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Shire of
Carnarvon
Annual
Report
2015/2016 Endorsed by Council – 24th January 2017
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 2
Shire President’s Message ............................................................................................................................................... 5 Chief Executive Officers Report Future Planning Local Planning Strategy .................................................................................................................................................... 9 Blowholes Reserve Management Plan............................................................................................................................. 9 East Carnarvon – Kingsford District Structure Plan .......................................................................................................... 9 Brockman Park ‘Ageing in Place’ Structure Plan ............................................................................................................. 9 Emergency Response Plans ............................................................................................................................................. 9 Projects, Works & Services Main Street Enhancement Works .................................................................................................................................. 10 Foreshore Completion Works ........................................................................................................................................ 10 Shire Administration Office Refurbishment ................................................................................................................... 10 Blowholes Reserve Management Plan........................................................................................................................... 10 Economic Tourism Action Plan ...................................................................................................................................... 10 Statutory Compliance Matters....................................................................................................................................... 10 Road Works Program ..................................................................................................................................................... 10 Waste Management Services ........................................................................................................................................ 11 Airport Runway Upgrade ............................................................................................................................................... 11 Youth Outreach Services ................................................................................................................................................ 11 Mosquito Management Program .................................................................................................................................. 11 Financial Performance ................................................................................................................................................... 11 Staff ............................................................................................................................................................................... 11 Shire Profile ................................................................................................................................................................... 12 Location ......................................................................................................................................................................... 13 History ........................................................................................................................................................................... 13 Council ........................................................................................................................................................................... 14 Your Council ................................................................................................................................................................... 15 Summary - Council Meeting Attendance ....................................................................................................................... 16 Senior Staff .................................................................................................................................................................... 16 Integrated Planning Update ........................................................................................................................................... 17 Corporate Business Plan 2015/2016 – Progress Report ................................................................................................ 19 Core Function Business Activities Corporate Services Finance .......................................................................................................................................................................... 29 Governance ................................................................................................................................................................... 29 Information Technology ................................................................................................................................................ 29 Library/Art Gallery ......................................................................................................................................................... 29 Airport ........................................................................................................................................................................... 29 Development Services Environmental Health .................................................................................................................................................... 30 Planning & Development ............................................................................................................................................... 30 Emergency Services ....................................................................................................................................................... 31 Economic and Tourism .................................................................................................................................................. 31 Carnarvon Civic Centre .................................................................................................................................................. 32
INDEX
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 3
Building .......................................................................................................................................................................... 32 Rangers .......................................................................................................................................................................... 32 Aquatic Centre ............................................................................................................................................................... 32 Infrastructure Services .................................................................................................................................................... 33
STATUTORY REPORTS Disability Access & Inclusion Plan .................................................................................................................................. 35 Structure and Functions of Council Establishment ........................................................................................................ 37 Services to the Community ............................................................................................................................................ 38 Freedom of Information Statement .............................................................................................................................. 39 Official Conduct Report ................................................................................................................................................. 40 National Competition Policy Statement ........................................................................................................................ 40 Competitive Neutrality .................................................................................................................................................. 41 Structural Reform .......................................................................................................................................................... 41 State Records Act 2000.................................................................................................................................................. 42
FINANCIAL REPORTS Annual Financial Report ................................................................................................................................................ 43 Auditors Report ............................................................................................................................................................. 43
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 4
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 5
MESSAGE FROM
SHIRE PRESIDENT
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 6
MESSAGE FROM THE SHIRE PRESIDENT Again, I take pleasure in presenting the President’s Report pursuant to Section 5.53 (2) (a) of the Local Government Act 1995. Notably, the 2015/16 financial year proved rather challenging, with the Shire managing to successfully complete, at least progress, a number of significant projects. This included:
Enhancement works in the Town Centre involving installation of reticulated lawn in the central swale of the Main Street, reconfiguration and landscaping the Town Centre roundabouts, and removal of speed humps and wheel stops at the request of the community.
Completion of the foreshore works, inclusive of hard and soft landscaping, three new cantilevered multipurpose jetty structures, and a renewed car parking area at the termination of Brown Street and Olivia Terrace.
Continuation of the Shire Administration Office refurbishment involving conversion of the old Council Chambers to office accommodation, and a face lift of main reception area.
Reconstruction and reseal of North River Road, and upgrade works to the Quobba – Gnaraloo Road.
Refurbishment of the Carnarvon Aquatic Centre with repainting of the swimming pool bowl, as the first stage.
Completion of the Shire of Carnarvon draft Local Planning Strategy for referral to the Western Australian Planning Commission (WAPC) for assessment, and consent to advertise.
Endorsement of the Blowholes Reserves Management Plan (BRMP) by the Minister for Lands In consideration of above, the foreshore works along Olivia Terrace has been particularly pleasing, adding a new dimension to the aesthetics and amenity of the Fascine waterway. This area is now the centre piece of Carnarvon, and proving to be the main draw card for local residents and tourist alike. To the contrary, a genuine attempt by Council to implement the Blowholes Reserves Management Plan in cooperation with existing squatter shack owners has proven unproductive. Working with this Group has been difficult and frustrating for the Shire, resulting in Council withdrawing its interest in managing the popular day use and overnight camping reserves in June 2016. I do appreciate this has raised a level of uncertainty over the future tenure and provision of new shack/chalet sites. However, the Council has acknowledged the need to address the existing shack structures in terms of their poor structural integrity and standard of habitation in consideration of the Shire’s duty of care and public safety.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 7
On a more positive note I would like to acknowledge and thank, on behalf of the Shire Council, all staff for their contributions throughout the year. I would also like to recognize the contributions from the outgoing elected members in Neil Ganzer, Lex Fullarton and Naomi McMahon for their contributions to Council. I also congratulate Cr Ed Garrett, Cr Brett Smith, Cr Eddie Smith and Cr Luke Skender on their election to Council, and welcome back Cr Julee Nelson for another 2 year term, following the October 2015 elections. In closing, I would like to also thank all my current fellow Councillors for their support and dedication in making the Shire of Carnarvon an attractive and better place to live and visit.
Karl Brandenburg SHIRE PRESIDENT
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 8
GOVERNANCE
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 9
CHIEF EXECUTIVE OFFICER’S REPORT I am pleased to provide my annual report as Chief Executive Officer with the Shire of Carnarvon for the past 2015/16 financial year.
Future Planning In consideration of the future planning the Shire has made in roads as it further develops its suite of Integrated Plans and Land use Plans to provide for future community needs and development. In this context the organisation completed a desktop review of the Corporate Business Plan, and the Council acknowledged the need for a holistic review of all its integrated plans in 2016/17. These plans include:
Strategic Community Plan Corporate Business Plan Asset Management Plan Long Term Financial Plan
Additionally, progress within the year has been made on:
o Local Planning Strategy - Preparation of the Shire of Carnarvon Local Planning Strategy and the drafting of a new Local Planning Scheme No.13, with the former document being advertised for public comment following review by the Western Australian Planning Commission;
o Blowholes Reserves Management Plan - Endorsement of the Blowholes Reserves Management Plan by the Minister for Lands, albeit implementation of works has subsequently been compromised by a lack of acceptance and cooperation by a number of squatter shack owners;
o East Carnarvon – Kingsford District Structure Plan - Final adoption of the East Carnarvon – Kingsford District Structure Plan occurred during the financial year and now forms part of the Shire’s land use planning framework;
o Brockman Park ‘Ageing in Place’ Structure Plan - Commencement of the Brockman Park ‘Ageing in Place’ Structure Plan and associated Prospectus to further the future provision of Independent Living Units (ILU’s) and Residential Aged Care accommodation in Carnarvon occurred during the year;
o Emergency Response Plans - Review and amendment of the Shire’s Emergency Response Plans for both Carnarvon and Coral Bay were successful completed and adopted by Council.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 10
Projects, Works and Services An array of other activities were preformed through-out the financial year that require specific mention:
o Main Street Enhancement Works – This has involved the use of the Shire workforce and resources, and resulted in further works to the Main Street with the removal of the remaining speed humps and wheel stops to the parking bays. Unfortunately, the installation of public art has been delayed by the difficulty in attracting acceptable art works, except for selection of a Mural to be painted and installed on the wall of Carpet Court in early 2017.
o Foreshore Completion Works – The year saw completion of the Fascine Foreshore works by civil contractors, Insitu Construction. As identified, these works consisted of installation of the three new cantilevered jetty structures with floating pontoons, a lower level pedestrian pathway with disable ramps, installation of extensive lawn, garden areas, shade shelters, gas BBQ’s, drink fountains, outdoor gym equipment, a new sealed car park at Brown Street/Olivia Terrace junction, and pedestrian lighting. Extension of the surge protection wall around Baxter Park is also to be undertaken in the latter part of 2016.
o Shire Administration Office Refurbishment – During the 2015/16 financial year works progressed on converting the old Council Chambers to office accommodation, and redecoration of the front reception of the Main Administration Building. Following these works, staff has moved to refurbishment of the Development Services wing with the building to be completed at the end of 2016.
o Blowholes Reserve Management Plan (BRMP) - As directed by the Minister for Lands in 2012, the Council continued to progress preparation of the BRMP that was finally endorsed by the Minister in January 2016. Council proceeded with implementation of recommended actions involving allocation of forty new shack sites on a 21 year lease and removal of the existing shack structures in line with the BRMP. At the time of preparing this report opposition has again been raised by a number the Shack Owner to the pending demolition, with approximately half the Shack Owners exercising their right of appeal against building demolition notices with the State Administration Tribunal. It is expected the appeal process will be concluded in the first quarter of the 2016/17 financial year, in time for the building to be removed prior to the pending cyclone season.
o Economic Tourism Action Plan – Unfortunately, this project was not completed within the contract timeline, with officers (representing the Council’s interest) not satisfied with drafting and content of the document. Subsequently agreement was reached with the consultant to terminate services, with preparation of the document to be undertaken in house. It is therefore projected the Economic Tourism Action Plan in consultation with local industries (ie Pastoral, Horticultural, Tourism, Fishing and Retail) will be completed in at the end of the 2016/17 financial year.
o Statutory Compliance Matters – The Shire has continued with its statutory compliance obligations, over the past year with ongoing review and auditing of internal systems and procedures and compliance measures. The most obvious matter externally is the compliance regarding the Blowholes Squatters Shacks, mentioned above.
o Road Works Program – The 2015/16 year yielded completion of the Shire road works program, inclusive of maintenance grading, road sealing program for Carnarvon, and upgrade works for North River Road and Quobba Gnaraloo Road. A Commonwealth funding application was also prepared for construction of Harbour Road to link through to Cornish street at a RAV 10 standard based on a dollar for dollar matching contribution to a total project cost of $1.2m.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 11
o Waste Management Services – The past year has seen continued improvement to the Shire’s waste management services, with particular emphasis on achieving compliance against regulatory licences for the Brown Range and Coral Bay land fill facilities and planning for the establishment of ‘bring/recycling centres’ at both landfill sites together with specialized equipment such as shedder, bailer, transfer drop off facility and shed. It is projected on-ground works will commence in early 2017.
o Airport Runway Upgrade – Much work has been performed in the background to undertake
refurbishment works at the Carnarvon Airport involving reconstruction of the main runway, replacement of the runway lighting system, and resurfacing of the taxiway and apron to ensure compliance to Civil Aviation Standards. This has required a number of funding applications to raise the necessary $3.6m in equal one third contributions from Commonwealth, State and Local Governments. With the funding and design requirements in place construction works are scheduled to commence in early August 2016.
o Youth Outreach Services – Whilst the Youth Outreach Services staff has experienced difficulties from external influences, through their commitment has still managed to maintain a focus and involvement in the Youth Outreach programs for the betterment of ‘at risk’ youth in Carnarvon.
o Mosquito Management Program – The Shire through grants moneys from the Department of Health embarked on a pilot study in the latter part of 2015/16 to investigate the breeding patterns of Mosquitos in and around Carnarvon. Initial findings concluded much of the breeding occurring in ‘trapped pools of water from high tides both north and south of Carnarvon. Application has been made for further investigation to occur in the 2016/17.
Financial Performance Whilst there has been a slight improvement in Shire’s financial performance for 2015/16, five of the seven financial ratios has indicated a downward trend that continues to persist. It is recognized that this still needs to be rectified, either through a reduction in spending, an increase in revenue, or both. Appended to the Annual Report is a copy of the Auditors Financial Report for the 2015/16 year that provides a detailed understanding the Shire’s financial performance, inclusive of the financial ratios and explanatory notes as I have referenced – refer to pages 42 and 43 of the Financial Report. Staff I would express my sincere appreciation to Councillors for their continued support, and to staff for their un-
waivered commitment during what has proved to be again, another challenging year. This includes the endurance of dealing with false and unsubstantiated allegations, and continued defamatory and derogatory comments made by some directed at elected members and staff who have given their all to serve the Carnarvon community.
Ian D’Arcy CHIEF EXECUTIVE OFFICER
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 12
Shire Profile The following information is general information about the Shire of Carnarvon. All specific enquiries should be directed to the shire office during normal business hours. Climate Carnarvon has an average temperature of 26 degrees and the average yearly rainfall is 229mm. We are almost 10 degrees cooler than Exmouth in the summer months and 10 degrees warmer than Perth in the winter months. Statistics
Distance from Perth 902kms
Area (sq km) 53,000
Length of Sealed Roads 239.21
Length of Unsealed Roads 1,287.15
Population 6,800
Number of Electors 2,989
Number of Dwellings 2,587
Temperature Mean Max Temp – 27.1°C (81°F) Mean Min Temp – 17.2°C (63°F) Annual Rainfall – 228.4mm (9 in)
Shire of Carnarvon Administration Centre 3 Franics Street CARNARVON WA 6701 Shire of Carnarvon Works Depot Robinson Street CARNARVON WA 6701 Carnarvon Public Swimming Pool Babbage Island Road CARNARVON WA 6701 Shire of Carnarvon Regional Library and Art Gallery 18 Egan Street CARNARVON WA 6701 Shire of Carnarvon Civic Center Cnr Camel Lane/Robinson Street CARNARVON WA 6701 Shire of Carnarvon Information Centre Cnr Camel Lane/Robinson Street CARNARVON WA 6701
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 13
Location Carnarvon’s unique location, makes it a tropical oasis situated approximately 904km north of Perth on the west coast. Carnarvon is commonly recognised for its banana plantations, tropical fruits, fine seafood and warm climate and situated in the heart of the Gascoyne Region on the doorstep of the Indian Ocean. It is the gateway to Australia’s Ningaloo Coast, and very close proximity to the Ningaloo Reef and World Heritage areas. Equally, the vast Australian outback will beckon you and a visit to the majestic Kennedy Ranges is not to be missed. With an exceptional climate (average yearly temp of 26°C), and a vibrant and diverse community which offers exciting culinary delights, you need to come to Carnarvon and ‘Catch a Taste of the Great Life’. Carnarvon is located 902kms north of Perth, sitting approximately 4m above sea level and positioned right on the edge of WA’s Coral Coast, in the centre of the Shark Bay and Ningaloo World Heritage areas. Carnarvon is the only town in Australia where the central desert reaches out to the sea. Carnarvon’s population census is approximately 9,046 (2,145 rural and 6,901 urban). Carnarvon’s tidal range is approximately 0.1m to +1.8m.
History His Excellency, the Governor, Major General Sir Douglas Anthony Kendrew, K.C.M.G., C.B., C.B.E., D.S.O., united the municipalities of the Town of Carnarvon and the Shire of Gascoyne – Minilya to form the Shire of Carnarvon. The Order of Council was published in the Government Gazette on 12th February 1965 and effective on the 1st March 1965. At the time of amalgamation Mr C W Tuckey was the President with Mr G G Craig as Deputy President until the first elections of the Council on the 22nd May 1965.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 14
Council
Ten Council meetings are held on the fourth Tuesday of each month in the Council Chambers in Carnarvon commencing at 8.30am. The other two meetings are convened on the fourth Tuesday at Bill’s Tavern in Coral Bay at 10.30 am, usually being the months of May and October. All members of the public are welcome to attend. All Council meetings include a provision for ‘public question time’ catered for at the beginning of the meeting.
Council Chambers
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 15
YOUR COUNCIL
Karl Brandenburg SHIRE PRESIDENT
Julee Nelson Councillor – Town
Ward
Ed Garrett Councillor – Town
Ward
Brett Smith Councillor –
Gascoyne/Minilya Ward
Eddie Smith Councillor – Town
Ward
Max March Councillor – Town
Ward
Kane Simpson Councillor – Coral Bay
Ward
Luke Skender Councillor –
Plantation Ward
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 16
SUMMARY OF ATTENDANCES COUNCIL MEETINGS
1 JULY 2015 TO 30 JUNE 2016
MEMBER
MTGS HELD
DURING OFFICE
ATTENDANCE
%
ATTENDED
LOA BRANDENBURG, K SHIRE PRESIDENT COUNCILLOR – TOWN WARD
13
12
Nil
92
NELSON, J COUNCILLOR – TOWN WARD
13
11
Nil
77
MARCH, M COUNCILLOR – TOWN WARD
13
12
Nil
92
GARRETT. E COUNCILLOR – TOWN WARD (elected October 2015)
10
10
Nil
100
SMITH, E COUNCILLOR – TOWN WARD (elected October 2015)
10
9
Nil
90
SIMPSON, K COUNCILLOR – CORAL BAY WARD
13
12
Nil
92
SKENDER, L COUNCILLOR – PLANTATION WARD (elected October 2015)
10
12
Nil
92
SMITH, B COUNCILLOR – GASCOYNE/MINILYA (elected October 2015)
10
9
Nil
90
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 17
Senior Staff
Council has one designated senior employee position in accordance with section 5.37 of the Local Government Act 1995. For the year ended 30 June 2016 this is the Chief Executive Officer Mr Ian D’Arcy. The Shire of Carnarvon also employs approximately 92 full time equivalent (FTE) staff. These include an array multi-skilled staff for road maintenance and construction, maintenance town parks and gardens, finance, governance, statutory planning, statutory health and building services, ranger services, waste management, asset management, community development and youth services, airport operations, tourism and entertainment, administration, maintenance and cleaning of public buildings. Regulation 19B of the Local Government (Administration) Regulations 1996 requires the annual report to contain the details of the number of employees of the local government entitled to an annual salary of $100,000 or more in bands of $10,000 for each such band over $100,000.
Salary Range 2015 2016 Number $100,000 - $109,999 0 $110,000 - $119,999 3 $120,000 - $129,999 0 $130,000 - $139,999 0 $140,000 - $149,999 0 $150,000 - $159,999 0 $160,000 - $169,999 0 $170,000 - $179,999 0 $180,000 - $189,999 0 $190,000 - $199,999 1 $200,000 - $209,999 0
Integrated Planning Update Strategic Community Plan 2013-2023 The first Strategic Community Plan using the Integrated Planning and Reporting Framework was developed and adopted by Council in 2011. A desktop review of this Plan was completed in 2013 and a full review was scheduled to be conducted 2015. However, this review was deferred to the latter part of 2016. The following is a summary of the Strategic framework for the 2015/16 year:
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 18
Objectives Identified Outcomes Achieved
2015/16
ECO
NO
MIC
A developing
regional economic
base and increased
employment
supported by strong
business enterprises
and a growing
population
Increased tourism within the region.
Increased availability of serviced residential, commercial and industrial land.
The hub of regional infrastructure and service delivery.
A thriving and diverse business environment.
Increased capacity of education and training services.
Improved viability and profile of pastoral, horticultural and fishing industries.
An economy that is based on the Shire's distinct characteristics, regional advantages and natural qualities.
Progressed enhancement of Tourism Information Centre
Installed new tourism signage
Enhanced Main Street and Fascine Foreshore
Finalised Blowhole Reserves Management Plan
Secured funding to enhance Carnarvon Airport Runway, Lighting and Taxi ways
Commenced Preparation of 5 year Action Plan
pro
gres
sed
EN
VIR
ON
MEN
T
A sustainable
natural and built
environment that
meets current and
future community
needs
Continued conservation and enhancement of natural environs.
Efficient use and integrated management of water resources.
Improved management of recycling and re-use of waste.
Efficient use and conservation of energy to reduce the production of greenhouse gases.
Improved physical quality of the built environment.
Preservation of the local heritage and character of built environs.
Improved waste landfill compliance
Progressed coordination and planning of recycling bring centres in Carnarvon and Coral Bay – Regional Project
Encouraged and supported development of OTC facility
Financially committed to Carnarvon Heritage Group and One Mile Jetty
Collaboration with Water Corp over upgrade to Carnarvon Sewerage Ponds
SOC
IAL
A healthy and safe
community enjoying
a high quality of Life
Carnarvon is a proud community and is a desirable place to live, invest and visit.
Increased population and industry growth.
Recognition by existing residents of the value and importance of tourism to the local economy.
Improved passive and active leisure and recreation facilities.
Cohesive communities capable of supporting each other.
Improved Youth Outreach Services
Improvements to Premier Oval and Festival Grounds
Identified need and securing of funding for additional community assets (ie Bus)
Continued recovery efforts aiding
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 19
Corporate Business Plan 2015/16 – Progress Report
The Shire of Carnarvon Strategic Community Plan (2011-2021) has five Key Focus Areas:
1. Economic 2. Environmental 3. Social 4. Cultural 5. Civic Leadership
Under each of these focus areas there are Five Goals with identified Outcomes that have been allocated individual Strategic Objectives which Council and Staff have prioritized over a four year period. This four year plan called the Corporate Business Plan includes the Activities & Services that need to be delivered in order to achieve these identified Strategic Objectives. The Corporate Business Plan is reviewed and
Events and activities fostering community ownership.
Housing and transport options that respond to our communities’ needs.
Improved community health, safety and well being.
community member as a result of TC Olwyn
CU
LTU
RA
L
Vibrant and
connected
communities
celebrating diversity
and heritage
through arts and
culture
Carnarvon's identity enhanced through culture and the arts.
Greater recognition of local aboriginal and multicultural heritage.
Increased awareness and valuing of a diverse culture.
Celebration of the unique beliefs and values within Carnarvon.
Improved Shire organised Community Events
Increase engagement in Youth activities
Facilitating multiple live shows and movies at Civic Centre
CIV
IC L
EAD
ERSH
IP
Leadership and community
engagement to ensure the
best use of our physical,
financial and human
resources
A well engaged and informed community.
A high standard of governance and accountability.
Improved business performance and quality of service delivery.
Long-term financial viability.
Best practice asset management.
Best practice human resource management practices.
Volunteers continue to be acknowledged and supported.
Introduction of Shire Facebook page
Increase reporting of delegated activities
Conducted Elected Member training
Continued improvement to procurement processes and separation of duties
Continued improvements to employee inductions, position description and performance reviews
Conducted volunteers BBQ in recognition of contributions
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 20
updated annually to reflect changes in priorities over the life of the Strategic Community Plan (2011-2021). The following provides a progress update for the 2014/15 year.
Outcomes
Strategic Initiatives/ Projects
No. Action/Project Progress Update 2015/2016
1.1 Increased Tourism Within the Region
1.1.1 One Mile Jetty restoration and development
28 Encourage Carnarvon Heritage Group (CHG) in their activities;
Support completion of Interpretive Centre ;
Encourage restoration of Jetty;
- Financial support provided in 2015/16 to Carnarvon Heritage Group for operational purposes – Action Completed.
- Council requested detailed information of status of the CHG, including financial standing, before offering further assistance.
1.1.2 Carnarvon Entry Statement
21 Consultation to determine location and design;
Undertake construction;
- Design, quotation, consultation’ location and approval processes undertaken on proposed town entry statements for Carnarvon– Action Completed.
- Budget allocated in 2016/17 for construction and installation of Town entry statements - Action Pending.
1.1.3 OTC Development
42 Finalise management plan once NBN has been established;
Call for EOI’s for use of buildings;
Implement Management Plan;
- Building lease executed with Carnarvon Space and Technology Museum Inc. (excludes dishes) – Action Completed.
- Preparation of Management Plan ‘parked’ due to lease arrangement – Action Pending.
1.1.4 Coast Road / Quobba-Gnaraloo
25 Lobby/liaise with pastoralists;
Amend the Ningaloo Coastal Regional Strategy;
Undertake improvements to the road.
Develop the Management Plan;
- Staged upgrade works of Quobba - Gnaraloo Road performed in 2015/16 financial year – Project Completed.
- Coastal road identified as future tourism wilderness drive in draft Local Planning Strategy, with temporary closure instigated at request of DPW in 2015/16 - Action Completed.
- Further staged works of road improvement scheduled in 2016/17 financial year – Actions Ongoing.
1.1.5 Bibbawarra Bore Development
34 Community consultation;
Management Plan;
Site development;
- Community Group works undertaken to tidy the area of Bibbawarra Bore – Action Completed.
- Budget allocation in 2016/17 for preparation of Management Plan in-house for Bibbawarra Bore – Action Pending.
1.1.6 Coral Bay Resort Expansion & Development
48 Provide land use planning assistance;
Proposed 3rd (overflow) caravan park.
- Formal request lodged with the Minister for Lands to initiate process of land tenure for 3rd Overflow Caravan Park IN Coral Bay – Action Ongoing.
1.1.7 Babbage Island Golf Course
13 Complete Babbage Island Structure Plan;
Resolve related environmental issues;
Raise Capital
Secure Land
- Babbage and Whitlock Island District Structure Plan completed and endorsed by Council and WAPC - Project Completed.
- Formal request lodged with the Minister for Lands to initiate process of land tenure for
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 21
Caravan Park and Golf Course – Action Ongoing.
1.1.8 Blowholes Master Plan
31 Continue implementing day use facilities;
Complete Reserve Management Plan in accordance with Ministerial direction;
Facilitate removal and replacement of squatters shacks;
Foster increased tourism profile to benefit the town;
- Blowholes Reserves Management Plan (BRMP) received Ministerial endorsement in Jan 2015 – Action Completed.
- Implementation of BRMP commenced in Feb 2015, including processes for allocation of new shack sites and demolition of existing structures – Action Ongoing.
- Appeal lodged by shack owners with the SAT against demolition notices in May 2016 resulting in delay to implementation of BRMP – Action Pending.
1.2 Increased Availability of Serviced Residential, Commercial and Industrial land
1.2.1 Land Use Planning – Carnarvon Shire
22 Complete Town Planning Scheme Review – TPS 13;
Complete Local Planning Strategy (LPS);
Participate in Regional Planning Initiative;
- Draft TPS 13 being prepared by Shire Planning Staff – document being progressed through statutory planning process. – Project Ongoing.
- LPS completed and adopted by Council awaiting WAPC endorsement – may be subject to modifications - Project Ongoing.
1.2.2 Small Boat Harbour Redevelopment
37 Lobby State Government;
Land Use Planning assistance.
- Consideration to be given as part of preparation of LPS and TPS 13 - not a Shire facility – Action Pending.
1.3 Improved Shire Infrastructure
1.3.1 Fascine/CBD Development
2 Secure funding for completion;
Community consultation and design;
Implement once funding is secured;
- Fascine foreshore development and Main Street enhancements implemented in 2015/16 – Project Completed.
- Public art component of works progressing with mural painting contracted out 2015/16 and mural to be completed in 2016/17 – Project Ongoing.
- Difficulties in progressing balance of public art due high level of subjectivity - Project Ongoing.
1.3.2 Airport Redevelopment
3 Complete airport planning;
Undertake remedial works on existing facility;
Implement recommendations from airport planning;
- Funding for existing airport (runway, lighting, taxiway and apron) refurbishment secured from State and Commonwealth Governments, with equal contribution from Council – Action Completed.
- Tender/Construction Contract let for works to be undertaken this financial year - Action Completed.
- Construction works scheduled for July 2016/17 – Action Pending.
- Airport planning recommendations yet to be implemented – Action Pending.
1.3.3 Shire Administration Upgrade
10 Finalise office layout;
Obtain costings;
Implement;
- Stage 2 conversion of old Chambers to office accommodation and refurbishment of reception area completed in 2015/16 – Project Completed.
- Stage 3 refurbishment of Development Services office area
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 22
to commence Oct 2016 – Project Pending.
1.3.4 Staff Housing
11 Analyse need;
Develop and implement a Housing Strategy;
Construct new Executive and CEO house;
- Design completed and tender awarded for new CEO house, with construction commenced Feb 2016 – projected 12 construction period – Action Ongoing.
- House strategy yet to be discussed with Council – Action Pending.
1.3.5 Civic Centre Refurbishment
15 Air condition Woolshed;
Replace roof;
Replace kitchen in Woolshed;
Replace theatre chairs;
- Council resolved to not proceed with air conditioning of Woolshed due to excessive capital expenditure and recurrent operational cost.
- CLGF funding initially allocated was re-directed to refurbishment of the Carnarvon Aquatic Centre and installation of photovoltaic (solar) systems for selected Civic buildings – Action Pending.
1.3.6 Coral Bay Office Accommodation
27 Entertain discussions with other stakeholders;
Establish requirements;
Secure funding;
Proceed to construct;
- Preliminary discussions conducted with the Department of Lands regarding future tenure of Lot 307, designated for government purposes – Action Ongoing.
1.3.7 Robinson Street Development (Realign NWCH/Dual Carriageway)
23 Lobby Main Roads WA;
By-pass Speedway Road; (Lobby MRWA & RDL)
- No discussion conducted this financial year – Action Pending.
1.3.8 Coral Bay roads Upgrade
24 Complete construction of Banksia Drive;
Partially close Robinson Street;
- R4R funding application prepared by GDC in consultation with Shire Officers – Action Ongoing.
- Funding application to be reviewed/endorsed by Council in 2016/17 – Action Ongoing.
1.4 The Hub of Regional Infrastructure and Service Delivery
1.4.1 Build a Multi Agency Building integrated with Aquatic Centre
38 Prepare concept plan for discussion with indicative costings;
Undertake remedial repairs to keep facilities in good condition;
- This project has not yet been investigated at this stage - Action Pending.
- Refurbishment works and remedial repairs to be undertaken in 2016/17 subject to available grants funding – Action Pending.
1.5 A Thriving and Diverse Business Environment
1.5.1 Townsite Infrastructure – Planning Carnarvon & Coral Bay
19 Note – duplication with projects 36, 16, 17, 4
1.5.2 Lake McLeod – Increase Salt Production
41 Encourage Rio Tinto - Economic implications has forced reduction in production – Shire has no influence over these circumstances – not a Shire facility.
1.5.3 Coral Bay Service Storage Area
43 Prepare Management Plan with CBPA;
Formulate lease arrangement with Group;
- Formal lease agreement with Coral Bay Progress Association drafted - Project Completed.
1.5.4 Carnarvon Fruit Fly Free Status
45 Encourage Fruit Fly Committee;
- Council agreed to one final contribution $100k to Carnarvon Fruit Fly Committee for baiting program - no further financial
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 23
assistance offered by Shire – not a Shire project - Action Completed
1.5.5 Port Development
46 Encourage Government to consider merits of development;
- This action has not yet been pursued – pending Economic Planning in 2016/17 - not a Shire facility - Action Pending.
1.5.6 New Abattoir
47 Encourage potential business opportunities;
- This project has not yet been investigated – pending Economic Planning in 2016/17 – not a Shire facility - Action Pending.
1.6 Increase the Capacity of Education & Training Services
1.6.1 Education Resource Precinct
33 Encourage Education Department and Workforce Development and Training to consolidate and improve education.
- Written correspondence sent to Minister for Education in support of necessary funding to complete Carnarvon Community College – not a Shire facility - Action Completed.
1.7 Economy that is based upon Shire’s distinct characteristics – Regional advantages and natural Qualities
1.7.1 Whitlock Babbage Island Development
13 Complete Planning Study;
Establish further actions based on study;
- The Babbage and Whitlock Islands District Structure Plan was adopted by Council and endorsed by the WAPC in 2015/16 – Project Completed.
- A request for land tenure of future caravan park and golf course was forwarded to Minister for Lands in 2015/16 with response pending – Action Ongoing.
1.7.2 Kingsford land use
14 Conduct Planning Study;
Establish further actions based on study;
- The East Carnarvon - Kingsford District Structure Plan was adopted by Council and endorsed by the WAPC in 2015/16 - Project Completed.
- Implementation of the recommendation outlined in the Structure Plan are yet to be undertaken – Action Pending.
1.7.3 Gascoyne Foodbowl Initiative
26 Assist with Land Use Planning;
Encourage future development and release of additional horticultural land;
Encourage retention of horticultural land;
- Assistance provided to DAFWA with subdivision design and progression of Structure Plan/Scheme Amendment to progress rezoning and future development for expanded horticultural - Action Ongoing.
1.7.4 Maritime Boating Facilities Study (in Carnarvon)
29 Participate in regional initiative;
- This project has not yet been investigated – pending Economic Planning scheduled for 2016/17 – Action Pending.
2.1 Continued Conservation and Enhancement of Natural Environs
2.1.1 To support natural resource management;
New Consider environmental aspects of all infrastructure activities;
Consider environmental aspects of all planning and resource activities;
Investigate grant funding opportunities;
- Natural Resource principals imbedded in land use planning processes and instruments (ie District Structure Plans, Management Plans, draft LPS and draft TPS 13) - Action Completed.
- No action taken on grant funding opportunities 2015/16 for NRM initiatives – pending outcome of future tenure of Blowholes Reserves - Action Pending.
2.2 Efficient Use and Integrated Management of Water Resources
2.2.1 Waste Management
5 Improve waste management disposal sites practices to comply with licence conditions.
Plan for post closure management needs;
- Improved compliance against operational landfill licence conditions in Carnarvon and Coral Bay – Action Ongoing.
- Planning progressed on recycling initiatives for Coral Bay and Carnarvon with implementation
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 24
Provide for Coral Bay transfer station;
Consider bed levy;
scheduled for 2016/17 - Action Ongoing.
- Introduction of bed levy investigated, but lacks legislative framework – Action Completed.
2.2.2 Water Integration
7 Ensure existing facility is upgraded to comply with WA Health requirements;
Determine compliance requirements;
Implement reticulation plan;
Supply re-use water to proposed new Golf Course subject to availability.
- Agreed improvements negotiated with Water Corp on delivery of reuse water - Action Ongoing.
- RGS grant funding application lodged with GDC for upgrade of Shire Integrated Water Scheme – application unsuccessful – Action Completed.
2.2.3 Gascoyne River Surface Water Flow Loss Study
12 Support the Department of Water to undertake this Study.
- Study yet to be instigated by DoW -not a Shire facility – Action Pending.
2.3 Improved Management Practices and Recycling and re-use of waste.
2.3.1 Carnarvon townsite deep sewerage.
18 Infrastructural Planning demonstrate gaps in in-fill sewerage.
Canvass the Government for in-fill sewerage as a high priority.
- District Structure Plan for East Carnarvon - Kingsford has highlighted need for infill sewerage – information referred to Water Corp – Action Completed.
2.3.2 Waste Water Treatment Plan
16 Encourage Water Corp’s plan for a new facility.
- Discussions held with Water Corp over new sewerage treatment facility – site secured and identified in draft LPS and TPS 13 - Action Completed.
2.4 Efficient use and Conservation of energy to reduce the production of greenhouse gases.
2.4.1 Renewable Energy
20 Encourage establishment of renewable energy projects within the Region;
Consider LED future lighting replacement;
Installation of solar power on civic buildings;
- Installation of solar power on civic buildings investigated – limited capacity to accommodate surplus with Horizon Power – relatively cost prohibitive at this stage due to solar smoothing technology needed - Action Completed.
- Proposal to install LED lighting scheduled for 2017/18 financial year - Action Pending.
2.5 Improved physical quality of the built environment.
2.5.1 Underground Power
39 Encourage Horizon Power to install additional underground power in the Carnarvon region;
Support underground power as a condition of sub division.
- Application of underground power applied to recent subdivision approvals, including Sailfish Drive subdivision in Coral Bay - Action Completed.
- Continued support for installation of underground utilities by Service Providers – Action Ongoing.
2.5.2 Pelican Point – Remedial works (roadworks)
30 Finalise on ground reconstruction works of roads and sand dunes;
- No works conducted in the 2015/16 financial year – Action Pending.
2.6 Preservation of the local Heritage character of built environs
2.6.1 Update the Shire’s Municipal Heritage Inventory
New Undertake a review in consultation with Heritage Council of WA.
- Full review MHI completed and adopted by Council in 2015/16 - Project Completed.
2.6.2 Recognition of local heritage values and character of built environment.
New Pioneer Cemetery refurbishment;
Policy and reserve list of road names.
- Works and listing yet to be progressed – Action Pending.
3.1 Carnarvon is a proud community and is a desirable
Purpose of objective is to be clarified with elected members when Corporate Plan is reviewed.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 25
place to live, invest and visit.
3.2 Increased Population and Industry Growth
Purpose of objective is to be clarified with elected members when Corporate Plan is reviewed.
3.3 Recognition by existing residents of the value and importance of tourist to the local economy.
Purpose of objective is to be clarified with elected members when Corporate Plan is reviewed.
3.4 Improved passive and active leisure and recreation facilities.
Purpose of objective is to be clarified with elected members when Corporate Plan is reviewed.
3.5 Cohesive communities capable of supporting each other.
Purpose of objective is to be clarified with elected members when Corporate Plan is reviewed.
3.6 Events and activities fostering community ownership
Purpose of objective is to be clarified with elected members when document is reviewed.
3.7 Housing and Transport options that respond to our community’s needs.
3.7.1 Carnarvon Residency Aged Care
1 Continue to support and participate in residential aged care planning.
- Rezoned portion of Brockman Park in 2015/16 to accommodate Age Care Housing development – Action Completed.
- Commenced preparation of a Brockman Park Structure Plan and Prospectus for additional ‘aging in place’ housing to be completed in 2016/17 – Action Ongoing.
3.7.2 Independent Living Units
1 Continue to work with DoH and GMF for the provision of ILU’s.
- Assisted with planning and access for 15 new GMF Independent Living Units (ILU’s) – not a Shire project - Action Completed.
3.8 Improved Community, health, safety and well being.
3.8.1 New Police and Justice Complex
8 Continue to support development of new facility;
Insist on roundabout to be included as part of project.
- New Police Station Courthouse completed – not a Shire facility - Project Completed.
- Proposed roundabout pending MRD funding – not a Shire project – Project Pending.
3.8.2 Carnarvon Hospital Upgrade
9 Continue to support development of new facility.
- New Hospital upgrade completed – not a Shire facility - Project Completed.
3.8.4 Multi Purpose Medical Centre
44 Actively investigate the new model of management.
- Medical Centre is privately owned and funded - not a Shire facility – Direction Pending.
4.1 Carnarvon’s identity enhanced through culture and the arts
4.1.1 Library/Art Gallery
7 Finalise completion;
Encourage regional art displays.
- Library/Art Galley completed and opened to the public – Project Completed.
- Art Gallery routinely used for regional art displays – Action Completed.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 26
4.2 Greater recognition of local Aboriginal and multi-cultural heritage
4.2.1 Gascoyne Aboriginal Cultural Centre
50 Purpose of strategy to be discussed with elected members.
- Aboriginal Cultural Centre is a State Government owned and funded asset - not Shire owned property – Direction Pending.
4.3 Increases awareness and valuing of diverse culture
4.3.1 Preparation of Cultural and Reconciliation Plan
- Purpose of strategy to be discussed with elected members;
- Purpose discussed in 2015/16. - Budget allocation for
Reconciliation Plan and Culture Plan to be prepared in 2016/17 – Action Pending.
4.4 Celebration of the unique beliefs and values within Carnarvon
4.4.1 HMAS Sydney Memorial Drive
40 Purpose of strategy to be discussed with elected members;
- HMAS Sydney Sailor Plaques were removed HMAS Sydney Memorial Drive and relocated to Fascine Foreshore walk by RSL volunteers in 2015/16.
- Requested renaming of Sydney Memorial Drive to Carnarvon Road determined by Council – Action Completed.
- Planning of HMAS Sydney and Kormoran Commemorative Memorials and 75th Anniversary Event progressed – On ground works proposed for early part of 2016/17 - Action Ongoing.
5.1 A well engaged and informed community.
5.1.1 Community Consultation
New Review of community consultation process;
Seek community views on the next revision of the Community Strategic Plan;
Continue to engage and seek community’s views;
- Integrated Planning Review process (Strategic Community, Corporate, Long Term Financial, Workforce, and Asset Plans) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.
5.2 A high standard of governance and accountability.
5.2.1 Maintain legislative compliance standards appropriate to local government responsibilities.
New Continue to enforce levels of legislative compliance across the Shire;
Continue to undertake relevant audit and probity reviews and act upon the findings;
Consider the establishment of a regional audit or compliance capability;
- Shire staff have continued to review and amend processes/ procedures to improve compliance against relevant legislation – Action Ongoing.
- Random internal audits has commenced in 2015/16 across to identify/address risks to internal systems /processes with results presented Council Audit Committee – Action Ongoing.
5.2.2 Meet the requirements of the integrated planning and reporting framework.
New Ensure the ongoing development, implementation and review of the following plans and strategies – o Strategic Financial Plan o Asset Management Plan o Workplace Plan o ICT Plan
- Integrated Planning Review process (Strategic Community, Corporate, Long Term Financial, Workforce, and Asset Plans) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.
5.2.3 Establish a business planning framework to support the review of the Strategic Community Plan and Corporate Business Plan and the development of directorate/branch plans.
New Determine priorities for next financial year;
Develop framework to roll out priorities throughout the organisation;
Conduct regular reviews;
- Integrated Planning Review process (Strategic Community, Corporate, Long Term Financial, Workforce, and Asset Plans) deferred to 2016/17 at request of incoming Council elected in Oct 2015 - Action Pending.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 27
5.3 Improved business performance and quality of service delivery
5.3.1 Effectively and efficiently use our limited resources;
New Undertake a comprehensive series of scheduled reviews of work areas to ensure services are delivered efficiently and effectively across staff and elected members;
- Review scheduled to be performed as part of Workforce Plan in 2016/17 - Action Pending.
5.3.2 Continued training of staff and elected members.
Regular training on observance matters.
Continued training of technical and non-technical staff;
Provision of customer service training;
- Staff training conducted across areas of need as priority on 2015/16 – Action Ongoing.
- Skills audit and staff training/ development linked to organisational needs conducted. This work is being addressed to align with a Workforce Plan review in 2016/17 – Action Pending.
- WALGA Elected Member training was conducted in Feb 2016, with new Councillors attending this training – Action Completed.
5.3.3 Team building – building a cohesive and effective team environment in all directions
Targeted team building with elected members and executive to continue to build a cohesive team;
Targeted team building exercises to build across the Shire Staff teams on cohesion.
- This action was not performed due to matters of conflict and unsubstantiated allegations of bullying and harassment, which proved a significant distraction for Shire Executive in second half of 2015/16.
5.4 Long Term Financial Viability
5.4.1 Maintaining sound business practices and standards.
New New - Integrated Planning Review process (long Term Financial Plan) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.
5.4.2 Identify ways of building the Shire’s long term viability.
New New - Shire Auditors emphasized in 2015/16 the need for Council to focus on addressing asset management, setting appropriate rates revenue, and increasing fees structure to accommodate long term financial modelling and planning.
- Economic and land-use planning also identified projects that can yield financial return to ratepayers This includes focus on future Shire caravan parks in Carnarvon and Coral Bay, land subdivision in Carnarvon, age care housing, and opportunities with Carnarvon Airport – Actions Ongoing.
- Further initiatives to be identified and investigated under Economic Planning in 2016/17 – Action Pending.
5.4.3 Develop a long term strategic final plan to ensure financial sustainability of the Shire.
New Increase the amount of money into reserve funds for the future;
Ensure adequate funds to maintain assets to desired levels;
- Integrated Planning Review process (Long Term Financial Plan) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.
5.5 Best Practice Asset Management
5.5.1 Effectively maintain our assets to an
New Continue to develop and review the shire’s Asset Management Plan;
- The Shire’s asset management continued to be developed in 2015/16, with aid of specialist
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 28
appropriate level for the community.
Implement the findings and recommendations of the Asset Management Plan;
Properly fund and resource the implementation and execution of the Asset Management Plan;
consultant funded by DLGC – Action Ongoing.
- Shire Reserve funding was used to address ageing assets.
- Concern was raised by Administration over increased pressure for Shire to accept responsibility for One Mile Jetty and Heritage Precinct.
- Maintenance/upgrade works conducted in line with asset management programs for Shire infrastructure (roads, foot paths, parks and open space areas and buildings) in 2015/16 – includes upgrade or refurbishment works to North River Road, Gnaraloo Road, Main Street and Fascine Foreshore, Shire Admin. Building, Coral Bay Ablution Building – Actions Completed.
5.6 Best practice Human Resource Management practices
5.6.1 Implement the Shires Workforce Development Plan.
New Establish the priorities of the Workforce Development Plan;
Properly fund and resource Council’s implementation and execution of the Workforce Development Plan;
Update all human resource policies and procedures;
- Integrated Planning Review process (Workforce Plan) deferred to 2016/17 at request of incoming Council elected in Oct 2015 – Action Pending.
5.6.2 Be the premier, desirable employer in WA.
New Instilling and upholding a professional culture in the workplace;
Provide a workplace that attracts and retains quality staff at current or better levels;
Provide a flexible workplace:
- Internal recruitment process to attract/retain a suitable Workforce was maintained during 2015/16.
- Difficulties also experienced through unsubstantiated allegations in second half of 2015/16 arising from and motivated by undue political influences, mainly through media and social media mediums, with an adverse effect on individual staff and overall culture. This has presented a significant risk in quality staff seeking employment elsewhere at considerable cost to the organization and ratepayers – Ongoing Concern.
- Council policies reviewed in April 2016 continues to afford flexible working arrangements and generous working conditions - Action Completed.
5.7 Volunteers continue to be acknowledged and supported
New Continue with an annual events to recognise the contributions of our volunteers;
Establish a policy for recognising volunteers;
Review ways in which to engage and recognise our volunteers.
- Annual volunteer event conducted to recognize contributions made.
- Policy prepared and adopted by Council that reflects and recognizes volunteers and their valuable contributions - Action Completed.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 29
Core Function Business Activities The following is a summary of the core functions and business activities performed during 2015/16 by each directorate:
Corporate Services (John Nuttall – Executive Manager) Finance
Please refer to Annual Financial Report.
Governance
As previously mentioned by the CEO, governance was a major focus of Council and the Shire Administration
during 2015/16. This involved a thorough review of all contracts, leases and agreements leading to a new
policy adopted by Council to ensure a consistent approach. There were also internal audits undertaken, with
a view to discovering areas where improvements could be made. The governance department also continues
to be responsible for the preparation and oversight of tenders. Finally, a centralised purchasing system was
implemented and refined during the financial year. This has removed the need for officers to spend time
chasing and obtaining quotes to the detriment of their other functions, as a dedicated officer now fulfils the
purchasing role that instils separation of duties and affords a checking and accountability function.
Information Technology
We welcomed two new members of staff in the IT department, and with their input it is hoped that there will
be a continuation of the efficiency improvements made over the last few years. IT continues to be a vital area
for the Shire, which explains the continued expenditure in this area.
Library/Art Gallery
The Regional Library & Art Gallery continued to be extremely well utilised during 2015/16, and the continued
provision of young people services means children from pre-primary to middle school are regular attenders,
with many being avid readers. The focus looking forward is continue to encourage older teens to attend and
utilise the Shire’s library services, including continued resourcing and use of ‘electronic’ media.
There were also a number of prominent art displays throughout the year, all being well supported and enjoyed
by the local community. Again this is an area the Shire continues to work on enhancing and improving.
Airport
Airport operations moved to the responsibility of Corporate Services in this financial year. As a result, several
more staff members were trained as Airport Reporting Officers (ARO) to assist with the compliance
requirements for the airport operations. Additionally, the Administration has increased its focus on addressing
matters identified by annual audits by the Civil Safety Aviation Authority (CASA), primarily in the area of the
airport/aviation governance.
Further, the Shire proved successful in securing grant funding from both State and Federal Government bodies
to undertake important remedial works to the main runway at the Carnarvon Airport. Allied to Council’s own
funds this meant that the long overdue upgrade of the main runway and aprons can be progressed as a matter
of priority. Accordingly, these works are now scheduled to commence and finish early in the financial year
2016/17 that should secure continuity of the airport operations for at least the next twenty years if regular
asset maintenance is undertaken.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 30
Development Services (Mark Chadwick – Executive Manager) Environmental Health
The Shire’s Environmental Health Section has operated with 1.8 FTE Environmental Health Officers for most of the year to its deliver and monitor a range of programs and activities to enhance and safeguard public health and promote a safe environment for the well-being of our community. A summary of routine environmental health program activities is provided as follows:
Activity Inspections/Approvals
Food Business Compliance 81 (115)
Public Buildings Compliance 75
Onsite Waste Water Treatment Systems 5
Lodging Houses 20
Mosquito Surveillance Project 500 hours
Waste Water Reuse Ponds Monthly
Licensing Audits for Solid Waste Disposal Facilities Quarterly
Environmental Health Officers followed up on ensuring the public health and safety of properties damaged
by Cyclone Olwyn in March 2015. There were 50 recorded health complaints investigated during the year,
with main issue being health nuisance and asbestos related.
Planning and Development The purpose of the Planning Section is to plan, implement, administer and review the orderly and sustainable use and development of all land contained within the local government area. Some of the outcomes has included;
East Carnarvon/Kingsford Structure Plan – finalised.
Gascoyne Food Bowl and Brockman Park Structure Plans - initiated.
The Local Planning Strategy was submitted to the WA Planning Commission.
Formal review culminating in the preparation of draft Local Planning Scheme No.13.
Funding to progress three future strategic planning projects: a Civic Precinct Revitalisation Plan, a District Water Management plan and a Public Open Space Strategy. These projects are anticipated to be completed in the next financial year and will contribute greatly to the integrated planning framework of the Shire.
Implementing new Planning and Development (Local Planning Schemes) Regulation 2015.
Application Type 2013/14 2014/15 2015/16
Development Applications 77 44 75
Subdivision Referrals 7 4 4
Scheme Amendments 4 3 3
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 31
Emergency Services In partnership with the Shire of Shark Bay and the Shire of Upper Gascoyne, the Shire of Carnarvon hosts the position of Community Emergency Services Manager, a role that includes implementing and supervising the delivery preparedness, prevention, response and recovery of Emergency Services functions across the Region The LEMC committee consists of representatives from 27 agencies and community groups that meet quarterly Emergency Management activities included;
The airport held its annual exercise;
There were 2 major incidents o Yaringa Complex Fires 5,500 ha. o Yalbalgo Complex Fires 17,000 ha.
Five incidents midlevel incidents o Mia Mia Station o Jimba Jimba Station o Middalya Station o Wanda gee Station o Mardathuna Station
One desk top exercise. Primary and support incidents reported to DFES and attended by the Shire and Bushfire Brigades in the financial year 2015/16 were:
Unit Primary Supported
Coral Bay VES 3 0
Gascoyne River BFB 4 15
Shire of Carnarvon 8 1
Total 15 16
Economic and Tourism During the 2015/16 financial year a dedicated Economic Development Planner was appointed to assist with the preparation of an Economic Development Action Plan that aims to identify and prioritise viable initiatives to grow the local and regional economy within the next 5 years. This plan will then be incorporated into a comprehensive long-term Regional Centre Growth Plan to steer economic growth of Carnarvon as the Regional Centre of the Gascoyne. The Carnarvon Visitor Centre (CVC) has also continued to provide excellence in all areas of service, promotion and the facilitation of tourism to visitors to the Carnarvon region. The CVC served 46,671 visitors in the last financial year. This service is aimed to assist the local tourism industry and the CVC business by better enabling the promotion of the Carnarvon region. Booking activity for this financial year was;
Region No. of Nights Ave spend per night No. of Bookings
Coral Coast Region (Cervantes to Exmouth)
1247 $139.26 671 – Average consumer staying 1.86 nights
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 32
Carnarvon Civic Centre The Carnarvon Civic Centre comprises two venues:
The Camel Lane Theatre is a proscenium arch theatre and digital surround sound cinema, with tiered seating for 300. The Camel Lane Theatre is used for showing movies on weekends.
The Wool Shed is a multipurpose hall with a maximum capacity of 350. In this financial year a total of 14 live performances was conducted with 5175 tickets were sold, and a total of 24 venue hires were achieved.
The Wool Shed also operates as an emergency shelter. In 2016 various works are scheduled to be undertaken, including repair of water leaks in the roof, upgrade of kitchen, installation of backup power and carrying out of an engineer’s assessment in review of structural compliance in the longer term following the removal of a partial collapsed ceiling in July 2015. Building With departures of two Building Surveyors, the Shire engaged with the City of Greater Geraldton, providing building surveying services and visiting the Shire on a monthly basis. The Shire also engaged external services for conducting private swimming pool fence inspections. Building Services Activity 2015/2016:
Activity 2012/2013 2013/2014 2014/2015 2015/2016
Permits Approved 42 17 163 309
Swimming Pool Fences Inspected/Compliant??
81
Building Orders 1
Estimated Building Value N/A N/A $4,701,848 $15,352,370
Rangers The Ranger Services continued to have a busy year with a considerable amount of time was consumed in addressing matters relating to dogs and cats. With 840 dogs and 80 cats currently registered with the Shire, a total of 263 dogs and 26 cats were impounded for the year, and 89 dogs and 1 cat returned to their owner, once microchipped and registered. Fortunately, 142 dogs and 19 cats were rehomed through SAFE or WISH foundations to new owners. As for other activities, this included;
All Rangers undertaking a community snake handling course.
A pet registration day and family BBQ being held at the Town Oval.
145 motor vehicle owners educated about illegal camping, with seven (7) infringements being issued.
Routine seasonal fire break and permits to burn and asset register for pastoral properties published in the DFES Midwest - Gascoyne Regional Directory.
Aquatic Centre
The participation of swimmers has increased markedly over the past season. In total there were 28,448 entries into the facility for this financial year compared with 13,264 entries in 2014/15 and 22,177 entries in 2013/2014, respectively.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 33
Key activities and Programs of the Aquatic Centre included;
Country Health WA – Aqua Aerobics which is an extension of the “Stay on Your Feet” Program
Watch Around Water Inflatable utilised during the Centre’s Opening Weekend.
Lifeguard and Bronze Medallion staff training.
Youth Outreach Stepping Stones program
Shell of the 50m pool and the Toddler pool were re-painted
Infrastructure Services (Michael Hudson – Executive Manager) The Shire Infrastructure Directorate has incurred a busy year across its core responsibilities. This includes road works (construction and maintenance), parks and gardens management, waste management (rubbish collection and landfill operations) and cleaning services. Further, additionally effort has also been directed to continued clean-up efforts post Tropical Cyclone Olwyn and ongoing enhancements to the Main Street environs, with particular emphasis on removal of speed humps at the entrance of the respective roundabouts and improving the presentation of garden areas. A focus was placed of completing the Shire road works program in line with allocated funding, which resulted in required maintenance grading of unsealed roads, the resealing of Carnarvon/Mullewa, North River and Bibbawarra Bore roads, Rushton, Boor, Brown and Woodman streets upgrade works on Quobba-Gnaraloo Road. Considerable attention was also paid to progressing the Shire’s compliance against its licence conditions at the Browns Range and Coral Bay landfill facilities, notwithstanding the significant increase in debris received at both locations as a result of damage caused by Topical Cyclone Olwyn. Similarly, the Premier Oval at the Carnarvon Festival Grounds also received some much needed attention in preparation for a WAFL game to be played in early August 2015. This involved much time, love and attention by the Shire’s grounds staff to ensure the facility met the required standard for such an event to be held.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 34
STATUTORY
REPORTS
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 35
Disability Access & Inclusion Plan
The Disability Services Act 1993 (amended 2004) requires local governments to report on their Disability Access & Inclusion Plan (DAIP) achievements annually. The achievements for the year ended 30 June 2016 are listed below and grouped into the outcome areas addressed in the Shire of Carnarvon Disability Access and Inclusion Plan 2013-2018.
Outcome 1.0
People with disabilities have the same opportunities as other people to access the services of, and by events organised by, the Shire of Carnarvon.
Action Progress 1.1 Ensure people with disability are consulted on
their needs for services and accessibility of current services.
DAIP Advisory Group formed in 2015 with initial
meeting in January 2016 – ongoing
1.2 Monitor Shire services to ensure equitable access and inclusion
Enforcement on ACROD parking by Ranger and public
awareness campaign conducted through local media
streams – ongoing
The Shire’s Library continues to provide a ‘Home
Bound Library Service’ for people with mobility
restrictions due to disability - ongoing
1.3 Ensure that events, whether organised or funded, are accessible for people with disability
Review of Event Application process to encourage
event organisers to be aware of accessibility issues
that may impact
their event - completed
Outcome 2.0
People with disability have the same opportunities as other people to access the buildings and other facilities of the Shire of Carnarvon
Action Progress 2.1 Ensure that all Shire buildings and facilities
meet the standards for access and any demonstrated additional need.
The Shire administration office redeveloped to
improve and modify functionality of the front
reception area for universal access - completed.
2.2 Ensure ACROD parking meets the needs of people with disability in terms of quantity and location
Annual audit of ACROD bays as part of infrastructure
maintenance program - completed
2.3 Plan and develop training programs for staff and council members on contemporary values and practices
Information on disability during induction process by
HR, job training as per employee
performance appraisals provided where deemed
necessary, and annual disability awareness training
commenced in late 2015 for all staff across the
organization - ongoing
2.4 Advocate to local businesses and tourist venues the requirements for and benefits flowing from the provision of accessible venues
Information/educational material disseminated - ongoing
2.5 Ensure all recreational areas are accessible, where practicable
Fascine Waterway redeveloped for recreational use, fully accessible using universal access design principles - completed
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 36
Outcome 3.0
People with disability receive information from the Shire of Carnarvon in a format that will enable them to access the information as readily as other people are able to access it.
Action Progress 3.1 Ensure the Shire information is available in
alternative formats upon request Quarterly community newsletter made available in alternative formats upon request
3.2 Improve staff awareness of accessible information needs and how to provide information in other formats
Yet to be implemented
3.3 Improve communication access to Shire events
Yet to be implemented
3.4 Ensure the Shire’s website meets contemporary good practice
Yet to be implemented
Outcome 4.0
People with disability receive the same level and quality of service from the staff of the Shire of Carnarvon as other people receive from the staff of Shire of Carnarvon.
Action Progress 4.1 Ensure all employees, existing and new, and
all Elected members are aware of disability and access issues and have skills to provide appropriate services
Still working towards implementation plan to meet
the above strategy - Current DAIP is accessible for all
staff and elected members
4.2 Improve community awareness about disability and access issues
Still working towards implementation plan to meet
the above strategy through quarterly meetings with
DAIP Advisory Group
Outcome 5.0
People with disability have the same opportunities as other people to make complaints to the Shire of Carnarvon
Action Progress 5.1 Ensure that grievance mechanisms are
accessible for people with disabilities and are acted upon.
Mechanisms promoted through shire newsletter,
website and radio - monitoring of complaint/feedback
process and promoting feedback mechanisms ongoing
Outcome 6.0
People with disability have the same opportunities as other people to participate in any public consultation by the Shire of Carnarvon.
Action Progress 6.1 Ensure people with disability are actively
consulted about the DAIP and any other significant planning processes
Regular contact with key agencies including monthly
non Gov’t agency meetings, attending social and
organization
meetings with relevant community members to keep updated with DAIP and DAIP related processes - ongoing
6.2 Ensure people with disabilities are aware of and can access other established consultative processes
Promotion of consultative processes through networking and interagency meetings - ongoing
Outcome 7.0
People with disability have the same opportunities as other people to obtain and maintain employment with the Shire of Carnarvon
Action Progress 7.1 Use inclusive recruitment practices Continue to include EEO statement in all job
advertisements, ensuring interviews can be
held in accessible locations and were possible use appropriate formats for all advertisements - ongoing
7.2 Improve methods of attracting, recruiting and retaining people with disability
Actively investigating funding opportunities to
increase accessibility throughout shire
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 37
administration buildings. HR has confirmed an ongoing
assessment of current percentage of people with
disability - ongoing
7.3 Promote organisational work culture that messages to employee’s that the Shire of Carnarvon are an Equal Opportunity Employer and value diversity and inclusion
Participation in disability awareness programs in the workplace - ongoing
7.4 Work with key disability employment provider/s when recruiting and employing individuals with disability
Yet to be implemented.
Structure and Functions of Council Establishment
The Shire of Carnarvon is established under the Local Government Act 1995, and has the responsibility for the administration of this legislation across the district. Other significant legislation which falls to the authority of Council to act upon, includes:
Building Act 2012
Bush Fires Act 1954
Caravan and Camping Grounds Act 1995
Cemeteries Act 1986
Dog Act 1976
Environmental Protection Act 1995 (delegated responsibilities)
Food Act 2008
Freedom of Information Act 1992 Health Act 1911
Litter Act 1979
Planning and Development Act 2005
Council Council’s matters are managed by a Shire President together with seven other Councillors duly elected from, and by, the community. The Council as a whole effectively acts as a community ‘board of directors’ responsible for preparing policies and making decisions pursuant to the Local Government Act 1995 and Planning and Development Act 2005 on a wide range of matters and applications in keeping with the legislative requirements. This involves: Determining policies applied in exercising discretionary powers. Determining type, range and scope of projects to be undertaken by the Local Government. Developing comprehensive management plans, budgets, financial controls and performance objectives/and indicators for the operations of the Local Government.
Further, the Council makes decisions which directs and determines functions and activities performed in the broad interest of the local community. These decisions includes approval of works and services and associated the allocation of resources.
Decisions are also made to determine whether or not approvals are to be granted for applications for development across a range of land uses, including residential, commercial and industrial development.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 38
In the making of these decisions, ordinary meetings of Council are held on the fourth Tuesday of each month in the Council Chambers commencing at 8.30 am, other than the months of May and October each year where the ordinary meetings are conducted at Bill’s Tavern in Coral Bay commencing at 10.30am. Personal Involvement Elected Members involvement often extends to representing Council on other regional or state bodies that includes: WALGA Gascoyne Country Zone (Regional) Gascoyne Regional Road Group Local Emergency Management Committee Main Roads WA Gascoyne Regional Road Group Gascoyne Joint Development Assessment Panel Aviation Community Consultation Group Carnarvon Land Conservation District Advisory Committee Gascoyne Development Commission Board Ningaloo World Heritage Committee
Standing Committees At present the Council has four specific Standing Committees, listed below: Audit Committee Management Review Committee Awards Committee Community Growth Fund Committee
Occasional Committees Council utilises occasional Committees as and when required. Agendas Meeting agendas, largely consisting officer reports and recommendations, are prepared for Council and Committee meetings. These agendas are distributed one week prior to the meeting date. Copies of the meeting agenda is also made available to the public prior to the meeting date in accordance with the Local Government Act 1995. Delegated Authority In accordance with provisions of the Local Government Act 1995 the Council may delegate many powers to a Committee or the Chief Executive Officer (CEO) of the Local Government, with ability for the Committee or CEO to then further delegate the duty or responsibility to an officer of the organisation. For accountability, delegations are recorded in a register reviewed by Council annually and available for viewing by members of the public.
Services to the Community
Council provides an extensive variety of services for the community under a wide range of legislation. Services provided includes: Airport services Youth services Aquatic Centre and water park Community events
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 39
Club development Ranger services Bushfire control Emergency response and recovery coordination Entertainment (Live Shows and Movies) Tourist Information Building regulation Environmental Health services Library services Bush fire control Litter bins Roads, footpaths & kerbs Cemeteries Nature based camping areas Rubbish collection and landfill disposal Citizenship ceremonies Recreation grounds, parks and other reserves Land use planning and development controls Street lighting Public toilets Dog control Playground equipment Street sweeping Drainage infrastructure Public buildings for hire Street tree planting and maintenance
Freedom of Information Statement
This information statement is published in accordance with section 96 of the Freedom of Information Act 1992.
Access to Council Documents The following documents are available for inspection at the Shire Administration Office, usually free of charge. Minutes and Agendas of Council and Committee meetings General Policy Manual Annual Budget Annual Report Annual Financial Statements Monthly Financial Statements Council Local Laws Town Planning Schemes and Local Planning Strategy Electoral Roll Financial Interest Register - Primary and Annual Returns and Declarations Tender Register Complaints Register Gifts Register
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 40
Requests for other information can be considered pursuant to the Freedom of Information Act, subject to formal application being lodged. This includes an application fee and search fee being lodged with a completed request form, unless the information is of a personal nature, or an exemption is granted under this legislation.
The table below illustrates all the FOI applications received by the Shire of Carnarvon in 2015/16:
Most documents can also be accessed through the Shire of Carnarvon website at www.carnarvon.wa.gov.au .
Official Conduct Report
The Local Government Act 1995 requires the Shire to report on the number of official conduct complaints recorded under section 5.121 during a financial year. The Shire of Carnarvon did not receive complaints of this nature that resulted in action under section 5.110 (6)(b) or (c) during the 2015/16 financial year.
National Competition Policy Statement
The State Government has a Competition Principles Agreement in place, which is binding on local government. This agreement requires the Shire of Carnarvon to carry out a number of procedures and include a report on the matter in Annual Report. The three areas that affect Local Government are:
1. Competitive Neutrality - To remove benefits (and costs) which accrue to Government business as a result of their public ownership.
2. Structural Reform - Local government is required to reform the structure of publicly owned monopoly
businesses where it is proposed to introduce competition.
3. Legislation Review - To review legislation that restricts competition. The full requirements of the package are contained in a statement issued by the Department of Local Government and Communities.
Access Type Personal Non-Personal Total
Access in full 0 4 4 Edited access 1 0 1 Access refused 0 0 0 No documents found 0 0 0 Withdrawn by applicant 0 0 0 Not finalised 0 0 0
Total 1 4 5
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 41
Competitive Neutrality
There are of way in determining if there is a “significant business enterprise” undertaken by the Local Government, namely:
1. Is revenue received from external sources that exceeds $200,000 per annum? (In determining this amount, Council has been advised to disregard grant income, internal charges, and statutory fees).
2. Would any benefits be realised from the implementation of competitive neutrality that exceeds costs?
From an examination of the revenue statement for the Shire of Carnarvon for the subject period there is no apparent activity that satisfies this first part of the test, and therefore the principles of competitive neutrality do not apply to any of Council activities during the 2015/16 financial year.
Structural Reform
In this area, the Council has no monopoly activities. What is basic to the function of restructuring public monopolies is the splitting or division of the regulatory role from the service provision role. To address the question of monopoly, the following test has been applied to each activity:
1. Definition: In regards to this service, does the Council have “exclusive or near exclusive control of the market supply of this service?”
2. Dual Function: Does the Council have both a regulatory and supply function in this area of activity?
3. Willing competitors: If the Council tendered for the supply of this service in the open market, is it likely
that there would be a supplier willing to perform this service? The Council does not have a dual function role in any of the following services:
Airport operations Swimming pool Parks and gardens Roads Recreation services Cemetery
When reviewed, these functions appear to have substance to the sole provider argument. However, there are two areas that may be considered competitive, being:
Waste collection Nature Based Camp Areas
Arguably, although the waste collection and nature based camping does have willing local competitors, it is considered Council does not present as anti-competitive and a disadvantage for the private sector, but rather complementary to the private sector to meet public demand.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 42
State Records Act 2000
The State Records Act, 2000 requires the keeping records by the Local Government records. Specifically, Section 19 requires Council to have a Recordkeeping Plan approved by the State Records Commission. The State Records Commission (SRC) requires records to be created, managed and maintained over time and disposed of in accordance with an approved plan by the SRC, known as a Recordkeeping Plan (RKP). The purpose of the Shire’s RKP is to set the minimum requirements for records to be created and kept. The RKP provides an accurate reflection of the organisation’s records, including information regarding the Shire’s recordkeeping system(s), disposal arrangements, policies, practices and processes. The RKP also presents as the primary means of providing evidence for compliance matters. In summary, the main objectives of the Shire of Carnarvon RKP is to ensure:
Compliance with Section 19 of the State Records Act 2000, as mentioned; Recordkeeping within the Local Government in a compliant manner weighted against the State
Records Commission Standards and Records Management Standard AS ISO 15489; Processes are established that ensures complete/accurate records of the Shire’s business transactions
and decisions; The retrieval for recorded information in a quick, accurate and cheap manner; and The Protection/preservation of the Local Government’s records as required by legislation.
In accordance with Section 17 of the Records Act the Shire is required to comply with the contents of this Plan. This includes participation from:
Employees; Contractors; Elected Members; and Organisations performing outsourced services on behalf of the Shire.
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 43
FINANCIAL
REPORTS
SHIRE OF CARNARVON ANNUAL REPORT 2015/2016 44
FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
TABLE OF CONTENTS
Statement by Chief Executive Officer 2
Statement of Comprehensive Income by Nature or Type 3
Statement of Comprehensive Income by Program 4
Statement of Financial Position 5
Statement of Changes in Equity 6
Statement of Cash Flows 7
Rate Setting Statement 8
Notes to and Forming Part of the Financial Report 9
Independent Auditor's Report 57
Supplementary Ratio Information 59
Principal place of business:
3 Francis Street
Carnarvon WA 6701
SHIRE OF CARNARVON
SHIRE OF CARNARVONSTATEMENT OF COMPREHENSIVE INCOME
BY NATURE OR TYPEFOR THE YEAR ENDED 30TH JUNE 2016
NOTE 2016 2016 2015$ Budget $
$RevenueRates 22 4,665,823 4,636,354 4,320,948
Operating grants, subsidies and
contributions 29 4,019,385 4,426,977 9,910,094
Fees and charges 28 3,337,022 2,981,300 2,980,770
Interest earnings 2(a) 282,704 363,301 319,139
Other revenue 2(a) 614,210 437,731 1,724,862
12,919,144 12,845,663 19,255,813
ExpensesEmployee costs (6,287,025) (7,497,299) (6,305,458)
Materials and contracts (7,392,009) (8,018,771) (9,428,679)
Utility charges (772,398) (767,334) (704,465)
Depreciation on non-current assets 2(a) (7,093,927) (6,341,023) (6,355,354)
Interest expenses 2(a) (48,619) (54,075) (62,684)
Insurance expenses (463,709) (488,679) (387,513)
Other expenditure (350,218) (435,596) (354,552)
(22,407,905) (23,602,777) (23,598,705)
(9,488,761) (10,757,114) (4,342,892)
Non-operating grants, subsidies and
contributions 29 2,346,048 3,139,048 4,730,148
Profit on asset disposals 20 553,010 546,999 570,135
(Loss) on asset disposals 20 (45,411) 0 (79,350)
Loss on revalution of fixed assets 0 0 (7,422,287)
Net result (6,635,114) (7,071,067) (6,544,246)
Other comprehensive income
Items that will not be reclassified subsequently to profit or lossChanges on revaluation of non-current assets 12 448,150 0 295,340,719
Total other comprehensive income 448,150 0 295,340,719
Total comprehensive income (6,186,964) (7,071,067) 288,796,473
This statement is to be read in conjunction with the accompanying notes.
Page 3
SHIRE OF CARNARVONSTATEMENT OF COMPREHENSIVE INCOME
BY PROGRAMFOR THE YEAR ENDED 30TH JUNE 2016
NOTE 2016 2016 2015$ Budget $
$Revenue 2(a)
Governance 262,300 134,885 473,247
General purpose funding 7,124,290 7,192,281 11,830,296
Law, order, public safety 312,012 579,339 966,486
Health 80,607 37,907 133,643
Education and welfare 798,996 739,726 560,609
Housing 55,134 91,480 81,515
Community amenities 1,990,693 1,780,500 1,618,372
Recreation and culture 345,627 302,626 325,332
Transport 1,145,084 1,268,669 2,058,849
Economic services 760,451 694,500 619,100
Other property and services 43,950 23,750 588,364
12,919,144 12,845,663 19,255,813
Expenses 2(a)
Governance (1,139,422) (1,393,320) (1,519,590)
General purpose funding (207,592) (220,352) (165,437)
Law, order, public safety (909,026) (1,064,854) (1,696,202)
Health (691,951) (750,334) (600,318)
Education and welfare (1,038,138) (1,597,634) (997,896)
Housing (119,593) (148,009) (178,636)
Community amenities (2,177,158) (2,490,274) (2,430,826)
Recreation and culture (4,631,000) (5,942,774) (4,376,808)
Transport (10,260,272) (8,470,380) (10,281,997)
Economic services (1,078,860) (1,353,394) (1,272,775)
Other property and services (106,274) (117,377) (15,536)
(22,359,286) (23,548,702) (23,536,021)
Finance costs 2(a)
Housing (4,072) (3,593) (4,280)
Recreation and culture (31,431) (28,127) (37,469)
Transport (13,116) (22,355) (20,935)
(48,619) (54,075) (62,684)
(9,488,761) (10,757,114) (4,342,892)
Non-operating grants, subsidies and
contributions 29 2,346,048 3,139,048 4,730,148
Profit on disposal of assets 20 553,010 546,999 570,135
(Loss) on disposal of assets 20 (45,411) 0 (79,350)
Loss on revaluation of fixed assets 0 0 (7,422,287)
Net result (6,635,114) (7,071,067) (6,544,246)
Other comprehensive incomeItems that will not be reclassified subsequently to profit or lossChanges on revaluation of non-current assets 12 448,150 0 295,340,719
Total other comprehensive income 448,150 0 295,340,719
Total comprehensive income (6,186,964) (7,071,067) 288,796,473
This statement is to be read in conjunction with the accompanying notes.
Page 4
SHIRE OF CARNARVONSTATEMENT OF FINANCIAL POSITION
AS AT 30TH JUNE 2016
NOTE 2016 2015$ $
CURRENT ASSETSCash and cash equivalents 3 8,618,298 14,947,141
Trade and other receivables 4 1,185,342 1,187,509
Inventories 5 41,056 95,863
TOTAL CURRENT ASSETS 9,844,696 16,230,513
NON-CURRENT ASSETSOther receivables 4 64,049 56,250
Property, plant and equipment 6 31,734,663 31,707,066
Infrastructure 7 373,234,324 375,684,650
TOTAL NON-CURRENT ASSETS 405,033,036 407,447,966
TOTAL ASSETS 414,877,732 423,678,479
CURRENT LIABILITIESTrade and other payables 8 1,192,203 3,123,110
Current portion of long term borrowings 9 356,605 475,433
Provisions 10 532,013 747,806
TOTAL CURRENT LIABILITIES 2,080,821 4,346,349
NON-CURRENT LIABILITIESLong term borrowings 9 293,185 649,790
Provisions 10 95,762 87,412
TOTAL NON-CURRENT LIABILITIES 388,947 737,202
TOTAL LIABILITIES 2,469,768 5,083,551
NET ASSETS 412,407,964 418,594,928
EQUITYRetained surplus 77,185,245 82,553,807
Reserves - cash backed 11 8,043,912 9,310,464
Revaluation surplus 12 327,178,807 326,730,657
TOTAL EQUITY 412,407,964 418,594,928
This statement is to be read in conjunction with the accompanying notes.
Page 5
SHIR
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Bal
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1485
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,486
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Page 6
SHIRE OF CARNARVONSTATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30TH JUNE 2016
NOTE 2016 2016 2015Actual Budget Actual
CASH FLOWS FROM OPERATING ACTIVITIES $ $ $ReceiptsRates 4,462,152 4,636,354 4,273,334
Operating grants, subsidies and
contributions 4,109,244 4,426,977 10,131,451
Fees and charges 3,337,022 2,981,300 2,980,770
Interest earnings 282,704 363,301 319,139
Goods and services tax 819,272 0 617,564
Other revenue 614,210 437,731 1,724,862
13,624,604 12,845,663 20,047,120
PaymentsEmployee costs (6,768,811) (7,497,299) (6,350,087)
Materials and contracts (8,995,700) (8,018,771) (12,283,995)
Utility charges (772,398) (767,334) (704,465)
Interest expenses (46,685) (54,075) (64,239)
Insurance expenses (463,709) (488,679) (387,513)
Goods and services tax (711,092) 0 (663,365)
Other expenditure (350,218) (435,596) (354,552)
(18,108,613) (17,261,754) (20,808,216)
Net cash provided by (used in) operating activities 13(b) (4,484,009) (4,416,091) (761,096)
CASH FLOWS FROM INVESTING ACTIVITIESPayments for purchase of
property, plant & equipment (839,510) (4,765,163) (834,666)
Payments for construction of
infrastructure (3,655,939) (5,905,788) (2,911,762)
Non-operating grants,
subsidies and contributions 2,346,048 3,139,048 4,730,148
Proceeds from sale of fixed assets 780,000 780,000 652,446
Net cash provided by (used in) investment activities (1,369,401) (6,751,903) 1,636,166
CASH FLOWS FROM FINANCING ACTIVITIESRepayment of debentures (475,433) (510,682) (487,181)
Proceeds from new debentures 0 550,000 0
Net cash provided by (used In) financing activities (475,433) 39,318 (487,181)
Net increase (decrease) in cash held (6,328,843) (11,128,676) 387,889
Cash at beginning of year 14,947,141 14,947,141 14,559,252
Cash and cash equivalents at the end of the year 13(a) 8,618,298 3,818,465 14,947,141
This statement is to be read in conjunction with the accompanying notes.
Page 7
SHIRE OF CARNARVONRATE SETTING STATEMENT
FOR THE YEAR ENDED 30TH JUNE 2016
2016 2016 2015NOTE Actual Budget Actual
$ $ $
Net current assets at July 1 b/fwd - surplus/(deficit) 5,196,939 5,202,043 1,131,0545,196,939 5,202,043 1,131,054
Governance 262,300 134,885 473,247General purpose funding 2,654,145 2,735,927 7,689,401Law, order, public safety 312,012 579,339 966,486Health 80,607 37,907 133,643Education and welfare 798,996 739,726 560,609Housing 55,134 91,480 81,515Community amenities 1,990,693 1,780,500 1,618,372Recreation and culture 345,627 302,626 325,332Transport 1,145,084 1,268,669 2,058,849Economic services 760,451 694,500 619,100Other property and services 596,960 570,749 1,158,499
9,002,009 8,936,308 15,685,053
Governance (1,139,422) (1,393,320) (1,519,590)General purpose funding (207,592) (220,352) (165,437)Law, order, public safety (954,437) (1,064,854) (1,696,202)Health (691,951) (750,334) (600,318)Education and welfare (1,038,138) (1,597,634) (997,896)Housing (123,665) (151,602) (182,916)Community amenities (2,177,158) (2,490,274) (2,430,826)Recreation and culture (4,662,431) (5,970,901) (4,414,277)Transport (10,273,388) (8,492,735) (17,804,569)Economic services (1,078,860) (1,353,394) (1,272,775)Other property and services (106,274) (117,377) (15,536)
(22,453,316) (23,602,777) (31,100,342)
Operating activities excluded from budgetLoss on Revaluation of Non-Current Assets 0 0 7,422,287(Profit) on disposal of assets 20 (553,010) (546,999) (570,135)Loss on disposal of assets 20 45,411 0 79,350Movement in deferred pensioner rates (non-current) (7,799) 0 (5,760)Movement in employee benefit provisions (non-current) (207,443) 0 (78,369)Movement in prepaid income (included in restricted cash) (800,000) 0 (2,200,000)Depreciation and amortisation on assets 2(a) 7,093,927 6,341,023 6,355,354Amount attributable to operating activities (2,683,282) (3,670,402) (3,281,508)
INVESTING ACTIVITIESNon-operating grants, subsidies and contributions 2,346,048 3,139,048 4,730,148Proceeds from disposal of assets 20 780,000 780,000 652,446Purchase of property, plant and equipment 6(b) (839,510) (4,765,163) (834,666)Purchase and construction of infrastructure 7(b) (3,655,939) (5,905,788) (2,911,762)Amount attributable to investing activities (1,369,401) (6,751,903) 1,636,166
FINANCING ACTIVITIESRepayment of debentures 21(a) (475,433) (510,682) (487,181)Proceeds from new debentures 21(a) 0 550,000 0Transfers to reserves (restricted assets) 11 (3,969,791) (2,522,424) (3,677,880)Transfers from reserves (restricted assets) 11 5,236,343 8,449,057 6,866,447Amount attributable to financing activities 791,119 5,965,951 2,701,386
Surplus(deficiency) before general rates (3,261,564) (4,456,354) 1,056,044
Total amount raised from general rates 22 4,470,145 4,456,354 4,140,895
Net current assets at June 30 c/fwd - surplus/(deficit) 23 1,208,581 0 5,196,939
This statement is to be read in conjunction with the accompanying notes.
Revenue from operating activities (excluding rates)
Expenditure from operating activities
Page 8
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of PreparationThe financial report comprises general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit
entities), Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board, the Local Government Act 1995 and accompanying regulations. Material
accounting policies which have been adopted in the preparation of this financial report are presented
below and have been consistently applied unless stated otherwise.
Except for cash flow and rate setting information, the report has been prepared on the accrual basis
and is based on historical costs, modified, where applicable, by the measurement at fair value of selected
non-current assets, financial assets and liabilities.
Critical accounting estimatesThe preparation of a financial report in conformity with Australian Accounting Standards requires
management to make judgements, estimates and assumptions that effect the application of policies and
reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors
that are believed to be reasonable under the circumstances; the results of which form the basis of making
the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.
The local government reporting entityAll Funds through which the Shire controls resources to carry on its functions have been included in the
financial statements forming part of this financial report.
In the process of reporting on the local government as a single unit, all transactions and balances
between those Funds (for example, loans and transfers between Funds) have been eliminated.
All monies held in the Trust Fund are excluded from the financial statements. A separate statement of
those monies appears at Note 19 to these financial statements.
(b) Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of GST receivable or payable.
The net amount of GST recoverable from, or payable to, the ATO is included with receivables or payables
in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the ATO are presented as operating
cash flows.
(c) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, cash at bank, deposits available on demand with
banks and other short term highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value and bank overdrafts.
Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial
position.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Page 9
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d) Trade and Other ReceivablesTrade and other receivables include amounts due from ratepayers for unpaid rates and service charges
and other amounts due from third parties for goods sold and services performed in the ordinary course
of business.
Receivables expected to be collected within 12 months of the end of the reporting period are classified
as current assets. All other receivables are classified as non-current assets.
Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be
uncollectible are written off when identified. An allowance for doubtful debts is raised when there is
objective evidence that they will not be collectible.
(e) Inventories
GeneralInventories are measured at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale.
Land held for saleLand held for development and sale is valued at the lower of cost and net realisable value. Cost includes
the cost of acquisition, development, borrowing costs and holding costs until completion of development.
Finance costs and holding charges incurred after development is completed are expensed.
Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if
significant risks and rewards, and effective control over the land, are passed on to the buyer at this point.
Land held for sale is classified as current except where it is held as non-current based on the Council’s
intentions to release for sale.
(f) Fixed AssetsEach class of fixed assets within either property, plant and equipment or infrastructure, is carried at cost
or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.
Mandatory requirement to revalue non-current assetsEffective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and
the measurement of non-current assets at Fair Value became mandatory.
During the year ended 30 June 2013, the Shire commenced the process of adopting Fair Value
in accordance with the Regulations.
Whilst the amendments initially allowed for a phasing in of fair value in relation to fixed assets over three
years, as at 30 June 2015 all non-current assets were carried at Fair Value in accordance with the
the requirements.
Thereafter, each asset class must be revalued in accordance with the regulatory framework established and
Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have been
made in the financial report as necessary.
FOR THE YEAR ENDED 30TH JUNE 2016
the Shire revalues its asset classes in accordance with this mandatory timetable.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Page 10
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
Land under controlIn accordance with Local Government (Financial Management) Regulation 16(a), the Shire was required
to include as an asset (by 30 June 2013), Crown Land operated by the local government as a golf course,
showground, racecourse or other sporting or recreational facility of State or Regional significance.
Upon initial recognition, these assets were recorded at cost in accordance with AASB 116. They were
then classified as Land and revalued along with other land in accordance with the other policies detailed
in this Note.
Initial recognition and measurement between mandatory revaluation datesAll assets are initially recognised at cost and subsequently revalued in accordance with the mandatory
measurement framework detailed above.
In relation to this initial measurement, cost is determined as the fair value of the assets given as
consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal
consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets
constructed by the Shire includes the cost of all materials used in construction, direct labour on the project
and an appropriate proportion of variable and fixed overheads.
Individual assets acquired between initial recognition and the next revaluation of the asset class in
accordance with the mandatory measurement framework detailed above, are carried at cost less
accumulated depreciation as management believes this approximates fair value. They will be subject to
subsequent revaluation at the next anniversary date in accordance with the mandatory measurement
framework detailed above.
RevaluationIncreases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in
equity. Decreases that offset previous increases of the same asset are recognised against revaluation
surplus directly in equity. All other decreases are recognised in profit or loss.
Land under roadsIn Western Australia, all land under roads is Crown Land, the responsibility for managing which, is
vested in the local government.
Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired
on or before 30 June 2008. This accords with the treatment available in Australian Accounting
Standard AASB 1051 Land Under Roads and the fact Local Government (Financial Management)
Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.
In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government
(Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land
as an asset.
Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government
(Financial Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local
Government (Financial Management) Regulations prevail.
Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the
Shire.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Page 11
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
DepreciationThe depreciable amount of all fixed assets including buildings but excluding freehold land, are depreciated
on a straight-line basis over the individual asset’s useful life from the time the asset is held ready for use.
Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the
estimated useful life of the improvements.
When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of
the revaluation is treated in one of the following ways:
a) Restated proportionately with the change in the gross carrying amount of the asset so that the carrying
amount of the asset after revaluation equals its revalued amount; or
b) Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued
amount of the asset.
Major depreciation periods used for each class of depreciable asset are:
Buildings 10 to 100 years
Furniture and Equipment 3 to 10 years
Plant and Equipment 5 to 20 years
Sealed roads and streets
formation not depreciated
pavement 50 years
seal
- bituminous seals 20 years
- asphalt surfaces 25 years
Gravel roads
formation not depreciated
pavement 50 years
gravel sheet 12 years
Formed roads (unsealed)
clearing and earthworks not depreciated
construction/roadbase 50 years
Footpaths - slab 50 years
Bridges 50 years
Levee System 50 years
Tools 5 years
Water supplying piping & drainage systems 75 years
Other Infrastructure Various
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These gains and losses are included in the statement of comprehensive income in the period in which
they arise.
Capitalisation thresholdExpenditure on items of equipment under $5,000 is not capitalised. Rather, it is recorded on an
asset inventory listing.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Page 12
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Fair Value of Assets and LiabilitiesWhen performing a revaluation, the Shire uses a mix of both independent and management valuations
using the following as a guide:
Fair Value is the price that the Shire would receive to sell the asset or would have to pay to transfer a
liability, in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market
participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is
used to determine fair value. Adjustments to market values may be made having regard to the
characteristics of the specific asset or liability. The fair values of assets that are not traded in an active
market are determined using one or more valuation techniques. These valuation techniques maximise, to
the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or
liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the
absence of such a market, the most advantageous market available to the entity at the end of the
reporting period (i.e. the market that maximises the receipts from the sale of the asset after taking into
account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability
to use the asset in its highest and best use or to sell it to another market participant that would use the
asset in its highest and best use.
Fair value hierarchyAASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurement into one of three possible levels based on the lowest level that an
input that is significant to the measurement can be categorised into as follows:
Level 1Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date.
Level 2Measurements based on inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset or
liability is included in Level 2. If one or more significant inputs are not based on observable market data,
the asset or liability is included in Level 3.
Valuation techniquesThe Shire selects a valuation technique that is appropriate in the circumstances and for which sufficient
data is available to measure fair value. The availability of sufficient and relevant data primarily depends on
the specific characteristics of the asset or liability being measured. The valuation techniques selected by
the Shire are consistent with one or more of the following valuation approaches:
Market approachValuation techniques that use prices and other relevant information generated by market transactions for
identical or similar assets or liabilities.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORTFOR THE YEAR ENDED 30TH JUNE 2016
SHIRE OF CARNARVON
Page 13
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Fair Value of Assets and Liabilities (Continued)Valuation techniques (Continued)
Income approachValuation techniques that convert estimated future cash flows or income and expenses into a single
discounted present value.
Cost approachValuation techniques that reflect the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation
technique, the Shire gives priority to those techniques that maximise the use of observable inputs and
minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly
available information on actual transactions) and reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are considered observable, whereas inputs for which
market data is not available and therefore are developed using the best information available about such
assumptions are considered unobservable.
As detailed above, the mandatory measurement framework imposed by the Local Government
(Financial Management) Regulations requires, as a minimum, all assets carried at a revalued amount to
be revalued in accordance with the regulatory framework.
(h) Financial Instruments
Initial recognition and measurementFinancial assets and financial liabilities are recognised when the Shire becomes a party to the
contractual provisions to the instrument. For financial assets, this is equivalent to the date that the
Shire commits itself to either the purchase or sale of the asset (i.e. trade date accounting is
adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the
instrument is classified 'at fair value through profit or loss', in which case transaction costs are
expensed to profit or loss immediately.
Classification and subsequent measurementFinancial instruments are subsequently measured at fair value, amortised cost using the effective
interest rate method, or at cost.
Amortised cost is calculated as:
(a) the amount in which the financial asset or financial liability is measured at initial recognition;
(b) less principal repayments and any reduction for impairment; and
(c) plus or minus the cumulative amortisation of the difference, if any, between the amount
initially recognised and the maturity amount calculated using the effective interest rate method.
The effective interest method is used to allocate interest income or interest expense over the relevant
period and is equivalent to the rate that discounts estimated future cash payments or receipts
(including fees, transaction costs and other premiums or discounts) through the expected life (or when
this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying
amount of the financial asset or financial liability. Revisions to expected future net cash flows will
necessitate an adjustment to the carrying value with a consequential recognition of an income or expense
in profit or loss.
FOR THE YEAR ENDED 30TH JUNE 2016
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Page 14
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Financial Instruments (Continued)
Classification and subsequent measurement (continued)
(i) Financial assets at fair value through profit and loss Financial assets are classified at “fair value through profit or loss” when they are held for trading for the
purpose of short-term profit taking. Such assets are subsequently measured at fair value with changes
in carrying amount being included in profit or loss. Assets in this category are classified as current assets.
(ii) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are
recognised in profit or loss.
Loans and receivables are included in current assets where they are expected to mature within 12 months
after the end of the reporting period.
(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or
determinable payments that the Shire has the positive intention and ability to hold to maturity. They
are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.
Held-to-maturity investments are included in current assets, where they are expected to mature
within 12 months after the end of the reporting period. All other investments are classified as non-
current.
(iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be
classified into other categories of financial assets due to their nature, or they are designated as such
by management. They comprise investments in the equity of other entities where there is neither a
fixed maturity nor fixed or determinable payments.
They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses)
recognised in other comprehensive income (except for impairment losses). When the financial asset
is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other
comprehensive income is reclassified into profit or loss.
Available-for-sale financial assets are included in current assets, where they are expected to be sold
within 12 months after the end of the reporting period. All other available-for-sale financial assets are
classified as non-current.
(v) Financial liabilitiesNon-derivative financial liabilities (excluding financial guarantees) are subsequently measured at
amortised cost. Gains or losses are recognised in profit or loss.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Page 15
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Financial Instruments (Continued)
ImpairmentA financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as
a result of one or more events (a “loss event”) having occurred, which will have an impact on the estimated
future cash flows of the financial asset(s).
In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of
the instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately.
Also, any cumulative decline in fair value previously recognised in other comprehensive income is
reclassified to profit or loss at this point.
In the case of financial assets carried at amortised cost, loss events may include: indications that the
debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in
interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation;
and changes in arrears or economic conditions that correlate with defaults.
For financial assets carried at amortised cost (including loans and receivables), a separate allowance
account is used to reduce the carrying amount of financial assets impaired by credit losses. After
having taken all possible measures of recovery, if management establishes that the carrying amount
cannot be recovered by any means, at that point the written-off amounts are charged to the allowance
account or the carrying amount of impaired financial assets is reduced directly if no impairment amount
was previously recognised in the allowance account.
DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expire or the
asset is transferred to another party whereby the Shire no longer has any significant continual
involvement in the risks and benefits associated with the asset.
Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired.
The difference between the carrying amount of the financial liability extinguished or transferred to
another party and the fair value of the consideration paid, including the transfer of non-cash assets or
liabilities assumed, is recognised in profit or loss.
(i) Impairment of AssetsIn accordance with Australian Accounting Standards the Shire's assets, other than inventories,
are assessed at each reporting date to determine whether there is any indication they may be impaired.
Where such an indication exists, an impairment test is carried out on the asset by comparing the
recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in
use, to the asset's carrying amount.
Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in
profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard
(e.g. AASB 116) whereby any impairment loss of a revalued asset is treated as a revaluation decrease in
accordance with that other Standard.
For non-cash generating assets such as roads, drains, public buildings and the like, value in use is
represented by the depreciated replacement cost of the asset.
(j) Trade and Other PayablesTrade and other payables represent liabilities for goods and services provided to the Shire prior to the
end of the financial year that are unpaid and arise when the Shire becomes obliged to make future
payments in respect of the purchase of these goods and services. The amounts are unsecured, are
recognised as a current liability and are normally paid within 30 days of recognition.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Page 16
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(k) Employee BenefitsShort-term employee benefits Provision is made for the Shire’s obligations for short-term employee benefits. Short-term employee
benefits are benefits (other than termination benefits) that are expected to be settled wholly before
12 months after the end of the annual reporting period in which the employees render the related service,
including wages, salaries and sick leave. Short-term employee benefits are measured at the
(undiscounted) amounts expected to be paid when the obligation is settled.
The Shire’s obligations for short-term employee benefits such as wages, salaries and sick leave are
recognised as a part of current trade and other payables in the statement of financial position. The
Shire’s obligations for employees’ annual leave and long service leave entitlements are recognised as
provisions in the statement of financial position.
Other long-term employee benefitsProvision is made for employees’ long service leave and annual leave entitlements not expected to be
settled wholly within 12 months after the end of the annual reporting period in which the employees
render the related service. Other long-term employee benefits are measured at the present value of the
expected future payments to be made to employees. Expected future payments incorporate anticipated
future wage and salary levels, durations of service and employee departures and are discounted at rates
determined by reference to market yields at the end of the reporting period on government bonds that
have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in
assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the
periods in which the changes occur.
The Shire’s obligations for long-term employee benefits are presented as non-current provisions in its
statement of financial position, except where the Shire does not have an unconditional right to defer
settlement for at least 12 months after the end of the reporting period, in which case the obligations are
presented as current provisions.
(l) Borrowing CostsBorrowing costs are recognised as an expense when incurred except where they are directly attributable
to the acquisition, construction or production of a qualifying asset. Where this is the case, they are
capitalised as part of the cost of the particular asset until such time as the asset is substantially ready
for its intended use or sale.
(m) ProvisionsProvisions are recognised when the Shire has a present legal or constructive obligation, as a result of
past events, for which it is probable that an outflow of economic benefits will result and that outflow can
be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the
end of the reporting period.
(n) LeasesLeases of fixed assets where substantially all the risks and benefits incidental to the ownership of the
asset, but not legal ownership, are transferred to the Shire, are classified as finance leases.
Finance leases are capitalised recording an asset and a liability at the lower amounts equal to the fair
value of the leased property or the present value of the minimum lease payments, including any
guaranteed residual values. Lease payments are allocated between the reduction of the lease liability
and the lease interest expense for the period.
Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or
the lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the
lessor, are charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight line
basis over the life of the lease term.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Page 17
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(o) Investment in AssociatesAn associate is an entity over which the Shire has significant influence. Significant influence is the
power to participate in the financial operating policy decisions of that entity but is not control or joint
control of those policies. Investments in associates are accounted for in the financial statements by
applying the equity method of accounting, whereby the investment is initially recognised at cost and
adjusted thereafter for the post-acquisition change in the Shire’s share of net assets of the associate.
In addition, the Shire’s share of the profit or loss of the associate is included in the Shire’s profit or loss.
The carrying amount of the investment includes, where applicable, goodwill relating to the associate.
Any discount on acquisition, whereby the Shire’s share of the net fair value of the associate exceeds
the cost of investment, is recognised in profit or loss in the period in which the investment is acquired.
Profits and losses resulting from transactions between the Shire and the associate are eliminated to
the extent of the Shire’s interest in the associate.
When the Shire’s share of losses in an associate equals or exceeds its interest in the associate, the
Shire discontinues recognising its share of further losses unless it has incurred legal or constructive
obligations or made payments on behalf of the associate. When the associate subsequently makes
profits, the Shire will resume recognising its share of those profits once its share of the profits equals
the share of the losses not recognised.
(p) Interests in Joint ArrangementsJoint arrangements represent the contractual sharing of control between parties in a business
venture where unanimous decisions about relevant activities are required.
Separate joint venture entities providing joint venturers with an interest to net assets are classified as a
joint venture and accounted for using the equity method. Refer to note 1(o) for a description of the equity
method of accounting.
Joint venture operations represent arrangements whereby joint operators maintain direct interests in
each asset and exposure to each liability of the arrangement. The Shire’s interests in the assets,
liabilities, revenue and expenses of joint operations are included in the respective line items of the financial
statements. Information about the joint ventures is set out in Note 16.
(q) Rates, Grants, Donations and Other ContributionsRates, grants, donations and other contributions are recognised as revenues when the local government
obtains control over the assets comprising the contributions.
Control over assets acquired from rates is obtained at the commencement of the rating period or, where
earlier, upon receipt of the rates.
Where contributions recognised as revenues 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 nature of and amounts pertaining to those undischarged
conditions are disclosed in Note 2(c) . That note also discloses the amount of contributions recognised
as revenues in a previous reporting period which were obtained in respect of the local government's
operations for the current reporting period.
(r) SuperannuationThe Shire contributes to a number of Superannuation Funds on behalf of employees. All funds to
which the Shire contributes are defined contribution plans.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORTFOR THE YEAR ENDED 30TH JUNE 2016
SHIRE OF CARNARVON
Page 18
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(s) Current and Non-Current ClassificationIn the determination of whether an asset or liability is current or non-current, consideration is given to the
time when each asset or liability is expected to be settled. The asset or liability is classified as current if
it is expected to be settled within the next 12 months, being the Shire’s operational cycle. In the case
of liabilities where the Shire does not have the unconditional right to defer settlement beyond 12 months,
such as vested long service leave, the liability is classified as current even if not expected to be settled
within the next 12 months. Inventories held for trading are classified as current even if not expected to be
realised in the next 12 months except for land held for sale where it is held as non-current based on the
Shire’s intentions to release for sale.
(t) Rounding Off FiguresAll figures shown in this annual financial report, other than a rate in the dollar, are rounded to the nearest
dollar.
(u) Comparative FiguresWhere required, comparative figures have been adjusted to conform with changes in presentation for the
current financial year.
When the Shire applies an accounting policy retrospectively, makes a retrospective restatement or
reclassifies items in its financial statement, an additional (third) statement of financial position as at the
beginning of the preceding period in addition to the minimum comparative financial statements is
presented.
(v) Budget Comparative FiguresUnless otherwise stated, the budget comparative figures shown in this annual financial report relate to the
original budget estimate for the relevant item of disclosure.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORTFOR THE YEAR ENDED 30TH JUNE 2016
SHIRE OF CARNARVON
Page 19
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tem
en
ts a
bo
ut
the
na
ture
,
am
ount, t
imin
g a
nd u
ncert
ain
ty o
f re
venue a
nd c
ash f
low
s a
risin
g
fro
m a
co
ntr
act
with
a c
usto
me
r.
The e
ffect
of
this
Sta
ndard
will
depend u
pon t
he n
atu
re o
f fu
ture
transactions t
he S
hire h
as w
ith t
hose t
hird p
art
ies it
has d
ealin
gs
with
. It
ma
y o
r m
ay n
ot
be
sig
nific
an
t.
(iii)
AA
SB
16 L
eases
Febru
ary
2016
1 J
anuary
2019
Under
AA
SB
16 t
here
is n
o longer
a d
istinction b
etw
een f
inance
and o
pera
ting leases.
Lessees w
ill n
ow
bring t
o a
ccount
a
rig
ht-
to-u
se
asse
t a
nd
le
ase
lia
bili
ty o
nto
th
eir s
tate
me
nt
of
fin
an
cia
l
poitio
n f
or
all
leases.
Effectively
this
means t
he v
ast
majo
rity
of
opera
ting leases a
s d
efined b
y t
he c
urr
ent
AA
SB
117 L
eases w
hic
h
curr
ently d
o n
ot
impact
the s
tate
ment
of
financia
l positio
n w
ill b
e
required t
o b
e c
apitalis
ed o
n t
he s
tate
ment
of
financia
l positio
n o
nce
AA
SB
16 is a
dopte
d.
Curr
ently,
opera
ting lease p
aym
ents
are
expensed a
s incurr
ed.
This
will
cease a
nd w
ill b
e r
epla
ced b
y b
oth
depre
cia
tion a
nd
inte
rest
charg
es.
Based o
n t
he c
urr
ent
num
ber
of
opera
ting
lea
se
s h
eld
by t
he
Sh
ire
, th
e im
pa
ct
is n
ot
exp
ecte
d t
o b
e
sig
nific
ant.
The A
AS
B h
as issued a
num
ber
of
new
and a
mended A
ccounting S
tandard
s a
nd I
nte
rpre
tations t
hat
have m
andato
ry a
pplic
ation d
ate
s f
or
futu
re r
eport
ing p
eriods,
som
e o
f w
hic
h a
re r
ele
vant
to t
he S
hire.
Page 2
0
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
1. S
IGN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(Con
tinue
d)(w
)N
ew A
ccou
ntin
g St
anda
rds
and
Inte
rpre
tatio
ns fo
r App
licat
ion
in F
utur
e Pe
riods
(Con
tinue
d)
Title
Issu
ed /
Com
pile
dA
pplic
able
(1)
Impa
ct
(iv)
AA
SB
2014-3
Am
endm
ents
to A
ustr
alia
nA
ugust
2014
1 J
anuary
2016
This
Sta
ndard
am
ends A
AS
B 1
1:
Join
t Arr
ange
men
ts t
o r
equire t
he
Accounting S
tandard
s -
Accounting f
or
acquirer
of
an inte
rest
(both
initia
l and a
dditio
nal) in a
join
t opera
tion
Acq
uis
itio
ns o
f In
tere
sts
in
Jo
int
Op
era
tio
ns
in w
hic
h t
he a
ctivity c
onstitu
tes a
busin
ess,
as d
efined in A
AS
B 3
:
Bus
ines
s C
ombi
natio
ns,
to a
pply
all
of
the p
rincip
les o
n b
usin
ess
[AA
SB
1 &
AA
SB
11
]com
bin
ations a
ccounting in A
AS
B 3
and o
ther
Austr
alia
n
Acco
un
tin
g S
tan
da
rds e
xce
pt
for
tho
se
prin
cip
les t
ha
t co
nflic
t w
ith
the g
uid
ance in A
AS
B 1
1;
and d
isclo
se t
he info
rmation r
equired
by A
AS
B 3
and o
ther
Austr
alia
n A
ccounting S
tandard
s f
or
busin
ess
com
bin
ations.
Sin
ce a
doption o
f th
is S
tandard
would
im
pact
only
acquis
itio
ns o
f
inte
rests
in join
t opera
tions o
n o
r after
1 J
anuary
2016,
managem
ent
belie
ves it
is im
pra
cticable
at
this
sta
ge t
o p
rovid
e a
reasonable
estim
ate
of
such im
pact
on t
he S
hire's
fin
ancia
l
sta
tem
en
ts.
(v)
AA
SB
2014-4
Am
endm
ents
to A
ustr
alia
n
August
2014
1 J
anuary
2016
This
Sta
ndard
am
ends A
AS
B 1
16 a
nd A
AS
B 1
38 t
o e
sta
blis
h t
he
Accounting S
tandard
s -
Cla
rification o
f princip
le f
or
the b
asis
of
depre
cia
tion a
nd a
mort
isation a
s b
ein
g t
he
Accepta
ble
Meth
ods o
f D
epre
cia
tion a
nd
expecte
d p
attern
of
consum
ption o
f th
e f
utu
re e
conom
ic b
enefits
of
Am
ort
isation
an
asse
t. I
t a
lso
cla
rifie
s t
he
use
of
reve
nu
e-b
ase
d m
eth
od
s t
o
calc
ula
te t
he d
epre
cia
tion o
f an a
sset
is n
ot
appro
priate
nor
is
[AA
SB
116 &
138]
revenue g
enera
lly a
n a
ppro
priate
basis
for
measuring t
he
consum
ption o
f th
e e
conom
ic b
enefits
em
bodie
d in a
n inta
ngib
le
asse
t.
Giv
en t
he S
hire c
ure
ntly u
ses t
he e
xpecte
d p
attern
of
consum
ption
of
the
fu
ture
eco
no
mic
be
ne
fits
of
an
asse
t a
s t
he
ba
sis
of
ca
lcu
latio
n
of
de
pre
cia
tio
n,
it is n
ot
exp
ecte
d t
o h
ave
a s
ign
ific
an
t im
pa
ct.
(vi)
AA
SB
2014-5
Am
endm
ents
to A
ustr
alia
n
Decem
ber
2014
1 J
anuary
2017
Consequential changes t
o v
arious S
tandard
s a
risin
g f
rom
the
Accounting S
tandard
s a
risin
g f
rom
AA
SB
15
issuance o
f A
AS
B 1
5.
It w
ill r
eq
uire
ch
an
ge
s t
o r
efle
ct
the
im
pa
ct
of
AA
SB
15
.
Page 2
1
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
1. S
IGN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(Con
tinue
d)
(w)
New
Acc
ount
ing
Stan
dard
s an
d In
terp
reta
tions
for A
pplic
atio
n in
Fut
ure
Perio
ds (C
ontin
ued)
Title
Issu
ed /
Com
pile
dA
pplic
able
(1)
Impa
ct
(vii)
AA
SB
2015-2
Am
endm
ents
to A
ustr
alia
n
January
2015
1 J
anuary
2016
This
Sta
ndard
am
ends A
AS
B 1
01 t
o p
rovid
e c
larification r
ega
rdin
g
Accounting S
tandard
s –
Dis
clo
sure
the d
isclo
sure
requirem
ents
in A
AS
B 1
01.
Specific
ally
, th
e
Initia
tive
: A
me
nd
me
nts
to
Sta
ndard
pro
poses n
arr
ow
-focus a
mendm
ents
to a
ddre
ss s
om
e o
f
AA
SB
10
1th
e c
oncern
s e
xpre
ssed a
bout
exis
ting p
resenta
tion a
nd d
isclo
sure
requirem
ents
and t
o e
nsure
entities a
re a
ble
to u
se judgem
ent
[AA
SB
7,
10
1,
13
4 &
10
49
]w
hen a
pply
ing a
Sta
ndard
in d
ete
rmin
ing w
hat
info
rmation t
o
dis
clo
se in t
heir f
inancia
l sta
tem
ents
.
This
Sta
ndard
als
o m
akes e
ditorial and c
onsequential am
endm
ents
as a
re
su
lt o
f a
me
nd
me
nts
to
th
e S
tan
da
rds lis
ted
in
th
e t
itle
colu
mn.
It is n
ot
an
ticip
ate
d it
will
ha
ve
an
y s
ign
ific
an
t im
pa
ct
on
dis
clo
sure
s a
s t
hey c
urr
ently e
xis
t and a
ny c
hanges w
ill r
ela
te t
o
pre
senta
tion.
(viii
)A
AS
B 2
015-6
Am
endm
ents
to A
ustr
alia
n
Marc
h 2
015
1 J
uly
2016
The o
bje
ctive o
f th
is S
tandard
is t
o e
xte
nd t
he s
cope o
f A
AS
B 1
24
Accounting S
tandard
s -
Exte
ndin
g R
ela
ted
Rel
ated
Par
ty D
iscl
osur
esto
in
clu
de
no
t-fo
r-p
rofit
se
cto
r e
ntitie
s.
Pa
rty D
isclo
su
res t
o N
ot-
for-
Pro
fit
Pu
blic
Se
cto
r E
ntitie
sT
he S
tandard
is e
xpecte
d t
o h
ave a
sig
nific
ant
dis
clo
sure
im
pact
on
the f
inancia
l re
port
of
the S
hire a
s b
oth
Ele
cte
d M
em
bers
and S
enio
r
[AA
SB
10,
124 &
1049]
Managem
ent
will
be d
eem
ed t
o b
e K
ey M
anagem
ent
Pers
onnel
and r
esultant
dis
clo
sure
s w
ill b
e n
ecessary
.
Note
s:
(1) A
pp
licable
to r
ep
ort
ing
periods c
om
mencin
g o
n o
r a
fte
r th
e g
iven d
ate
.
Page 2
2
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
1. S
IGN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(Con
tinue
d)
(x)
Ado
ptio
n of
New
and
Rev
ised
Acc
ount
ing
Stan
dard
s
These n
ew
and r
evis
ed s
tandard
s w
ere
as f
ollo
ws:
(i)
AA
SB
2015-3
Am
endm
ents
to A
ustr
alia
n
Accounting S
tandard
s a
risin
g f
rom
the
withdra
wal of
AA
SB
1031 M
ate
rialit
y
(ii)
AA
SB
2015-7
Am
endm
ents
to A
ustr
alia
n
Accounting S
tandard
s -
Fair V
alu
e D
isclo
sure
s
of
No
t-fo
r-P
rofit
Pu
blic
Se
cto
r E
ntitie
s
and w
hic
h w
ere
applic
able
to its
opera
tions.
During t
he c
urr
ent
year,
the S
hire a
dopte
d a
ll of
the n
ew
and r
evis
ed A
ustr
alia
n A
ccounting S
tandard
s a
nd I
nte
rpre
tations w
hic
h w
ere
com
pile
d,
becam
e m
andato
ry
Page 2
3
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
2. REVENUE AND EXPENSES 2016 2015$ $
(a) Net Result
The Net result includes:
(i) Charging as an expense:
Significant expense and revenueGeneral purpose funding 2,451,238 3,522,946
This significant expense in 2015 and 2016 relates to the
construction of levee banks for Flood Mitigation.
Auditors remuneration- Audit of the Annual Financial Report 22,949 20,869
- Assistance with the finalisation of the annual financial report 5,500 4,000
- Other services 23,079 19,140
DepreciationBuildings - non-specialised 64,811 64,811
Buildings - specialised 805,314 801,005
Furniture and equipment 30,836 27,367
Plant and equipment 313,691 348,495
Infrastructure - roads 4,883,095 3,930,913
Infrastructure - footpaths 34,131 50,679
Infrastructure - drainage 87,808 61,777
Infrastructure - parks and ovals 278,041 543,582
Infrastructure - other 195,126 184,949
Infrastructure - Bridges 159,600 155,585
Infrastructure - Levee System 44,750 30,617
Infrastructure - Airport 174,774 111,324
Infrastructure - Car Parks 21,950 44,250
7,093,927 6,355,354
Interest expenses (finance costs)Debentures (refer Note 21 (a)) 48,619 62,684
48,619 62,684
Rental charges- Operating leases 285,859 288,243
285,859 288,243
(ii) Crediting as revenue:
Other revenueReimbursements and recoveries 384,922 1,433,954
Other 229,288 290,908
614,210 1,724,862
2016 2016 2015Actual Budget Actual
$ $ $Interest earnings- Reserve funds 148,463 209,301 204,362
- Other funds 58,743 100,000 49,774
Other interest revenue (refer note 27) 75,498 54,000 65,003
282,704 363,301 319,139
Page 24
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
2. REVENUE AND EXPENSES (Continued)
(b) Statement of Objective
In order to discharge its responsibilities to the community, the Shire has developed a set of
operational and financial objectives. These objectives have been established both on an overall
basis, reflected by the Shire’s Community Vision, and for each of its broad activities/programs.
COMMUNITY VISION
of the members of the community and enable them to enjoy a pleasant and healthy way of life.
Shire operations as disclosed in these financial statements encompass the following service
orientated activities/programs.
GOVERNANCEObjective:To provide a decision making process for the efficient allocation of resources.
Activities:Administration and operations of facilities and services to members of Council.
Other costs that relate to the tasks of assisting elected members and ratepayers on
matters which do not concern specific council services.
GENERAL PURPOSE FUNDINGObjective:
Activities:
LAW, ORDER, PUBLIC SAFETYObjective:
Activities:
HEALTHObjective:To provide an operational framework for environmental and community health.
Activities:Food quality and pest control, inspections and infant health. This function also
provides for the implentation of the Healthy Lifestyles model.
EDUCATION AND WELFAREObjective:To meet the needs of the community in these areas.
Activities:Support pre school facilities and assistance of seniors and retirement villages
This function also provides for Youth Strategy and the accounting of the Carnarvon
Youth Co ordinating Networks finance as part of an agreement.
security, administration of the Crime Prevention Plan.
The Shire will endeavour to provide the community services and facilities to meet the needs
To collect general reveunue to allow for the provision of services.
Rates activity, general purpose grants, banking costs and interest revenue.
To provide services to help ensure safer community.
Supervision of various local laws, fire prevention, emergency services, CBD
Page 25
2. REVENUE AND EXPENSES (Continued)
(b) Statement of Objective (Continued)
HOUSINGObjective:To meet the needs of the Shire of Carnarvon Staff.
Activities:Staff Housing.
COMMUNITY AMENITIESObjective:To provide sanitary and essential services required by the community.
To provide land development strategies and to process land development activities.
Environmental sustainability.
Activities:Refuse collection service, operation of refuse site, administration of town
planning scheme, cemetery service and maintenance, environmental protection
services and land development services.
RECREATION AND CULTUREObjective:To establish and manage efficiently infrastructure and resources which will
help the social well being of the community.
Activities:Operations of Civic Centre (Camel Lane), aquatic centre and beach areas,
regional libray service, cultural and heritage services and facilities, reserves parks
and gardens.
TRANSPORTObjective:To provide effective and efficient transport services to the community.
Activities:Maintenance of streets, roads, footpaths, street lighting, airport. Agency for
Department of Planning and Infrastructures On Line Vehicle Licensing Service.
ECONOMIC SERVICESObjective:To help promote and market the Shire of Carnarvon to the world and impove
the economic well being. To ensure building development regulations are adhered to.
Activities:Noxious weed control, tourism and area promotion, building control and services.
OTHER PROPERTY AND SERVICESObjective:To ensure works programs are operating efficiently.
Activities:Private works operations, public works operations and plant operations.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Page 26
SHIR
E O
F C
ARN
ARVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
ART
OF
THE
FIN
ANC
IAL
REP
OR
TFO
R T
HE
YEAR
EN
DED
30T
H J
UN
E 20
16
2.R
EVEN
UE
AND
EXP
ENSE
S (C
ontin
ued)
(c)
Con
ditio
ns O
ver G
rant
s/C
ontr
ibut
ions
Ope
ning
Clo
sing
Clo
sing
Bal
ance
(1)
Rec
eive
d (2
)Ex
pend
ed(3
)B
alan
ce(1
)R
ecei
ved
(2)
Expe
nded
(3)
Bal
ance
Func
tion/
1/07
/14
2014
/15
2014
/15
30/0
6/15
2015
/16
2015
/16
30/0
6/16
Gra
nt/C
ontr
ibut
ion
Activ
ity$
$$
$$
$$
Blo
whole
s (
bala
nce o
f $1,8
00,0
00)
Recre
ation a
nd c
ulture
1,0
20,9
74
2,0
62
(24,4
77)
998,
559
1,4
58
(6,8
41)
993,
176
Youth
DC
P &
DC
SE
ducation a
nd w
elfare
90,5
42
66,1
68
(78,3
42)
78,3
6838,5
38
(21,1
44)
95,7
62F
lood M
itig
ation (
Sta
te)
Tra
nsport
4,4
33,9
47
17,3
11
(3,5
22,9
46)
928,
312
1,2
69,5
31
(2,1
97,8
43)
0F
lood M
itig
ation (
Federa
l)T
ransport
253,2
26
516
025
3,74
2353
(254,0
95)
0W
aste
Facili
ty (
Regio
nal C
LG
F)
Com
munity a
menitie
s19,9
92
0(1
9,9
92)
00
00
Kid
sport
Com
munity a
menitie
s28,6
50
50
(12,6
75)
16,0
254,0
23
(14,0
98)
5,95
0D
epart
ment of
Local G
overn
ment (R
CG
)A
dm
inis
tration
53,7
20
110
(15,6
47)
38,1
8353
(38,2
36)
0B
abbage a
nd W
hitlo
ck Isn s
tructu
re p
lan
Pla
nnin
g32,5
10
30
(31,6
34)
906
0(9
06)
0D
LD
Fascin
e "
Fin
al"
Sta
ge
Recre
ation a
nd c
ulture
3,3
02,0
01
70,6
44
(1,3
16,2
14)
2,05
6,43
124,5
13
(1,3
88,8
36)
692,
108
Waste
serv
ices
Com
munity a
menitie
s19,1
28
531
019
,659
66,5
32
(23,2
99)
62,8
92R
obin
son s
treet
Tra
nsport
500,0
00
11,4
44
(997)
510,
447
4,2
08
(501,2
44)
13,4
11Local pla
nnin
g s
trate
gy
Com
munity a
menitie
s150,0
00
220
(136,4
63)
13,7
5720
(8,0
00)
5,77
7C
LA
G/F
IMM
WA
(m
osquitoes)
Health
19,7
41
37
(10,3
92)
9,38
645,8
77
(52,8
94)
2,36
9R
2R
Tra
nsport
237,0
80
5,9
52
(243,0
32)
00
00
Fam
ily s
afe
Com
munity a
menitie
s15,4
14
21
(15,0
30)
405
0(4
05)
0Lib
rary
Recre
ation a
nd c
ulture
295,6
39
603
(74,2
92)
221,
950
309
(222,2
59)
0C
LG
F E
xecutive h
ousin
gH
ousin
g0
539,2
74
053
9,27
4775
(181,4
46)
358,
603
CLG
F C
ivic
Centr
e -
Wools
hed R
efu
rbis
hm
ent
Recre
ation a
nd c
ulture
0400,6
38
040
0,63
8567
(13,5
20)
387,
685
CLG
F W
aste
Facili
ty Im
pro
vem
ents
Com
munity a
menitie
s0
858,6
35
085
8,63
51,2
54
(1,2
00)
858,
689
CLG
F C
ora
l B
ay T
ransfe
r S
tation
Com
munity a
menitie
s0
80,0
00
080
,000
117
(300)
79,8
17A
gein
g in P
lace -
GD
C R
FR
Education a
nd w
elfare
050,0
00
050
,000
200,0
88
025
0,08
8C
lub D
evelo
pm
ent O
ffic
er
(DS
R)
Education a
nd w
elfare
00
00
40,0
01
(25,6
52)
14,3
49V
C S
usta
inabili
ty G
rant (T
ourism
WA
)E
conom
ic S
erv
ices
00
00
19,2
68
(10,6
08)
8,66
0R
egio
nal A
via
tion A
ccess P
rogra
mT
ransport
00
00
500,0
34
(5,6
82)
494,
352
Tow
n P
lannin
g S
chem
e G
rant (D
oP
)C
om
munity a
menitie
s0
00
0120,0
00
012
0,00
0W
ate
r M
anagem
ent S
trate
gy P
lan (
DoP
)E
conom
ic S
erv
ices
00
00
70,0
00
070
,000
Public
Open S
pace S
trate
gy P
roje
ct (D
oP
)E
conom
ic S
erv
ices
00
00
80,0
00
080
,000
Civ
ic P
recin
ct D
evelo
ment P
lan (
DoP
)E
conom
ic S
erv
ices
00
00
20,0
00
020
,000
Indig
enous A
dvancem
ent S
trate
gy (
DP
&C
)E
ducation a
nd w
elfare
00
00
100,0
00
(74,0
55)
25,9
45
Tota
l10
,472
,564
2,10
4,24
6(5
,502
,133
)7,
074,
677
2,60
7,51
9(5
,042
,563
)4,
639,
633
Not
es:
(1) -
Gra
nts
/contr
ibutions r
ecognis
ed a
s r
evenue in a
pre
vio
us r
eport
ing p
eriod w
hic
h w
ere
not expended a
t th
e c
lose o
f th
e p
revio
us r
eport
ing p
eriod.
(2) -
New
gra
nts
/contr
ibutions w
hic
h w
ere
recognis
ed a
s r
evenues d
uring the r
eport
ing p
eriod a
nd w
hic
h h
ad n
ot yet been f
ully
expe
nded in the m
anner
specifie
d
b
y the c
ontr
ibuto
r.
(3) -
Gra
nts
/contr
ibutions w
hic
h h
ad b
een r
ecognis
ed a
s r
evenues in a
pre
vio
us r
eport
ing p
eriod o
r re
ceiv
ed in the c
urr
ent re
port
ing p
eriod a
nd w
hic
h w
ere
e
xpended in the c
urr
ent re
port
ing p
eriod in the m
anner
specifie
d b
y the c
ontr
ibuto
r.
Page 2
7
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Note 2016 2015$ $
3. CASH AND CASH EQUIVALENTS
Unrestricted 574,386 5,636,677
Restricted 8,043,912 9,310,464
8,618,298 14,947,141
The following restrictions have been imposed by
regulations or other externally imposed requirements:
Leave reserve 11 127,945 131,417
Plant Reserve 11 133,582 125,619
Waste Disposal Reserve 11 186,791 37,513
Property Infrastructure Reserve 11 1,753 1,692
Staff Housing Reserve 11 724,307 694,189
Civic Centre Reserve 11 303,596 102,499
I.T. Replacement Reserve 11 53,622 51,416
Airport Reserve 11 826,502 30,074
Coral Bay Tip Reserve 11 21,721 21,617
Surge/Fascine Wall Reserve 11 7,441 6,195
Town planning Scheme Reserve 11 23,382 22,957
Fascine Dredging Reserve 11 124,750 1,320
Flood Mitigation Reserve 11 11,804 10,405
OCT/NASA Reserve 11 8,793 7,828
Blowholes Reserve 11 22,735 21,282
Unspent Grants and Contributions Reserve 11 4,639,633 7,062,057
Land and Infrastructure Development Reserve 11 744,246 956,335
Asset Replacement Reserve 11 28,696 26,049
Emergency Response Reserve 11 51,701 0
Mosquito Management Reserve 11 912 0
8,043,912 9,310,464
4. TRADE AND OTHER RECEIVABLES
CurrentRates outstanding 557,990 362,118
Sundry debtors 525,823 627,465
GST receivable 42,045 150,225
ESL receivable 33,842 31,465
Accrued income 23,576 14,186
Bond Staff Housing 2,066 2,050
1,185,342 1,187,509
Non-currentRates outstanding - pensioners 64,049 56,250
64,049 56,250
5. INVENTORIES
CurrentFuel and materials 16,560 51,259
Civic Centre 3,178 8,120
Visitors Centre 21,318 36,484
41,056 95,863
Page 28
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
2016 2015$ $
6 (a). PROPERTY, PLANT AND EQUIPMENT
Land and buildings
Land - freehold at:
- Independent valuation 2014 - level 2 3,510,000 3,510,000
- Independent valuation 2014 - level 3 3,147,375 3,147,375
- Additions after valuation - cost 254,151 254,151
6,911,526 6,911,526
Land - vested in and under the control of Council at:
- Management valuation 2014 - level 3 275,000 275,000
275,000 275,000
7,186,526 7,186,526
Buildings - non-specialised at:
- Independent valuation 2014 - level 2 1,520,000 1,520,000
Less: accumulated depreciation (129,622) (64,811)
1,390,378 1,455,189
Buildings - specialised at:
- Independent valuation 2014 - level 3 21,293,414 21,293,414
- Additions after valuation - cost 1,053,645 323,683
Less: accumulated depreciation (1,606,319) (801,005)
20,740,740 20,816,092
22,131,118 22,271,281
Total land and buildings 29,317,644 29,457,807
Furniture and equipment at:
- Independent valuation 2014 - level 3 0 75,800
- Management valuation 2014 - level 3 0 80,809
- Independent valuation 2016 - level 3 280,900 0
- Management valuation 2016 - level 3 83,470 0
- Additions after valuation - cost 0 24,647
Less accumulated depreciation 0 (27,367)
364,370 153,889
Plant and equipment at:
- Management valuation 2013 - level 3 0 76,178
- Independent valuation 2013 - level 2 0 1,547,802
- Independent valuation 2016 - level 2 1,996,700 0
- Management valuation 2016 - level 3 55,949 0
- Additions after valuation - cost 0 1,033,595
Less accumulated depreciation 0 (562,205)
2,052,649 2,095,370
31,734,663 31,707,066
The fair value of property, plant and equipment is determined at least every three years in accordance
with the regulatory framework. Additions since the date of valuation are shown as cost, given they
were acquired at arms length and any accumulated depreciation reflects the usage of service
potential, it is considered the recorded written down value approximates fair value. At the end of each
intervening period the valuation is reviewed and where appropriate the fair value is updated to
reflect current market conditions. This process is considered to be in accordance with Local Government
(Financial Management) Regulation 17A (2) which requires property, plant and equipment to be shown
at fair value.Page 29
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
6.PR
OPE
RTY
, PLA
NT
AN
D E
QU
IPM
ENT
(Con
tinue
d)
(b)
Mov
emen
ts in
Car
ryin
g A
mou
nts
Movem
ent
in t
he c
arr
yin
g a
mounts
of
each c
lass o
f pro
pert
y,
pla
nt
and e
quip
ment
betw
een t
he b
egin
nin
g a
nd t
he e
nd o
f th
e c
urr
en
t financia
l year.
Rev
alua
tion
Rev
alua
tion
Incr
emen
ts/
(Los
ses)
/B
alan
ce(D
ecre
men
ts)
Rev
ersa
lsC
arry
ing
at th
eTr
ansf
erre
dTh
roug
hIm
pairm
ent
Am
ount
Beg
inni
ngto
to(L
osse
s)/
Dep
reci
atio
nat
the
of th
e Ye
a rA
dditi
ons
(Dis
posa
ls)
Rev
alua
tion
Prof
it or
Los
sR
ever
sals
(Exp
ense
)Tr
ansf
ers
End
of Y
ear
$$
$$
$$
$$
$
Land -
fre
ehold
6,9
11,5
26
00
00
00
06,9
11,5
26
275,0
00
00
00
00
0275,0
00
Tota
l lan
d7,
186,
526
00
00
00
07,
186,
526
Build
ings -
non-s
pecia
lised
1,4
55,1
89
00
00
0(6
4,8
11)
01,3
90,3
78
Build
ings -
specia
lised
20,8
16,0
92
729,9
62
00
00
(805,3
14)
020,7
40,7
40
Tota
l bui
ldin
gs22
,271
,281
729,
962
00
00
(870
,125
)0
22,1
31,1
1 8
Tota
l lan
d an
d bu
ildin
gs29
,457
,807
729,
962
00
00
(870
,125
)0
29,3
17,6
44
Furn
iture
and e
quip
ment
153,8
89
96,2
38
0145,0
79
00
(30,8
36)
0364,3
70
Pla
nt
and e
quip
ment
2,0
95,3
70
13,3
10
(45,4
11)
303,0
71
00
(313,6
91)
02,0
52,6
49
Tota
l pro
pert
y, p
lant
and
equ
ipm
ent
31,7
07,0
6683
9,51
0(4
5,41
1)44
8,15
00
0(1
,214
,652
)0
31,7
34,6
63
Land -
veste
d in a
nd u
nder
the c
ontr
ol
of
Council
Page 3
0
6.PR
OPE
RTY
, PLA
NT
AN
D E
QU
IPM
ENT
(Con
tinue
d)
(c)F
air V
alue
Mea
sure
men
ts
Fair
Valu
e H
iera
rchy
Valu
atio
n Te
chni
que
Bas
is o
f val
uatio
nD
ate
of la
st
Valu
atio
nIn
puts
use
d
Land
and
bui
ldin
gs
2
Mark
et
appro
ach u
sin
g r
ecent
observ
able
mark
et
data
for
sim
ilar
pro
pert
ies /
incom
e a
ppro
ach u
sin
g
dis
counte
d c
ashflow
meth
odolo
gy
Independent
Valu
ers
June 2
014
Price p
er
hecta
re /
mark
et
borr
ow
ing r
ate
3Im
pro
vem
ents
to land v
alu
ed u
sin
g c
ost
appro
ach
usin
g d
epre
cia
ted r
epla
cem
ent
cost
Managem
ent
Valu
ation
June 2
014
Impro
vem
ents
to land u
sin
g c
onstr
uction c
osts
and c
urr
ent
conditio
n (
Level 2),
resid
ual valu
es
and r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level
3)
inputs
3Im
pro
vem
ents
to land v
alu
ed u
sin
g c
ost
appro
ach
usin
g d
epre
cia
ted r
epla
cem
ent
cost
Independent
Valu
ers
June 2
014
Impro
vem
ents
to land u
sin
g c
onstr
uction c
osts
and c
urr
ent
conditio
n (
Level 2),
resid
ual valu
es
and r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level
3)
inputs
2
Mark
et
appro
ach u
sin
g r
ecent
observ
able
mark
et
data
for
sim
ilar
pro
pert
ies /
incom
e a
ppro
ach u
sin
g
dis
counte
d c
ashflow
meth
odolo
gy
Independent
Valu
ers
June 2
014
Impro
vem
ents
to land u
sin
g c
onstr
uction c
osts
and c
urr
ent
conditio
n (
Level 2),
resid
ual valu
es
and r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level
3)
inputs
2 &
3C
ost
appro
ach u
sin
g d
epre
cia
ted r
epla
cem
ent
cost
Independent
Valu
ers
& M
anagem
ent
Valu
ation
June 2
016
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level
2),
resid
ual valu
es a
nd r
em
ain
ing u
sefu
l lif
e
assessm
ents
(Level 3)
inputs
2 &
3M
ark
et
appro
ach u
sin
g r
ecent
observ
able
mark
et
data
for
sim
ilar
pro
pert
ies
Independent
Valu
ers
& M
anagem
ent
Valu
ation
June 2
016
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level
2),
resid
ual valu
es a
nd r
em
ain
ing u
sefu
l lif
e
assessm
ents
(Level 3)
inputs
Level 3 inputs
are
based o
n a
ssum
ptions w
ith r
egard
s t
o f
utu
re v
alu
es a
nd p
attern
s o
f consum
ption u
tilis
ing c
urr
ent
info
rmation
. If
th
e b
asis
of
these a
ssum
ptions w
ere
varied ,
they h
ave t
he p
ote
ntial to
result in a
sig
nific
antly h
igher
or
low
er
fair v
alu
e m
easure
ment.
During t
he p
eriod t
here
were
no c
hanges in t
he v
alu
ation t
echniq
ues u
sed b
y t
he local govern
ment
to d
ete
rmin
e t
he f
air v
alu
e o
f p
rop
ert
y,
pla
nt
and e
quip
ment
usin
g e
ither
level 2 o
r le
vel 3 inputs
.
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
Ass
et C
lass
Furn
iture
and
equ
ipm
ent
Plan
t and
equ
ipm
ent
Land -
fre
ehold
Land -
veste
d in a
nd u
nder
the c
ontr
ol
of
Council
Build
ings -
non-s
pecia
lised
Build
ings -
specia
lised
Page 3
1
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
2016 2015$ $
7 (a). INFRASTRUCTURE
Infrastructure - roads
- Management valuation 2015 - level 3 315,173,553 315,173,553
- Additions after valuation - cost 1,507,305 0
Less accumulated depreciation (4,883,095) 0
311,797,763 315,173,553
Infrastructure - footpaths
- Management valuation 2015 - level 3 2,091,449 2,091,449
- Additions after valuation - cost 3,081 0
Less accumulated depreciation (34,131) 0
2,060,399 2,091,449
Infrastructure - drainage
- Management valuation 2015 - level 3 6,779,666 6,779,666
Less accumulated depreciation (87,808) 0
6,691,858 6,779,666
Infrastructure - parks and ovals
- Management valuation 2015 - level 3 14,661,054 14,661,054
- Additions after valuation - cost 2,121,629 0
Less accumulated depreciation (278,041) 0
16,504,642 14,661,054
Infrastructure - other
- Management valuation 2015 - level 3 10,542,000 10,542,000
- Additions after valuation - cost 300 0
Less accumulated depreciation (195,126) 0
10,347,174 10,542,000
Infrastructure - Bridges
- Management valuation 2015 - level 3 7,980,000 7,980,000
Less accumulated depreciation (159,600) 0
7,820,400 7,980,000
Infrastructure - Levee System
- Management valuation 2015 - level 3 8,950,000 8,950,000
- Additions after valuation - cost 1,280 0
Less accumulated depreciation (44,750) 0
8,906,530 8,950,000
Infrastructure - Airport
- Management valuation 2015 - level 3 9,048,902 9,048,902
- Additions after valuation - cost 22,344 0
Less accumulated depreciation (174,774) 0
8,896,472 9,048,902
Infrastructure - Car Parks
- Management valuation 2015 - level 3 231,036 458,026
Less accumulated depreciation (21,950) 0
209,086 458,026
373,234,324 375,684,650
Page 32
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
7 (a). INFRASTRUCTURE (Continued)
The fair value of infrastructure is determined at least every three years in accordance with the
regulatory framework. Additions since the date of valuation are shown as cost. Given they were
acquired at arms length and any accumulated depreciation reflects the usage of service potential,
it is considered the recorded written down value approximates fair value. At the end of each
intervening period the valuation is reviewed and, where appropriate, the fair value is updated to
reflect current market conditions. This process is considered to be in accordance with Local
Government (Financial Management)Regulation 17A (2) which requires infrastructure to be
shown at fair value.
Page 33
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
7.IN
FRA
STR
UC
TUR
E (C
ontin
ued)
(b)
Mov
emen
ts in
Car
ryin
g A
mou
nts
Movem
ent
in t
he c
arr
yin
g a
mounts
of
each c
lass o
f in
frastr
uctu
re b
etw
een t
he b
egin
nin
g a
nd t
he e
nd
of
the c
urr
ent
financia
l year.
Rev
alua
tion
Rev
alua
tion
Bal
ance
Incr
emen
ts/
(Los
s)/
Car
ryin
gas
at t
he(D
ecre
men
ts)
Rev
ersa
lIm
pairm
ent
Am
ount
Beg
inni
ngTr
ansf
erre
dTr
ansf
erre
d(L
osse
s)/
Dep
reci
atio
nat
the
End
of th
e Ye
a rA
dditi
ons
(Dis
posa
ls)
toto
R
ever
sals
(Exp
ense
)Tr
ansf
ers
of th
e Ye
arR
eval
uatio
nPr
ofit
or L
oss
$$
$$
$$
$$
$
Infr
astr
uctu
re -
roads
315,1
73,5
53
1,5
07,3
05
00
00
(4,8
83,0
95)
0311,7
97,7
63
Infr
astr
uctu
re -
fo
otp
ath
s2
,09
1,4
49
3,0
81
00
00
(34
,13
1)
02
,06
0,3
99
Infr
astr
uctu
re -
dra
inage
6,7
79,6
66
00
00
0(8
7,8
08)
06,6
91,8
58
Infr
astr
uctu
re -
park
s a
nd o
vals
14,6
61,0
54
2,1
21,6
29
00
00
(278,0
41)
016,5
04,6
42
Infr
astr
uctu
re -
oth
er
10,5
42,0
00
300
00
00
(195,1
26)
010,3
47,1
74
Infr
astr
uctu
re -
Bridges
7,9
80,0
00
00
00
0(1
59,6
00)
07,8
20,4
00
Infr
astr
uctu
re -
Levee S
yste
m8,9
50,0
00
1,2
80
00
00
(44,7
50)
08,9
06,5
30
Infr
astr
uctu
re -
Airport
9,0
48,9
02
22,3
44
00
00
(174,7
74)
08,8
96,4
72
Infr
astr
uctu
re -
Car
Park
s458,0
26
0(2
26,9
90)
00
0(2
1,9
50)
0209,0
86
Tota
l inf
rast
ruct
ure
375,
684,
650
3,65
5,93
9(2
26,9
90)
00
0(5
,879
,275
)0
373,
234,
324
Page 3
4
7.IN
FRA
STR
UC
TUR
E (C
ontin
ued)
(c)
Fair
Valu
e M
easu
rem
ents
AssetC
lass
FairVa
lue
Hierarchy
ValuationTechniqu
eBa
siso
fvalua
tion
Date
oflast
Valuation
Inpu
tsused
Infrastructure
road
s3
Cost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Infrastructure
footpa
ths
3C
ost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Infrastructure
draina
ge3
Cost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Infrastructure
parks
andovals
3C
ost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Infrastructure
othe
r3
Cost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Infrastructure
Bridges
3C
ost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Infrastructure
Levee
System
3C
ost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Infrastructure
Airport
3C
ost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Infrastructure
Car
Parks
3C
ost
appro
ach u
sin
g d
epre
cia
ted
repla
cem
ent
cost
Managem
ent
Valu
ation
June 2
015
Constr
uction c
osts
and c
urr
ent
conditio
n (
Level 2)
resid
ual
valu
es a
nd r
em
ain
ing u
sefu
l lif
e a
ssessm
ents
(Level 3)
inputs
Level 3 inputs
are
based o
n a
ssum
ptions w
ith r
egard
s t
o f
utu
re v
alu
es a
nd p
attern
s o
f consum
ption u
tilis
ing c
urr
ent
info
rmation
. If t
he b
asis
of
these a
ssum
ptions w
ere
varied ,
they h
ave t
he p
ote
ntial to
result in a
sig
nific
antly h
igher
or
low
er
fair v
alu
e m
easure
ment.
During t
he p
eriod t
here
were
no c
hanges in t
he v
alu
ation t
echniq
ues u
sed t
o d
ete
rmin
e t
he f
air v
alu
e o
f in
frastr
uctu
re u
sin
g le
vel 3 inputs
.
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
Page 3
5
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
2016 2015$ $
8. TRADE AND OTHER PAYABLES
CurrentSundry creditors 563,039 1,421,537
Accrued interest on debentures 4,986 3,052
Accrued salaries and wages 24,178 193,780
ATO liabilities 0 104,741
Prepaid Income 600,000 1,400,000
1,192,203 3,123,110
9. LONG-TERM BORROWINGS
CurrentSecured by floating charge
Debentures 356,605 475,433
356,605 475,433
Non-currentSecured by floating charge
Debentures 293,185 649,790
293,185 649,790
Additional detail on borrowings is provided in Note 21.
10. PROVISIONS
Provision for Provision forAnnual Long ServiceLeave Leave Total
$ $ $Opening balance at 1 July 2015Current provisions 548,939 198,867 747,806
Non-current provisions 0 87,412 87,412
548,939 286,279 835,218
Additional provision (202,898) (4,545) (207,443)
Balance at 30 June 2016 346,041 281,734 627,775
ComprisesCurrent 346,041 185,972 532,013
Non-current 0 95,762 95,762
346,041 281,734 627,775
Page 36
11R
ESER
VES
- CA
SH B
AC
KED
Act
ual
Act
ual
Act
ual
Act
ual
Bud
get
Bud
get
Bud
get
Bud
get
Act
ual
Act
ual
Act
ual
Act
ual
2016
2016
2016
2016
2016
2016
2016
2016
2015
2015
2015
2015
Ope
ning
Bal
ance
Tran
sfer
toTr
ansf
er
(from
)C
losi
ngB
alan
ceO
peni
ngB
alan
ceTr
ansf
er to
Tran
sfer
(fr
om)
Clo
sing
Bal
ance
Ope
ning
Bal
ance
Tran
sfer
toTr
ansf
er
(from
)C
losi
ngB
alan
ce$
$$
$$
$$
$$
$$
$Leave r
eserv
e131,4
17
4,7
70
(8,2
42)
127,9
45
131,4
17
5,1
80
0136,5
97
126,3
94
5,0
23
0131,4
17
Pla
nt
Reserv
e125,6
19
7,9
63
0133,5
82
125,6
19
104,9
51
0230,5
70
120,8
18
4,8
01
0125,6
19
Waste
Dis
posal R
eserv
e37,5
13
149,2
78
0186,7
91
37,5
14
153,7
20
(90,0
00)
101,2
34
36,0
80
1,4
33
037,5
13
Pro
pert
y I
nfr
astr
uctu
re R
eserv
e1,6
92
61
01,7
53
1,6
93
67
01,7
60
1,6
28
64
01,6
92
Sta
ff H
ousin
g R
eserv
e694,1
89
30,1
18
0724,3
07
694,1
88
171,9
82
0866,1
70
662,9
58
31,2
31
0694,1
89
Civ
ic C
entr
e R
eserv
e102,4
99
201,0
97
0303,5
96
102,4
99
201,9
40
(275,0
00)
29,4
39
100,7
17
1,7
82
0102,4
99
I.T
. R
epla
cem
ent
Reserv
e51,4
16
2,2
06
053,6
22
51,4
16
12,0
08
063,4
24
64,4
81
1,9
18
(14,9
83)
51,4
16
Airport
Reserv
e30,0
74
796,4
28
0826,5
02
30,0
73
1,2
31,8
74
(780,0
00)
481,9
47
28,2
23
1,8
51
030,0
74
Cora
l B
ay T
ip R
eserv
e21,6
17
104
021,7
21
21,6
16
852
(20,0
00)
2,4
68
20,7
90
827
021,6
17
Surg
e/F
ascin
e W
all
Reserv
e6,1
95
1,2
46
07,4
41
6,1
95
30,2
44
036,4
39
5,9
58
237
06,1
95
Tow
n p
lannin
g S
chem
e R
eserv
e22,9
57
425
023,3
82
22,9
57
10,9
05
(22,0
00)
11,8
62
22,0
80
877
22,9
57
Fascin
e D
redgin
g R
eserv
e1,3
20
123,4
30
0124,7
50
1,3
20
70,0
52
071,3
72
1,2
70
50
01,3
20
Flo
od M
itig
ation R
eserv
e10,4
05
1,3
99
011,8
04
10,4
06
30,4
10
040,8
16
10,0
08
397
010,4
05
OC
T/N
AS
A R
eserv
e7,8
28
965
08,7
93
7,8
29
20,3
09
028,1
38
7,5
30
298
07,8
28
Blo
whole
s R
eserv
e21,2
82
1,4
53
022,7
35
21,2
82
20,8
39
042,1
21
20,4
69
813
021,2
82
Unspent
Gra
nts
and C
ontr
ibutions R
eserv
e7,0
62,0
57
2,5
58,5
33
(4,9
80,9
57)
4,6
39,6
33
7,0
62,0
57
107,4
00
(7,0
62,0
57)
107,4
00
10,4
72,5
64
2,9
89
,406
(6,3
99,9
13)
7,0
62,0
57
Land a
nd I
nfr
astr
uctu
re D
evelo
pm
ent
Reserv
e956,3
35
35,0
55
(247,1
44)
744,2
46
956,3
36
247,7
82
(200,0
00)
1,0
04,1
18
772,0
10
635,8
76
(451,5
51)
956,3
35
Asset
Repla
cem
ent
Reserv
e26,0
49
2,6
47
028,6
96
26,0
49
51,0
27
077,0
76
25,0
53
996
026,0
49
Em
erg
ency R
esponse R
eserv
e0
51,7
01
051,7
01
050,0
00
050,0
00
00
00
Mosquito M
anagem
ent
Reserv
e0
912
0912
0882
0882
00
00
9,3
10,4
64
3,9
69,7
91
(5,2
36,3
43)
8,0
43,9
12
9,3
10,4
66
2,5
22,4
24
(8,4
49,0
57)
3,3
83,8
33
12,4
99,0
31
3,6
77,8
80
(6,8
66,4
47)
9,3
10,4
64
All
of
the r
eserv
e a
ccounts
are
support
ed b
y m
oney h
eld
in f
inancia
l in
stitu
tions a
nd m
atc
h t
he
am
ount
show
n a
s r
estr
icte
d c
ash in N
ote
3 t
o t
his
fin
ancia
l re
port
.
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
Page 3
7
11R
ESER
VES
- CA
SH B
AC
KED
(CO
NTI
NU
ED)
In a
ccord
ance w
ith c
ouncil
resolu
tions in r
ela
tion t
o e
ach r
eserv
e a
ccount, t
he p
urp
ose f
or
whic
h t
he r
eserv
es a
re s
et
asid
e a
nd t
heir a
nticip
ate
d d
ate
of
use a
re a
s f
ollo
ws:
Nam
e of
Res
eve
Ant
icip
ated
date
of u
sePu
rpos
e of
the
rese
rve
Leave r
eserv
eO
ngoin
gT
o b
e u
sed t
o f
und a
nnual and long s
erv
ice leave r
equirem
ents
.
Pla
nt
Reserv
eO
ngoin
gT
o b
e u
sed t
o im
ple
ment
the S
hire's
Pla
nt
Repla
cem
ent
Pro
gra
m.
Waste
Dis
posal R
eserv
eO
ngoin
g
Pro
pe
rty I
nfr
astr
uctu
re R
ese
rve
On
go
ing
Sta
ff H
ousin
g R
eserv
eO
ngoin
g
Civ
ic C
entr
e R
eserv
eO
ngoin
g
I.T
. R
epla
cem
ent
Reserv
eO
ngoin
g
Airport
Reserv
eO
ngoin
g
Cora
l B
ay T
ip R
eserv
eO
ngoin
g
Surg
e/F
ascin
e W
all
Reserv
eO
ngoin
g
Tow
n p
lannin
g S
chem
e R
eserv
eO
ngoin
g
Fascin
e D
redgin
g R
eserv
eO
ngoin
g
Flo
od M
itig
ation R
eserv
eO
ngoin
g
OC
T/N
AS
A R
ese
rve
On
go
ing
Blo
whole
s R
eserv
eO
ngoin
g
Unspent
Gra
nts
and C
ontr
ibutions R
eserv
eO
ngoin
g
Land a
nd I
nfr
astr
uctu
re D
evelo
pm
ent
Reserv
eO
ngoin
g
Asset
Repla
cem
ent
Reserv
eO
ngoin
g
Pla
n.
Em
erg
ency R
esponse R
eserv
eO
ngoin
g
Mosquito M
anagem
ent
Reserv
eO
ngoin
g
De
pa
rtm
en
t o
f H
ea
lth
.
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
To b
e u
sed t
o c
ontr
ibute
to f
undin
g t
he f
ascin
e d
redgin
g p
rogra
m.
To b
e u
sed f
or
the d
evelo
pm
ent
& c
onserv
ation o
f th
e O
TC
site.
To b
e u
sed f
or
the p
urp
ose o
f deliv
ering s
erv
ices t
o a
ssis
t in
mosquito m
anagem
ent
within
the S
hire o
f C
arn
arv
on,
whic
h inclu
de
s f
undin
g f
rom
the
To b
e u
sed t
o a
ssis
t w
ith t
he r
em
oval of
shack d
ebris a
nd p
ost
dem
olit
ion r
ehabili
tation o
f shack a
rea.
To b
e u
sed t
o isola
te g
rants
and c
ontr
ibutions f
or
specific
purp
oses t
o b
e s
pent
at
a late
r date
or
in s
ubsequent
years
.
To b
e u
sed f
or
the p
urc
hase o
f la
nd a
nd d
evelo
pm
ent
of
infr
astr
uctu
re w
ithin
the S
hire o
f C
arn
arv
on.
To b
e u
sed f
or
the r
epla
cem
ent
and im
pro
vem
ent
of
specifie
d a
ssets
within
the S
hire o
f C
arn
arv
on in a
ccord
ance w
ith t
he S
hire's
Asset
Managem
ent
To b
e u
sed in t
he p
repara
tion f
or
and p
rovid
ing im
media
te a
ssis
tance,
relie
f and r
ecovery
to t
he c
om
munity in r
esponse t
o a
n E
merg
ency w
ithin
the
Shire o
f C
arn
arv
on.
To b
e u
sed f
or
main
tenance o
r capital expenditure
at
Bro
wns R
ange R
efu
se S
ite.
To b
e u
sed t
o c
ontr
ibute
to r
epla
cem
ent
of
majo
r upgra
des o
n S
hire o
f C
arn
arv
on a
blu
tions
To b
e u
sed f
or
main
tenance a
nd c
apital costs
associa
ted w
ith C
ora
l B
ay R
efu
se S
ite.
To b
e u
sed f
or
majo
r m
ain
tenance a
nd c
apital purc
hases w
ith r
espect
to s
taff h
ousin
g.
To b
e u
sed f
or
majo
r build
ing a
nd e
quip
ment
upgra
des t
o C
arn
arv
on C
ivic
Centr
e.
To b
e u
sed t
o f
und t
he S
hire o
f C
arn
arv
on I
nfo
rmation T
echnolo
gy S
trate
gy.
To b
e u
sed t
o c
ontr
ibute
to c
apital costs
in r
ela
tion t
o t
he C
arn
arv
on A
irport
.
To b
e u
sed f
or
capital upgra
de c
osts
associa
ted w
ith t
he F
ascin
e W
all.
To b
e u
sed t
o f
inance C
ouncil'
s o
blig
ations w
ith r
espect
to t
he F
lood M
itig
ation S
tate
gy.
To b
e u
sed t
o c
ontr
ibute
to f
undin
g t
ow
n p
lannin
g s
chem
e r
evie
ws,
new
schem
e &
rele
vant
tow
n p
lannin
g p
urp
oses.
Page 3
8
12.R
EVA
LUA
TIO
N S
UR
PLU
S20
1620
1520
1620
1620
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tal
2016
2015
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2015
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l20
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peni
ngR
eval
uatio
nR
eval
uatio
nM
ovem
ent o
nC
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uatio
nR
eval
uatio
nM
ovem
ent o
nC
losi
ngB
alan
ceIn
crem
ent
Dec
rem
ent
Rev
alua
tion
Bal
ance
Bal
ance
Incr
emen
tD
ecre
men
tR
eval
uatio
nB
alan
ce$
$$
$$
$$
$$
$Land a
nd b
uild
ings
13,9
00,7
41
00
013,9
00,7
41
13,9
00,7
41
00
013,9
00,7
41
Furn
iture
and e
quip
ment
0145,0
79
0145,0
79
145,0
79
00
00
0
Pla
nt
and e
quip
ment
783,7
53
303,0
71
0303,0
71
1,0
86,8
24
783,7
53
00
0783,7
53
Infr
astr
uctu
re -
roads
291,1
25,8
62
00
0291,1
25,8
62
16,7
05,4
44
274,4
20,4
18
0274,4
20,4
18
291,1
25,8
62
Infr
astr
uctu
re -
footp
ath
s639,0
00
00
0639,0
00
0639,0
00
0639,0
00
639,0
00
Infr
astr
uctu
re -
dra
inage
5,4
54,6
98
00
05,4
54,6
98
05,4
54,6
98
05,4
54,6
98
5,4
54,6
98
Infr
astr
uctu
re -
oth
er
2,4
67,1
86
00
02,4
67,1
86
02,4
67,1
86
02,4
67,1
86
2,4
67,1
86
Infr
astr
uctu
re -
Bridges
1,8
87,8
25
00
01,8
87,8
25
01,8
87,8
25
01,8
87,8
25
1,8
87,8
25
Infr
astr
uctu
re -
Levee S
yste
m3,5
63,6
44
00
03,5
63,6
44
03,5
63,6
44
03,5
63,6
44
3,5
63,6
44
Infr
astr
uctu
re -
Airport
6,9
07,9
48
00
06,9
07,9
48
06,9
07,9
48
06,9
07,9
48
6,9
07,9
48
326,7
30,6
57
448,1
50
0448,1
50
327,1
78,8
07
31,3
89,9
38
295,3
40,7
19
0295,3
40,7
19
326,7
30,6
57
as p
rovid
ed f
or
by A
AS
B 1
16 A
us 4
0.1
.
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
Movem
ents
on r
evalu
ation o
f fixed a
ssets
are
not
able
to b
e r
elia
bly
attribute
d t
o a
pro
gra
m a
s t
he a
ssets
were
revalu
ed b
y c
lass
Page 3
9
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
13. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of Cash
For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents,
net of outstanding bank overdrafts. Cash at the end of the reporting period is reconciled to the
related items in the Statement of Financial Position as follows:
20162016 Budget 2015
$ $ $
Cash and cash equivalents 8,618,298 3,818,465 14,947,141
(b) Reconciliation of Net Cash Provided ByOperating Activities to Net Result
Net result (6,635,114) (7,071,067) (6,544,246)
Non-cash flows in Net result:
Depreciation 7,093,927 6,341,023 6,355,354
(Profit)/Loss on sale of asset (507,599) (546,999) (490,785)
Loss on revaluation of fixed assets 0 0 7,422,287
Changes in assets and liabilities:
(Increase)/Decrease in receivables (5,632) 0 127,942
(Increase)/Decrease in inventories 54,807 0 (15,076)
Increase/(Decrease) in payables (1,930,907) 0 (2,808,055)
Increase/(Decrease) in provisions (207,443) 0 (78,369)
Grants contributions for
the development of assets (2,346,048) (3,139,048) (4,730,148)
Net cash from operating activities (4,484,009) (4,416,091) (761,096)
2016 2015(c) Undrawn Borrowing Facilities $ $
Credit Standby ArrangementsBank overdraft limit 200,000 200,000
Bank overdraft at balance date 0 0
Credit card limit 40,000 40,000
Credit card balance at balance date (2,808) (2,816)
Total amount of credit unused 237,192 237,184
Loan facilitiesLoan facilities - current 356,605 475,433
Loan facilities - non-current 293,185 649,790
Total facilities in use at balance date 649,790 1,125,223
Unused loan facilities at balance date NIL NIL
14. CONTINGENT LIABILITIES
The Shire is not aware of any contingent liabilities as at 30th June 2016.
Page 40
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
2016 201515. CAPITAL AND LEASING COMMITMENTS $ $
(a) Operating Lease Commitments
Non-cancellable operating leases contracted for but not capitalised in the accounts.
Payable:
- not later than one year 220,984 211,280
- later than one year but not later than five years 299,460 495,473
- later than five years 0 0
520,444 706,753
(b) Capital Expenditure Commitments
16. JOINT VENTURE ARRANGEMENTS
17. TOTAL ASSETS CLASSIFIED BY FUNCTION AND ACTIVITY2016 2015
$ $
Governance 3,788,774 3,647,266
Law, order, public safety 444,873 472,827
Health 127,366 133,636
Education and welfare 1,744,498 1,812,899
Housing 854,250 887,125
Community amenities 11,593,690 11,693,489
Recreation and culture 41,457,782 39,106,263
Transport 337,437,026 343,387,445
Economic services 5,900 0
Other property and services 2,493,989 2,635,620
Unallocated 14,929,584 19,901,909
414,877,732 423,678,479
The Shire is not involved in any joint venture arrangements.
The Shire did not have any future capital expenditure commitments at the reporting date.
Page 41
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
2016 2015 201418. FINANCIAL RATIOS
Current ratio 0.92 1.64 0.48
Asset sustainability ratio 0.58 0.54 1.14
Debt service cover ratio (3.51) (8.83) (72.31)
Operating surplus ratio (0.97) (1.14) (3.53)
Own source revenue coverage ratio 0.41 0.42 0.17
The above ratios are calculated as follows:
Current ratio current assets minus restricted assets
current liabilities minus liabilities associated
with restricted assets
Asset sustainability ratio
Depreciation expenses
Debt service cover ratio annual operating surplus before interest and depreciation
principal and interest
Operating surplus ratio operating revenue minus operating expenses
own source operating revenue
Own source revenue coverage ratio own source operating revenue
operating expenses
Notes:
(a) Information relating to the asset consumption ratio and the asset renewal funding ratiocan be found at Supplementary Ratio Information on Page 59 of this document.
(b) For 2016,
(i) The Debt Service Cover and Operating Surplus ratios as disclosed above were distorted by the
early receipt of half of the allocation of the 2015-16 Financial Assistance Grant on 30 June 2015.
The early payment of the grant decreased operating revenue in 2016 by $2,469,631.
(ii) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as disclosed
were all distorted by an item of significant expenditure totalling $2,451,238 relating to flood mitigation work
of which the corresponding revenue was above recognised in 2012.
(c) For 2015,
(i) The Current, Debt Service Cover and the Operating Surplus ratios as disclosed above were distorted
by an item of significant revenue relating to the early payment of 2015/16 Financial Assistance Grants
(FAGs) of $2,469,631 which was received prior to year end.
(ii) The Debt Service Cover, Operating Surplus and Own Service Revenue Coverage ratios as disclosed
above were all distorted by an item of significant expenditure totalling $2,254,707 (Net of revenue)
relating to flood mitigation work of which the corresponding revenue was recognised in 2012.
(iii) The Debt Service Cover and Operating Surplus ratios as disclosed above were distorted by an
item of significant expenditure totalling $7,422,287 relating to the loss on revaluation of infrastructure
assets.
(iv) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as disclosed
above were all distorted by an item of significant revenue totalling $1,206,489 relating to financial
support and insurance reimbursements for cyclone damage.
capital renewal and replacement expenditure
Page 42
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
18. FINANCIAL RATIOS (Continued)
(d) For 2014,
(i) The Current, Debt Service Cover and Operating Surplus ratios as disclosed above were distorted by the change
to the payment of FAGs during the year ended 30 June 2014 which saw the advance payment of the first
quarter of the following year cease. This created a timing difference which resulted in an amount of some
$2,475,700 less revenue for the year.
(ii) The Debt Service Cover, Operating Surplus and Own Source Revenue Coverage ratios as disclosed
above were all distorted by an item of significant expenditure totalling $24,241,244 (Net of revenue) relating to
flood mitigation work of which the corresponding revenue was recognised in 2012.
Items (b) to (d) mentioned above are considered "one-off" timing/non cash in nature and, if they are ignored,
the calulations disclosed in the columns above would be as follows:
2,016 2,015 2,014Current ratio 0.92 1.06 0.83
Debt service cover ratio 5.88 2.08 5.76
Operating surplus ratio (0.44) (0.61) (0.43)
Own source revenue coverage ratio 0.46 0.43 0.47
Page 43
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
19. TRUST FUNDS
Funds held at balance date over which the Shire has no control and which are not included in
the financial statements are as follows:
1 July 2015
Amounts Received
Amounts Paid
30 June 2016
$ $ ($) $
Civic Centre Hire 6,129 29,080 (28,850) 6,359
Footpath Deposits 20,299 0 (200) 20,099
Private Works Deposits 1,000 1,000 0 2,000
Shire Facility Deposits 5,550 2,880 (2,430) 6,000
Public Open Space 110,374 0 0 110,374
Other Sundry Trust 8,822 154 (1,000) 7,976
Suspense 5,220 34,446 (916) 38,750
Unclaimed Monies 5,462 0 (1,320) 4,142
Civic Centre Airconditioning 51 0 0 51
Perth Glory 12,500 0 0 12,500
Footpath Cash in Lieu 7,200 0 0 7,200
Building in Training Fund 0 50,525 (50,525) 0
Nomination Deposit 0 1,040 (1,040) 0
182,607 215,451
20. DISPOSALS OF ASSETS - 2015/16 FINANCIAL YEAR
The following assets were disposed of during the year.
Actual Actual Budget BudgetNet Book Sale Actual Actual Net Book Sale Budget Budget
Value Proceeds Profit Loss Value Proceeds Profit Loss$ $ $ $ $ $ $ $
Plant and EquipmentLaw, order, public safety
1CQE196 P172 Toyota Landcruiser 45,411 0 0 (45,411) 0 0 0 0
Infrastruture - Car ParksOther property and services
Lot 1004 Olivia Terrace 226,990 780,000 553,010 0 233,001 780,000 546,999 0
272,401 780,000 553,010 (45,411) 233,001 780,000 546,999 0
Page 44
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
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G P
AR
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NA
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OR
TFO
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HE
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R E
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ED 3
0TH
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NE
2016
21.I
NFO
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ATI
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RR
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(a)
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- D
ebentu
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inci
pal
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lIn
tere
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ewR
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ts30
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e 20
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epay
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get
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ars
$$
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Hou
sing
Loan 2
13 S
taff H
ousin
g64,6
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09,7
07
9,7
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54,9
56
54,9
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4,0
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93
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reat
ion
and
cultu
reLoan 2
11 L
ibra
ry190,7
32
072,3
70
84,1
25
118,3
62
106,6
07
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22
11,3
26
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15 I
nfr
astr
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evelo
pm
ent
467,5
79
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127,4
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01
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spor
tLoan 2
14 P
lant
402,2
49
0265,9
39
265,9
39
136,3
10
136,3
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16
12,8
67
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16 A
irport
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ective W
ork
s0
00
23,4
94
0526,5
06
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88
1,1
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23
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33
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82
649,7
90
1,1
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41
48,6
19
54,0
75
All
loan r
epaym
ents
were
fin
anced b
y g
enera
l purp
ose r
evenue.
(b)
New
Debentu
res -
2015/1
6
(c)
Unspent
Debentu
res
(d)
Ove
rdra
ft
The b
ala
nce o
f th
e b
ank o
verd
raft a
t 1 J
uly
2015 a
nd 3
0 J
une 2
016 w
as n
il.
1 Ju
ly
2015
Council
esta
blis
hed a
n o
verd
raft f
acili
ty o
f $200,0
00 in 1
997
to a
ssis
t w
ith s
hort
term
liq
uid
ity r
equirem
ents
.
The S
hire d
id n
ot
take u
p a
ny n
ew
debentu
res d
uring t
he y
ear
ended 3
0 J
une 2
016.
The S
hire d
id n
ot
have a
ny u
nspent
debentu
res a
s a
t 30 J
une 2
016.
Page 4
5
SHIR
E O
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AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
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G P
AR
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OR
TFO
R T
HE
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R E
ND
ED 3
0TH
JU
NE
2016
22.R
ATI
NG
INFO
RM
ATI
ON
- 20
15/1
6 FI
NA
NC
IAL
YEA
R
Num
ber
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get
Bud
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get
Bud
get
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e in
ofR
atea
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kTo
tal
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eIn
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Bac
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$Pr
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ties
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even
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ates
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ate
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ATE
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$$
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$$
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Diff
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tial g
ener
al ra
te /
gene
ral r
ate
Gro
ss re
ntal
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ue v
alua
tions
GR
V V
alu
ed P
ropert
ies
7.6
900
1,8
76
45,5
58,9
65
3,5
03,4
84
25,7
98
7,9
79
3,5
37,2
61
3,5
02,5
39
15,0
00
4,8
86
3,5
22,4
25
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mpr
oved
val
ue v
alua
tions
UV
Min
ing
11.0
596
24
615,8
79
68,1
14
00
68,1
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68,1
14
00
68,1
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UV
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ral
6.0
326
32
2,8
34,8
90
171,0
18
00
171,0
18
171,1
99
00
171,1
99
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Pla
nta
tions
0.7
517
168
67,2
34,0
00
505,3
98
00
505,3
98
505,3
98
00
505,3
98
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l2,1
00
116,2
43,7
34
4,2
48,0
14
25,7
98
7,9
79
4,2
81,7
91
4,2
47,2
50
15,0
00
4,8
86
4,2
67,1
35
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imum
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imum
pay
men
t$
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ss re
ntal
val
ue v
alua
tion s
GR
V V
alu
ed P
ropert
ies
865
208
1,5
38,6
49
179,9
20
00
179,9
20
180,7
85
00
180,7
85
Uni
mpr
oved
val
ue v
alua
tions
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ing
240
23
16,9
67
5,5
20
00
5,5
20
5,5
20
00
5,5
20
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ral
368
47,8
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72
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1,4
72
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nta
tions
721
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00
1,4
42
00
1,4
42
1,4
42
00
1,4
42
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l237
1,5
73,4
16
188,3
54
00
188,3
54
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19
00
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19
2,33
711
7,81
7,15
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436,
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25,7
987,
979
4,47
0,14
54,
436,
469
15,0
004,
886
4,45
6,35
4D
iscounts
/concessio
ns (
refe
r note
26)
00
Tota
l am
ount
rais
ed fr
om g
ener
al ra
te4,
470,
145
4,45
6,35
4S
pecifie
d A
rea R
ate
(re
fer
note
24)
193,2
35
180,0
00
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ratia r
ate
s2,4
43
0
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ls4,6
65,8
23
4,6
36,3
54
Page 4
6
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
23. NET CURRENT ASSETS
2016 2016 2015(30 June 2016
Carried Brought CarriedForward) Forward) Forward)
$ $ $
Surplus/(Deficit) 1,208,581 5,196,939 5,196,939
CURRENT ASSETSCash and cash equivalents
Unrestricted 574,386 5,636,677 5,636,677
Restricted 8,043,912 9,310,464 9,310,464
Receivables
Rates outstanding 557,990 362,118 362,118
Sundry debtors 525,823 627,465 627,465
GST receivable 42,045 150,225 150,225
ESL receivable 33,842 31,465 31,465
Accrued income 23,576 14,186 14,186
Bond Staff Housing 2,066 2,050 2,050
Inventories
Fuel and materials 16,560 51,259 51,259
Civic Centre 3,178 8,120 8,120
Visitors Centre 21,318 36,484 36,484
LESS: CURRENT LIABILITIESTrade and other payables
Sundry creditors (563,039) (1,421,537) (1,421,537)
Accrued interest on debentures (4,986) (3,052) (3,052)
Accrued salaries and wages (24,178) (193,780) (193,780)
ATO liabilities 0 (104,741) (104,741)
Prepaid Income (600,000) (1,400,000) (1,400,000)
Current portion of long term borrowings
Secured by floating charge (356,605) (475,433) (475,433)
Provisions
Provision for annual leave (346,041) (548,939) (548,939)
Provision for long service leave (185,972) (198,867) (198,867)
Unadjusted net current assets 7,763,875 11,884,164 11,884,164AdjustmentsLess: Reserves - restricted cash (8,043,912) (9,310,464) (9,310,464)
Add: Secured by floating charge 356,605 475,433 475,433
Add: Provision for annual leave 346,041 548,939 548,939
Add: Provision for long service leave 185,972 198,867 198,867
Prepaid Income 600,000 1,400,000 1,400,000
Adjusted net current assets - surplus/(deficit) 1,208,581 5,196,939 5,196,939
Difference
in the 2016 audited financial report and the surplus/(deficit) carried forward position as disclosed
in the 2015 audited financial report.
Composition of net current assets
(30 June 2015
There was no difference between the surplus/(deficit) 1 July 2015 brought forward position used
(1 July 2015
Page 47
24.
Bas
isIn
terim
Bac
k To
tal
Bud
get
Bud
get
Bud
get
o fR
ate
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eabl
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ate
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ate
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ified
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ate
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k R
ate
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ate
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ified
Are
a R
ate
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atio
nin
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even
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even
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even
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ate
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enue
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enue
$$
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even
ue$
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al B
ay R
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e Si
teG
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6.5
000
2,7
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53
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35
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00
00
180,0
53
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00
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get
Bud
get
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get
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eR
ate
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erv e
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ate
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a/pr
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lied
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lied
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t Asi
de A
pplie
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rpos
e of
the
rate
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e Im
pose
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erve
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erve
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osts
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ified
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a R
ate
$$
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al B
ay R
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e Si
te
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00
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00
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00
25.S
ERVI
CE
CH
AR
GES
- 20
15/1
6 FI
NA
NC
IAL
YEA
R
The S
hire d
id n
ot
impose a
ny s
erv
ice c
harg
es.
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
SPEC
IFIE
D A
REA
RA
TE -
2015
/16
FIN
AN
CIA
L YE
AR
The s
pecifie
d a
rea r
ate
for
Cora
l B
ay
Refu
se S
ite is t
o c
ontr
ibute
to t
he
main
tenance a
nd f
utu
re d
elib
era
tions
of
the C
ora
l B
ay r
efu
se s
ite.
The r
ate
will
be a
pplie
d t
o a
ll ra
teable
pro
pert
ies w
ithin
Cora
l B
ay.
The
pro
ceeds o
f th
e r
ate
are
applie
d in
full
to t
he C
ora
l B
ay r
efu
se s
ite.
There
is n
o a
nticip
ate
d u
nspent
surp
lus T
he p
roceeds o
f th
e r
ate
are
applie
d in f
ull
to t
he C
ora
l B
ay r
efu
se
site f
rom
this
schem
e a
nd t
here
fore
no t
ransfe
r to
reserv
e f
und a
t year
end.
All
pro
pert
ies locate
d in
Cora
l B
ay
Page 4
8
26.D
ISC
OU
NTS
, IN
CEN
TIVE
S, C
ON
CES
SIO
NS,
& W
RIT
E-O
FFS
- 201
5/16
FIN
AN
CIA
L YE
AR
No d
iscounts
on r
ate
s is a
vaila
ble
and n
o w
aiv
ers
or
concessio
ns w
ere
giv
en a
s a
t 30 J
une 2
016.
27.I
NTE
RES
T C
HA
RG
ES A
ND
INST
ALM
ENTS
- 20
15/1
6 FI
NA
NC
IAL
YEA
R
Inst
alm
ent
Inst
alm
ent
Unp
aid
Rat
esD
ate
Plan
Plan
Inte
rest
Due
Adm
in C
harg
eIn
tere
st R
ate
Rat
eIn
stal
men
t Opt
ions
$%
%O
ptio
n O
neS
ingle
full
paym
ent
19-O
ct-
15
05.5
0%
11.0
0%
Opt
ion
Two
First
Insta
lment
19-O
ct-
15
05.5
0%
11.0
0%
Second I
nsta
lment
22-F
eb-1
64
5.5
0%
11.0
0%
Opt
ion
Thre
eF
irst
Insta
lment
19-O
ct-
15
05.5
0%
11.0
0%
Second I
nsta
lment
21-D
ec-1
54
5.5
0%
11.0
0%
Third I
nsta
lment
22-F
eb-1
64
5.5
0%
11.0
0%
Fourt
h I
nsta
lment
26-A
pr-
16
45.5
0%
11.0
0%
Bud
gete
dR
even
u eR
even
ue$
$In
tere
st
on u
npaid
rate
s56,7
74
40,0
00
Inte
rest
on insta
lment
pla
n18,7
24
14,0
00
Charg
es o
n insta
lment
pla
n4,8
96
4,0
00
80,3
94
58,0
00
FOR
TH
E YE
AR
EN
DED
30T
H J
UN
E 20
16N
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TSH
IRE
OF
CA
RN
AR
VON
Page 4
9
2016 201528. FEES & CHARGES $ $
Governance 21,348 35
General purpose funding 46,229 27,745
Law, order, public safety 31,399 26,582
Health 30,636 30,906
Education and welfare 0 2,269
Community amenities 1,650,263 1,405,144
Recreation and culture 215,495 155,916
Transport 838,452 784,542
Economic services 464,136 534,395
Other property and services 39,064 13,236
3,337,022 2,980,770
There were no changes during the year to the amount of the fees or charges detailed in the original
29. GRANT REVENUEGrants, subsidies and contributions are included as operating
revenues in the Statement of Comprehensive Income:
2016 2015By Nature or Type: $ $Operating grants, subsidies and contributionsGovernance 45,371 0
General purpose funding 2,321,150 7,337,685
Law, order, public safety 137,882 133,246
Health 49,971 1,284
Education and welfare 761,720 550,760
Community amenities 120,000 26,606
Recreation and culture 99,201 103,358
Transport 294,822 1,737,923
Economic services 189,268 19,232
4,019,385 9,910,094
Non-operating grants, subsidies and contributionsRecreation and culture 832,000 2,200,000
Transport 1,514,048 652,876
Other property and services 0 1,877,272
2,346,048 4,730,148
30. EMPLOYEE NUMBERS
The number of full-time equivalent
employees at balance date 79 80
201631. ELECTED MEMBERS REMUNERATION 2016 Budget 2015
$ $ $The following fees, expenses and allowances were
paid to council members and/or the president.
Meeting Fees 112,375 116,000 112,375
President’s allowance 34,400 34,400 34,400
Deputy President’s allowance 7,883 8,600 8,600
Travelling expenses 784 12,500 784
Telecommunications allowance 3,461 4,020 4,227
158,903 175,520 160,386
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
budget.
Page 50
32. MAJOR LAND TRANSACTIONS
The Shire did not participate in any major land transactions during the 2015/16 financial year.
33. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS
the Shire did not participate in any trading undertakings or major trading undertakings during the 2015/16
financial year.
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
Page 51
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
34. FINANCIAL RISK MANAGEMENT
foreign currency risk.
Carrying Value Fair Value2016 2015 2016 2015
$ $ $ $Financial assetsCash and cash equivalents 8,618,298 14,947,141 8,618,298 14,947,141
Receivables 1,249,391 1,243,759 1,249,391 1,243,759
9,867,689 16,190,900 9,867,689 16,190,900
Financial liabilitiesPayables 1,192,203 3,123,110 1,192,203 3,123,110
Borrowings 649,790 1,125,223 557,912 1,020,207
1,841,993 4,248,333 1,750,115 4,143,317
Fair value is determined as follows:
• Cash and cash equivalents, receivables, payables - estimated to the carrying value which
approximates net market value.
• Borrowings - estimated future cash flows discounted by the current
market interest rates applicable to assets and liabilities with similar risk profiles.
The Shire’s activities expose it to a variety of financial risks including price risk, credit risk, liquidity risk and
The Shire does not engage in transactions expressed in foreign currencies and is therefore not subject to
Financial risk management is carried out by the finance area under policies approved by the Council.
The Shire held the following financial instruments at balance date:
interest rate risk. The Shire’s overall risk management focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the Shire.
Page 52
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
34. FINANCIAL RISK MANAGEMENT (Continued)(a) Cash and Cash Equivalents
could affect returns.
2016 2015$ $
Impact of a 1% (1)
movement in interest rates on cash
- Equity 86,183 147,532
- Statement of Comprehensive Income 86,183 147,532
Notes:(1)
level of liquidity and preserving capital. The finance area manages the cash portfolio
with the assistance of independent advisers (where applicable). Council has an investment policy and
the policy is subject to review by Council. An Investment Report is provided to Council on a monthly
basis setting out the make-up and performance of the portfolio.
obligations under a financial instrument resulting in a financial loss to the Shire.
by Local Government (Financial Management) Regulation 19C . Council also seeks advice from
independent advisers (where considered necessary) before placing any cash and investments.
Sensitivity percentages based on management's expectation of future possible market movements.
Cash is subject to interest rate risk - the risk that movements in interest rates
Another risk associated with cash is credit risk – the risk that a contracting entity will not complete its
The Shire manages these risks by diversifying its portfolio and only investing ininvestments authorised
The Shire’s objective is to maximise its return on cash whilst maintaining an adequate
Page 53
SHIRE OF CARNARVONNOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30TH JUNE 2016
34. FINANCIAL RISK MANAGEMENT (Continued)(b) Receivables
most non-rate debtors.
2016 2015
Percentage of rates and annual charges
- Current 0% 0%
- Overdue 100% 100%
Percentage of other receivables
- Current 90% 88%
- Overdue 10% 12%
The level of outstanding receivables is reported to Council monthly and benchmarks are set and
risk associated with these receivables is credit risk – the risk that the debts may not be repaid. The
The profile of the Shire’s credit risk at balance date was:
The Shire makes suitable provision for doubtful receivables as required and carries out credit checks on
There are no material receivables that have been subject to a re-negotiation of repayment terms.
encourages ratepayers to pay rates by the due date through incentives.
a secured charge over the land – that is, the land can be sold to recover the debt. The Shire is also able
to charge interest on overdue rates and annual charges at higher than market rates, which further
encourages payment.
monitored for acceptable collection performance.
Credit risk on rates and annual charges is minimised by the ability of the Shire to recover these debts as
Shire manages this risk by monitoring outstanding debt and employing debt recovery policies. It also
The Shire’s major receivables comprise rates and annual charges and user charges and fees. The major
Page 54
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
34.F
INA
NC
IAL
RIS
K M
AN
AG
EMEN
T (C
ontin
ued)
(c)
Paya
bles
Bor
row
ings
Due
Due
Due
Tota
lw
ithin
betw
een
afte
rco
ntra
ctua
lC
arry
ing
1 ye
ar1
& 5
yea
rs5
year
sca
sh fl
ows
valu
es$
$$
$$
2016
Payable
s1,1
92,2
03
00
1,1
92,2
03
1,1
92,2
03
Borr
ow
ings
380,6
17
308,8
38
0689,4
55
649,7
90
1,5
72,8
20
308,8
38
01,8
81,6
58
1,8
41,9
93
2015
Payable
s3,1
23,1
10
00
3,1
23,1
10
3,1
23,1
10
Borr
ow
ings
519,4
35
679,3
67
10,0
88
1,2
08,8
90
1,1
25,2
23
3,6
42,5
45
679,3
67
10,0
88
4,3
32,0
00
4,2
48,3
33
Payable
s a
nd b
orr
ow
ings a
re b
oth
subje
ct
to liq
uid
ity r
isk –
that
is t
he r
isk t
hat
insuffic
ient
funds m
ay b
e o
n h
and t
o m
eet
pa
ym
ent
oblig
ations
The c
ontr
actu
al undis
counte
d c
ash f
low
s o
f th
e S
hire’s
Payable
s a
nd B
orr
ow
ings a
re s
et
out
in t
he L
iquid
ity S
ensitiv
ity T
able
belo
w:
as a
nd w
hen t
hey f
all
due.
The S
hire m
anages t
his
ris
k b
y m
onitoring its
cash f
low
requirem
ents
and liq
uid
ity levels
and m
ain
tain
ing a
n a
dequate
cash b
uffer.
P
aym
ent
term
s c
an b
e e
xte
nded a
nd o
verd
raft f
acili
ties d
raw
n u
pon if
required.
Page 5
5
SHIR
E O
F C
AR
NA
RVO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
REP
OR
TFO
R T
HE
YEA
R E
ND
ED 3
0TH
JU
NE
2016
34.F
INA
NC
IAL
RIS
K M
AN
AG
EMEN
T (C
ontin
ued)
(c)
Paya
bles
Bor
row
ings
(con
tinue
d)
negotiation.
The f
ollo
win
g t
able
s s
et
out
the c
arr
yin
g a
mount, b
y m
atu
rity
, of
the f
inancia
l in
str
um
ents
exposed t
o inte
rest
rate
ris
k:
Wei
ghte
dA
vera
geEf
fect
ive
<1 y
ear
>1<2
yea
rs>2
<3 y
ears
>3<4
yea
rs>4
<5 y
ears
>5 y
ears
Tota
lIn
tere
st R
ate
$$
$$
$$
$%
Year
end
ed 3
0 Ju
ne 2
016
Bor
row
ings
Fixe
d ra
teD
ebentu
res
136,3
10
118,3
62
340,1
62
054,9
56
0649,7
90
4.5
4%
Weig
hte
d a
vera
ge
Effective inte
rest
rate
3.3
4%
6.9
6%
3.7
7%
6.0
4%
Year
end
ed 3
0 Ju
ne 2
015
Bor
row
ings
Fixe
d ra
teD
ebentu
res
0402,2
49
190,7
32
467,5
79
064,6
63
1,1
25,2
23
4.2
9%
Weig
hte
d a
vera
ge
Effective inte
rest
rate
3.3
4%
6.9
6%
3.7
7%
6.0
4%
manages t
his
ris
k b
y b
orr
ow
ing long t
erm
and f
ixin
g t
he inte
rest
rate
to t
he s
ituation c
onsid
ere
d t
he m
ost
advanta
geous a
t th
e t
ime o
f
Borr
ow
ings a
re a
lso s
ubje
ct
to inte
rest
rate
ris
k -
the r
isk t
hat
movem
ents
in inte
rest
rate
s c
ould
advers
ely
affect
fundin
g c
osts
. T
he S
hire
Page 5
6
RATIO INFORMATION
2016 2015 2014
Asset consumption ratio 0.98 0.57 0.70
Asset renewal funding ratio 0.62 0.69 0.55
The above ratios are calculated as follows:
Asset consumption ratio
Asset renewal funding ratio
depreciated replacement costs of assets
current replacement cost of depreciable assets
NPV of planning capital renewal over 10 years
NPV of required capital expenditure over 10 years
SHIRE OF CARNARVONSUPPLEMENTARY RATIO INFORMATION
The following information relates to those ratios which only require attestation they have been checked
and are supported by verifiable information. It does not form part of the audited financial report
FOR THE YEAR ENDED 30TH JUNE 2016
Page 59