liabilities Accounting Policy:Interest Bearing Borrowings Carried at the principal amounts. Interest is charged as an

expense as it accrues.

Terms & Conditions:Secured over future revenues, borrowings are repayable by periodic instalments of principal and interest; interest is charged at fixed rates at an average rate of 4.6% (2014: 5.30%).Loans are determined via a tender process and interestrates are secured at drawdown. Cash advances are usedto fund temporary short term cash requirements.


Liabilities Accounting Policy:Finance Leases Accounted for in accordance with AASB 117.

page 35




$ '000

2015Financial AssetsCash & EquivalentsReceivablesOther Financial AssetsTotal Financial Assets

Financial LiabilitiesPayablesCurrent BorrowingsNon-Current BorrowingsTotal Financial Liabilities

2014Financial AssetsCash & EquivalentsReceivablesTotal Financial Assets

Financial LiabilitiesPayablesCurrent BorrowingsNon-Current BorrowingsTotal Financial Liabilities

The following interest rates were applicableto Council's Borrowings at balance date:

Other Variable RatesFixed Interest Rates

Net Fair ValueAll carrying values approximate fair value for all recognised financial instruments . There is no recognised market forthe financial assets of the Council.

Weighted Avg Weighted Avg

CarryingDue > 1 yearDue& ≤ 5 years

-

29,116 29,446

43,372

43,786 43,786

43,324

CarryingValue

354

9,538 9,538

12,328 12,406 -

- 5,676

33 2,790

13,811

30 June 2015

-

4.75% 29,040 Interest Rate

CarryingInterest RateValue

- 375 13,811

- - 5,676 5,674 -

29,186

-

30 June 2014

146 29,153

5,520

Due> 5 years

14,316

5,519

14,316 - 354 -

5,519

-

29,116

375 -

11,195 -

13,811

14,670

- 12,295

2,790

Values

78

Cash Flows

14,316

- 360

9,538 -

-

< 1 year

- 11,195 11,194

14,186 29,040 - 29,040

-

-

- 29,116 24

2,757 -

- 33

146

-

29,513 29,470

4.25% 29,040 5.30% 430 5.30% 473

Total Contractual

page 36




$ '000

Risk Exposures

Credit Risk represents the loss that would be recognised if counterparties fail to perform as contracted. The maximum credit risk on financial assets of the Council is the carrying amount, net of any allowance for doubtful debts. All Councilinvestments are made with the SA Local Government Finance Authority and are guaranteed by the SA Government.Except as detailed in Notes 5 & 6 in relation to individual classes of receivables, exposure is concentrated within theCouncil's boundaries, and there is no material exposure to any individual debtor.

Market Risk is the risk that fair values of financial assets will fluctuate as a result of changes in market prices. Allof Council's financial assets are denominated in Australian dollars and are not traded on any market, and henceneither market risk nor currency risk apply.

Liquidity Risk is the risk that Council will encounter difficulty in meeting obligations with financial liabilities. In accordance with the model Treasury Management Policy (LGA Information Paper 15), liabilities have a range ofmaturity dates. Council also has available a range of bank overdraft and standby borrowing facilities that it can access.

Interest Rate Risk is the risk that future cash flows will fluctuate because of changes in market interest rates.Council has a balance of both fixed and variable interest rate borrowings and investments. Cash flow fluctuations aremanaged holistically in seeking to minimise interest costs over the longer term in a risk averse manner.

page 37



Note 14. Commitments for Expenditure

$ '000

(a). Capital Commitments

Capital expenditure committed for at the reporting date but notrecognised in the financial statements as liabilities:

LandBuildingsInfrastructurePlant & EquipmentPlant & Equipment including IT assets

These expenditures are payable:Not later than one yearLater than one year and not later than 5 yearsLater than 5 years

(b). Other Expenditure Commitments

Other expenditure committed for (excluding inventories) at the reportingdate but not recognised in the financial statements as liabilities:

Grange Surf lifesaving Club

These expenditures are payable:Not later than one yearLater than one year and not later than 5 yearsLater than 5 years

(c). Finance Lease Commitments

Council has no Finance Leases.

-

541

-

7,033

541

- -

- 541

6,984

- - -

- 541

- 12,961

-

- 12,961

2015 2014

633 937

-

45

Notes

573 4,373

6,984 12,961

6,984

3,161 3,190

-

page 38



Note 15. Financial Indicators

$ '000

1. Operating Surplus RatioOperating SurplusRates - General & Other Less NRM levy

This ratio expresses the operating surplus as a percentage of general andother rates, net of NRM levy.

1a. Adjusted Operating Surplus Ratio

In recent years the Federal Government has made advance payments priorto 30th June from future year allocations of financial assistance grants, asexplained in Note 1. The Adjusted Operating Surplus Ratio adjusts for theresulting distortion in the disclosed operating result for each year.

2. Net Financial Liabilities RatioNet Financial LiabilitiesTotal Operating Revenue

Net Financial Liabilities are defined as total liabilities less financial assets

(excluding equity accounted investments in Council businesses). These are

expressed as a percentage of total operating revenue.

3. Asset Sustainability RatioNet Asset RenewalsInfrastructure & Asset Management Plan required expenditure

Net asset renewals expenditure is defined as net capital expenditure on

the renewal and replacement of existing assets, and excludes new

capital expenditure on the acquisition of additional assets.

Amounts2015 2015 2014 2013

Indicator Prior Periods

44,082 40% 46% 35%110,544

23,639 104% 68% 79%22,798

90,458 5,353 6% 5% 5%

90,458 8%7,163

These Financial Indicators have been calculated in accordance with Information paper 9 - Local Government Financial Indicators prepared as part of the LGA Financial Sustainability Program for the Local Government Association of South Australia.

7%5%

page 39



Note 15. Financial Indicators - Graphs (continued)

Purpose of Adjusted Operating Surplus

Ratio

Commentary on 2014/15 Result

2014/15 Ratio 6%

This indicator is to determine the

percentage the major controllable revenue source (adjusted for

timing differences in the Financial Assistance Grant) varies from

operating expenditure

The Adjusted Operating surplus ratio adjusts for the impact of the Commonwealth Financial

Assistance funding which has been received in advance and in 2014/15 $1.81m for 2015/16

was received and recognised June 2015.

Purpose of Net Financial Liabilities

Ratio


2014/15 Ratio 40%

This indicator shows the significance of the net

amount owed to others, compared to operating

revenue

Council considers a ratio of >0% and <100% an acceptable benchmark with trends

demonstrating Council is well within acceptable levels, noting that delays in completion of

Council's capital program will impact on this ratio.

Purpose of Asset Sustainability Ratio


2014/15 Ratio 104%

This indicator aims to determine if assets are

being renewed and replaced in an optimal

way

Council sets a target of 80% of expenditure on asset renewals as against what is in Council's adopted Asset Management Plans. However it

should be noted this ratio is skewed by the impact of renewal projects adopted annually as

part of the budget process but which may be incomplete as at year end.

This indicator is to determine the

percentage the major controllable revenue source varies from

operating expenditure


2014/15 Ratio 8%

Council's Long Term Financial Plan is to maintain a sustainable operating surplus ratio of

>0% and <10% which has been achieved, although the timing of the recognition of

Commonwealth Financial Assistance funding has skewed the results with funding received in

advance.

Purpose of Operating Surplus Ratio

7%

5%

8%

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%

2013 2014 2015

Rat

io %

1. Operating Surplus Ratio

5% 5%6%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%

2013 2014 2015

Rat

io %

1a. Adjusted Operating Surplus Ratio

35%

46%40%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%

2013 2014 2015

Rat

io %

2. Net Financial Liabilities Ratio

79%68%

104%

0.0%20.0%40.0%60.0%80.0%

100.0%120.0%140.0%

2013 2014 2015

Rat

io %

3. Asset Sustainability Ratio

page 40



Note 16. Uniform Presentation of Finances

$ '000

The following is a high level summary of both operating and capital investment activities of the Council prepared on a simplified Uniform Presentation Framework basis.

All Councils in South Australia have agreed to summarise annual budgets and long-term financial plans on the same basis.

The arrangements ensure that all Councils provide a common 'core' of financial information, which enables meaningful comparisons of each Council's finances.

Incomeless ExpensesOperating Surplus / (Deficit)

less Net Outlays on Existing Assets Capital Expenditure on Renewal and Replacement of Existing Assets less Depreciation, Amortisation and Impairment less Proceeds from Sale of Replaced AssetsSubtotal

less Net Outlays on New and Upgraded Assets

less Amounts Received Specifically for New and Upgraded Assets

Subtotal

Net Lending / (Borrowing) for Financial Year

(1,002)

7,770 30,729

2015

Capital Expenditure on New and Upgraded Assets (including Investment Property & Real Estate Developments)

(7,688)

(24,528)

2,207 (10,003)

5,845

24,641 15,718

21,727 - -

(23,117)

103,095 110,544 (103,381) (99,059)

4,036 7,163

(289)

2014

less Proceeds from Sale of Surplus Assets (including Investment Property & and Real Estate Developments)

(889)

(1,925) (9,002)

page 41



Note 17. Operating Leases

$ '000

Leases Providing Revenue to the Council

(i) Investment Property

Council has not classified any Land or Buildings as "Investment Property".

(ii) Lease Payment Commitments of Council

Council has entered into non-cancellable operating leases for various items of computer and other plant and equipment.

No contingent rentals were paid during the current or previous reporting periods.

No lease imposes any additional restrictions on Council in relation to additionaldebt or further leasing.

Leases in relation to computer and office equipment permit Council, at expiryof the lease, to elect to re-lease, return or acquire the equipment leased.

No lease contains any escalation clause.

Not later than one yearLater than one year and not later than 5 yearsLater than 5 years

2014

1,374

2015

868 -

651 -

Commitments under non-cancellable operating leases that have not been recognised in the financial statements are as follows:

Rentals received, and outgoings reimbursed, in relation to Investment Property are also disclosed in Note 2. These lease agreements, all of which are classified as operating leases, are made on a non-cancellable basis wherever practicable

Council owns various buildings, plant and other facilities that are available for hire or lease (on a non-cancellable basis wherever practicable) in accordance with the published revenue policy. Rentals received from such leases are disclosed as rent and hire of non-investment property in Note 2.

647 506

1,298

page 42



Note 18. Superannuation

Council makes employer superannuation contributions in respect of its employees to Statewide Super (formerly Local Government Superannuation Scheme). There are two types of membership, each of which is funded differently. Permanent and contract employees of the South Australian Local Government sector with Salarylink benefits prior to 24 November 2009 have the option to contribute to the Accumulation section and/or Salarylink. All other employees (including casuals) have all contributions allocated to the Accumulation section.

Accumulation only Members

Accumulation only members receive both employer and employee contributions on a progressive basis. Employer contributions are based on a fixed percentage of ordinary time earnings in accordance with superannuation guarantee legislation (9.50% in 2014/15; 9.25% in 2013/14). No further liability accrues to Council as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund.

Salarylink (Defined Benefit Fund) Members

Salarylink is a defined benefit scheme where the benefit payable is based on a formula determined by the member’s contribution rate, number of years and level of contribution and final average salary. Council makes employer contributions to Salarylink as determined by the Fund’s Trustee based on advice from the appointed Actuary. The rate is currently 6.3% (6.3% in 2013/14) of “superannuation” salary.

In addition, Council makes a separate contribution of 3% of ordinary time earnings for Salarylink members to their Accumulation account. Employees also make member contributions to the Salarylink section of the Fund. As such, assets accumulate in the Salarylink section of the Fund to meet the member's benefits, as defined in the Trust Deed, as they accrue.

The Salarylink section is a multi-employer sponsored plan. As the Salarylink section's assets and liabilities are pooled and are not allocated by each employer, and employees may transfer to another employer within the local government sector and retain membership of the Fund, the Actuary is unable to allocate benefit liabilities, assets and costs between employers. As provided by AASB 119.32(b), Council does not use defined benefit accounting for these contributions.

The most recent actuarial investigation was conducted by the Fund's actuary, A C Miller, FIAA, of Russell Employee Benefits Pty Ltd as at 30 June 2014. The Trustee has determined that the current funding arrangements are adequate for the expected Salarylink liabilities. However, future financial and economic circumstances may require changes to Council’s contribution rates at some future time.

Contributions to Other Superannuation Schemes

Council also makes contributions to other superannuation schemes selected by employees under the “choice of fund” legislation. All such schemes are of the accumulation type, where the superannuation benefits accruing to the employee are represented by their share of the net assets of the scheme, and no further liability attaches to Council.

page 43



Note 19. Interests in Other Entities

$ '000

All joint ventures and associates are required to prepare Annual Financial Statements thatcomply with the SA Local Government Model Financial Statements.

Joint VenturesTotal

(i) JOINT VENTURES, ASSOCIATES AND JOINT OPERATIONS

(a) Carrying Amounts

Name of Entity Principal ActivityRemediation siteWaste transfer stationProcurement

Total Carrying Amounts - Joint Ventures & Associates

WRWMA

The Western Region Waste Management Authority was established to provide waste services to councils in thewestern suburbs through the provision of Garden Island land fill site. With the closure of the site on 28 February2001 the constituent councils are responsible for the rehabilitation of the site.

An initial provision of $14.8m was made by WRWMA following an independent assessment by KPMG Actuaries Pty Ltd as at June 2008 of the Authority's estimated liability, in accordance with Australian Accounting Standards AASB 137. This provision was subsequently revised and increased in June 2013 by $389,275 following an assessment by Tonkins who are the lead contractor on this project for the remaining works to be completed. The provision wassubsequently reduced to $793,636 for the remaining agreed works required.

The rehabilitation civil works were accepted as completed by EPA and RSA 31 August 2013, following a 2 year postclosure maintenance period. On the satisfactory completion of the 2 year period ending 31 August 2015 as stipulatedin the Agreement, the landfill site is to be handed back to Renewal SA, without any ongoing liability to the Authority.A contract was signed in September 2014 with MacMahon Services Australia Pty Ltd to design, construct and operate a landfill gas management system at Garden Island in accordance with the Environment Performance Agreement.These works have significantly progressed through 2014/15 year and on 1 September 2015 the site will be handed back to Renewal SA who will become the principal to the contract with MacMahon Services.

Charles Sturt's equity share is 56.39% and as at June 2015 Council's share of the equity of WRWMA was $77,990 (2014: ($629,634)).

187 2015 2014 2015

125

(443)

Council's Share of Net Income

WRWMA 78 (630) Waste Care SA 56 66

2014

Council's Share of Net Assets

678 125 235 187

2015

678 2014

235

Council Solutions 101 121 235

page 44



Note 19. Interests in Other Entities (continued)

$ '000

Waste Care SA

Waste Care SA was established by a number of constituent councils comprising the Cities of Adelaide, Campbelltown, Charles Sturt, Prospect, Norwood Payneham and St Peters and the Town of Walkerville in conjunction with Waste Management Pacific (SA) Pty Ltd to operate a Resource Recovery Waste Transfer Station (RRWTS) on leased land at Wingfield.

In the event of winding up the subsidiary, the City of Charles Sturt would receive its equity share of any net assets after payment of all expenses of the subsidiary, or be liable to pay its equity share towards all expenses associated with winding up the subsidiary's operations. To offset this potential liability an agreement for the compulsorypurchase of the leased land and the purchase of the RRWTS with Waste Management Pacific (SA) has been established.

Adelaide Resource Recovery Pty Ltd (ARR) purchased the land at Wingfield from Adelaide City Council which hada registered lease with Waste Care SA (WCSA). This lease has now been assigned to Transpacific Industries as part of the sale. Clause 2.5.4 of the assigned lease states WCSA is responsible for the lease obligations which expires3 January 2026 with the lessee having a right of renewal for a further 21 years.

The Board has agreed the Project Agreement will not be renewed and the compulsory purchase option will beexercised. The sale of the transfer station was completed 18 February 2015 and all loans extinguished.

The project agreement between Waste Care and Transpacific Industries Pty Ltd (formerly Waste ManagementPacific Pty Ltd) has been successfully terminated with Waste Care SA no longer providing any services to constituentcouncils, beyond those directly related to the administration of its wind up.

Charles Sturt has now since established a new contract which commenced on 1 January 2015 for receival and disposalof waste.

The City of Charles Sturt's equity share is 23.75% and, as at June 2015 Council's share of the total equity of WasteCare (SA) was $55,354 (2014: $65,636).

Council Solutions

Council Solutions was established to provide collaborative procurement arrangements for the following councils; the Cities of Charles Sturt, Marion, Adelaide, Onkaparinga, Salisbury and Tea Tree Gully in an effort to secure more competitive pricing. The City of Charles Sturt's equity share is one sixth and, as at June 2015 Council's share of the total equity of Council Solutions was $101,354 (2014: $121,357).

(b) Relevant Interests

Name of EntityWRWMAWaste Care SACouncil Solutions

Result Equity Voting Power2015

24% 24% 24% 17% 17%

Interest in Ownership

17% 17% 17% 17% 17% 17%

2014 2015 2014 2015 201457% 57% 57% 57%24%

43% 43%

Operating Share of Proportion of

page 45




$ '000

(c) Movement in Investment in Joint Venture or Associate

Opening BalanceShare in Operating ResultCouncil's Equity Share in the Joint Venture or Associate

Opening BalanceShare in Operating ResultCouncil's Equity Share in the Joint Venture or Associate

(d) Summarised Financial Information of the Equity Accounted Business

Statement of Financial Position

Cash and Cash EquivalentsOther Current AssetsTotal Assets

Current Financial LiabilitiesNon-Current Financial LiabilitiesTotal LiabilitiesNet Assets

Statement of Financial Position

Other Current AssetsTotal Assets

Current Financial LiabilitiesTotal LiabilitiesNet Assets

WRWMA Waste Care SA

Council Solutions2015 2014 2015 2014

2015 2014 2015 2014(630) (652) 66 23 708 22 (10) 43

786 1,182 62 2,943

- 121 61 - (20) 60

WRWMA Waste Care SA2015 2014 2015 2014786 1,182 - -

- 62 2,943

101 121

78 (630) 56 66

- 63 - 2,679 708 1,812 6 2,877 78 (630) 56 66

Council Solutions2015 2014 2015 2014

- 108 170

- 7 49

708 1,749 6 198

- - 108 170

- - 7 49 - - 101 121

-

page 46




$ '000

Statement of Comprehensive Income

Other IncomeTotal Income

Materials, Contracts & Other ExpensesTotal Expenses

Other Revenue / Expense ItemsOperating Result

Statement of Comprehensive Income

Other IncomeTotal Income

Other Revenue / Expense ItemsOperating Result

(e). Share of Joint Operations Expenditure Commitments

Expenditure committed for (excluding inventories) at the reporting date but not recognised in the financial statements as liabilities:

(i) Operating Expenditures PayableNot later than one yearLater that one year and not later than 5 yearsLater than 5 years

(ii) INDIVIDUALLY IMMATERIAL COUNCIL BUSINESSES

Council did not have any individually immaterial businesses

(iii) UNCONSOLIDATED STRUCTURED ENTITIES

Council has no Unconsolidated Structured Entities

Note 20. Non-Current Assets Held for Sale & Discontinued Operations

Council does not have any Non-Current Assets Held for Sale or any Discontinued Operations

-

- 26

26 - - -

-

20 22 159 447

708 22 (10) 43

Council Solutions2015 2014

- -

WRWMA Waste Care SA2015 2014 2015 2014

(688) - - -

- - (169) (404)

20 22 159 447

(688) -

2015 2014- 163 185

- - 163 185

- (183) (125) - - (20) 60

page 47



Note 21. Contingencies & Assets/Liabilities Not Recognised in the Balance Sheet

The following assets and liabilities do not qualify for 4. LEGAL MATTERSrecognition in the Balance Sheet, but knowledge ofthese items is considered relevant to the users of the Council is the planning consent authority for its area financial report in making and evaluating decisions under the Development Act 1993 (as amended). about the allocation of scarce resources. Pursuant to that Act, certain persons aggrieved by a

planning decision of the Council may appeal. It is 1. LAND UNDER ROADS normal practice that parties bear their own legal costs.

At the date of these reports, Council had notice of 6 As reported in the Financial Statements, Council is of appeals against planning decisions made prior to the opinion that it is not possible to attribute a value reporting date with 2 subsequently withdrawn. Allsufficiently reliably for these assets to qualify for known costs have been recognised, but the amountrecognition and, accordingly land under roads has not of further costs cannot be known until the appeals arebeen recognised in the reports. Land acquired for road determined.purposes during the year is initially recognised at cost,but transferred to fair value at reporting date, 5. CARBON TAXeffectively writing off the expenditure.

From 1 July 2012 a new tax on emissions of certain 2. POTENTIAL INSURANCE LOSSES “greenhouse” gases commenced operation. Council

has a number of garbage landfill facilities which emit, Council is a multi-purpose organisation providing a and will continue for many years to emit, gases of large range of building, parks infrastructure, this type.playgrounds and other facilities accessible to thepublic. At any time, it is likely that claims will have Using current calculation methods, emissions from been made against Council that remain unsettled. Council’s landfill facilities are substantially below

current taxable thresholds. This situation is expected Council insures against all known insurable risks using to continue while thresholds remain at current levels. a range of insurance policies, each of which is subjectto deductable "insurance excesses", the amount of Information currently available provides assurances which varies according to the class of insurance. that “legacy emissions” from garbage placed in

landfills prior to commencement of the tax will notCouncil has recognised the potential losses arising subsequently become liable to the tax. On 17 Julyfrom claims known at reporting date based on average 2014 the Australian Government repealed the tax withhistorical net cost (including insurance excess) of effect from 1 July 2014.similar types of claims. Other potential claims not reported to Council may have existed at reporting No liability has been recognised in these reports. date.

3. BANK GUARANTEES

Council has guaranteed certain loans and otherbanking facilities advanced to communityorganisations and sporting bodies, amounting to$163,196.69 (2014: $188,670.52) at reporting date.

Council does not expect to incur any loss arising fromthese guarantees.

page 48



Note 22. Events after the Balance Sheet Date

Events that occur after the reporting date of 30 June 2015, up to and including the date when the financialstatements are "authorised for issue" have been taken into account in preparing these statements.

Council has adopted the date of receipt of the Auditors' Report as the appropriate "authorised for issue" daterelating to these General Purpose Financial Statements.

Accordingly, the "authorised for issue" date is 11/11/15.

Council is unaware of any material or significant "non adjusting events" that should be disclosed.

Note 23. Equity - Retained Earnings and Revaluation Reserves Adjustments

(a). Correction of Error/s relating to a Previous Reporting Period

Council made no correction of errors during the current reporting period.

(b). Voluntary Changes in Accounting Policies

Council made no voluntary changes in any accounting policies during the year.

(c). Changes in Accounting Standards

There were no changes in accounting standards that affected prior year balances during the year.

page 49



Note 24. Council Information & Contact Details

Principal Place of Business:72 Woodville RdWoodville SA 5011

Contact DetailsMailing Address: Opening Hours:PO Box 1 Monday to FridayWoodville SA 5011 8:30am to 5pm

Telephone: 08 8408 1111 Internet: http://www.charlessturt.sa.gov.auFacsimile: 08 8408 1122 Email: [email protected]

Officers Elected MembersCHIEF EXECUTIVE OFFICER MAYORPaul Sutton Angela Evans

PUBLIC OFFICER COUNCILLORSname here… Cr Paul Sykes JP

Cr Stuart Ghent JP AUDITORS Cr Tom Scheffler Bentleys (SA) Partnership Cr George TurelliLevel 2,139 Frome Street Cr Rachele TullioAdelaide SA 5000 Cr Robert Randall JP

Cr Oanh Nguyen Cr Robert Grant Cr Tolley Wasylenko JP Cr Barbara WasylenkoCr Jassmine WoodCr Alice CampbellCr Paul Alexandrides Cr Kelly ThomasCr Edgar Agius OAM, JP

Other Information Cr Mick Harley OAM ABN: 42 124 960 161

http://www.charlessturt.sa.gov.au/

mailto:[email protected]

page 50

page 51

page 52

page 53

page 54

John O'Connor

Rectangle

Bentleys (SA) Partnership

Level 2 139 Frome Street Adelaide SA 5000

GPO Box 939 Adelaide SA 5001

ABN 99 292 743 838

T +61 8 8372 7900 F +61 8 8372 7999

[email protected] bentleys.com.au

A member of Bentleys, an association of independent accounting firms in Australia. The member firms of the Bentleys association are affiliated only and not in partnership. Liability limited by a scheme approved under Professional Standards Legislation. A member of Kreston International. A global network of independent accounting firms.

Certification of Auditor Independence

I confirm that, for the audit of the financial statements of City of Charles Sturt for the year ended 30 June 2015, I have maintained my independence in accordance with the requirements of APES 110 – Code of Ethics

for Professional Accountants, Section 290, published by the Accounting Professional and Ethical Standards Board, in accordance with the Local Government Act 1999 and the Local Government (Financial Management)

Regulations 2011 made under that Act

This statement is prepared in accordance with the requirements of Regulation 22 (5) Local Government (Financial Management) Regulations 2011.

David Papa Partner

Bentleys (SA) Partnership

Dated at Adelaide this 16

th day of October 2015.

page 55

Documents

City of Charles Sturt · Certificates of Audit Independence - Council Certificate of Audit Independence - Audit Certificate of Audit Independence. 55. Page. 4 5 3 6 7 54 2 50 52