Annual Report
2015–2016
iiGYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Contents
The purpose of the Annual Report 2015–2016 is
to highlight a range of achievements and progress
made across the period in furthering Council’s
vision, goals, strategies and outcomes as identified
in the Corporate Plan 2014–2019 and associated
planning documents.
The annual report is aligned to five key strategic
themes that form the basis of Council’s corporate
and operational plans.
The key strategic themes are:
■■ infrastructure
■■ economic development
■■ governance
■■ environment
■■ social wellbeing.
Welcome from the Mayor....................................................................................................................................................................1
Chief Executive Officer’s overview....................................................................................................................................................2
Your Councillors.......................................................................................................................................................................................3
Our region.................................................................................................................................................................................................4
Our vision and corporate values.......................................................................................................................................................5
Infrastructure ... planned, connected and safe..............................................................................................................................6
Economic development ... vibrant, strong and resilient.........................................................................................................11
Governance ... cohesive, responsible and transparent............................................................................................................16
Environment ... sustainable, managed and healthy.................................................................................................................19
Social wellbeing ... active, diverse, creative and empowered................................................................................................21
Councillor reporting requirements...............................................................................................................................................27
Organisational reporting requirements......................................................................................................................................29
Community financial report.............................................................................................................................................................37
Appendix A: Minutes extract...........................................................................................................................................................44
Appendix B: List of business activities.........................................................................................................................................45
Appendix C: Report on water and sewerage services 2015-16.........................................................................................46
Appendix D: Financial statements.................................................................................................................................................49
1GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Cr Mick Curran
Welcome from the Mayor
This Annual Report details the Region’s
achievements in 2015-2016 and outlines many
examples of Council working with and within our
community to provide significant results. The
Council has a leadership role in providing services
and facilities that enable our region to meet the
needs of our community now and in the future.
We are ready to take the region to the next level
and we want to motivate and energise our whole
community to work together to achieve this.
The past year we have begun significant
infrastructure projects such as Smithfield Street,
focusing on activating the economy in our
Town Centre, the Aquatic and Recreation Centre
and a number of key roads projects. I take this
opportunity to recognise our team of Councillors
and Council staff who continue work together in
order to do their very best for this community.
Our council is now focused on where we want to
go as a region and we are laying the foundations
that will support our community over the next
20 years and well into the future. The Council has
accepted the challenges caused by the growth
that is currently taking place in our region and we
are focused on providing the right services and
facilities in the most efficient and effective way
possible in order to serve our community.
We are focused on driving Council’s strategies,
policies and decision-making to ensure growth
and prosperity for our region.
Cr Mick Curran, Mayor
2GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Chief Executive Officer’s overview
Local government has continued to operate in
an ever more challenging environment and the
performance of Gympie Regional Council over the
last 12 months has continued to reflect this.
We operate in a dynamic and growing region
which provides us with some of those challenges
but also gives us much reward as an organisation
and a community.
Council's commitment to building the liveability of
the community has been demonstrated through
projects such as the Aquatic and Recreation
Centre, the Our Towns program and the ongoing
commitment to infrastructure.
The community deserves to be served by a high
performing organisation and progress continues
to be made through a range of initiatives however
much remains to be achieved.
Bernard Smith
Good governance and administrative practice
provides assurance to the community and
actions such as an increased emphasis on fraud
and corruption prevention and a significant
enhancement of the effectiveness of the Audit and
Risk Management Committee have reinforced our
commitment to the principles of accountability
and integrity.
This annual report is yet another step in Council
meeting its ultimate responsibility which is to
serve all of community in all of its diversity.
Bernard Smith, CEO
3GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Your Councillors
Cr Mark McDonald
Division 1
Portfolio:
Planning and Development
Contact:
0439 001 170
mark.mcdonald@gympie.qld.gov.au
Cr James Cochrane
Division 8
Portfolio:
Tourism, Sport and Recreation
Contact:
0499 080 398
james.cochrane@gympie.qld.gov.au
Cr Dan Stewart
Division 5
Portfolio:
Social Wellbeing
Contact:
0499 081 404
dan.stewart@gympie.qld.gov.au
Cr Glen Hartwig
Division 2
Portfolio:
Economic Development
Contact:
0437 722 931
glen.hartwig@gympie.qld.gov.au
Cr Bob Leitch
Deputy Mayor
Division 7
Portfolio:
Infrastructure Services
Contact:
0429 231 516
bob.leitch@gympie.qld.gov.au
Cr Hilary Smerdon
Division 6
Portfolio:
Water and Sewerage and Waste
Management
Contact:
0499 080 913
hilary.smerdon@gympie.qld.gov.au
Cr Mick Curran
Mayor
Portfolio:
Governance, Finance, Disaster
Management
Contact:
0417 959 331
mayorcurran@gympie.qld.gov.au
Cr Mal Gear
Division 3
Portfolio:
Business Activities
Contact:
0437 477 245
mal.gear@gympie.qld.gov.au
Cr Daryl Dodt
Division 4
Portfolio:
Environmental Sustainability
and Special Projects
Contact:
0499 080 164
daryl.dodt@gympie.qld.gov.au
4GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Our region
Located in South-East Queensland, the Gympie
region includes a combination of rural, urban
and coastal areas across 6900 square kilometres.
Gympie is the main population centre but a
considerable proportion of the
population live in many smaller
communities. These include
Amamoor, Cooloola Cove, Curra,
Goomeri, Gunalda, Imbil,
Kandanga, Kilkivan, Kybong,
Miva, Rainbow Beach, Tin Can
Bay, Traveston and Woolooga.
Approximately 50,000 residents live in
the region, with an increase in population
of more than 15,000 expected over the next
20 years. Agriculture remains a key industry,
with a focus on beef production and forestry.
The region has maintained tourism trade drawn
to the unique heritage, scenic and coastal
attractions of the area. Our focus is to work with
our community, provide strong leadership and
certainty, and be accountable to our community to
ensure our region:
■■ is friendly and a great place to live
■■ provides people with access to vibrant towns,
and rural and coastal lifestyle opportunities
■■ is family oriented
■■ maintains a strong culture and history
■■ values and protects its natural environment
■■ capitalises on its geographical location
■■ enables quality infrastructure
■■ supports established businesses and industry
while developing opportunities for emerging
industries
■■ experiences planned growth through
continued economic development.
5GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Our vision and corporate values
Our vision for the
region is to be the
natural choice to live,
work and play.
Our purpose is to actively
serve our community
and plan for the future
of the region.
CORPORATE
VALUES
Accountable:
we take responsibility
for our actions, we will
be accessible and fair.
Appreciative:
we value the opportunities
we have, and look for the
best in our people, our
organisation and our
community.
Consistent:
our actions will reflect Council’s
guidelines and practices at all times.
Communicative:
we will keep people informed, consult
with the community and will actively
listen to and respond to their input.
Respectful:
we treat people with dignity, courtesy
and respect. We recognise and support
everyone’s contributions.
6GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Planned infrastructure
that meets the needs of
the community
Road maintenance
Road maintenance is managed through a process
of inspection and prioritisation. Road maintenance
staff are involved in more than 30 different types
of activities across the region. These activities
are not only roadway specific but include other
structures and roadside furniture assets.
These include:
■■ Bus Shelters/Stops
■■ Timber Bridges
■■ Timber Walkways
■■ Gross Pollutant Traps
■■ Traffic Signals.
Council is responsible for the maintenance of over
60 school bus shelters spread across the rural
region in addition to 77 bus stops in the urban
area; more than 50 of which also have shelters.
Timber bridge maintenance
Eight-eight timber bridges spread across the
region make up a considerable portion of
Council’s road assets. Council has a dedicated
bridge maintenance crew whose responsibility
is inspecting and undertaking the maintenance
and reconstruction of timber bridges. These
bridges are inspected regularly with maintenance
prioritised accordingly.
Disaster reconstruction
Council completed the design and construction of
infrastructure damaged or lost as a result of the
2011 and 2013 flooding events in accordance with
the requirements of the Natural Disaster Relief and
Recovery Arrangements.
Infrastructure ... planned, connected and safe
Council maintains
of road infrastructure
2316km
is sealed
1284km
of constructed
footpath,
either asphalt
or concrete
102km
is unsealed
1032km
7GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Infrastructure ... planned, connected and safe
The value of these works totalled approximately
$8.8 million.
A further flooding event occurred in February
2015 with approximately $700,000 in emergent
works and $200,000 in restoration works
undertaken. Further restoration work in the order
of $1 million is expected in coming years as a
consequence of the 2015 flood event.
Disaster management
Fortunately the region was not impacted by any
declared disaster events this year.
Although the Gympie’s Local Disaster Coordination
Centre was not required to be activated for an
event the centre, its staff and the liaison officers
from the various agencies participated in a major
exercise in November 2015. Operation Firestorm
tested our disaster response capabilities to a
simulated major bushfire which impacted on both
the Gympie and Sunshine Coast Districts. Exercises
like this are vital in ensuring that our people and
systems are well prepared to keep our community
safe in the event of a disaster.
Council directly supports our local State
Emergency Service (SES) groups through the
supply and maintenance of their buildings,
vehicles and equipment.
In early 2016 Council gifted four emergency
management vehicles to the SES. These
customised dual cab utilities will assist the SES to
carry out the valuable work they do on behalf of
the community more safely and efficiently. This
has brought the total number of vehicles donated
by Council to the SES fleet to ten.
Backflow prevention audit program
This program commenced in late 2013 with
Council’s plumbing inspectors conducting an
audit of all Council owned properties, identifying
and tagging the location of backflow prevention
devices.
As part of the program, inspectors identified 77
new devices that were required to be installed
in order to bring Council infrastructure into
compliance with the requirements of the Plumbing
and Drainage Act 2002.
The installation of these new devices was
completed during the period.
The second phase of the audit program is in
process with Council plumbing inspectors
commencing an audit of the private sector, namely
commercial, industrial and multi-residential sites.
8GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
The program has focused firstly on high risk
buildings such as shopping centres, industrial
sites and medical facilities. To date, inspectors
have audited 90 sites and identified 230 backflow
devices that require installation. It is envisaged
that this phase of the audit program will take
approximately two years to complete.
Plumbing applications
The Plumbing Services team assessed a total of
404 applications consisting of:
■■ Class 1 & 10 (dwellings and sheds) sewered
sites 132;
■■ Class 1 & 10 (dwellings and sheds) non-sewered
sites 202;
■■ Class 2–9 (commercial buildings) sewered sites 51;
■■ Class 2–9 (commercial buildings) non-sewered
sites 17; and
■■ connect to sewer 2.
Notifiable work inspections
A total of 482 Form 4 (Notifiable Work)
applications were lodged with the Queensland
Building and Construction Commission by
plumbers operating in the region. Council
plumbing inspectors audited 33 of the sites or
seven percent of the work.
Plumbing educational programmes
The Plumbing Services Team continued to arrange
training/information nights for plumbers and
other professionals working in the industry across
the period.
Guest speakers from Building Codes Queensland
and the Queensland Building and Construction
Commission presented at all the events, as did
Council staff. The events were well attended.
Building statistics 2015/2016
Since 2012, building activity within the Gympie
region has been steadily increasing.
Data from the Australia Bureau of Statistics (ABS)
for Queensland confirms this trend with a 16 per
cent increase in building activity over the period
compared to the prior 12 months.
The Building Services team has been working hard
to increase its market share of the certification
business within the Gympie region. This has been
demonstrated in the recent monthly building
statistics with the team increasing its market share
to over 40 per cent.
The team has also been diversifying its core
business to provide building consultancy services.
Infrastructure ... planned, connected and safe
9GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Infrastructure ... planned, connected and safe
Community focused
facilities and service
Imbil playground and park development
$660,000 was invested in the redevelopment of
the old Imbil Caravan Park into a District level
playground and park. The area, now named
the Yabba Creek Parklands, includes new public
amenities with accessible toilets with family room,
a large playground with a separate toddler play
area with shade, swings, sand play, and a fire
truck themed multi-play item. A larger area of
playground, targeting 5–12 year olds has swings,
a slide, a multi-activity structure and additional
items that will be inviting to that age group.
The park also has barbecue, picnic facilities and
disabled car parking.
Road side verge and intersection
improvements
Improvement to our streetscapes is part of pride in
the presentation of our region for our community
as well as visitors. Some $70,000 was spent in
upgrading median strips in the Rainbow Beach
business area with new trees and garden beds.
To beautify the area and address traffic safety
issues, hard landscaping was undertaken at the
Sorensen/Groundwater Road roundabout which
has improved its presentation and reduced
ongoing maintenance needs.
Lake Alford Management Plan and
off-leash dog park
Delivery of appropriate Parks’ infrastructure
requires strategic planning. In July 2015 Council
adopted the Lake Alford Development Plan. The
development plan includes a new off-leash dog
park, installation of exercise equipment, new
public amenities and extensive tree plantings.
The draft plan had been open for community
consultation and residents contributed to the
planned improvements. Lake Alford is a great
community asset for residents and visitors alike
and it’s vital that we have a vision for how it will be
improved and upgraded over time.
The inclusion of a second off leash dog area
for Gympie was welcomed during community
consultation for Lake Alford. This new park was
opened to the community in February 2016 and
allows dog owners to exercise their pets without
a leash legally, and in a controlled environment.
The park provides seats and shelter for owners
plus an open grassed area for the dogs as well as
a water point. Adjacent to other open space and
playgrounds, the dog park provides an additional
healthy activity that the community can undertake
in the one location.
10GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Comprehensive community
and corporate asset
management
Fleet management
Council’s operations including its maintenance
and construction program requires a reliable fleet
of vehicles, plant and equipment. The current
fleet has a wide variety of items and illustrates
the breadth of works that Council undertakes.
Council’s fleet of plant and equipment is currently
valued at approximately $28 million. The 2015/16
plant replacement budget was in the order of $2.8
million, with an operational budget of $3.9 million.
There are over 800 significant plant items including:
Major plant replacements during the period
included:
■■ Komatsu GD655-5 Grader at over $360,000
■■ Iveco Acco K Front Load Waste Compactor at a
$465,000
■■ Komatsu PC88MR-8 tonne excavator $160,000;
and several large trucks.
Infrastructure ... planned, connected and safe
386
light plant
62
heavy plant
light vehicles
127
86trailers
39
miscellaneous
76trucks
11GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Economic development ... vibrant, strong and resilient
Diverse regional
business and
industry development
Business development
– targeted at providing
information and identifying
opportunities for growth
17 Forums/workshops/seminars were held
with over 290 participants from the business
community, including a Business 4 Breakfast series,
small business startup information sessions and a
Manufacturing and Export Readiness Forum.
14 forums/workshops/seminars where Council
partnered with other government and business
organisations were held including Tendering for
Government Business and Capability Statement
workshops, an NBN For Business forum held
at USC Gympie Campus, and various NBN
information drop-in sessions.
Information sharing through various media to
keep the business community of the region
updated including via Social Media and E-news.
Council’s Business and Industry Development
Facebook page has received a 68 percent
Major achievements
Council provided support to regional industry,
businesses and entrepreneurs through the
delivery of a wide variety of projects focused on
industry growth and development.
The 2015/16 financial year saw a focus
on industry development activities and
implementing recommendations and actions
from the Economic Development Strategy.
increase in followers during the period with
monthly subscribers to the Business and Industry
newsletter increasing by 16 percent. Subscription
to the quarterly Gympie Gold Regional Produce
newsletter has increased by more than 35 percent.
12GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Industry development –
partnerships in action
■■ The second in this workshop series “Connect,
Collaborate, Innovate” was hosted by
Performax International. Industry attendees
had the opportunity to learn about assistance
available to help develop innovation in
business and also promote networking
opportunities.
■■ A survey of our regional manufacturing
industry highlighted issues and opportunities
facing that sector and provided valuable
information to help develop industry
development action plans for the future.
Gympie Gold Regional Produce (Agricultural
value-adding and food processing industry
development)
■■ Established in 2010 by Council with the
support of industry, this initiative has a
focus on enabling the region’s producers
and processors in the food industry through
promotion and marketing the region’s food
and agribusiness industry and development
and delivery of programs and initiatives.
■■ Renowned chef, Matt Golinski’s role as the
Gympie Region Food and Food Tourism
Ambassador was continued.
Economic development ... vibrant, strong and resilient
Activities saw a focus on the development of
partnerships between Council and industry leaders,
neighbouring councils and government agencies,
to promote, develop and deliver initiatives aimed
at industry growth and development.
Export Development
■■ Council hosted representatives from a
number of Chinese provinces to investigate
opportunities in agriculture, business
investment and medical development.
Delegates met with 30 local business
operators and toured major agricultural and
manufacturing businesses. This visit provided
the opportunity to showcase our region’s
industries and develop potential trade links.
■■ Tourism, manufacturing and food industry
businesses attended two workshops hosted
on the Sunshine Coast and in Gympie to
learn about opportunities and trends in
their particular industry sector and to take
advantage of networking opportunities.
Manufacturing Industry Development
■■ Council partnered with the Queensland
Government to host a Manufacturing and
Export Readiness Forum at Suncoast Gold
Macadamias, featuring presenters from the
Australian and Queensland Governments and
regional industry leaders.
13GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
In addition to public appearances and
promotion of the region, Matt cooked a VIP
lunch for Prime Minister Malcom Turnbull in
Brisbane featuring Gympie region produce and
continues to work with restaurants in south
east Queensland to encourage them to use
Gympie produce.
■■ Eat Local Month – Gympie Region GourMAY
continued in May 2016 with an expanded
calendar of events including the launch of the
Gympie Gold Regional Produce precinct at the
Gympie District Show. Over 63 events were
included in the event Directory and many were
organised especially for GourMAY this year.
■■ The Gympie region Farm to Business Directory
was reviewed. The booklet is in its second year
of print and is circulated to food service and
hospitality businesses throughout the Gympie
region and Sunshine Coast.
■■ Two food and agritourism industry forums
were organised to provide information, support
and networking for the region’s producers.
■■ Gympie Region Unearthed was again a
successful event which aims to introduce the
region’s producers to the food service and
hospitality industry, creating direct business to
business relationships.
■■ Our region and our region’s food industry were
showcased at events including:
-- The Tin Can Bay Seafood Festival
-- The 2016 Gympie Show – Council partnered
with the Gympie Show Society to host a
regional food precinct of which cooking
demonstrations by Matt Golinski were a
highlight
-- The Goomeri Pumpkin Festival featured a
pop up café by Matt Golinski with a menu
featuring our Gympie region produce
-- Good Food & Wine Show at Brisbane
Convention & Exhibition Centre featured a
dedicated Gympie Region display supported
by our regional food producers. The event
was attended by some 40,000 people.
Economic development ... vibrant, strong and resilient
14GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Regional Economic Development
Council is part of the Wide Bay Burnett Regional
Economic Development Advisory Committee and
has been part of the development and delivery
of projects targeted at growing our regional
economy, diversifying and adding value to our
regional business and refining the way we work
together across our region:
■■ Wide Bay Burnett Regional Economic
Development Growth Forum, annual event held
in Maryborough each year. The 2015 forum
included a presentation by Gympie business
Aus-Tac Engineering to showcase regional
opportunities and successes.
■■ Business Confidence Survey – this biannual
survey provides accurate and important
information about our regional business
health and identifies issues and opportunities
impacting on the development of our region.
The June 2016 Survey sought feedback about
regional infrastructure needs of our business
community.
Digital Economy – Digital Gympie Region Action
Plan
■■ Nomination of five success candidates in
the Advance Queensland Digital Community
Champion program who were recognised in a
launch event in Brisbane in June.
As part of the role, Champions are to share
their knowledge with the community to
encourage participation in the digital economy.
■■ Council has provided leadership in raising
the priority of the digital economy in the
region, working with NBN to develop an NBN
awareness and uptake program, advocated
for improved mobile coverage and facilitated
programs designed to help business increase
their use of online tools and technologies.
■■ Detailed independent mobile network testing
identified additional mobile telephone
blackspots in the region. This testing and
community feedback assisted with successful
lobbying for infrastructure upgrades by
telecommunications carriers
University of Sunshine Coast
■■ Council continued to work closely with the
University to provide feedback and input to
help students and businesses gain the highest
outcomes from courses and projects.
■■ The University also provided invaluable
assistance in the development of the Trade and
Investment Qld Study in the Wide Bay Burnett
information paper.
Economic development ... vibrant, strong and resilient
15GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Regional projects
Gympie Town Centre Project
This project focuses on the implementation
of the Gympie Town Centre Action Plan and is
showcasing and building pride in community
assets by promoting and revitalising Gympie’s
Town Centre:
■■ Monthly Gympie Town Centre fresh and local
produce markets are successfully filling a gap
in the Town Centre’s offer attracting up to
1,000 people. These markets also help promote
‘market day specials’ for Town Centre retailers,
highlight local food producers and connect
them with local businesses and residents.
■■ Mary Street traders have taken the lead on
a program of seasonal late night shopping
and entertainment events: Easter on Mary,
Winter on Mary, Muster on Mary and Mary
Christmas. These events have involved linked
competitions, local wine tasting, horse and
carriage rides and on-street entertainment.
■■ Council will continue to monitor progressive
changes to Town Centre vacancy, to prioritise
and drive actions that specifically target vacant
premises through the implementation of the
Gympie Town Centre Project.
Economic development ... vibrant, strong and resilient
National Disability Insurance Scheme
■■ Meeting convened with regional service
providers to identify opportunities to
leverage from the Scheme’s rollout in the
Gympie region. This is a first for the Gympie
region, with our region being one of the few
to have this project listed in our Economic
Development Strategy.
Support of business organisations and regional
Chamber of Commerce’s to showcase the
successes of our regional businesses. This includes:
■■ The re-launch of the Gympie Women in
Business organisation and awards
■■ The launch of the Gympie Rural and Regional
Women’s Network and bimonthly events
■■ Gympie Action Network’s Speed Dating for
Business events
■■ Gympie Chamber of Commerce Awards.
16GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Governance ... cohesive, responsible and transparent
Transparent and
accountable service
delivery
Customer Contact Centre
Gympie Regional Council’s Customer Contact
division was established to build and enhance
Council’s relationship with customers and the
community. Everyone in the community benefits
when Local Government gets their commitment to
service excellence right. Customer Contact acts as
Council’s front line to reinforce Council’s purpose
to actively serve our community and plan for the
future.
During the period of 2015/2016, Council’s
Customer Contact received 49,180 calls with 76.4
per cent of calls answered in less than 30 seconds.
The Contact Centre has seen an increase in their
first contact resolution rate over the past year from
39 per cent of all calls received in July 2015 to 76
per cent in June 2016.
Customer Contact continues to work toward
becoming a “one-stop” shop for the community to
deal with Council, with calls, online requests and
counter enquiries to be dealt with by a dedicated
team who are specially trained to resolve queries
at first point of contact. This will enable Council
to streamline customer’s interactions and
communicate with a ‘unified voice’.
Information Communication Technology
Council's ICT department continues to explore
opportunities to enable business process
improvement enabled through appropriate
investment in ICT solutions.
With Council recognising the increasing
importance and reliance of Information and
Communication Technology, a Chief Information
Officer was appointed in December 2015.
During the financial year, Council implemented
Microsoft Outlook and Skype for Business,
replacing a legacy Groupwise solution. In
addition to the major benefit of Council now
using a mainstream email communications tool,
staff are utilising other features including video
conferencing with suppliers and between the
Council sites, reducing the need to travel for
meetings.
A new corporate filing system was developed and
will continued to be implemented throughout
Council. This new filing system provides structure
around where Council records should be captured,
reducing the search time to locate records,
and also enabling Council to meet legislative
requirements regarding the disposal of records.
17GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Governance ... cohesive, responsible and transparent
An organisational
culture of continuous
improvement
Continuous improvement
Rapid growth in technology, the need for financial
stability, and the desire for renewable energies are
some of the many catalysts increasing community
expectations. Local government will change more
in the next five to 10 years than it has in the past
50 years in order to meet these expectations.
To achieve this in a relatively fast-changing
environment, Council is working from the ground
up to position our people for rapid change. Council
is striving to empower staff to improve operational
efficiency by eliminating waste, by focusing on
business value, by increasing customer engagement,
and by bringing expertise and experience together.
Council’s people work collaboratively on a range of
continuous improvement initiatives to help shape
the council in which they work. These projects
identify operational waste and determine solutions
to eliminate it. Reducing the cost of printing
internally is a current continuous improvement
project. Council is also working to further maximise
the utilisation of our heavy duty plant, and to
deliver a sustained reduction in our energy costs
over a twelve month period. A Project Management
Framework has been developed which will
significantly improve the planning, prioritisation and
implementation of Council projects.
Business planning
Business managers have engaged with their teams
in a business planning process to ensure they have
an understanding of their customers’ expectations,
a clear value proposition, and a strategic focus
that aligns with the overall organisational vision.
Each business unit has been working hard over the
financial year to implement a number of goals and
actions and achieve their 12 month vision.
Risk management
It has always been Council’s policy to minimise
risk while maximising opportunity. Regulatory
requirements recently strengthened these
processes to ensure consistency and transparency
of decision making. Changes in the Local
Government Act 2009 (Act) strengthened reporting
requirements in this area with the need for a
formal Risk Management Plan and Risk Register.
These address significant strategic risks, assigning
roles and responsibilities for the tasks associated
with risk management.
Lower level operational risk will continue to
be managed within operational teams and
management. Progress on risk management and
emerging significant risks are reported to the
Audit and Risk Management Committee.
18GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Responsible employer
Human resources
Council strives to provide best practice HR
strategies, frameworks and advice to the whole of
the organisation. A consultative approach is key to
being successful in this regard. This year has seen
numerous policies and procedures introduced
which provide further clarity concerning the
organisation’s responsibilities to our people, and
our people’s responsibilities to the community and
the organisation. The employee benefit programs
has established further positive engagement with
our workers and local businesses throughout the
Gympie region.
Work, Health and Safety
Council strives to achieve a number of positive
work health and safety indicators annually;
fortnightly team meetings with field staff, monthly
team meetings with office staff, and 500 safety
conversations across the organisation among
other action planning strategies.
Council also tracks indicators such as days lost due
to injury and lost time claims.
Governance ... cohesive, responsible and transparent
Recruitment
Council is now providing improved service
to job applicants following the successful
implementation of our recruitment software,
SCOUT. Being an online platform with simple
workflows, SCOUT provides Council with better
reach to jobseekers, and provides jobseekers with
a more accessible and easy to use application
process. It also gives us the ability to inform
candidates and give feedback throughout the
recruitment process.
Payroll
Payroll continues to achieve administrative
efficiency with increased numbers of employees
receiving their payslips via email. The challenge
remains aiming for a paperless office and
electronic timesheets.
19GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Responsibly managed
environmental practices
Animal de-sexing program
The animal de-sexing program is conducted as
a joint venture between Council and the RSPCA,
who negotiate with local veterinarians to provide a
subsidised de-sexing program for cats and dogs.
Pets and People Education Program (PET
PEP)
The Pets and People Education Program (PET PEP)
is an initiative of Australian Veterinary Association
and supported by Council and the RSPCA. This is
a national community education program aimed
at school children to aid understanding and
appreciation regarding responsibilities towards
pets. Council officers visit primary schools and
present to school children aged four to twelve
years. In 2014/2015, seven schools were visited
with 642 students provided with information.
Waste management
Council continues to provide many waste related
services including household waste collection,
commercial waste collection and recycling
services.
Key projects this year included:
■■ Council has taken action and prepared
Landfill Rehabilitation Plans for its active
and closed landfills in the Gympie region,
taking responsibility for waste disposed by
our community in the past. In 2016 Council
commenced the rehabilitation of the Rainbow
Beach Landfill.
■■ A detailed rehabilitation and aftercare plan was
developed for the ongoing management and
protection of the sensitive coastal environment.
■■ In November 2015 Council held its first
household chemicals and hazardous waste,
free drop off day. Council coordinated the
free service for the safe disposal of a range
of common household chemicals which if not
disposed of correctly could cause harm to
human health and the environment.
Lands protection
Council’s Lands Protection Team continued to
deliver programs aimed at reducing the impact
of high priority pest plants on the local economy
including parthenium, giant rat’s tail grass (GRT),
fireweed and groundsel bush.
Environment ... sustainable, managed and healthy
20GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
The team provided an extensive inspection and
best practice advice service for local landholders
and included GRT information days in April 2016
at the Woolooga Hall, with in field presentations at
the Woolooga Saleyards. The days were extremely
successful and attended by approximately 300
landholders. Information packs were sent to
a further 60 people who were unable to be
accommodated.
Assistance with animal control for the community
also included the continuation of the very
successful Wild Dog and Pest Animal Workshops
which were held in September 2015 in Tansey,
Wolvi and Kandanga.
Council further delivered Wild Dog and Feral Pig
Control Programs with the assistance of the State
Government funded Drought Assistance Program.
In addition a wild dog and feral pig baiting
program was delivered. The project involved
approximately 3.6 tonnes of bait material
being prepared and supplied to over 100 lots,
thus reducing the costs and logistics for the
landholders.
The period further saw the commencement of
wild dog impact mitigation on koala populations
being supported by the Department of Transport
and Main Roads. This wild dog control work was
designed to provide a level of risk mitigation to
known koala populations that may be impacted
by the construction of the new Bruce Highway,
Section C, while complementing Council’s
existing wild dog control works. The ‘Nil-Tenure’
approach, which includes private and state land,
covered some 190 km² of the Gympie region
between Tuchekoi and Kandanga to the south,
through to East Deep Creek and Southside to the
north.
Environment ... sustainable, managed and healthy
21GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
An active community
for all ages
Community Participation
Community participation was encouraged in a
range of areas culminating in a holistic approach
to community participation across the region.
Holiday Fun continued as one of Council’s most
popular family friendly programs offering a range
of cultural, sporting and recreational activities
across the region. Movies in the Park continued
to activate local parks, providing a sense of place
and an opportunity to gather as a community in
smaller towns across the region.
Community recognition events were held, in
collaboration with other agencies to highlight
identified social issues. These events included
a White Ribbon Day morning tea that provided
an opportunity to recognse the valuable work
local service providers undertake to address
violence against women and the broader issues
surrounding violence in our community. A range
of community celebrations were held to celebrate
the contribution of distinct demographic groups
to our region. Senior’s Week and Youth Week were
actively supported by Council.
Community Partnerships
Partnerships were developed with the Gympie
Region Volunteer Centre, Brisbane Bronco’s,
Queensland Government Sport and Recreation
Services and the Early Years Voice Gympie Region,
local schools, community organisations and
businesses to improve outcomes for specific target
audiences including, children, young people,
volunteers and community organisations.
Community Events
In excess of 100 community events were
supported by Council’s Event Coordinator,
including major events such as the Goomeri
Pumpkin Festival, Gympie Show, Heart of Gold
Film Festival and Rainbow Beach Fishing Classic,
and regional events including Career’s Expo, Mary
River Festival, Tin Can Bay Seafood Festival and
Goldrush.
The inaugural RUSH Festival was held in October
2015 to celebrate the unique Community,
Culture and Heritage of the Gympie Region.
Council in partnership with 19 community based
organisations held 27 events during the month,
attracting participation numbers of 24,000 people
and generating an estimated $2.6 million in
economic impact.
Social wellbeing ... active, diverse, creative and empowered
22GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Community Facilities
Council supports the ongoing provision,
operation and maintenance of a vast number of
community facilities including Community Halls,
Sport and Recreation grounds, Showgrounds and
public amenities, often working with community
organisations to ensure that well maintained
public spaces are available for community use
across the region.
Gympie Town Centre urban design
projects
A number of Town Centre Urban Design projects
were endorsed in the 2014/15 financial year as
part of an overall Town Centre Revitalisation
Strategy aimed at supporting the Town Centre’s
strategic future as the heart of the Gympie region.
The plans will deliver significant infrastructure,
including a future transit facility, a pedestrian
plaza for Mary Street and more pedestrian friendly
streetscapes in Mary Street and Smithfield Street.
2015/16 saw the commencement of the next stage
of detailed design for Smithfield Street streetscape
revitalisation works and also a successful funding
bid for 50 per cent of project costs ($1.36 million)
from the Department of State Development
through the Building Our Regions program.
Social wellbeing ... active, diverse, creative and empowered
With construction set to commence in September
2016 this project will make Smithfield Street a
more pedestrian friendly environment with a
sophisticated palette of substantial street trees,
landscaping, paving treatments, street furniture
and lighting components, that tell the story of the
Smithfield Mine and Smithfield gold reef.
Council successfully delivered a street tree lighting
design to support Mary Street taking another
step towards being the focal point for retail,
dining, entertainment and social interaction for
the Gympie region. Bud lights were used to light
up six mature trees at the Gold City Centre Stage,
two at the Fiveways intersection and one at the
intersection of Mary and Monkland Streets.
The street tree lighting outcome has created a
unique night time atmosphere, enhanced visual
appeal and fostered increased interest in the Mary
Street experience for both residents and visitors
The 2016/17 financial year will see Council
continuing to progress with the development of
concept design and subsequent detailed design
for a future Town Centre Transit Facility, Mary
Street Pedestrian Plaza and Youth Precinct in
Nelson Reserve.
23GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Social wellbeing ... active, diverse, creative and empowered
A vital community
Amamoor and Gunalda 'Our Towns'
Projects
Part of the region-wide “Our Towns Sustainable
Centres Program”, these projects are aimed at
developing an overall direction to guide future
streetscape and public realm improvements, and
to enhance the existing character and amenity of
the townships.
Following extensive public consultation, the final
Concept Master Plans and priority actions for the
townships of Amamoor and Gunalda have been
endorsed for progressive implementation.
Council has committed funding of $400,000 to
undertake detailed design and construction of a
first round of implementation projects within both
townships in the 2015/16 financial year. Amamoor
will benefit from an enhanced hub around the
General Store and integration with the Mary Valley
Heritage Railway Station and the commercial area
at Gunalda will be improved with streetscaping,
footpath upgrading and formalised car parking.
Gympie Region Tracks and Trails Plan
Council has completed a whole-of-region plan for
maximising opportunities for providing a network
of off-road tracks and trails for walking, mountain
biking and horse riding, aimed at maximising
nature-based recreation and tourism opportunities
in the Gympie region.
The plan incorporates a 10 year prioritised
program of trail development activities.
Detailed trail development planning has occurred
in liaison with South Burnett Regional Council
and funding provided by the Department of State
development to deliver the Kilkivan to Kingaroy
Rail Trail, a recreational trail for walkers, mountain
bikers and horse riders. Construction has
commenced with the trail expected to be officially
opened in 2017.
24GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
A region of education
and learning
Libraries
Gympie Regional Libraries are transforming
the way that library services are offered to the
community. Libraries celebrate knowledge,
diversity and imagination and preserve
information for future generations. Clients visit
the library to read, learn, relax, study, work, play,
connect with others, enhance their digital literacy
skills, discover new worlds of inspiration and
become empowered through knowledge. Across
the period the library service received 262,816
visits with 418,805 items being borrowed.
Libraries everywhere are now managing an
increasing demand for on-site and online material.
Gympie Regional Libraries receives financial
assistance from the Queensland Government
through State Library of Queensland and this year
used this funding to further diversify the library
collection by purchasing an extensive range of
physical and electronic items. Library members
can currently download eBooks and eAudiobooks
through OverDrive, eMagazines through Zinio and
eMusic through Freegal, with plans to expand the
service to include access to content via Bolinda
Digital in 2016/2017.
Following community consultation, Tin Can Bay
Library adopted extended operating hours.
The earlier opening time is proving to be popular
with a 7 per cent increase in visitation compared
to the previous year. Clients at Tin Can Bay Library
have also been embracing the self-check option,
which has helped to remove service bottle-necks
with 46 per cent of library materials being loaned
via the self-check option at Tin Can Bay Library.
Gympie region residents now have access to the
latest, state-of-the-art technology for preserving
historic documents and photographs. The Bookeye
4 scanner, obtained by Gympie Regional Libraries
with the assistance of a Queensland Government
grant through the State Library of Queensland,
ensures that future generations share in the
region's rich cultural heritage and in the treasures
handed down by local families and individuals.
The scanner is designed to save images from large
size documents and photographs for historical
purposes. It scans up to A2 size and can scan open
books and create flat images. The library service
also promotes the heritage of our region through
social media, oral history interviews, school visits,
liaising with other local history organisations and
people who have a strong interest in our local
heritage.
Social wellbeing ... active, diverse, creative and empowered
25GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
The Friends of Gympie Regional Libraries Inc.
currently have over 90 members who contributed
2,549 volunteer hours during the last financial year.
Friends also assisted in research and organisation
of the materials in the Local History room and
supported the Home Library Service, selecting and
delivering books to people in the community.
The First Five Forever Program has provided
funding to enable the library service to expand
its programming to all branches of Gympie
Regional Libraries this year. Storytime sessions
are now held at all six branch libraries, with
additional storytime sessions at the Gympie
Library and increased outreach to regional
playgroups, kindergartens and schools. This
expansion of services to the wider community has
enabled the library service to make a meaningful
contribution to help improve early literacy and
emerging language in 0 to 5 year olds, with
program attendance growing by 200 per cent
from February 2016 to June 2016 compared to the
same period in the previous year. Early year’s staff
members have also been involved in the planning
and implementation of community-driven family
fun days (Little Kids Day Out), the local Growers
Market, local home-schooling groups and visits
to Maternal and Child Health and the Southside
Indigenous Group.
Social wellbeing ... active, diverse, creative and empowered
The library is moving into a new role of teaching
the community about coding and robotics with
Ozobots events being rolled out over the last
six months and plans to introduce new robotic
platforms early in the coming year. The new
“Saturdays Just For Kids” event at Gympie Library
was trialled in 15/16 and is set to continue in
16/17, following significant event attendance and
an increase in library visitation and borrowing on
these days.
The library service has worked with other Council
departments, the Queensland Department
of Education, community organisations and
institutions and neighbouring regional areas to
provide a wide range of workshops and activities
in 2015/2016 including:
■■ First Five Forever (Early Literacy and Emerging
Language) Professional Development session
■■ School holiday activities
■■ Author visits and cartoon workshops
■■ Ozobot and coding workshops
■■ QANZAC local history workshop in conjunction
with the State Library of Queensland
■■ Arts and Crafts workshops
■■ Museum Kit activities
■■ Ancestry Workshops
■■ Book Launches
■■ Author Visits
■■ Writers Groups
■■ Book Clubs
■■ Educational Workshops
■■ Gympie Region Literary Awards proudly
sponsored by Bendigo Bank
■■ History Pin workshops
■■ Community Garden Talks.
Number of Loans across Gympie Regional Libraries
2012/2013 407,236
2013/2014 407,382
2014/2015 409,335
2015/2016 418,805
Visits to Gympie Regional Libraries
2012/2013 236,586
2013/2014 243,616
2014/2015 264,789
2015/2016 262,806
Website traffic
2012/2013 55,311
2013/2014 80,209
2014/2015 95,415
2015/2016 98,172
26GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
A valued heritage and
creative community
The November 2015 markets were enhanced
with large digital art projected onto the back
walls of the Gallery. These markets have had
the unexpected benefit of drawing creatives out
of the community who may never have been to
the Gallery before, facilitating the formation of
new networks and friendships. The Gallery has
supported these micro businesses to help them
expand and grow and test their markets.
Gallery
The Gympie Regional Gallery continued to deliver
a variety of experiences for the local, regional and
touring visitors during 2015-16.
Studio Trails
The first concentrated effort to create Studio
Trails of artists’ studios in the Gympie Region
was pursued. Some 24 artists/cultural groups
were involved from Tin Can Bay, Rainbow Beach,
northern Gympie, Gympie and the Mary Valley
on designated weekends. Funding was further
obtained for the production of a professional
promotional booklet.
Suitcase Markets
The Gallery started the Suitcase Markets in June
2012 as a strategy to attract new audiences to the
Gallery. The Suitcase Markets (supporting local
quality art and craft) are held three times a year in
and around the Gallery building, with two being
Twilight Markets.
Social wellbeing ... active, diverse, creative and empowered
27GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Councillor reporting requirements
Remuneration
In accordance with s 186 of the Local Government
Regulation 2012 (Regulation) annual reports for
a financial year must contain particulars of the
total remuneration, including superannuation
contributions, paid to each Councillor during the
financial year as well as expenses incurred by, and
the facilities provided to, each Councillor during
the financial year under the local government’s
expenses reimbursement policy.
It is noted that this annual reporting period
coincided with a quadrennial local government
election which was held in March 2016.
Former Councillors Petersen and Friske retired
at that election. Six first term Councillors were
elected into office, i.e. Councillors Hartwig, Gear,
Dodt, Stewart, Smerdon and Cochrane joining
Councillors Leitch and MacDonald who were
returned to office. Cr Curran was re-elected as
Mayor with Councillor Leitch appointed as Deputy
Mayor by resolution of Council at its Post-election
Meeting. Former Councillors Currie, Gâté, Sachs
and Walker were not returned to office at the
March 2016 election.
Councillors are provided with access to
appropriate information technology and
communications equipment, use of a Council
Remuneration for the period 1 July 2015 to 30 June 2016
COUNCILLOR REMUNERATION
VEHICLE
ALLOWANCE
SUPER REIMBURSEMENTS GROSS TOTAL
CURRAN $120,226.00 $14,427.12 $1,508.33 $136,161.45
LEITCH $66,192.32 $7,943.08 $564.72 $74,700.12
COCHRANE $14,739.23 $1,768.71 $16,507.94
DODT $14,739.23 $1,768.71 $16,507.94
GEAR $14,739.23 $1,768.71 $16,507.94
HARTWIG $14,739.23 $1,912.07 $1,768.71 $18,420.01
McDONALD $63,870.00 $7,664.40 $1,052.07 $72,586.47
SMERDON $14,739.23 $1,768.71 $16,507.94
STEWART $14,739.23 $1,768.71 $16,507.94
CURRIE $49,130.77 $5,895.69 $199.10 $55,225.56
FRISKE $57,800.77 $6,936.09 $942.67 $65,679.53
GÂTÉ $49,130.77 $5,895.69 $1,956.78 $56,983.24
PETERSEN $49,130.77 $5,895.69 $718.57 $55,745.03
SACHS $49,130.77 $5,895.69 $734.58 $55,761.04
WALKER $49,130.77 $5,895.69 $1,064.55 $56,091.01
supplied vehicle, and reimbursement of relevant
travel and accommodation related expenses
incurred while performing their duties on behalf
of the Council. Full details of the basis of expenses
reimbursement including the facilities and
equipment provided to Councillors are contained
within the Councillor Expenses Reimbursement
Policy which is available from Council’s website.
From the commencement of the current term of
Council, Councillors could nominate to use their
own privately supplied vehicle in lieu of a Council
supplied vehicle for all Council business. The
payment of an annual vehicle allowance applies
under such circumstances. Cr Hartwig has taken
up this option as indicated in the table below.
28GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
COUNCILLOR
ORDINARY
MEETINGS
STANDING
COMMITTEE
MEETINGS
TOTAL
MEETINGS
CURRAN 14 1 15
LEITCH 14 14
COCHRANE 4 4
DODT 4 4
GEAR 4 4
HARTWIG 4 4
McDONALD 11 1 12
SMERDON 4 4
STEWART 4 4
CURRIE 10 10
FRISKE 9 1 10
GÂTÉ 10 1 11
PETERSEN 10 10
SACHS 10 10
WALKER 10 10
Meetings attended
The number of local government meetings that
each Councillor attended during the financial year
is recorded in accordance with s 186(c) of the
Regulation. The Ordinary Meetings include the
Post-election Meeting held on 13 April 2016.
A Standing Committee was created for the
purpose outlined in Minute M40/11/15.
This Committee comprised of four Councillors
and achieved its objective via a single meeting
held on 27 November 2015.
(i) The number of orders and recommendations made under s 180(2) or (4) of the Act NIL
(ii) The number of orders made under s 181 of the Act NIL
(iii) The number of complaints made about the conduct or performance of a Councillor for which no further action
was taken under s 176C(2) of the Act
ONE
(iv) The number of complaints referred by the Council CEO to the department’s chief executive under s 176C(3)(a)(i)
of the Act
NIL
(v) The number of complaints referred to the Mayor under s 176C(3)(a)(ii) or (b)(i) of the Act NIL
(vi) The number of complaints referred to the department’s chief executive under s 176C(4)(a) of the Act NIL
(vii) The number of complaints assessed by the Council CEO as being about corrupt conduct under the Crime and
Corruption Act
NIL
(viii) The number of complaints heard by a regional conduct review panel NIL
(ix) The number of complaints heard by the tribunal NIL
(x) The number of complaints to which s 176C(6) of the Act applied NIL
Complaints about Councillors
The table below provides information about
complaints received regarding the performance
or conduct of Councillors in accordance with
the requirements of s186 (d), (e) and (f) of the
Regulation.
Organisational reporting requirements
29GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Executive remuneration
In accordance with s 201 of the Act, the total
of remuneration packages payable to senior
management during the period was $1,223,950.
REMUNERATION
BAND
NO. SENIOR MANAGEMENT
EMPLOYEES IN REMUNERATION
BAND
$130,000-$229,999 3
$230,000-$329,999 2
For the purposes of s 201 of the Act, senior
management refers to Council’s CEO and Directors
only.
Particular resolutions
As required by s 185 of the Regulation, please see
Appendix A.
Administrative action complaints
Gympie Regional Council is committed to
providing a level of customer service that does
not attract complaints. Council acknowledges the
public’s right to provide feedback on our services,
both positive and negative, including the right
to lodge a complaint about a decision or other
action Council has taken, or failed to take, where
considered appropriate to do so.
In response to s 187 of the Regulation, an
Administrative Action Complaints Process has
been developed and implemented which is
designed to assist Council manage complaints
efficiently, effectively, objectively and fairly.
Significant work has commenced toward the
development and adoption of a Customer Service
Charter with an associated Customer Service
Standard. In addition, Council’s overall Complaint
Management System was externally audited by the
Queensland Ombudsman during the period with
a number of recommendations stemming from
that review in the process of being considered and
implemented.
In combination with a major ongoing review of
ICT systems and a corporate focus on customer
service, initiatives are being established that will
better help Council identify, manage, monitor and
respond to customer service issues. This includes
dealing promptly and appropriately with all
complaint related matters.
During the period 29 Administrative Action
Complaints were received with 25 of those
complaints being fully resolved.
Four complaints received during the period
remained outstanding as at 30 June 2016. It is
noted that three of these outstanding complaints
were received in either May or June 2016.
There were no complaints received in a prior
financial year that were left unresolved.
The above statistics highlight that Council’s
Administration Action Complaints Process is
proving effective in having the vast majority
of complaint matters formally considered,
investigated and resolved within the financial year
period.
Further detailed information in relation to
Council’s complaints management processes is
available from our website.
Overseas travel
During the period 12 – 15 June 2016, Mayor
Mick Curran and Council CEO Bernard Smith
travelled to Auckland, New Zealand to participate
in the Sunshine Coast Leaders Tour sponsored
by Tourism and Events Queensland. As a fully
sponsored event the total cost payable by Council
for the overseas travel was $89.70 being for travel
insurance. (Refer s 188 of the Regulation).
Organisational reporting requirements
30GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Registers
In accordance with s 190(1)(f) of the Regulation,
below is a list of the registers kept by Council:
■■ Asset Register
■■ Building Statistics of Monthly Approvals
■■ Contact with Lobbyists Register
■■ Contracts Register
■■ Councillor Complaints Register
■■ Cost Recovery Fees Register
■■ Delegations Register
■■ Fees and Charges Register
■■ Gifts/Hospitality Register
■■ Local Heritage Register
■■ Local Laws Register
■■ Register of Development Applications
■■ Register of Environmentally Relevant Activities
■■ Register of Impounded Dogs
■■ Register of Interests (Councillor and senior
executive employees)
■■ Register of Pre-Qualified Suppliers
■■ Restricted Dogs Register
■■ Road Register.
Organisational reporting requirements
31GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Expenditure on grants to community organisations
As stipulated by s 189 of the Regulation, the following tables outline a summary of the funds supplied
through community grants in accordance with Council’s Community Assistance Grants Policy. There were no
Councillor discretionary funds established during the period in accordance with s 109 of the Act.
CAPACITY BUILDING GRANT
Cooloola Human Services Network Inc $3750
Early Childhood Teachers Association Inc $2000
Gympie Riding for Disabled Inc $4417
Gympie Community Garden $4232
Gympie Gold Fins Swimming Club $5000
Kilkivan Show and Campdraft Association $5000
Gympie Bowls Club Inc $4820
Tin Can Bay Resource and Referral Centre $5000
Compass Institute Inc $2000
Endeavour Foundation $1500
Gympie Bowls Club Inc $1000
Gympie Cricket Association Inc $1500
Gympie Gliding Club Inc $2000
Gympie Mens Shed $3200
Gympie Roller Sports Club Inc $4500
Hope Reins Inc $2250
Kandanga Creek Community Hall Inc $1000
Kia Ora and District Sports & Progress Assoc Inc $770
Little Haven Palliative Care Inc $4500
Mary Valley Pony Club Inc $1588
Tin Can Bay Girl Guides $2196
TOTAL $62,223
COMMUNITY EQUIPMENT GRANTS
Gympie Girl Guides $1000
Gympie Gymnastics Club Inc $1000
Gympie Speedway Drivers Association Inc $1000
Kilkivan Rural Fire Brigade $830
Gympie Small Bore Rifle and Silhouette Club $1000
TOTAL $4830
COMMUNITY EVENT GRANTS
Far-A-Way Riders Association Inc $750
Gympie & District Indoor Bowls Association $250
Gympie Municipal Horticultural Society Inc $1000
Hope Reins Inc $1000
Tin Can Bay Chamber of Commerce and Tourism $1900
Tin Can Bay Yacht Club Inc $800
Widgee District Hall and Recreation Assoc Inc $450
Cooloola Coast Bowls Club Inc $500
Widgee District Hall and Recreation Assoc Inc $2180
Mary Valley Show Society Inc $1400
TOTAL $10,230
COMMUNITY FACILITIES GRANT
Cedar Pocket School of Arts Inc $10,000
Cooloola Trail Care Alliance Inc $5784
Cooloola Wesleyan Methodist Church Veterans
and Community Hall
$7755
Gympie and District Hockey Association Inc $10,000
Gympie and District Woodworkers Club Inc $10,000
Gympie Senior Citizens Centre $5000
Kandanga Creek Community Hall Inc $2276
Kia Ora and District Sports & Progress Assoc Inc $4300
Langshaw Hall Association Inc $908
Lower Wonga Hall and Recreation Association Inc $10,000
One Mile Sports Association Inc $10,000
Pie Creek Community Hall $10,000
Tin Can Bay Fishing Club $10,000
TOTAL $96,023
REGIONAL ARTS DEVELOPMENT FUND GRANTS
Early Childhood Teachers Association $5750
Gympie Regional Council – Events $6620
Gympie Regional Gallery $6000
Thursday PM FOG Group $4230
Chatsworth African Drumming Group $1330
Friends of Heritage Theatre Inc $1770
Gympie and District Historical Society Inc $1400
Heart of Gold International Film Festival Inc $3500
Kia Ora and District Sports & Progress Assoc Inc $3750
Mary River Festival $3750
Mary Valley Show Society Inc $2600
Sue Flower $3750
Wood N Music Festival $3000
Mary Allen $1425
TOTAL $48,875
TOTAL OF COMMUNITY ASSISTANCE
GRANTS
$222,181
Organisational reporting requirements
32GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
EVENT SPONSORSHIP
Apex Santa Fair $5000
Ministers Network $4000
Goldrush $6000
Tin Can Bay Seafood Festival $8850
Kilkivan Great Horse Ride $5000
Mary Valley Tomato Festival $1500
New Year's Eve Celebrations Gympie $12,000
Gympie District Show $24,500
Gympie and District Eisteddfod $5000
Goomeri Pumpkin Festival $10,500
Mary River Festival $4000
Rainbow Beach Fishing Classic $10,000
Rainbow Beach Surf Lifesaving Nippers Carnival $1800
Tin Can Bay Bowling Club $500
Heart of Gold Film Festival $35,000
Relay for Life $3000
NAIDOC Week Celebrations $700
Historic Auto Club Swap Meet $3000
TOTAL $140,350
COMMUNITY SUPPORT PAYMENTS
Community Halls $29,000
Senior Citizens Centre $15,000
Gympie Showgrounds $65,000
Kilkivan Museum $15,000
Woodworks Museum $10,000
Helicopter Rescue $20,000
TOTAL $154,000
The tables below include details of event sponsorship and grants made under Council's Distribution of the
Environment Levy for Community Group Grants Policy.
COMMUNITY GROUP GRANTS (Environment Levy Distribution)
Gympie Landcare $60,263
Gympie Landcare (special funding round) $35,880
Cooloola Coastcare $14,000
Cooloola City Farm $20,248
Cooloola City Farm (special funding round) $11,000
MRCCC $29,000
MRCCC (special funding round) $19,900
Australian Native Animal Rescue $2600
Australian Native Animal Rescue (special funding
round)
$8559
Cooloola Nature $1711
Surfrider foundation $1000
Koala Action Group (special funding round) $4187
Private Forestry Southern Queensland (special
funding round)
$35,020
TOTAL $243,367
TOTAL OF COMMUNITY ORGANISATION
GRANTS/SUPPORT AND EVENT
SPONSORSHIP FOR 2015-16
$759,898
Organisational reporting requirements
33GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Annual strategic review
In accordance with s 190(1)(a) of the Regulation,
the Chief Executive Officer must provide an
assessment of the local government’s progress
towards implementing its 5-year corporate plan
and annual operational plan.
Council’s corporate and operational plans are
structured around a framework based on the
following five key strategic themes:
■■ infrastructure	
■■ economic development
■■ social wellbeing
■■ governance
■■ environment.
The Corporate Plan 2014–2019 articulates 31
strategic 5-year actions that the organisation
used to guide the delivery of 97 targeted service
activities and projects across the period as
identified in the Operational Plan 2015–2016.
The following diagram displays the percentage
breakdown of these activities grouped into the
core strategic themes.
As at 30 June 2016, 71 per cent of planned
operational activities and projects were
categorised as ‘completed’. The remaining twenty
nine per cent of activities were categorised as
‘delayed/revised’ due to a range of factors such as
budgetary constraints, resource limitations, and
changes in priorities or ownership of the activities.
In the interests of improved transparency in
reporting, no activity was allowed to be considered
as being ‘on track’ or ‘to be commenced’ for the
purpose of this end of period review. Ongoing
reviews of Council’s ICT systems and governance
of ICT projects were undertaken during the period
resulting in a major commitment to improving
Council’s overall ICT capacity and status proposed
to commence within the 2016-2017 period.
The proposed ICT Foundation Build Program has
seen a number of 2015-2016 operational plan
activities rightly delayed or revised to form part
of a larger, coordinated review of Council’s ICT
systems as noted in the Activities Update Report
for the Fourth Quarter presented to Council.
The move to an action based corporate plan and
an associated focus on non-business as usual
activities in the operational plan has resulted in
more transparent public reporting of true progress
being made toward the implementation of
Council’s 5-year corporate plan. Overall Council
has largely achieved its planned operational
activities across the period which are designed to
progress the vision and key strategic objectives of
the corporate plan.
Completed
71%
Delayed/Revised
29%
Organisational reporting requirements
Governance
19%
Social
Wellbeing
12%
Infrastructure
21%
Economic
Development
35%
Environment
13%
34GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Local government operations
Aligned with the requirements of s 190(1)(b) of
the Regulation, the welcome message from the
Mayor and the Chief Executive Officer’s overview
at the beginning of this document incorporate an
informed assessment of the local government’s
operations and performance across the period.
In addition, the annual strategic review featured
earlier in the report articulates Council’s strong
operational performance and the progress made
toward achieving our core objectives.
A number of initiatives have been established
from a technology, systems and customer service
perspective to better enable the organisation
to respond to the changing expectations of our
residents and customers.
Council’s ongoing commitment to an organisation
wide continuous improvement approach has
helped us strive to do our work in the best way
possible.
Beneficial enterprises
Further to the requirements of s 41 of the
Act, Council’s involvement with the following
companies has been noted as conducting a
beneficial enterprise.
■■ Mary Valley Community Holdings Ltd
■■ Rattler Railway Company Ltd.
List of business activities
Section 45(a) of the Act requires that the annual
report contain a list of all the business activities
the local government conducted during the
financial year. This list is presented in Appendix
B of the report. Council did not undertake any
‘significant business activities’ during this period in
accordance with the legislative definition of same.
Commercial business units
In line with s 190(1)(c) of the Regulation and
the threshold limits set for significant business
activities, Council did not operate any commercial
business units during the period. The 2015-2016
Financial Statements include a specific note to the
accounts on National Competition Policy. Please
refer to the audited Financial Statements.
Details of special rates and
charges
Further to s 190(1)(d) of the Regulation, Council
does not have any agreement in place for
conducting a joint government activity for which
special rates or charges were levied during the
period.
A Rural Fire Brigade Levy–as authorised under
s 94(1)b) of Act and ss 106 and 128A of the Fire
and Emergency Services Act 1990–in the amount of
$25 applies to all rateable properties not situated
in an urban fire brigade area (as defined by the
Queensland Fire and Rescue Service).
Moy Pocket Road Maintenance Charge in the
amount of $129,145 applies to rateable land
described as Lot 4 on Registered Plan 159242, Lot
2 on Registered Plan 187563 and Lot 1 on Survey
Plan 221900, Parish of Brooloo, County of March
to fund the cost of road maintenance on Moy
Pocket Road.
Organisational reporting requirements
35GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Summary of rate rebates and
concessions
As required by s 190(1)(g) of the Regulation, the
following concessions were applied.
Pensioner remissions
Council’s pensioner rate remission to eligible
pensioners was allowed under s 120(1)(a) of the
Regulation. The pensioner remission is $160 per
annum. Total expenditure for 2015-2016 was
$631,378.
Deferment of liability
No such expenditure was incurred in 2015-2016.
In accordance with s 125 of the Regulation,
Council may grant a deferral of the time in which
to make payments of overdue rates in respect of:
■■ A dwelling in which the applicant resides as
his/her principal place of residence; or;
■■ All other land, where it can be substantiated
in writing to the Chief Executive Officer’s
satisfaction that the applicant will not be
able to pay all rates and charges within the
prescribed period. The Chief Executive Officer
shall be authorised to request further evidence
that may be necessary in order to substantiate
any such claim.
Early payment discount
Discounts for prompt payments were allowed
on the rates and charges stipulated in Council’s
Revenue Statement, as such discounts were
allowed pursuant to s 130 of the Regulation.
The following discount applied if all rates and
charges are paid within 30 days of the issue date:
■■ First rate notice – 5 per cent
■■ Second rate notice – 10 per cent.
Total expenditure for 2015-2016 was $3,984,652.
Contracts
As stipulated by s 190(1)(e) of the Regulation, the
number of invitations to change tenders under
s 228(7) during the financial year was nil.
Competitive neutrality
In accordance with s 190(1)(i) and ( j) of the
Regulation, there were no investigation notices
for competitive neutrality complaints nor any
required response to the Queensland Competition
Authority.
Internal audit report
Section 105 of the Local Government Act 2009
requires that each local government must
establish an internal audit function.
The functions and responsibilities of the internal
audit function and of the audit committee are set
out in Chapter 5, Part 11 of the Local Government
Regulation 2012.
Internal Audit operates as an independent
function within Council, reporting directly to the
Chief Executive Officer and the Audit and Risk
Management Committee with respect to audit and
investigation findings.
The primary role of the internal audit function is
to assist the Local Government, Chief Executive
Officer, management team and the Audit and Risk
Management Committee to meet their obligations
relating to corporate governance, the system of
internal controls and to identify more efficient,
effective and economical processes. The system
of internal control includes all methods and
procedures adopted by management and includes
management policies for the safeguarding of
assets, the prevention and detection of fraud
or error, the accuracy and completeness of
accounting records and the timely preparation of
reliable financial information.
Organisational reporting requirements
36GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
The majority of internal audit’s effort is directed
towards providing assurance that the Gympie
Regional Council’s network of risk management,
control and governance processes, as designed
and represented by management, is adequate and
functioning in a manner that ensures:
■■ risks are appropriately identified and managed
■■ interaction with the various governance groups
occurs as needed
■■ significant financial, managerial and operating
information is accurate, reliable and timely
■■ activities and actions are in compliance with
policies, standards, procedures and applicable
laws and regulations
■■ resources are economically acquired, efficiently
used and adequately protected
■■ quality and continuous improvements are
fostered in Council’s control processes
■■ significant legislative or regulatory issues
impacting Council are recognised and
addressed properly
■■ opportunities for improving management
control, sound resource management, and
the Council’s image are communicated to the
appropriate level of management.
The Queensland Audit Office released its report on
Fraud Management in Local Government in June
2015. Council adopted a Fraud and Corruption
Prevention and Control Policy at its Ordinary
Meeting held in June 2016. This policy is supported
by an associated Control Plan which sets out a
range of actions, responsibilities and time frames
aimed at effectively implementing the intent of the
policy on an ongoing basis. Quarterly updates on
progress being achieved with the implementation
of the Control Plan are being reported to the Audit
and Risk Management Committee for additional
oversight and input as required.
Council adopted a number of changes to the
Committee’s Charter from the commencement of
the new term of Council the most notable being
the appointment of an independent Chair to the
Committee. This is considered to be in line with
current best practice and provides maximum
transparency to the Committee’s important
oversight role.
During the 2015-2016 financial year several
key internal audits were conducted in line with
Council’s annual Internal Audit Plan. These
included significant audits by qualified external
auditors on Council’s Payroll and Plant and
Equipment areas of operation.
Recommendations stemming from internal audits
are actioned as appropriate with any unresolved
or identified issues monitored by Internal Audit,
the Chief Executive Officer and the Audit and Risk
Management Committee as required.
Organisational reporting requirements
37GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Community financial report
The Community Financial Report is presented in
accordance with the Local Government Regulation
2012, s179, which requires that this report
accompany the Financial Statements in the Annual
Report.
The Community Financial Report is intended to
simplify complex financial information, assisting
readers to evaluate Council’s financial performance
and financial position in a form which is easily
understood by the community.
The General Purpose Financial Statements are a
record of Council’s financial performance for the
year ended 30 June 2016.
The report highlights areas of importance to
allow interested stakeholders the opportunity to
make their own informed decisions. The four key
financial statements for 2015-2016 and the key
performance indicators are described as follows:
■■ Statement of Comprehensive Income - shows
revenue, expenses and asset revaluation
adjustments for the 2015-2016 year.
■■ Statement of Financial Position - shows
the assets and liabilities which make up the
community equity as at 30 June 2016.
■■ Statement of Changes in Equity - shows the
movement in total community equity.
■■ Statement of Cash Flows - shows the nature
and amount of Council's cash inflows and
outflows from all activities.
■■ Financial Sustainability Ratios – for reviewing
Council performance and sustainability.
Statement of Comprehensive
Income
This statement shows Council's financial
performance for the year. It reflects how the
money received from council operations is spent
providing services to the community.
The Statement of Comprehensive Income includes
both operating revenue and expenses, and capital
revenue and expenses.
Operating revenue is income from Council’s dayto-day
operations, such as rates, fees and charges,
rentals, interest, sales of contract and recoverable
works, grants, subsidies, contributions and
donations, etc. Operating expenses are the dayto-day
costs of running the organisation, such as
wages, maintenance, materials, depreciation and
finance costs.
Capital revenue includes grants and developer
contributions for funding capital construction
projects. Capital expenditure is monies spent on
assets and infrastructure, such as parks, roads,
water and sewerage, land, buildings, plant and
equipment.
Asset Revaluations are changes to the fair value of
Council’s property, plant and equipment as a result
of market and cost movements.
Revenue in - Expenses out = Result for the year
2015-2016 2014-2015 2013-2014
Operating Revenue $79,891,000 $81,162,000 $79,229,000
Operating Expenses -$85,066,000 -$77,401,000 -$76,750,000
Operating Result -$5,175,000 $3,761,000 $2,479,000
Net Capital Revenue and Expenses $7,451,000 -$4,649,000 $13,792,000
Net result $2,276,000 -$888,000 $16,271,000
Asset Revaluation in period $21,976,000 -$9,475,000 $14,271,000
Total comprehensive income for the period $24,252,000 -$10,363,000 $30,542,000
38GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Council’s revenue
Total income (revenue) for 2015-2016 was
$94.3 million, being $79.9 million from
operations and $14.4 million from capital
sources. The major source of operating
revenue was rates and utility charges of
$62 million or around 78 per cent of the
total. The number of rateable properties
in the Region was 24,754 (2014-2015 was
24,688).
As rates and charges make up 78 per cent
of operating revenue, Council has a low
reliance on external funding – this provides
Council with financial flexibility and assists
in determining its rates and charges income
and not have significant reliance on grants
and subsidies which is out of its control.
Operating Revenue 2015-2016 2014-2015 2013-2014
Rates and charges $62,212,000 $62,552,000 $61,726,000
Fees and other income $9,016,000 $9,199,000 $8,232,000
Interest received $2,986,000 $3,649,000 $3,908,000
Grants and subsidies $5,677,000 $5,762,000 $5,363,000
Total $79,891,000 $81,162,000 $79,229,000
Rates and Charges
78%
Grants and
Subsidies 7%
Interest 4% Other 0%
Recoverable
Works 5%
Fees and
Charges 6%
Operating Revenue 2015-2016
Community financial report
39GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Sewerage services performance assessmentCouncil’s Expenses
Council provides a wide range of more than
100 different services to the community. Work
is completed by Council staff and contractors.
Council policy is to encourage the use of local
suppliers, where possible, so that the money
stays within our community and boosts the
local economy. Services provided by Council
include planning and development, economic
development, tourism, recreation and sport,
airport, saleyards, community and culture, health
and environment, waste management, water and
sewerage, and roads infrastructure.
Depreciation is the annual consumption of assets
or the decline in value of the assets controlled by
Council. Council needs to raise sufficient revenue
each year to cover the amount of depreciation so
that the future replacement of those assets can
be funded. Council has achieved this through the
reporting of an operating surplus.
Employee Costs
35%
Materials and Services
44%
7% Depreciation
19%
Finance
Costs
2%
Operating Expenses 2015-2016
Community financial report
Operating Expenses 2015-2016 2014-2015 2013-2014
Employee costs $29,742,000 $29,114,000 $29,475,000
Materials and services $37,402,000 $30,938,000 $30,454,000
Depreciation $16,252,000 $15,779,000 $15,114,000
Finance costs and other $1,670,000 $1,570,000 $1,707,000
Total $85,066,000 $77,401,000 $76,750,000
40GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Statement of Financial Position
The Statement of Financial Position shows
what council owns (assets), what council owes
(liabilities) and our net community wealth (equity).
Council’s Assets
The total value of assets was $1,188 million
(2014-2015 $1,168m). Council's assets include
land and buildings, roads, water and sewerage
infrastructure, other infrastructure, plant and
equipment and intangibles. In addition, Council
holds other short term assets including cash
held in bank accounts and investments of
approximately $71 million to assist with the
funding of future operations of Council including
the provision of infrastructure projects.
The value of community assets has increased due
to revaluations, replacements and assets being
provided to support the growing population.
Council's funding of these assets is provided
through cash resources, grants, contributions and
where appropriate, loan funding.
Council’s Liabilities
The total liabilities of Council were $55 million
(2014-2015 $58.7m). Council's liabilities include
amounts owing to employees for annual leave,
long service leave and sick leave entitlements of
$12 million (2014-2015 $12m), amounts payable
to suppliers and contractors $4 million (2014-2015
$7.9m), monies paid in advance to Council
$2 million (2014-2015 $0.6m) and loans
$21.7 million (2014-2015 $22.9m). Affordability
indicators show that Council is well placed to
service its debt position.
2015-2016 2014-2015 2013-2014
Assets $1,188,018,000 $1,167,535,000 $1,158,992,000
Less Liabilities -$54,977,000 -$58,746,000 -$39,841,000
Equity $1,133,041,000 $1,108,789,000 $1,119,151,000
Represented by:
Retained Surplus/Deficit $0 $0 $681,000
Council Capital $702,941,000 $632,934,000 $615,990,000
Asset Revaluation Surplus $430,100,000 $408,124,000 $417,598,000
General Reserves $0 $67,731,000 $84,882,000
$1,133,041,000 $1,108,789,000 $1,119,151,000
Council’s Community Equity
Council's Community Equity is the wealth of the
region (what our community owns). It is the result
of Council's assets less Council's liabilities.
In 2015-2016, our Community Equity was
$1,133 million (2014-2015 $1,109 m).
Community financial report
41GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Community financial report
2015-2016 2014-2015 2013-2014
Cash Opening Balance $84,357,000 $88,251,000 $93,526,000
Plus Cash Received $97,416,000 $96,020,000 $103,902,000
Less Cash Spent -$110,431,000 -$99,914,000 -$109,177,000
Cash Closing Balance $71,342,000 $84,357,000 $88,251,000
Council's Capital Works
Council's investment in community infrastructure
or completed Capital Works was $32 million
(2014-2015 $36m).
Council’s Capital Works
Roads 35% Water 5%
Sewerage 16%
Other
Infrastructure
27%
Intangible Assets 1%
Buildings 5%
Site Improvements 10%
Plant and Equipment 1%
Statement of Cash Flows
The Statement of Cash Flows shows how Council
receives and spends money during the year.
Council's cash held at the end of the reporting
period was $71.3 million (2014-2015 $84.4m).
Cash on hand consists of:
■■ working capital cash to meet the day-to-day
funding requirements; and
■■ restricted cash; funds set aside by Council to
meet grant and contribution obligations as well
as its own requirements for future identified
capital and operating projects.
42GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Council’s Financial Sustainability
Relevant Measures
Council’s key measure of sustainability revolves
around the maintenance of its capital value and
capacity.
Council’s Financial Statements and Long
Term Financial Forecast are prepared on the
consistent basis of identifying its capital value
and monitoring the maintenance of that value.
The main indicator that capital capacity is being
maintained is the achievement of an operating
surplus for the reporting period. The Financial
Statements for the year to June 2016 show the net
operating result, which is prior to capital grants
and contributions being included, as a deficit of
$5.17 million.
For the year ended June 2015, the net operating
result was a surplus of $3.76 million. Council's
capital value at June 2016 was $1,099 million
compared to $1,067 million at June 2015, with
further increases expected over the next 10 years.
Financial Management Strategy
Council’s financial management strategy is focused
on the maintenance of the capital value required
to deliver community services at a sustainable
level into the future.
The asset management plans forecast replacement
and renewal costs over the next 10 years. Funds
required to cover this expenditure are compared
to the funds provided from the funding of
depreciation expense on existing assets. If a
shortfall (gap) is identified, then alternative
strategies are investigated to bridge this funding
gap. These include:
1.	 surplus funds that may exist from current
operating surpluses;
2.	 increasing pricing for services rendered;
3.	 rescheduling of maintenance and capital
works;
4.	 long term borrowing;
5.	 evaluating the level of service that is
affordable.
These strategies are applied within individual
business units, e.g. water and sewerage and the
rest of Council programs.
Community financial report
43GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Council’s Financial Sustainability Ratios
Asset Sustainability
Ratio
Capital expenditure on replacement
assets divided by depreciation expense
■■ Indicator suggests percentage should be >90%
■■ This indicator should be averaged over at least 10 years. Not an annual expectation.
■■ Shows the amount spent on replacement/renewal assets compared to the annual depreciation
of those assets.
Operating Surplus
Ratio
Net operating result divided by total
operating revenue
■■ Guidance range is 0% to 10%.
■■ Indicates ability to maintain and expand council’s capital value and services from own resources.
Net Financial
Liability Ratio
Total liabilities less current assets
divided by total operating revenue
■■ Guidance range is – not greater than 60%.
■■ Gympie Regional Council has a negative percentage because current assets exceed total
liabilities. This indicates a very strong financial position.
Actual Results Long Term Financial Plan Projections - Budget Years
Ratio Target 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2023-2024 2024-2025
Asset
Sustainability
>90% 170.15% 107.19% 91.9% 73.0% 81.7% 65.7% 48.8% 48.7% 50.6% 53.7% 55.5% 46.83%
Operating
Surplus
0% - 10% 4.63% -6.48% 1.5% 2.1% 3.7% 5.4% 7.3% 9.3% 11.4% 13.5% 15.6% 4.99%
Net Financial
Liability
<60% -51.78% -42.44% -23.4% -15.6% -22.0% -33.3% -45.4% -62.7% -80.8% -99.3% -118.4% -68.24%
Community financial report
44GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Councillor Expenses
Reimbursement Policy
The Councillor Expenses Reimbursement Policy
(GRC011) was last amended by Council at its
Ordinary Meeting held on 16 June 2016 via minute
M07/06/16.
A full copy of the Councillor Expenses
Reimbursement Policy is available from Council’s
website under the Publication Scheme and also as
the attachment document to minute M07/06/16
available from the Minutes section of our website.
Appendix A: Minutes extract
Valuation of non-current
physical assets
No resolutions were passed during the period in
relation to s 206(2) of the Regulation which deals
with setting an amount for each different type of
non-current physical asset below which the value
of an asset of the same type must be treated as an
expense.
45GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix B: List of business activities
Further to the requirements of s45(a) of the Act the following list of business activities is presented as
aligned to the key strategic themes of Council’s Corporate Plan 2014-2019.
Infrastructure ... planned,
connected and safe
Aerodromes
Asset construction
Caravan parks
Community facilities
Depot and workshop operations
Design
Disaster management
Engineering operations and administration
Fleet/plant operations
Footpaths, verges and non-developed land
Foreshores
Main roads (contract work)
Other recoverable works
Parks
Public amenities
Quarry strategy and operations
Saleyards
Sewerage administration, planning and design
Sewerage maintenance
Sewerage operations
Swimming pools
Water administration, planning and design
Water maintenance
Water operations
Economic development ...
vibrant, strong and resilient
Development assessment and compliance
Destination Gympie Region
Economic development
Events
Industry development
Strategic and regional planning
Governance ... cohesive,
responsible and transparent
Asset Management System
Business continuity
Capital works
Change management
Community/regional engagement
Council business operations
Council executive management
Councillor support services
Customer contact
Election services
Financial accounting
Geographical Information Systems
Governance – Legal
Information and communication technology
system
Insurance
Internal audit
Internal systems
Management accounting
Media and public relations
People and organisational development
Procurement management and stores
Property management
Rating
Records management
Right to Information and Privacy related
Risk management
Work health and safety
Environment ... sustainable,
managed and healthy
Animal control services
Energy efficiency
Environmental health regulation
Building regulatory services
Cemetery management
Environmental planning
Environmental protection
Environmental services
Lands protection
Local Law services
Plumbing regulatory services
Waste management
Social wellbeing ... active,
diverse, creative and
empowered
Art Gallery
Arts and culture
Community development
Gympie Aquatic Recreation Centre
Heritage facilities and museums
Heritage planning and awareness
Libraries
Open space and recreation
46GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix C: Report on water and sewerage services 2015-16
Introduction
The Water Supply (Safety and Reliability) Act 2008
requires registered service providers to prepare an
annual report on their Customer Service Standard
(CSS). This annual report provides a comparison of
actual performance against targets set in the CSS.
Overview of services
Council operates and maintains water supply
schemes in Gympie, Imbil, Kandanga, Amamoor,
Kilkivan, Goomeri, Rainbow Beach and Tin Can
Bay/Cooloola Cove. Summaries of scheme
statistics are shown in the following tables.
Table 1: Water Supply Summary
No of properties connected to water supply
system
13,327
Total water used (ML) 3701
Average metered yearly water use per
connected property (kL)
277
Total length of water mains (km) 422
Table 2: Sewerage Summary
Number of assessments 11,530
Total waste water stream (ML) 2500
Average yearly flow per assessment (kL) 217
Total length of sewer mains (km) 416
Performance assessment
A summary of performance indicators, targets,
actual performance and confidence levels for
Council’s water supply and sewerage schemes are
presented in Table 3.
The confidence levels (reliability and accuracy
bands) used in our annual report are based on
those in the Department of Environment and
Resource Management’s Guidelines for Preparing
Strategic Asset Management Plans. An excerpt
explaining the application of these confidence
levels in included at the end of this report.
Improvements in 2015-2016
Improvements to service performance compared
to 2014/15 include:
■■ The sewage pump stations refurbishment
program has continued.
■■ An ongoing CCTV program has identified areas
where preventative and remedial action would
be beneficial
■■ A sewer main relining program has continued
in Gympie and towns on the Cooloola Coast.
This program has reduced intrusion of saline
groundwater to collection systems and
■■ given extended life to infrastructure which has
reached the end of its useful life.
■■ The Southside Sewerage Program has
progressed.
■■ Work has commenced on the upgrading of the
water treatment plants at Imbil, Kandanga and
Amamoor.
■■ Improvements have been commenced on
Council’s telemetry and alarm systems.
47GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Table 3: Water services performance assessment
Performance Indicator Target Actual Target Reached
Yes/No
Confidence
Reliability
Grading
Accuracy
Continuity of your water supply
Planned interruptions per 100km of water main/year (incidents) <10 8.0 Yes B 3
Unplanned interruptions per 100km of water main/year (incidents) <10 6.5 Y B 3
Unplanned interruptions per 1000 connections/year <5 2.0 Y B 3
Response/reaction time to all incidents <90 min 35 Y C 5
Adequacy and quality of normal supply
Minimum water pressure expectation at boundary:
- Demand Flow
- Constant Flow
<12m head
<12m head 100per cent Y A 1
Minimum flow:
- Demand Flow
- Constant Flow
20L/minute
1L/minute 100per cent Y A 1
Compliance with NHMRC Guidelines (physical, chemical, microbiological) >98 per cent 99 per cent *(1) Y A 2
Drinking water quality complaints per 1000 connections/year <10 1 Y B 5
Continuity of sewerage
Number of sewer main breaks and chokes per 100km mains/year <25 5 Y B 3
Total sewage overflow incidents per year <10 3 Y B 3
Restoration of services 90 per cent within 5 hours 120 Y C 5
Response time to all incidents <90 minutes 60 Y C 5
Total water and sewerage complaints per 1000 properties <100 4 Y C 5
*(1) Some water supplies have hardness which is slightly above the Aesthetic Guideline Limit. All results complied with the guidelines for health based physical and chemical parameters.
Further information in relation to Water and Sewerage performance is published annually on Council’s website gympie.qld.gov.au/water-and-sewerage.
Appendix C: Report on water and sewerage services 2015-16
48GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Confidence gradings for levels of service data
A service provider should assign a “confidence rating” when reporting the actual level of service achieved
against the level of service standards.
The “confidence grading” should identify a “reliability band” and an “accuracy band” for each item of data.
Reliability Bands
A Highly
reliable
Data is based on sound records, procedures, investigations or analyses that are properly documented and
recognised as the best available assessment methods.
B Reliable Generally as in “A”, but with minor shortcomings e.g. some of the documentation is missing, the assessment is
old, or some reliance on unconfirmed reports, or there is some extrapolation are made (e.g. extrapolations from
records that cover more than 50 per cent of the service provider’s system).
C Unreliable Generally as in “A” or “B”, but data is based on extrapolations from records that cover more than 30 per cent (but
less than 50 per cent) of the service provider’s system.
D Highly
unreliable
Data is based on unconfirmed verbal reports and/or cursory inspections or analysis, including extrapolations
from such reports/inspections/analysis.
Accuracy Bands
1 +/- 1 per cent
2 +/- 5 per cent
3 +/- 10 per cent
4 +/- 25 per cent
5 +/- 50 per cent
6 +/- 100 per cent
For example: In reporting on achievement against the level of service target
for the number of interruptions per ‘000’ connections, the confidence grading
assigned was A2. That is, the data was based on sound records (Highly reliable
– band A) estimated to be within +/- 5 per cent (Accuracy Band -2). The grading
assigned depends on the type and sophistication of monitoring systems that are
in place. For example, system water loss could be measured by comprehensive
metering (higher grading) or simply by a drop test (lesser grading). The feasibility
and efficacy of employing different measurement tools will vary between service
providers depending on the size, nature and complexity of the system and
available resources.
Appendix C: Report on water and sewerage services 2015-16
49GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council
General Purpose Financial Statements
for the year ended 30 June 2016
Page 1
Table of Contents Page
1. Primary Financial Statements:
Statement of Comprehensive Income 2
Statement of Financial Position 3
Statement of Changes in Equity 4
Statement of Cash Flows 5
2. Notes to the Financial Statements
1 Summary of Significant Accounting Policies 6
2(a) Council Functions - Component Descriptions 14
2(b) Council Functions - Analysis of Results by Function 15
3 Revenue Analysis 16
4 Grants, Subsidies, Contributions and Donations 18
5 Employee Benefits 18
6 Materials and Services 19
7 Capital Expenses 19
8 Cash, Cash Equivalents and Investments 20
9 Trade and Other Receivables 21
10 Inventories 22
11 Property, Plant and Equipment 23
12 Fair Value Measurements 25
13 Trade and Other Payables 34
14 Borrowings 35
15 Provisions 36
16 Asset Revaluation Reserve 37
17 Commitments for Expenditure 38
18 Contingent Liabilities 38
19 Superannuation 39
20 Trust Funds 41
21 Reconciliation of Net Operating Surplus for the year to Net Cash Inflow (Outflow) from
Operating Activities 41
22 Events Occurring After Balance Sheet Date 42
23 Financial Instruments 43
24 National Competition Policy 48
25 Controlled Entities that have not been Consolidated 49
3. Management Certificate 50
4. Independent Auditor's Report 51
5. Current Year Financial Sustainability Statement 53
Certificate of Accuracy - Current Year Financial Sustainability Statement 55
Independent Auditor's Report - Current Year Financial Sustainability Statement 56
6. Long Term Financial Sustainability Statement 58
Certificate of Accuracy - Long Term Financial Sustainability Statement 60
50 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council
Statement of Comprehensive Income
for the year ended 30 June 2016
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 2
2016 2015
Notes $'000 $'000
Income
Revenue
Recurrent Revenue
Rates, Levies and Charges 3a 62,212 62,552
Fees and Charges 3b 4,958 4,002
Rental Income 284 340
Interest and Investment Revenue 3c 2,986 3,649
Sales Revenue 3d 3,356 4,669
Other Income 418 188
Grants, Subsidies, Contributions and Donations 4a 5,677 5762
Total Recurrent Revenue 79,891 81,162
Capital Revenue
Grants, Subsidies, Contributions and Donations 4b 14,394 10,994
Total Income 94,285 92,156
Expenses
Recurrent Expenses
Employee Benefits 5 29,742 29,114
Materials and Services 6 37,402 30,938
Finance Costs 1,670 1,570
Depreciation and Amortisation 11 16,252 15,779
Total Recurrent Expenses 85,066 77,401
Capital Expenses 7 6,943 15,643
Total Expenses 92,009 93,044
Net Result 2,276 (888)
Other Comprehensive Income
Amounts which will not be reclassified subsequently to the Net Result
Increase/(decrease) in asset revaluation surplus 16 21,976 (9,475)
Total Other Comprehensive Income 21,976 (9,475)
Total Comprehensive Income 24,252 (10,363)
51GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council
Statement of Financial Position
for the year ended 30 June 2016
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 3
2016 2015
Notes $'000 $'000
ASSETS
Current Assets
Cash and Cash Equivalents 8 71,342 84,357
Trade and Other Receivables 9 13,297 13,690
Inventories 10 4,242 2,729
Total Current Assets 88,881 100,776
Non-Current Assets
Trade and Other Receivables 9 240 289
Property, Plant and Equipment 11 1,098,897 1,066,470
Total Non-Current Assets 1,099,137 1,066,759
TOTAL ASSETS 1,188,018 1,167,535
LIABILITIES
Current Liabilities
Trade and Other Payables 13 10,177 14,234
Borrowings 14 1,251 1,236
Provisions 15 7,178 7,028
Other Liabilities – Unearned Revenue 2,003 606
Total Current Liabilities 20,609 23,104
Non-Current Liabilities
Trade and Other Payables 13 122 116
Borrowings 14 20,478 21,714
Provisions 15 13,768 13,812
Total Non-Current Liabilities 34,368 35,642
TOTAL LIABILITIES 54,977 58,746
Net Community Assets 1,133,041 1,108,789
COMMUNITY EQUITY
Asset Revaluation Surplus 16 430,100 408,124
Retained Surplus 702,941 632,934
Reserves - 67,731
Total Community Equity 1,133,041 1,108,789
52 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council
Statement of Changes in Equity
for the year ended 30 June 2016
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 4
Notes
Asset
Revaluation
Surplus
$'000
Retained
Surplus
$'000
Other
Reserves
$'000
Total
Equity
$'000
2016
Opening Balance 408,124 632,933 67,732 1,108,789
Net Operating Surplus for the Year - 2,276 - 2,276
Other Comprehensive Income
- Increase in Asset Revaluation Surplus 16 21,976 - - 21,976
Other Comprehensive Income 21,976 - - 21,976
Total Comprehensive Income 21,976 2,276 24,252
Transfers to Reserves - (214) 214 Transfers
from Reserves (1) - 67,946 (67,946) Equity
Balance as at 30 June 2016 430,100 702,941 - 1,133,041
Notes
Asset
Revaluation
Reserve
$'000
Retained
Surplus
$'000
Other
Reserves
$'000
Total
Equity
$'000
2015
Opening Balance 417,599 616,670 84,883 1,119,152
Net Operating Surplus for the Year - (888) - (888)
Other Comprehensive Income
- Increase in Asset Revaluation Surplus 16 (9,475) - - (9,475)
Other Comprehensive Income (9,475) - - (9,475)
Total Comprehensive Income (9,475) (888) - (10,363)
Transfers to/(from)
Reserves
- 17,151 (17,151) Equity
Balance as at 30 June 2015 408,124 632,933 67,732 1,108,789
(1) Transfers from Reserves
The Council's Cash and Cash Equivalents are subject to a number of internal restrictions that limit the amount that is
available for discretionary or future use. In prior years the Council accounted for these restrictions using a system of
Reserves.
On 16 June 2016 the Council passed a resolution to close all existing Reserves and account for these Restrictions using an
internal management accounting system.
All existing Reserve balances were transferred to Retained Surplus on that date.
53GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council
Statement of Cash Flows
for the year ended 30 June 2016
The above statement should be read in conjunction with the accompanying Notes and Significant Accounting Policies. Page 5
2016 2015
Notes $'000 $'000
Cash Flows from Operating Activities
Receipts from Customers 73,404 76,491
Payments to Suppliers and Employees (72,305) (65,788)
1,099 10,703
Receipts:
Investment and Interest Revenue Received 3,006 3,737
Non Capital Grants and Contributions 4,988 5,762
Other
Payments:
- Borrowing
Costs (1,670) (1,525)
Net Cash Inflow from Operating
Activities
21 7,423 18,677
Cash Flows from Investing Activities
Receipts:
Sale of Investment Securities - 4,000
Sale of Property, Plant and Equipment 1,137 883
Grants, Subsidies, Contributions and Donations 14,881 9,147
Payments:
Purchase of Real Estate Assets - Purchase
of Property, Plant and Equipment (35,235) (35,426)
Net Cash Outflow from Investing Activities (19,217) (21,396)
Cash Flows from Financing Activities
Payments:
Repayment of Borrowings and Advances (1,221) (1,175)
Net Cash Outflow from Financing Activities (1,221) (1,175)
Net Increase/(Decrease) for the year (13,015) (3,894)
Cash and Cash Equivalents at beginning of the financial year 84,357 88,251
Cash and Cash Equivalents at end of financial year 8 71,342 84,357
54 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 6
Note 1. Summary of Significant Accounting Policies
(1.a) Basis of preparation
These general purpose financial statements are for
the period 1 July 2015 to 30 June 2016 and have
been prepared in compliance with the requirements
of the Local Government Act 2009 and the Local
Government Regulation 2012. Consequently, these
financial statements have been prepared in
accordance with all Australian Accounting Standards,
Australian Accounting Interpretations and other
authoritative pronouncements issued by the
Australian Accounting Standards Board.
These financial statements have been prepared
under the historical cost convention except for the
following:
• Financial assets and liabilities, certain classes of
property, plant and equipment and investment
property which are measured at fair value;
• Assets held for sale which are measured at fair
value less cost of disposal.
Recurrent/capital classification
Revenue and expenditure are presented as
"recurrent" or "capital" in the Statement of
Comprehensive Income on the
following basis:
Capital Revenue includes grants and subsidies
received which are tied to specific projects for the
replacement or upgrade of existing non-current
assets and/or investment in new assets. It also
includes non-cash contributions which are usually
infrastructure assets received from developers.
The following transactions are classified as either
"Capital Income" or "Capital Expenses" depending on
whether they result in accounting gains or losses:
- disposal of non-current assets
- discount rate adjustments to restoration
provisions
- revaluations of investment property and property,
plant and equipment.
All other revenue and expenses have been classified
as "recurrent".
The Gympie Regional Council is constituted under
the Queensland Local Government Act 2009 and is
domiciled in Australia.
The Council uses the Australian dollar as its
functional currency and its presentation currency.
The Council has an interest in two controlled entities
during the year being:
• Mary Valley Community Holding Limited;
• Rattler Railway Company Limited
These controlled entities have not been consolidated
because they are not considered material.
Details are provided in Note 25.
(1.b) Statement of Compliance
These general purpose financial statements comply
with all accounting standards and interpretations
issued by the Australian Accounting Standards Board
(AASB) that are relevant to Council's operations and
effective for the current reporting period. Because
the Council is a not-for-profit entity and the
Australian Accounting Standards include
requirements for not-for-profit entities which are
inconsistent with International Financial Reporting
Standards (IFRS), to the extent these inconsistencies
are applied, these financial statements do not
comply with IFRS. The main impacts are the
offsetting of revaluation and impairment gains and
losses within a class of assets, and the timing of the
recognition of non-reciprocal grant revenue.
(1.c) Date of Authorisation
The financial statements were authorised for issue on
the date they were submitted to the Auditor-General
for final signature. This is the date the management
certificate is signed.
(1.d) Adoption of New and Revised
Accounting Standards
In the current year, the Council adopted all of the
new and revised Standards and Interpretations
issued by the Australian Accounting Standards Board
(AASB) that are relevant to its operations and
effective for the current reporting period. The
adoption of the new and revised Standards and
Interpretations has not resulted in any material
changes to the Council's accounting policies.
55GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 7
Note 1. Summary of Significant Accounting Policies (Continued)
(1.e) Critical accounting judgements and
key sources of estimation
uncertainty
In the application of the Council's accounting
policies, management is required to make
judgements, estimates and assumptions about
carrying values of assets and liabilities that are not
readily apparent from other sources. The estimates
and associated assumptions are based on historical
experience and other factors that are considered to
be relevant. Actual results may differ from these
estimates. The estimates and ongoing assumptions
are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in
which the estimate is revised and in future periods as
relevant.
Judgements, estimates and assumptions that have a
potential significant effect are outlined in the
following financial statement notes:
• Valuation and Depreciation of Property, Plant and
Equipment - Note 1.j and Note 12
• Provisions - Note 1.p and Note 15
• Contingencies - Note 18.
(1.f) Revenue
Rates, levies, grants and other revenue are
recognised as revenue on receipt of funds or earlier
upon unconditional entitlement to the funds.
Rates and levies
Where rate monies are received prior to the
commencement of the rating/levying period, the
amount is recognised as revenue in the period in
which they are received, otherwise rates are
recognised at the commencement of rating period.
Grants and subsidies
Grants, subsidies and contributions that are nonreciprocal
in nature are recognised as revenue in the
year in which the Council obtains control over them.
Non-cash contributions
Non-cash contributions with a value in excess of the
recognition thresholds, are recognised as revenue
and as non-current assets. Non-cash contributions
below the thresholds are recorded as revenue and
expenses.
Physical assets contributed to the Council by
developers in the form of road works, stormwater,
water and wastewater infrastructure and park
equipment are recognised as revenue when the
development becomes "on maintenance" (i.e. the
Council obtains control of the assets and becomes
liable for any ongoing maintenance) and there is
sufficient data in the form of drawings and plans to
determine the approximate specifications and values
of such assets. All non-cash contributions are
recognised at the fair value of the contribution
received on the date of acquisition.
Cash contributions
Developers also pay infrastructure charges for trunk
infrastructure, such as pumping stations, treatment
works, mains, sewers and water pollution control
works. These infrastructure charges are not within
the scope of AASB Interpretation 18 because there is
no performance obligation associated with them.
Consequently, the infrastructure charges are
recognised as income when received.
Interest
Interest received from term deposits is accrued over
the term of the investment.
Fees and Charges
Fees and charges are recognised upon unconditional
entitlement to the funds. Generally this is upon
lodgment of the relevant applications or documents,
issuing of the infringement notice or when the
service is provided.
(1.g) Financial assets and Financial
liabilities
Council recognises a financial asset or a financial
liability in its Statement of Financial Position when,
and only when, the Council becomes a party to the
contractual provisions of the instrument.
Gympie Regional Council has categorised and
measured the financial assets and financial liabilities
held at balance date as follows:
Financial assets
• Cash and cash equivalents (Note h)
• Receivables - measured at amortised cost (Note 1(i))
Financial liabilities
• Payables - measured at amortised cost (Note 1.m)
• Borrowings - measured at amortised cost (Note 1.o)
Financial assets and financial liabilities are presented
separately from each other and offsetting has not
been applied.
All other disclosures relating to the measurement
and financial risk management of financial
instruments are included in Note 23.
56 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 8
Note 1. Summary of Significant Accounting Policies (Continued)
(1.h) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, all
cash and cheques receipted but not banked at the
year end, deposits held at call with financial
institutions, other short-term, highly liquid
investments with original maturities of three months
or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts.
Held-to-maturity investments
Held-to-maturity investments are non-derivative
financial assets with fixed or determinable payments
and fixed maturities that the Council’s management
has the positive intention and ability to hold to
maturity.
In contrast to the “Loans and Receivables”
classification, these investments are generally quoted
in an active market.
Held-to-maturity financial assets are included in noncurrent
assets, except for those with maturities less
than 12 months from the reporting date, which are
classified as current assets.
(1.i) Trade and Other Receivables
Trade receivables are recognised at the amounts due
at the time of sale or service delivery i.e. the agreed
purchase price/contract price. Settlement of these
amounts is required within 30 days from invoice
date.
The collectability of receivables is assessed
periodically and if there is objective evidence that
Council will not be able to collect all amounts due,
the carrying amount is reduced for impairment. The
loss is recognised in finance costs. The amount of the
impairment is the difference between the asset’s
carrying amount and the present value of the
estimated cash flows discounted at the effective
interest rate.
All known bad debts were written-off at 30 June.
Subsequent recoveries of amounts previously written
off in the same period are recognised as finance
costs in the Statement of Comprehensive Income. If
an amount is recovered in a subsequent period it is
recognised as revenue.
Because Council is empowered under the provisions
of the Local Government Act 2009 to sell an owner's
property to recover outstanding rate debts, Council
does not impair any rate receivables.
Loans and advances are recognised in the same way
as other receivables. Terms are usually a maximum of
five years with interest charged at commercial rates.
Security is not normally obtained.
(1.j) Property, Plant and Equipment
Each class of property, plant and equipment is stated
at cost or fair value less, where applicable, any
accumulated depreciation and accumulated
impairment loss. Items of plant and equipment,
buildings and infrastructure assets with a total value
of less than $5,000, and intangible assets with a total
value of less than $50,000 are treated as an expense
in the year of acquisition. All other items of property,
plant and equipment are capitalised.
The classes and the range of useful lives of property,
plant and equipment recognised by the Council are:
Category Years
Land and Improvements Land not depreciated
- Improvements 6 - 210
Buildings 12 - 200
Plant and Equipment
- Major Plant 5 - 20
- Other Plant and Equipment 1 - 25
Infrastructure
- Roads, Bridges and Drainage20 -180
- Water 10 - 100
- Sewerage 5 - 100
- Other Infrastructure Assets 17 - 120
Work in Progress Not Depreciated
Acquisition of assets
Acquisitions of assets are initially recorded at cost.
Cost is determined as the fair value of the assets
given as consideration plus costs incidental to the
acquisition, including freight in, architect's fees and
engineering design fees and all other establishment
costs.
Property, plant and equipment received in the form
of contributions, are recognised as assets and
revenues at fair value by Council valuation where
that value exceeds the recognition thresholds for the
respective asset class. Fair value is the price that
would be received to sell the asset in an orderly
transaction between market participants at the
measurement date.
57GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 9
Note 1. Summary of Significant Accounting Policies (Continued)
Capital and operating expenditure
Direct labour and materials and an appropriate
proportion of overheads incurred in the acquisition
or construction of assets are treated as capital
expenditure. Assets under construction are not
depreciated until they are completed and
commissioned, at which time they are reclassified
from work in progress to the appropriate property,
plant and equipment class.
Routine operating maintenance, repair costs and
minor renewals to maintain the operational capacity
and useful life of the non-current asset is expensed
as incurred, while expenditure that relates to
replacement of a major component of an asset to
maintain its service potential is capitalised.
Expenditure incurred in accordance with Natural
Disaster Relief and Recovery Arrangements on road
assets is analysed to determine whether the
expenditure is capital in nature. The analysis of the
expenditure requires Council engineers to review the
nature and extent of expenditure on a given asset.
For example, expenditure that patches a road is
generally maintenance in nature, whereas a kerb to
kerb rebuild is treated as capital. Material
expenditure that extends the useful life or renews the
service potential of the asset is capitalised.
Valuation
Land and improvements, buildings, major plant and
all infrastructure assets are measured on the
revaluation basis, at fair value, in accordance with
AASB 116 -Property, Plant and Equipment and AASB
13 - Fair Value measurement. Other plant and
equipment and work in progress are measured at
cost.
Non-current physical assets measured at fair value
are revalued, where required, so that the carrying
amount of each class of asset does not materially
differ from its fair value at the reporting date. This is
achieved by engaging independent, professionally
qualified valuers to determine the fair value for each
class of property, plant and equipment assets at least
once every 3 years. This process involves the valuer
physically sighting a representative sample of
Council assets across all asset classes and making
their own assessments of the condition of the assets
at the date of inspection.
In the intervening years, the Council uses internal
engineers to assess the condition and cost
assumptions associated with all infrastructure assets,
the results of which are considered in combination
with indexes provided by our valuers. Together these
are used to form the basis of a management
valuation for infrastructure asset classes in each of
the intervening years. With respect to the valuation
of the land and improvements, buildings and major
plant asset classes in the intervening years,
management engage independent, professionally
qualified valuers to perform a “desktop" valuation. A
desktop valuation involves management providing
updated information to the valuer regarding
additions, deletions and changes in assumptions
such as useful life, residual value and condition
rating. The valuer then determines suitable indices
which are applied to each of these asset classes.
An analysis performed by management has indicated
that, on average, the variance between an indexed
asset value and the valuation by an independent
valuer when performed is not significant and the
indices used by Council are sound. Further details in
relation to valuers, the methods of valuation and the
key assumptions used are disclosed in Note 12.
Any revaluation increment arising on the revaluation
of an asset is credited to the appropriate class of the
asset revaluation surplus, except to the extent it
reverses a revaluation decrement for the class
previously recognised as an expense. A decrease in
the carrying amount on revaluation is charged as an
expense to the extent it exceeds the balance, if any,
in the revaluation surplus of that asset class.
On revaluation, accumulated depreciation is restated
proportionately with the change in the carrying
amount of the asset and any change in the estimate
of remaining useful life.
Separately identified components of assets are
measured on the same basis as the assets to which
they relate.
Heavy Plant
The Council has determined that plant in the
following categories is recognised as heavy plant:
• Trucks
• Tractors
• Loaders
• Rollers
• Graders
• Forklifts
• Excavators
• Backhoes
• Compactors
58 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 10
Note 1. Summary of Significant Accounting Policies (Continued)
Plant which meets this criteria is major plant if it is
prone to a high degree of price fluctuations or in
danger of becoming obsolete. The asset class
primarily includes specialised earthmoving
equipment.
Capital work in progress
The cost of property, plant and equipment being
constructed by the Council includes the cost of
purchased services, materials, direct labour and an
appropriate proportion of labour overheads.
Depreciation
Land is not depreciated as it has an unlimited useful
life. Depreciation on other property, plant and
equipment assets is calculated on a straight-line
basis so as to write-off the net cost or revalued
amount of each depreciable asset, less its estimated
residual value, progressively over its estimated useful
life to the Council. Management believe that the
straight-line basis appropriately reflects the pattern
of consumption of all Council assets.
Assets are depreciated from the date of acquisition
or, in respect of internally constructed assets, from
the time an asset is completed and commissioned
ready for use.
Where assets have separately identifiable
components that are subject to regular replacement,
these components are assigned useful lives distinct
from the asset to which they relate. Any expenditure
that increases the originally assessed capacity or
service potential of an asset is capitalised and the
new depreciable amount is depreciated over the
remaining useful life of the asset to the Council.
Major spares purchased specifically for particular
assets that are above the asset recognition threshold
are capitalised and depreciated on the same basis as
the asset to which they relate.
The depreciable amount of improvements to or on
leasehold land is allocated progressively over the
estimated useful lives of the improvements to the
Council or the unexpired period of the lease,
whichever is the shorter.
Depreciation methods, estimated useful lives and
residual values of property, plant and equipment
assets are reviewed at the end of each reporting
period and adjusted where necessary to reflect any
changes in the pattern of consumption, physical wear
and tear, technical or commercial obsolescence, or
management intentions. The condition assessments
performed as part of the annual valuation process for
assets measured at depreciated current replacement
cost are used to estimate the useful lives of these
assets at each reporting date.
(1.k) Impairment of Non-Current Assets
Each non-current physical asset and group of assets
is assessed for indicators of impairment annually. If
an indicator of possible impairment exists, the
Council determines the asset’s recoverable amount.
Any amount by which the assets’s carrying amount
exceeds the revoverable amount is recorded as an
impairment loss. The recoverable amount of an asset
is the higher of its fair value less costs to sell and its
value in use.
An impairment loss is recognised as an expense in
the Statement of Comprehensive Income, unless the
asset is carried at a revalued amount. When the asset
is measured at a revalued amount, the impairment
loss is offset against the asset revaluation surplus of
the relevant class to the extent available.
Where an impairment loss subsequently reverses, the
carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but so
that the increased carrying amount does not exceed
the carrying amount that would have been
determined had no impairment loss been recognised
for the asset in prior years. A reversal of an
impairment loss is recognised as income unless the
asset is carried at a revalued amount, in which case
the reversal of the impairment loss is treated as a
revaluation expense.
(1.l) Inventories
Stores and raw materials are valued at the lower of
cost and net realisable value and include, where
applicable, direct material, direct labour and an
appropriate portion of variable and fixed overheads.
Costs are assigned on the basis of weighted average
cost.
Inventories held for distribution are:
- goods to be supplied at no or nominal, charge, and
- goods to be used for the provision of services at no
or nominal, charge.
These goods are valued at cost, adjusted, when
applicable, for any loss of service potential.
Land acquired by Council with the intention of
reselling it (with or without further development) is
classified as inventory. This land is valued at the
lower of cost or net realisable value. As an inventory
item, this land held for resale is treated as a current
asset. Proceeds from the sale of this land will be
recognised as sales revenue on the signing of a valid
unconditional contract of sale.
59GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 11
Note 1. Summary of Significant Accounting Policies (Continued)
(1.m) Payables
Trade creditors are recognised upon receipt of the
goods or services ordered and are measured at the
agreed purchase/contract price net of applicable
discounts other than contingent discounts. Amounts
owing are unsecured and are generally settled on 30
day terms.
(1.n) Liabilities - Employee Benefits
Liabilities are recognised for employee benefits such
as wages and salaries, annual leave and long service
leave in respect of services provided by the
employees up to the reporting date. Liabilities for
employee benefits are assessed at each reporting
date. Where it is expected that the leave will be paid
in the next twelve months the liability is treated as a
current liability. Otherwise the liability is treated as
non-current.
Salaries and wages
A liability for salaries and wages is recognised and
measured as the amount unpaid at the reporting
date at current pay rates in respect of employees'
services up to that date. This liability represents an
accrued expense and is reported in Note 13 as a
payable.
Annual leave
A liability for annual leave is recognised. Amounts
expected to be settled within 12 months are
calculated on current wage and salary levels and
includes related employee on-costs. Amounts not
expected to be settled within 12 months are
calculated on projected future wage and salary levels
and related employee on-costs, and are discounted
to present values. This liability represents an accrued
expense and is reported in Note 13 as a payable. As
council does not have an unconditional right to defer
this liability beyond 12 months annual leave is
classified as a current liability.
Sick leave
Council has an obligation to pay sick leave on
termination to certain employees and therefore a
liability has been recognised for this obligation. This
liability represents an accrued expense and is
reported in Note 13 as a payable.
Superannuation
The superannuation expense for the reporting period
is the amount of the contribution the Council makes
to the superannuation plan which provides benefits
to its employees. Details of those arrangements are
set out in Note 19.
Long service leave
A liability for long service leave is measured as the
present value of the estimated future cash outflows
to be made in respect of services provided by
employees up to the reporting date. The value of the
liability is calculated using current pay rates and
projected future increases in those rates and includes
related employee on-costs. The estimates are
adjusted for the probability of the employee
remaining in the Council's employment or other
associated employment which would result in the
Council being required to meet the liability.
Adjustments are then made to allow for the
proportion of the benefit earned to date, and the
result is discounted to present value. The interest
rates attaching to Commonwealth Government
guaranteed securities at the reporting date are used
to discount the estimated future cash outflows to
their present value. This liability is reported in Note
15 as a provision.
Where employees have met the prerequisite length
of service and the Council does not have an
unconditional right to defer this liability beyond 12
months long service leave is classified as a current
liability. Otherwise it is classified as non-current.
(1.o) Borrowings and Borrowing Costs
Borrowings are initially recognised at fair value plus
any directly attributable transaction costs.
Subsequent to initial recognition these liabilities are
measured at amortised cost.
In accordance with the Local Government Regulation
2012 the council adopts an annual debt policy that
sets out the council's planned borrowings for the
next nine years. The council's current policy is to only
borrow for capital projects and for a term no longer
than the expected life of the asset. The Council also
complies with the Queensland Treasury
Corporation's borrowing guidelines and ensure that
sustainability indicators rem at all times.
All borrowing costs are expensed in the period in
which they are incurred. No borrowing costs are
capitalised on qualifying assets.
60 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 12
Note 1. Summary of Significant Accounting Policies (Continued)
(1.p) Provisions
Provisions for legal claims, service warranties and
other like liabilities are recognised when:
• Council has a present legal or constructive
obligation as a result of past events;
• it is more likely than not that an outflow of
resources will be required to settle the obligation;
and
• the amount has been reliably estimated.
Provisions are not recognised for future operating
losses.
Where there are a number of similar obligations, the
likelihood that an outflow will be required in
settlement is determined by considering the class of
obligations as a whole.
A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the
same class of obligations may be small.
Provisions are measured at the present value of
management’s best estimate of the expenditure
required to settle the present obligation at the
reporting date.
The discount rate used to determine the present
value reflects current market assessments of the time
value of money and the risks specific to the liability.
The increase in the provision due to the passage of
time is recognised as interest expense/finance cost.
Restoration Provisions
A provision is made for the cost of restoration in
respect of refuse dumps and quarries where it is
probable the Council will be liable, or required, to
incur such a cost on the cessation of use of these
facilities. The provision is measured at the expected
cost of the work required, discounted to current day
values using the interest rates attaching to
Commonwealth Government guaranteed securities
with a maturity date corresponding to the
anticipated date of the restoration.
Landfill sites restoration
The provision represents the present value of the
anticipated future costs associated with the closure
of the landfill sites, decontamination and monitoring
of historical residues and leaching on these sites. The
calculation of this provision requires assumptions
such as application of environmental legislation, site
closure dates, available technologies and
engineering cost estimates. These uncertainties may
result in future actual expenditure differing from
amounts currently provided. Because of the longterm
nature of the liability, the most significant
uncertainty in estimating the provision is the costs
that will be incurred. The provision recognised for
dump sites is reviewed at least annually and updated
based on the facts and circumstances available at the
time. Management estimates that the site will close
in 2017 and that the restoration will occur
progressively over the subsequent four years.
As landfill sites are on state reserves which the
Council does not control, the provision for
restoration is treated as an expense in the year the
provision is first recognised. Changes in the provision
are treated as an expense or income.
Quarry Rehabilitation
The provision represents the present value of the
anticipated future costs associated with the closure
of the quarries, refilling the basin, and reclamation
and rehabilitation of these sites. The calculation of
this provision requires assumptions such as
application of environmental legislation, site closure
dates, available technologies and engineering cost
estimates. These uncertainties may result in future
actual expenditure differing from amounts currently
provided. Because of the long-term nature of the
liability, the most significant uncertainty in estimating
the provision is the costs that will be incurred. The
provision recognised for quarry rehabilitation is
reviewed at least annually and updated based on the
facts and circumstances available at the time.
Management estimates that the restoration will
occur in 2050.
Quarries are situated on Council controlled land and
are classified as land and improvement assets. The
provision for restoration is, therefore, included in the
cost of the land and amortised over the expected
useful life of the quarry. Changes in the provision not
arising from the passing of time are added to or
deducted from the asset revaluation surplus for land.
If there is no available revaluation surplus, increases
in the provision are treated as an expense and
recovered out of future decreases (if any). Changes
to the provision resulting from the passing of time
(the unwinding of the discount) are treated as a
finance cost.
61GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 13
Note 1. Summary of Significant Accounting Policies (Continued)
(1.q) National Competition Policy
The Council has reviewed its activities to identify its
business activities. Details of these activities are
disclosed in Note 24.
(1.r) Rounding and Comparatives
Amounts included in the financial statements have
been rounded to the nearest $1,000 unless otherwise
indicated.
Comparative information has been restated where
necessary to be consistent with disclosures in the
current reporting period.
(1.s) Taxation
Income of local authorities and public authorities is
exempt from Commonwealth taxation except for
Fringe Benefits Tax and Goods and Services Tax
(‘GST’). The net amount of GST recoverable from the
ATO or payable to the ATO is shown as an asset or
liability respectively.
The controlled entity of the Council pays an income
tax equivalent to the Council in accordance with the
requirements of the Local Government Act 2009.
Where an activity of the controlled entity of the
Council is subject to the tax equivalents regime, the
income tax expense is calculated on the operating
surplus adjusted for permanent differences between
taxable and accounting income. These transactions
are eliminated upon consolidation.
The Council pays payroll tax to the Queensland
Government on certain activities.
62 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 14
Note 2(a). Council Functions - Component Descriptions
Details relating to the Council's functions / activities as reported in Note 2(b) are as follows:
OFFICE OF THE CEO
The Office of the CEO ensures Council is open, accountable and transparent by setting goals and objectives to
benefit the citizens of the Gympie Region. Providing direction, support, co-ordination and a sound resource
management policy, it allows for effective and efficient management of Council's assets and resources.
The branches within the Office of the CEO are: Audit and Risk, Governance, People and Development, Media
Communications, Destination Gympie and Economic Development. Elected members are also part of the Office of
the CEO.
DIRECTORATE OF CORPORATE AND COMMUNITY SERVICES
To enhance and preserve the lifestyle of all the Gympie Region's residents and visitors by providing services and
facilities for recreation, leisure, sport and cultural enrichment and preserving the entire Region's heritage.
Additionally, this Directorate provides sound resource management policy through effective and efficient
management of Council's assets and resources.
The branches within the Directorate of Corporate and Community Services are: Finance, Procurement, Information
and Communication Technology, Library Services, Property Management, Customer Service, Community Facilities,
Art Gallery, Records and Branch Services.
DIRECTORATE OF ENGINEERING
To provide and preserve a safe and attractive natural and built environment by preservation, protection,
maintenance and development of the Region's open spaces and foreshores in accordance with community needs.
To provide opportunities for the Region's residents and visitors to access information that will enhance quality of
life and facilitate life-long learning.
The branches within the Directorate of Engineering are: Design Services, Water and Sewerage.
DIRECTORATE OF INFRASTRUCTURE
To provide well-constructed safe efficient infrastructure networks and engineering services that will meet
community needs.
The branches within the Directorate of Infrastructure are: Lands Protection, Depot Operations, Disaster
Management, Parks, Waste and Construction and Maintenance.
DIRECTORATE OF PLANNING AND DEVELOPMENT
To provide a planning framework that stimulates and co-ordinates investments in the Region while respecting the
environmental values, community values and infrastructure needs to enhance the lifestyles of residents.
The branches within the Directorate of Planning and Development are: Strategic Planning, Environmental Planning,
Building and Plumbing, Local Laws, Regulatory Services and Compliance.
WATER PROGRAM
To meet the community needs for potable water by efficient purchase, treatment, storage and distribution of water
to consumers.
SEWERAGE PROGRAM
To protect public health, safety and the environment by the provision of an efficient system for safe collection,
transportation, treatment and disposal of sewerage waste.
WASTE
To protect and support our community and natural environment by sustainably managing refuse which includes
collection, recycling and disposal of domestic, commercial and industrial solid waste, planning for and delivering
solid waste infrastructure and maintenance of the community's solid waste infrastructure.
63GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
GympieRegionalCouncilFinancialStatements2016
NotestotheFinancialStatements
fortheyearended30June2016
Page15
Note2(b).AnalysisofResultsbyFunction
Functions
2016
GrossProgram
IncomeTotal
Income
GrossProgram
ExpensesTotal
Expenses
NetResult
from
Recurring
Operations
Net
Result
Total
AssetsRecurrentCapital
RecurringCapital
GrantsOtherGrantsOther
$'000$'000$'000$'000$'000$'000$'000$'000$'000$'000$'000
OfficeoftheCEO
DirectorateCorporateandCommunityServices
DirectorateEngineering
DirectorateInfrastructure
DirectoratePlanningandDevelopment
WaterProgram
SewerageProgram
Waste
94
356
5,119
94
-
-
-
-
76
35,139
76
4,085
3,239
9,991
11,242
10,381
-
5
6,891
5,357
98
-
556
-
-
14
932
104
-
436
--
170
35,514
13,018
9,640
3,337
10,427
11,798
10,381
6,410
19,815
10,272
18,334
7,188
6,260
7,623
9,164
-
450
5,428
101
-
324
640
-
6,410
20,265
15,700
18,435
7,188
6,584
8,263
9,164
(6,240)
15,680
(5,077)
(14,155)
(3,949)
3,731
3,619
1,217
(6,240)
15,249
(2,682)
(8,795)
(3,851)
3,843
3,535
1,217
251
215,532
12,365
707,958
5,072
93,339
143,523
9,978
Total5,66374,22912,9071,48694,28585,0666,94392,009(5,174)2,2761,188,018
Functions
2015
GrossProgram
IncomeTotal
Income
GrossProgram
ExpensesTotal
Expenses
NetResult
from
Recurring
Operations
Net
Result
Total
AssetsRecurrentCapital
RecurringCapital
GrantsOtherGrantsOther
$'000$'000$'000$'000$'000$'000$'000$'000$'000$'000$'000
OfficeoftheCEO
DirectorateCorporateandCommunityServices
DirectorateEngineering
DirectorateInfrastructure
DirectoratePlanningandDevelopment
WaterProgram
SewerageProgram
Waste
29
3,801
-
1,902
-
-
-
-
96
34,141
13
7,865
2,678
9,868
10,483
10,286
-
68
5,243
2,082
115
-
-
-
-
-
1,913
322
-
528
722
-
125
38,010
7,169
12,171
2,793
10,396
11,205
10,286
(6,612)
(15,635)
(2,931)
(26,826)
(5,955)
(5,096)
(7,081)
(7,265)
-
(99)
-
(4,237)
-
-
-
(11,306)
(6,612)
(15,734)
(2,931)
(31,063)
(5,955)
(5,096)
(7,081)
(18,571)
(6,487)
22,307
(2,918)
(17,059)
(3,277)
4,772
3,401
3,021
(6,487)
22,276
4,238
(18,892)
(3,161)
5,301
4,123
(8,285)
81
219,014
19,090
704,786
4,907
87,993
122,049
9,615
Total5,73275,4307,5083,48592,155(77,401)(15,642)(93,043)3,760(887)1,167,535
64 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 16
Note 3. Revenue Analysis
2016 2015
Notes $'000 $'000
(a). Rates, Levies and Charges
General Rates 33,177 32,208
Separate Rates 5,684 5,625
Special Levies 401 291
Water 8,835 8,964
Water Consumption, Rental and Sundries 733 641
Sewerage 10,572 10,073
Sewerage Trade Waste - Garbage
Charges 7,425 7,858
Total rates and utility charge revenue 66,827 65,660
Less: Discounts (3,984) (2,483)
Less: Pensioner remissions (631) (625)
TOTAL RATES, LEVIES AND CHARGES 62,212 62,552
(b). Fees and Charges
Search Fees 339 313
Building Fees and Charges 385 291
Development Fees 284 138
Animal Registrations 114 101
Inspection Fees 743 473
Fines and Infringements 12 3
Licences and Permits 20 85
Parking Fees and Fines 123 87
Other Statutory Fees 689 589
User Fees and Charges 2,249 1,922
TOTAL FEES AND CHARGES 4,958 4,002
(c). Interest and Investment Revenue
Interest Received from Investments 2,674 3,000
Interest from Overdue Rates and Utility Charges 312 649
TOTAL INTEREST AND INVESTMENT REVENUE 2,986 3,649
65GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 17
Note 3. Revenue Analysis (continued)
2016 2015
Notes $'000 $'000
(d). Sales Revenue
Transport and Main Roads 3,058 4,540
Other 298 129
TOTAL SALES REVENUE 3,356 4,669
Note 4. Grants, Subsidies, Contributions and Donations
(a) Recurrent
General Purpose Grants 5,119 5,226
State Government Subsidies and Grants 544 506
Donations - 28
Contributions 14 2
TOTAL RECURRENT GRANTS, SUBSIDIES,
CONTRIBUTIONS AND DONATIONS 5,677 5,762
(b) Capital
State Government Subsidies and Grants 1,543 6,914
Commonwealth Government Subsidies and Grants 10,179 594
Donated Assets 608 Contributions
2,064 3,486
TOTAL CAPITAL GRANTS, SUBSIDIES,
CONTRIBUTIONS AND DONATIONS 14,394 10,994
66 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 18
Note 4. Grants, Subsidies, Contributions and Donations (Continued)
2016 2015
Notes $'000 $'000
Conditions over Contributions
Contributions recognised as income during the reporting period
and which were obtained on the condition that they be expended
in a manner specified by the contributor but had not been
expended at the reporting date:
Developer Contributions for Infrastructure 1,998 3,486
1,998 3,486
Contributions recognised as income during a previous reporting
period that were obtained in respect of the current reporting
period:
Non-Reciprocal Grants for Expenditure on Infrastructure 5,215 4,643
Developer Contributions Expended on Infrastructure 1,026 1,634
6,241 6,277
Note 5. Employee Benefits
Wages and Salaries 21,121 20,298
Annual, Sick and Long Service Leave Entitlements 5,970 5,080
Superannuation 19 3,992 3,363
Councillors Remuneration 642 579
31,725 29,320
Other Employee Related Expenses 819 845
32,544 30,165
Less: Capitalised Employee Expenses (2,802) (1,051)
TOTAL EMPLOYEE BENEFITS 29,742 29,114
Councillor remuneration represents salary, and other allowances
paid in respect of carrying out their duties.
Additional information:
Total Employees at year end:
Administration Staff 243 242
Depot and Outdoors Staff 220 204
Total full time equivalent employees 463 446
Total Elected members 9 9
67GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 19
Note 6. Materials and Services
2016 2015
Notes $'000 $'000
Audit of Annual Financial Statements by the Auditor-General of
Queensland
70 84
Office of the CEO 2,773 2,375
Directorate of Corporate and Community Services 10,807 6,431
Directorate of Engineering 1,500 894
Directorate of Infrastructure 7,215 10,709
Directorate of Planning and Development 3,110 1,810
Water Program 2,324 1,869
Sewerage Program 2,604 2,007
Waste 6,999 4,759
TOTAL MATERIALS AND SERVICES 37,402 30,938
Note 7. Capital Expenses
(a) Loss on disposal of non-current assets
Proceeds from the Disposal of Property, Plant and Equipment 660 579
Less: Book Value of Property, Plant and Equipment Disposed 11 (590) (624)
(70) 45
Proceeds from Other Assets - Other Non-Current Assets 632 304
Less: Book Value of Other Non-Current Assets Disposed 11 (1,139) (832)
507 528
Loss on disposal of non-current assets 437 573
(b) Other capital expenses
Loss on Write-Off of Assets 6,506 1,902
Recognition of the Rehabilitation Provision requiring future
expenditure - 13,167
6,506 15,069
TOTAL CAPITAL EXPENSES 6,943 15,642
68 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 20
Note 8. Cash, Cash Equivalents and Investments
2016 2015
Notes $'000 $'000
Cash and Cash Equivalents
Cash at Bank and on Hand 983 1,948
Cash Equivalent Assets¹
- Deposits at Call 65,359 77,409
- Short Term Deposits 5,000 5,000
TOTAL CASH ASSETS, CASH EQUIVALENTS AND INVESTMENTS 71,342 84,357
1 Those Investments where time to maturity (from date of purchase) is < 3 mths.
Restricted Cash, Cash Equivalents and Investments
Council's Cash and Cash Equivalents are subject to a number of
Internal and External Restrictions that limit amounts available for
discretionary of future use. These include:
Externally imposed Expenditure Restrictions at the reporting date
relate to the following cash assets:
Unspent Government Grants and Subsidies 1,735 1,698
Unspent Developer Contributions 10,632 14,150
Total External Restrictions 12,367 15,848
Internally imposed Expenditure Restrictions at the reporting date:
Future Capital Works 47,551 51,883
Total Internal Restrictions 47,551 51,883
Total Unspent Restricted Cash, Cash Equivalents And
Investments 59,918 67,731
Note: Restricted cash was previously allocated to Reserves
Cash is held with the Commonwealth Bank in a business cheque
account and in short term investment deposits with the
Queensland Treasury Corporation and various financial institutions.
69GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 21
Note 9. Trade and Other Receivables
2016 2015
Notes $'000 $'000
Current
Rateable Revenue and Utility Charges 7,515 7,365
Fees and Charges 364 912
Other Debtors 2,106 2,005
GST Recoverable 962 726
Loans and Advances to Controlled Entities and Associates 30 11
Accrued Revenues
- Interest on Investments 185 205
Govt. Grants, Subsidies, Contributions and Donations 2,260 2,058
Prepayments (6) 408
Less impairment provision (119) TOTAL
CURRENT TRADE AND OTHER RECEIVABLES 13,297 13,690
Non-Current
Loans and Advances to Controlled Entities and Associates 240 289
TOTAL NON-CURRENT TRADE AND OTHER RECEIVABLES 240 289
Movement in Provision for Impairment of Receivables
Opening balance at 1 July - 50
Less
Impairment debts written off during the year (119) (50)
Balance at the end of the year (119) Interest
is charged on outstanding rates at a rate of 11% per
annum. No interest is charged on other debtors. There is no
concentration of credit risk for rates and utility charges, fees and
other debtors receivable.
Loans relate to an advance made to the Gympie Muster Group.
Loans to various community groups and sporting bodies arise from
time to time and are subject to negotiated interest rates. The credit
risk on these loans is considered low.
70 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 22
Note 10. Inventories
2016 2015
Notes $'000 $'000
Current Inventories
(a) Inventories held for distribution
Quarry and Road Materials 3,360 1,889
Stores and Materials 821 779
4,181 2,668
(b) Land purchased for development and sale 61 61
TOTAL CURRENT INVENTORIES 4,242 2,729
71GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
GympieRegionalCouncilFinancialStatements2016
NotestotheFinancialStatements
fortheyearended30June2016
Page23
Note11.Property,PlantandEquipment
LandandSite
Improvements
Buildings
Plantand
Equipment
HeavyPlant
Road,Bridge
andDrainage
WaterSewerage
Other
Infrastructure
Intangible
Worksin
Progress
Total
$'000$'000$'000$'000$'000$'000$'000$'000$'000$'000$'000
MeasurementBasisNoteFairValueFairValueCostFairValueFairValueFairValueFairValueFairValueCostCost/FV
OpeningGrossBalance73,103119,4397,81421,695779,263146,427153,52211,937030,5881,343,788
CorrectiontoOpeningBalance-4300-2,288-269-2,247000-4,847
Additions*001,3881,7785480450031,54635,305
Disposals7-5180-1,087-1,494000000-3,099
Write-Offs70-16700-9,154-330-656000-10,307
RevaluationDecrementstoEquity(ARR)160---12,722-20,506------33,228
RevaluationIncrementstoEquity(ARR)167873,0450009,20131,3137630045,109
WorkinProgressTransfers2,6821,6661,040028,9691,0123,8052191,098-40,4910
AdjustmentsandOtherTransfers93057-57-16-780000-
TotalGrossValueofProperty,PlantandEquipment76,147123,9409,2129,200776,816155,963185,78212,9191,09821,6431,372,720
OpeningAccumulatedDepreciation1,43024,4843,0007,702136,33563,54539,8419800-277,317
CorrectiontoOpeningBalance0-4300-2,288-269-2,247000-4,847
DepreciationExpense1761,8159661,9636,5872,1882,30519952016,251
Disposals700-497-874000000-1,371
Write-offs70-5200-3,727-6-16000-3,801
RevaluationDecrementstoEquity(ARR)16000-8,755-14,87000000-23,625
RevaluationIncrementstoEquity(ARR)16414-1810001,87411,3904000013,897
AdjustmentsandOtherTransfers160034-340000000
2,02026,0233,5032122,03767,33251,2731,579520273,821
74,12797,9175,7099,198654,77988,631134,50911,3401,04621,6431,098,899
--1,3881,778-----14,25417,420
----548-45--17,29217,885
--1,3881,778548-45--31,54635,305
30-Jun-16
TotalAccumulatedDepreciationandImpairmentProperty,Plantand
Equipment
TotalNetBookValueofProperty,Plant&Equipment
*AssetAdditionsComprise
AssetRenewals
OtherAdditions
TotalAssetAdditions
72 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
GympieRegionalCouncilFinancialStatements2016
NotestotheFinancialStatements
fortheyearended30June2016
Page24
Note11.Property,PlantandEquipment
LandandSite
Improvements
Buildings
Plantand
Equipment
HeavyPlant
Road,Bridge
andDrainage
WaterSewerage
Other
Infrastructure
Intangible
Worksin
Progress
Total
$'000$'000$'000$'000$'000$'000$'000$'000$'000$'000$'000
MeasurementBasisNoteFairValueFairValueCostFairValueFairValueFairValueFairValueFairValueCostCost/FV
OpeningGrossBalance71,430114,2337,28921,088749,051144,528153,93211,285036,4381,309,274
CorrectiontoOpeningBalance00000000000
Additions*001,4891,8260000035,63838,953
Disposals700-1,149-1,991000000-3,140
Write-Offs70-10300-2,67000-14200-2,915
RevaluationDecrementstoEquity(ARR)16-2,31200000000-2,312
RevaluationIncrementstoEquity(ARR)16458076216300493001,876
WorkinProgressTransfers1,2151,5911501025,5304,5262,9935,4730-41,4880
AdjustmentsandOtherTransfers06,0303507,189-2,627-3,403-7,224000
Recognition/changesoffuturerehabilitationcosts00000002,052002,052
TotalGrossValueofProperty,PlantandEquipment73,103119,4397,81421,695779,263146,427153,52211,937030,5881,343,788
OpeningAccumulatedDepreciation1,42313,3322,6546,578129,22862,53837,6691,77600255,198
CorrectiontoOpeningBalance00000000000
DepreciationExpense1651,1008711,8607,2102,0972,3261500015,779
Disposals700-525-1,159000000-1,684
Write-offs7-4-1,007-300-1,014
RevaluationDecrementstoEquity(ARR)168,812000000008,812
RevaluationIncrementstoEquity(ARR)16-15800423000-3900226
AdjustmentsandOtherTransfers1601,24400904-1,090-154-904000
1,43024,4843,0007,702136,33563,54539,84198000277,317
71,67394,9554,81413,993642,92882,882113,68110,957030,5881,066,471
001,4701,8260000023,55326,849
001900000012,08512,104
001,4891,8260000035,63838,953
30-Jun-15
TotalAccumulatedDepreciationandImpairmentProperty,Plantand
Equipment
TotalNetBookValueofProperty,Plant&Equipment
*AssetAdditionsComprise
AssetRenewals
OtherAdditions
TotalAssetAdditions
73GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 25
Note 12. Fair Value Measurements
2016 2015
Notes $'000 $'000
(1) Recognised fair value measurements
Council measures and recognises the following assets at fair value on a recurring basis:
Property, Plant and Equipment:
- Land and Site Improvements
- Buildings
- Heavy plant
- Roads, bridges and drainage
- Water
- Sewerage
- Other Infrastructure
Council does not measure any liabilities at fair value on a recurring basis.
Council has assets and liabilities which are not measured at fair value, but for which fair values are
disclosed in other notes.
Council borrowings are measured at amortised cost with interest recognised in profit or loss when
incurred. The fair value of borrowings disclosed in note 14 is provided by the Queensland Treasury
Corporation and represents the contractual undiscounted cash flows at balance date (Level 2).
The carrying amounts of trade receivables and trade payables are assumed to approximate their fair
values due to their short-term nature (Level 2).
Council also has assets measured at fair value on a non-recurring basis as a result of being reclassified as
assets held for sale. These comprise land previously used as a depot as disclosed in note 10. A
description of the valuation techniques and the inputs used to determine the fair value of this land is
included below under the heading "Land (Level 2)".
In accordance with AASB 13 fair value measurements are categorised on the following basis:
- Fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities (Level
1)
- Fair value based on inputs that are directly or indirectly observable for the asset or liability (Level 2)
- Fair value based on unobservable inputs for the asset and liability (Level 3)
The following table categorises fair value measurements as either level 2 or level 3 in accordance with
AASB 13. Council does not have any assets or liabilities measured at fair value which meet the criteria for
categorisation as level 1.
74 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 26
Note 12. Fair Value Measurements (continued)
(1) Recognised fair value measurements (continued)
The fair values of the assets are determined using valuation techniques which maximise the use of
observable data, where it is available, and minimise the use of entity specific estimates. If all significant
inputs required to fair value an asset are observable, the asset is included in level 2. If one or more of the
significant inputs is not based on observable market data, the asset is included in level 3. This is the case
for Council infrastructure assets, which are of a specialist nature for which there is no active market for
similar or identical assets. These assets are valued using a combination of observable and unobservable
inputs.
The following table presents all assets and liabilities that have been measured and recognised at fair
value:
Fair Value Measurement using:
Level 2 Level 3 Total
Significant Significant
observable unobservable
inputs inputs
2016 $'000 $'000 $'000
Property, Plant and Equipment
- Land and Site Improvements 63,500 10,627 74,127
- Buildings - Pensioner Units 375 3,025 3,400
- Buildings – Other 165 94,352 94,517
- Heavy Plant 9,197 - 9,197
- Roads, Bridges and Drainage - 654,779 654,779
- Water - 88,632 88,632
- Sewerage - 134,508 134,508
- Other Infrastructure - 11,339 11,339
Total Property, Plant and Equipment 73,237 997,262 1,070,499
2015
Property, Plant and Equipment
- Land and Site Improvements 62,417 9,256 71,673
- Buildings - Pensioner Units 354 - 354
- Buildings – Other - 94,600 94,600
- Heavy Plant 437 13,557 13,994
- Road, Bridge and Drainage - 642,928 642,928
- Water - 82,882 82,882
- Sewerage - 113,681 113,681
- Other Infrastructure - 10,957 10,957
Total Property, Plant and Equipment 63,208 967,861 1,031,069
There were no transfers between Level 2 and Level 3 during the year.
75GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 27
Note 12. Fair Value Measurements (continued)
(2) Valuation techniques used to derive Level 2 and Level 3 Fair Values
Land and Site Improvements (Level 2)
Land fair values were determined by independent valuer, APV Valuers & Asset Management effective
30 June 2016. The assets in this class were physically inspected in October 2014.
Level 2 valuation inputs were used to value land in freehold title (investment and non-investment) as
well as land used for special purposes, which is restricted in use under current zoning rules. Sales prices
of comparable land sites in close proximity are adjusted for differences in key attributes such as property
size. The most significant inputs into this valuation approach are price per square metre.
Land and Site Improvements (Level 3)
Site Improvements fair values were generated using the cost approach by APV Valuers & Asset
Management effective 30 June 2016. This included a full physical inspect in April 2016.
The approach estimated the replacement cost for each structure by componentising the site
improvement where applicable into significant parts with different useful lives and taking into account a
range of factors. These include: actual construction or purchase prices for recent projects paid by the
specific entity; reference to appropriate APV database where actual costs from recent projects are
sourced directly from clients with preference to nearby locations; Rawlinson’s Construction Guide or
similar guides such as Cordells, and; benchmarking against other valuations.
The unobservable inputs (such as estimates of useful life, pattern of consumption and asset condition
and its relationship to the assessed level of remaining service potential of the depreciable amount)
required extensive professional judgement and impacted significantly on the final determination of fair
value. As such these assets were classified as having been valued using level 3 valuation inputs.
The changes in land and site improvements (level 3) are detailed in note 11 (property, plant and
equipment).
76 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 28
Note 12. Fair Value Measurements (continued)
(2) Valuation techniques used to derive Level 2 and Level 3 Fair Values (continued)
Land and Site Improvements (Level 3) (continued)
Significant
Unobservable Range of inputs Relationship of unobservable inputs to fair value
Input
Asset 0 lowest to 5 (highest) The lower the asset condition, the higher the
condition remaining life and therefore a higher fair value.
Remaining 2 - 210 years The higher the assessment of remaining life, the
useful lives higher the fair value of the asset.
Buildings (Level 2 and 3)
Fair values were determined by an independent valuer, APV Valuers & Asset Management effective
30 June 2016 via desktop valuation. The assets in this class were physically inspected in October 2014.
Where there is a market for Council building assets, fair value has been derived from the sales prices of
comparable properties after adjusting for differences in key attributes such as property size. The most
significant inputs into this valuation approach were price per square metre.
Where Council buildings are of a specialist nature and there is no active market for assets, fair value has
been determined on the basis of replacement with a new asset having similar service potential including
allowances for preliminaries and professional fees. The gross current values have been derived from
reference to market data for recent projects and costing guides issued by the Australian Institute of
Quantity Surveyors, Rawlinson’s (Australian Construction Handbook). Where a depth in market can be
identified, the net current value of a building asset is the difference between the market value of the
asset as a whole (including land) and the market value of the land component. Where there is no depth
of market, the net current value of a building asset is the gross current value less accumulated
depreciation to reflect the consumed or expired service potential of the asset.
In determining the level of accumulated depreciation the asset has been disaggregated into significant
components which exhibit useful lives. Allowance has been made for the typical asset life cycle and
renewal treatments of each component, residual value at the time the asset is considered to be no
longer available for use and the condition of the asset. Condition was assessed taking into account both
physical characteristics as well as holistic factors such as functionality, capability, utilisation and
obsolescence. Refer to the condition rating table in site improvements for remaining service potential
relating to each condition score for each of the patterns of consumption utilised.
While the unit rates based on square metres can be supported by market evidence (level 2), specialised
buildings were valued by estimating the replacement cost for each building by componentising the
buildings into significant parts with different useful lives and taking into account a range of factors.
While the unit rates based on square metres could be supported from market evidence (level 2) other
inputs (such as estimates of residual value, useful life, pattern of consumption and asset condition)
required extensive professional judgement and impacted significantly on the final determination of fair
value. Where these other inputs are significant to the valuation the overall valuation has been classified
as level 3.
77GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 29
Note 12. Fair Value Measurements (continued)
Heavy Plant (Level 2 )
The fair value of heavy plant is measured at current market value as at 30 June 2016 as independently
determined by APV Valuers & Asset Management. The assets in this class were physically inspected in
April 2016.
Major plant assets have generally been derived from comparable sales and relevant industry market
price reference guides and have been classified as being valued at level 2.The most significant inputs
into this valuation approach are the make, size, year of manufacture and condition. Evidence of market
value was obtained from sales evidence of similar or reference assets. This may include reference to
relevant industry guides such as Glasses. The asset was assessed in terms of the factors relevant to a
market participant and a value determined after adjusting for the difference in these factors embodied
within the asset and the reference assets.
Some items of plant however are unique in design or there was insufficient observable market evidence
to support the valuation. As a result the valuation was performed using the cost approach. The approach
estimated the replacement cost for each asset by componentising the assets into significant parts with
different useful lives and taking into account a range of factors. While the unit rates based on similar
capacity could be supported from market evidence (level 2) other inputs (such as estimates of residual
value, useful life, pattern of consumption and asset condition) required extensive professional
judgement and impacted significantly on the final determination of fair value. As such these assets were
classified as having been valued using level 3 valuation inputs. Refer to the condition rating table in site
improvements for remaining service potential relating to each condition score for each of the patterns
of consumption utilised.
Infrastructure assets (Level 3)
All Council infrastructure assets were fair valued by AssetVal Pty Ltd at 30 June 2016 using written down
current replacement cost (CRC). A sample inspection was completed as part of this process in December
2015. This valuation comprises the asset's gross replacement cost (CRC) less accumulated depreciation
calculated on the basis of such cost to reflect the already consumed or expired future economic benefits
of the asset. Council first determined the gross cost of replacing the full service potential of the asset
and then adjusted this amount to take account of
the expired service potential of the asset.
CRC was measured by reference to the lowest cost at which the gross future economic benefits of the
asset could currently be obtained in the normal course of business. Where existing assets were over
designed, had excess capacity, or were redundant an adjustment was made so that the resulting
valuation reflected the cost of replacing the existing economic benefits based on an efficient set of
modern equivalent assets to achieve the required level of service output within the council's planning
horizon.
The unit rates (labour and materials) and quantities applied to determine the CRC of an asset or asset
component were based on a "Greenfield" assumption meaning that the CRC was determined as the full
cost of replacement with a new asset including components that may not need to be replaced, such as
earthworks. The DRC was determined using methods relevant to the asset class as described under
individual asset categories below.
78 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 30
Note 12. Fair Value Measurements (continued)
(2) Valuation techniques used to derive Level 2 and Level 3 Fair Values (continued)
Infrastructure assets (Level 3) (continued)
Specific valuation techniques used to value Council infrastructure assets comprise:
Roads
Current replacement cost:
The Council categorises its road infrastructure into urban and rural roads and the further subcategorises
these into sealed and unsealed roads. Urban roads are managed in segments of 200m, while
rural roads are managed in 2km segments. Roads are split into segments which vary in length
depending on the attributes of each segment and the previous construction history – as described
below. The Council also assumes a segment is designed and constructed to the same standard and uses
a consistent amount of labour and materials.
A new road segment is recorded whenever a change occurs in any one of the following:
• Surface type (chip sealed, asphalt, concrete, gravel, formed)
• Pavement type (flexible, semi-rigid, concrete, gravel, formed)
• Pavement/seal widths
• Pavement depths (base, sub-base, semi-rigid, concrete, gravel)
• Construction/Rehabilitation/Reseal date
• Traffic carrying assessment
• Hierarchy classification
CRC was calculated by reference to asset linear and area specifications, estimated labour and material
inputs, services costs, and overhead allocations. Segment lengths and widths and pavement depths are
actual where known from design plans and/or construction records, or are confirmed by field measure.
Unconfirmed pavement depths are assumed constructed to 200mm for sealed roads and 50mm for
unsealed roads. Council also assumes that all raw materials can be sourced from local quarries. For
internal constructions estimates, material and services prices were based on existing supplier contract
rates and supplier price lists while labour wage rates were based on Council’s Certified Agreement (CA).
All direct costs were allocated to assets at standard usage quantities according to recently completed
similar projects. Where construction is outsourced, CRC was based on the average of completed similar
projects over the last few years.
79GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 31
Note 12. Fair Value Measurements (continued)
(2) Valuation techniques used to derive Level 2 and Level 3 Fair Values (continued)
Infrastructure assets (Level 3) (continued)
Accumulated depreciation:
In determining the level of accumulated depreciation, roads are summarised into one lump sum item.
Useful lives are an estimate of the total service capacity in years for that type of asset. The remaining
useful life of the asset is then calculated based purely on the time elapsed since the previous valuation,
which indicates the remaining service capacity of the asset, and is determined using the useful lives
adopted by council. The amount of life that has expired is applied in the calculation of accumulated
depreciation representing the expired service potential of the asset using industry standard practices
and past experience, supported by maintenance programs. Regular inspections are performed as part of
the maintenance program to identify road infrastructure that varies from the expected consumption
pattern. These inspections are performed by the same officer on a quarterly cycle and contribute to the
annual maintenance program.
Bridges
Current replacement cost:
Each bridge is assessed individually, with the valuation varying according to the material type used for
construction, the deck area, condition and size. Construction estimates were determined on a similar
basis to roads.
Accumulated depreciation:
In determining the level of accumulated depreciation, bridges are summarised into one lump sum item.
Useful lives are an estimate of the total service capacity in years for that type of asset. The remaining
useful life of the asset is then calculated based purely on the time elapsed since the previous valuation,
which indicates the remaining service capacity of the asset, and is determined using the useful lives
adopted by council. The amount of life that has expired is applied in the calculation of accumulated
depreciation representing the expired service potential of the asset using industry standard practices
and past experience. This is also supported by a yearly visual bridge condition inspections using a 1-5
rating scale and further supported by a more detailed criteria analysis rating system between 1-100
every 2-3 years with consideration given to a number of factors affecting the bridge including, physical
environmental features, bridge structure and load defections.
80 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 32
Note 12. Fair Value Measurements (continued)
(2) Valuation techniques used to derive Level 2 and Level 3 Fair Values (continued)
Infrastructure assets (Level 3) (continued)
Drainage
Current replacement cost:
Consistent with roads, council assumes that environmental factors such as soil type, climate and
topography are consistent across each segment and that a segment is designed and constructed to the
same standard and uses a consistent amount of labour and materials. Where drainage assets are located
underground and physical inspection is not possible, the age, size and type of construction materials,
together with current and planned maintenance records are used to determine the fair value at
reporting date. Construction estimates were determined on a similar basis to roads.
Accumulated depreciation:
In determining the level of accumulated depreciation, drainage structures were disaggregated into
significant components which exhibited different useful lives. Useful lives are an estimate of the total
service capacity in years for that type of asset. The remaining useful life of the asset is then calculated
based purely on the time elapsed since the previous valuation, which indicates the remaining service
capacity of the asset, and is determined using the useful lives adopted by council. The amount of life
that has expired is applied in the calculation of accumulated depreciation representing the expired
service potential of the asset using industry standard practices and past experience, supported by
maintenance programs.
All pipes have been valued at replacement pipe rates and lives as no relining of pipes has commenced
on the network.
Water and Sewerage Infrastructure
Current replacement cost:
Water and sewerage infrastructure fair values were reviewed with no indexation required forth is asset
class. CRC was calculated based on expected replacement costs. In all cases the assets were
disaggregated to component level to ensure a reliable measure of cost and service capacity and
deterioration of estimated remaining life.
The Council region is split in to 4 distinct areas based on geographic (Gympie/Cooloola Coast/Mary
Valley/Kilkivan and Goomeri) and environmental factors (sand; acid sulphate soil; soft rock; and hard
rock). Council assumes that these factors are consistent across each of the 4 regions and that costs of
labour are consistent within each of these regions, depending on the materials used.
Accumulated depreciation:
In determining the level of accumulated depreciation, both water and sewerage assets were
disaggregated into significant components which exhibited different useful lives. Useful lives are an
estimate of the total service capacity in years for that type of asset. Where site inspections were not
conducted (passive assets) the remaining useful life of the asset is then calculated based purely on the
time elapsed since the previous valuation, which indicates the remaining service capacity of the asset,
and is determined using the useful lives adopted by council. The amount of life that has expired is
applied in the calculation of accumulated depreciation representing the expired service potential of the
asset using industry standard practices and past experience, supported by maintenance programs. These
calculations are also evaluated against required repairs (breakages) to ascertain if any variances are
present that would require different values being applied.
81GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 33
Note 12. Fair Value Measurements (continued)
(2) Valuation techniques used to derive Level 2 and Level 3 Fair Values (continued)
Infrastructure assets (Level 3) (continued)
The following tables present the changes in Level 3 Fair Value Asset Classes.
Land and
Heavy Site
Plant Buildings Imp'mts Total
$'000 $'000 $'000 $'000
Opening Balance - 1/7/14 14,014 100,541 8,612 123,167
Transfers from/(to) Level 21 FV hierarchy - 4,785 - 4,785
Additions 1,826 1,591 583 4,000
Disposals and Write-Offs (WDV) (778) (99) - (877)
Depreciation and Impairment (1,822) (1,095) (165) (3,082)
Revaluation adjustment in period 318 (11,124) 225 (10,581)
Closing Balance - 30/6/15 13,558 94,599 9,255 117,412
Transfers from/(to) Level 2 FV hierarchy (13,558) (115) - (13,673)
Purchases (GBV)- - 1,666 2,187 3,853
Disposals and Write-Offs (WDV) - (158) - (158)
Depreciation and Impairment - (1,805) (176) (1,981)
Revaluation adjustment in period - 3,190 (639) 2,551
Closing Balance - 30/6/16 - 97,377 10,627 108,004
82 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 34
Note 13. Trade and Other Payables
2016 2015
Notes $'000 $'000
Current
Creditors and Accruals 4,056 7,913
Employee Related Accruals 502 215
Superannuation Defined Contributions (476) 101
Annual Leave 3,311 3,161
Sick Leave 2,450 2,388
Other Entitlements 334 456
TOTAL CURRENT TRADE AND OTHER PAYABLES 10,177 14,234
Non-current
Sick Leave 122 116
TOTAL NON-CURRENT TRADE AND OTHER PAYABLES 122 116
Employee benefit expenses are calculated at current pay levels and adjusted for inflation and likely
future changes in salary level.
The non-current portion of long service leave is then discounted to the present value. Further details on
employee entitlements are reported in Note 1(n).
83GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 35
Note 14. Borrowings
2016 2015
Notes $'000 $'000
Current
Loans - Queensland Treasury Corporation 1,251 1,236
TOTAL CURRENT BORROWINGS 1,251 1,236
Non-current
Loans - Queensland Treasury Corporation 20,478 21,714
TOTAL NON-CURRENT BORROWINGS 20,478 21,714
Reconciliation of Loan Movements for the year
Loans - Queensland Treasury Corporation
Opening Balance at Beginning of Financial Year 22,950 24,125
Loans Raised - Principal
Repayments (1,221) (1,175)
Book value at end of financial year 21,729 22,950
The QTC loan market value at the reporting date was $27,913,045.84. This represents the value of the
debt if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no
provision is required to be made in these accounts.
Loan Disclosures
No assets have been pledged as security by the Council for any liabilities, however all loans are
guaranteed by the Queensland Government.
All borrowings are in $A denominated amounts and carried at amortised cost, interest being expensed
as it accrues. No interest has been capitalised during the current or comparative reporting period.
Expected final repayment dates vary from 15 December 2016 to 15 June 2030 (Available from QTC
Maturity Analysis).
There have been no defaults or breaches of the loan agreement during the period. Principal and interest
repayments are made quarterly/semi-annually/annually in arrears.
84 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 36
Note 15. Provisions
2016 2015
Notes $'000 $'000
Current
Long Service Leave 4,383 4,183
Quarry Sites 100 150
Landfill Sites 2,695 2,695
TOTAL CURRENT PROVISIONS 7,178 7,028
Non-current
Long Service Leave 1,402 1,438
Quarry Sites 1,841 1,850
Landfill Sites 10,525 10,525
TOTAL NON-CURRENT PROVISIONS 13,768 13,813
Details of movements in Provisions:
Long Service Leave
Balance at Beginning of Financial Year 5,620 5,437
Additional Provision 881 723
Decrease due to Payments (716) (540)
Balance at End of Financial Year 5,785 5,620
Quarry Sites
Balance at Beginning of Financial Year 2,000 2,000
NPV Provision decrease (59) Decrease
due to Payments - Balance
at End of Financial Year 1,941 2,000
Landfill Sites
Balance at Beginning of Financial Year 13,220 Additional
Provision - 13,220
Decrease due to Payments - Balance
at End of Financial Year 13,220 13,220
85GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 37
Note 16. Asset Revaluation Reserve
2016 2015
Notes $'000 $'000
Movements in the asset revaluation reserve:
Balance at beginning of financial year 408,124 417,599
Net adjustment to non-current assets at end of period to reflect a
change in current fair value:
Land and Site Improvements 372 615
Buildings 3,226 (11,124)
Heavy Plant (3,601) 339
Road, Bridge and Drainage (5,634) 163
Water 7,327
Sewerage 19,923
Other Infrastructure 363 532
11 21,976 (9,475)
Balance at end of financial year 430,100 408,124
Asset revaluation reserve analysis
The closing balance of the Asset Revaluation Reserve
comprises the following asset categories:
Land and Site Improvements 30,306 29,934
Buildings 50,551 47,335
Heavy Plant - 3,601
Road, Bridge and Drainage 264,305 269,939
Water 35,164 27,837
Sewerage 46,395 26,462
Other Infrastructure 3,379 3,016
Balance at end of financial year 430,100 408,124
86 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 38
Note 17. Commitments for Expenditure
2016 2015
Notes $'000 $'000
Contractual commitments
Contractual commitments at end of financial year but not
recognised in the financial statements are as follows:
Refuse Disposal per year (expiry June 2021) 3,271 3,271
Engineering Building Lease per year 413 -
3,684 3,271
Capital Infrastructure 12,562 Note
18. Contingent Liabilities
Details and estimates of maximum amounts of contingent liabilities
are as follows:
There are various claims pending against the Council. In the
opinion of the Council’s solicitor the potential loss on all claims at
30 June 2016 should not exceed: 24 60
The Council has disclaimed liability and no provision has been made within
the financial statements pertaining to these claims.
Local Government Mutual
The Council is a member of the local government mutual liability
self-insurance pool, LGM Queensland. In the event of the pool
being wound up or it is unable to meet its debts as they fall due,
the trust deed and rules provide that any accumulated deficit will
be met by the individual pool members in the same proportion as
their contribution is to the total pool contributions in respect to any
year that a deficit arises.
As at 30 June 2015 the financial statements reported an
accumulated surplus and it is not anticipated any liability will arise.
87GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 39
Note 18. Contingent Liabilities (Continued)
Local Government Workcare
The Council is a member of the Queensland local government
worker's compensation self-insurance scheme, Local Government
Workcare. Under this scheme the Council has provided an
indemnity towards a bank guarantee to cover bad debts which may
remain should the self-insurance licence be cancelled and there
was insufficient funds available to cover outstanding liabilities. Only
the Queensland Government’s workers compensation authority
may call on any part of the guarantee should the above
circumstances arise.
The Council's maximum exposure to the bank guarantee is: 948 1,023
Note 19. Superannuation
The Council contributes to the Local Government Superannuation Scheme (Qld) (the scheme). The
scheme is a Multi-employer Plan as defined in the Australian Accounting Standard AASB119 Employee
Benefits.
The Queensland Local Government Superannuation Board, the trustee of the scheme, advised that the
local government superannuation scheme was a complying superannuation scheme for the purpose of
the Commonwealth Superannuation Industry (Supervision) legislation.
The Scheme has three elements referred to as:
- The City Defined Benefits Fund (CDBF) which covers former members of the City Super Defined
Benefits Fund
- The Regional Defined Benefits Fund (Regional DBF) which covers defined benefit fund members
working for regional local governments; and
- The Accumulation Benefits Fund (ABF)
The ABF is a defined contribution Scheme as defined in AASB 119. Council has no liability to or interest
in the ABF other than the payment of the statutory contributions as required by the Local Government
Act 2009 .
Council does not have any employees who are members of the CDBF and, therefore, is not exposed to
the obligations, assets or costs associated with this fund.
88 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 40
Note 19. Superannuation (Continued)
The Regional DBF is a defined benefit plan as defined in AASB119. The Council is not able to account for
the Regional DBF as a defined benefit plan in accordance with AASB119 because the scheme is unable
to account to the Council for its proportionate share of the defined benefit obligation, plan assets and
costs. The funding policy adopted in respect of the Regional DBF is directed at ensuring that the
benefits accruing to members and beneficiaries are fully funded as they fall due.
To ensure the ongoing solvency of the Regional DBF, the scheme's trustee can vary the rate of
contributions from relevant local government employers subject to advice from the scheme's actuary. As
at the reporting date, no changes had been made to prescribed employer contributions which remain at
12% of employee assets and there are no known requirements to change the rate of contributions.
Any amount by which either fund is over or under funded would only affect future benefits and
contributions to the Regional DBF, and is not an asset or liability of the Council. Accordingly there is no
recognition in the financial statements of any over or under funding of the scheme.
As at the reporting date, the assets of the scheme are sufficient to meet the vested benefits.
The most recent actuarial assessment of the scheme was undertaken as at 1 July 2015. The actuary
indicated that "At the valuation date of 1 July 2015, the net assets of the scheme exceeded the vested
benefits and the scheme was in a satisfactory financial position as at the valuation date."
In the 2015 actuarial report the actuary has recommended no change to the employer contribution
levels at this time.
Under the Local Government Act 2009, the trustee of the scheme has the power to levy additional
contributions on councils which have employees in the Regional DBF when the actuary advises such
additional contributions are payable - normally when the assets of the DBF are insufficient to meet
members' benefits.
There are currently 69 entities contributing to the Regional DBF plan and any changes in contribution
rates would apply equally to all 69 entities. Gympie Regional Council made less than 4% of the total
contributions to the plan in the 2015-16 financial year.
The next actuarial investigation will be made as at 1 July 2018.
2016 2015
Notes $'000 $'000
The amount of Superannuation Contributions paid by Council
to the Scheme in this Period for the benefit of employees was: 5 3,992 3,363
89GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 41
Note 20. Trust Funds
2016 2015
Notes $'000 $'000
Trust funds held for outside parties
Monies collected or held on behalf of other entities yet to be paid out
to or on behalf of those entities 289 264
Security Deposits 1,515 1,546
1,804 1,810
The Council performs only a custodial role in respect of these
monies. As these funds cannot be used by the Council, they are not
brought to account in these financial statements.
Note 21. Reconciliation of Net Result for the year to Net
Cash Inflow/(Outflow) from Operating Activities
Net operating result from Income Statement 2,276 (888)
Non-cash items
Impairment of Property, Plant and Equipment 367 Depreciation
and Amortisation 16,252 15,780
16,619 15,780
Investing and development activities
Non Cash Capital Grants and Contributions (14,394) (10,994)
Capital Expenses 6,576 15,643
(7,818) 4,649
Changes in operating assets and liabilities:
(Increase)/Decrease in Receivables 442 (1,294)
(Increase)/Decrease in Inventories (1,513) (966)
Increase/(Decrease) in Payables and Accruals (4,086) 835
Increase/(Decrease) in Other Liabilities 1,397 378
Increase/(Decrease) in Other Provisions 106 183
(3,654) (864)
Net cash provided from/(used in) Operating Activities from
the Statement of Cash Flows
7,423 18,677
90 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 42
Note 22. Events Occurring After Balance Sheet Date
Events that occur after the reporting date of 30 June 2016, up to and including the date when the
financial statements are "authorised for issue" have been taken into account in preparing these
statements.
The Council has adopted the date of receipt of the Auditors' Report as the appropriate "authorised for
issue" date relating to these General Purpose Financial Statements.
Events that occur after the Reporting Date represent one of two types:
(i) Events that have provided evidence of conditions that existed at the Reporting Date
These financial statements (and the figures therein) incorporate all "adjusting events" that provided
evidence of conditions that existed at 30 June 2016.
(ii) Events that have provided evidence of conditions that arose after the Reporting Date
These financial statements (and figures therein) do not incorporate any "non adjusting events" that have
occurred after 30 June 2016 and which are only indicative of conditions that arose after 30 June 2016.
The Council is unaware of any material or significant "non adjusting events" that should be disclosed.
91GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 43
Note 23. Financial Instruments
The Council has exposure to the following risks arising from financial instruments; (i) interest rate risk,
(ii) credit risk, and (iii) liquidity risk.
This note provides information (both qualitative and quantitative) to assist statement users evaluate the
significance of financial instruments on the Council's financial position and financial performance,
including the nature and extent of risks and how the Council manages these exposures.
Financial Risk Management
The Council is responsible for the establishment and oversight of the risk management framework,
together with developing and monitoring risk management policies.
The Council approves policies for overall risk management as well as specifically for managing credit,
liquidity and market risk.
The Council's risk management policies are established to identify and analyse the risks faced, to set
appropriate limits and controls and to monitor these risks and adherence against limits. The Council
aims to manage volatility to minimise potential adverse effects on the financial performance of the
Council.
Council does not enter into derivatives.
Credit Risk Exposure
Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its
contractual obligations. These obligations arise principally from the Council's investments and
receivables from customers.
Exposure to credit risk is managed through regular analysis of credit counterparty ability to meet
payment obligations. The carrying amount of financial assets represents the maximum credit exposure.
Investments in financial instruments are required to be made with Queensland Treasury Corporation
(QTC) or similar State/Commonwealth bodies or financial institutions in Australia, in line with the
requirements of the Statutory Bodies Financial Arrangements Act 1982.
No collateral is held as security relating to the financial assets held by the Council.
92 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 44
Note 23. Financial Instruments (continued)
2016 2015
Notes $'000 $'000
The following table represents the maximum exposure to credit risk
based on the carrying amounts of financial assets at the end of the
reporting period:
Financial Assets
Cash and Cash Equivalents 8 71,342 84,357
Receivables - Rates 9 7,515 7,365
Receivables – Other 9 6,022 6,206
84,879 97,928
Other Credit Exposures
Guarantee 948 1,023
Cash and Cash Equivalents
The Council may be exposed to credit risk through its investments in the QTC Cash Fund and QTC
Working Capital Facility. The QTC Cash Fund is an asset management portfolio that invests with a wide
range of high credit rated counterparties. Deposits with the QTC Cash Fund are capital guaranteed.
Working Capital Facility deposits have a duration of one day and all investments are required to have a
minimum credit rating of "A-", therefore the likelihood of the counterparty having capacity to meet its
financial commitments is strong.
Trade and Other Receivables
In the case of rate receivables, the Council has the power to sell the property to recover any defaulted
amounts. In effect this power protects the Council against credit risk in the case of defaults.
In other cases, the Council assesses the credit risk before providing goods or services and applies
normal business credit protection procedures to minimise the risk.
By the nature of the Councils operations, there is a geographical concentration of risk in the Council's
area. Because the area is largely agricultural, there is also a concentration in the agricultural sector.
93GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 45
Note 23. Financial Instruments (continued)
2016 2015
Notes $'000 $'000
Ageing of past due receivables and the amount of any impairment is disclosed in the following table:
Fully Performing 5,271 4,159
Past due:
- Less than 30 days overdue
- 31 to 60 days overdue 39 555
- 61 to 90 days overdue 25 9
- Greater than 90 days overdue 8,083 8,848
- Impaired 119 Total
9 13,537 13,571
Liquidity Risk
Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations
associated with financial liabilities that are settled by delivering cash or another financial asset. The
Council is exposed to liquidity risk through its trading in the normal course of business and borrowings
from the Queensland Treasury Corporation for capital works or borrowings from other financial
institutions (if applicable).
Council manages its exposure to liquidity risk by maintaining sufficient cash deposits, to cater for
unexpected volatility in cash flows. These facilities are disclosed in Note 14.
The following table sets out the liquidity risk in relation to financial liabilities held by the Council. It
represents the remaining contractual cashflows (principal and interest) of financial liabilities at the end
of the reporting period, excluding the impact of netting agreements:
0 to 1 year 1 to 5 years Over 5 years
Total
Contractual
Cash Flows
Carrying
Amount
$'000 $'000 $'000 $'000 $'000
2016
Trade and Other Payables 4,082 - - 4,082 4,082
Loans - QTC 2,633 9,772 20,840 33,245 21,729
Total 6,715 9,772 20,840 37,327 25,811
2015
Trade and Other Payables 8,228 - - 8,228 8,228
Loans - QTC 2,724 9,813 22,788 35,325 22,950
Total 10,952 9,813 22,788 43,553 31,178
The outflows in the above table are not expected to occur significantly earlier and are not expected to
be for significantly different amounts than indicated in the table.
94 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 46
Note 23. Financial Instruments (continued)
Market Risk
Market risk is the risk that changes in market prices, such as interest rates, will affect the Council's
income or the value of its holdings of financial instruments.
Interest Rate Risk
The Council is exposed to interest rate risk through investments and borrowings with Queensland
Treasury and/or other financial institutions (if applicable).
The Council has access to a mix of variable and fixed rate funding options through QTC so that interest
rate risk exposure can be minimised.
Sensitivity to interest rate movements is shown for variable financial assets and liabilities based on the
carrying amount at reporting date.
The following interest rate sensitivity analysis depicts what effect a reasonably possible change in
interest rates (assumed to be 1%) would have on the profit and equity, based on the carrying values at
the end of the reporting period. The calculation assumes that the change in interest rates would be held
constant over the period.
Amount
$'000
1% increase
$'000
1% decrease
$'000
1% increase
$'000
1% decrease
$'000
2016
QTC Cash Fund 65,359 654 654 654 654
Loans - QTC (21,729) - - - Net
43,630 654 654 654 654
2015
QTC Cash Fund 77,409 774 (774) 774 (774)
Loans - QTC (22,950) - - - Net
54,459 774 (774) 774 (774)
In relation to the QTC loans held by the Council, the following has been applied: (include as applicable)
QTC Fixed Rate Loan - financial instruments with fixed interest rates which are carried at amortised cost
are not subject to interest rate sensitivity.
QTC Generic Debt Pool - the generic debt pool products approximate a fixed rate loan. There is a
negligible impact on interest sensitivity from changes in interest rates for generic debt pool borrowings.
QTC Client Specific Pool - client specific pool products are often rebalanced to a target benchmark
duration.
This partially exposes clients to the level of interest rates at the time of rebalancing. Sensitivity on these
products is provided by QTC through calculating the interest effect over the period.
95GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 47
Note 23. Financial Instruments (continued)
Fair Value
The fair value of trade and other receivables and payables is assumed to approximate the value of the
original transaction, less any allowance for impairment.
The fair value of borrowings with QTC is based on the market value of debt outstanding. The market
value of a debt obligation is the discounted value of future cash flows based on prevailing market rates
and represents the amount required to be repaid if this was to occur at balance date. The market value
of debt is provided by QTC and is disclosed in Note 14.
QTC applies a book rate approach in the management of debt and interest rate risk, to limit the impact
of market value movements to clients' cost of funding. The book value represents the carrying value
based on amortised cost using the effective interest method.
Carrying Value Fair Value
2016 2015 2016 2015
Notes $'000 $'000 $'000 $'000
Financial Assets
Cash and Cash Equivalents 8 71,342 84,357 - Receivables
9 13,537 13,979 - Total
Financial Assets 84,879 98,336 - Financial
Liabilities
Payables 13 10,299 14,349 - Borrowings
14 21,729 22,950 - Total
Financial Liabilities 32,028 37,299 - -
96 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 48
Note 24. National Competition Policy
Business activities to which the code of competitive conduct is applied
Gympie Regional Council applies the competitive code of conduct to the following activities:
Building Certification Water and Sewerage Refuse Management
This requires the application of full cost pricing, identifying the cost of community service obligations
(CSO) and eliminating the advantages and disadvantages of public ownership within that activity.
The CSO value is determined by Council, and represents an activities cost(s) which would not be incurred
if the primary objective of the activities was to make a profit. The Council provides funding from general
revenue to the business activity to cover the cost of providing non-commercial community services or
costs deemed to be CSO's by the Council.
The following activity statements are for activities subject to the competitive code of conduct:
Building Water and Refuse
Certification Sewerage Management
$'000 $'000 $'000
$'000
Revenue for services provided to the Council - - Revenue
for services provided to external clients 282 19,972 9,768
Community service obligations - 526 119
282 20,498 9,887
Less : Expenditure (359) (13,519) (8,443)
Surplus/(Deficit) (77) 6,979 1,444
Description of CSO's provided to business activities:
Actual
Activities CSO Description $’000
Water and sewerage Council services 526
Refuse Management Cleaning and refuse 119
collection services
97GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Notes to the Financial Statements
for the year ended 30 June 2016
Page 49
Note 25. Controlled Entities that have not been Consolidated
Council has a number of controlled entities that are not consolidated because their size and nature
means that they are not material to Council's operations.
A summary of those entities, their net assets and results for the year ended 30 June 2016 and 2015
follows:
Controlled Entities - Financial Results:
Controlled Entity
Interest in
2016 Details Ownership Revenue Expenses Profit Assets Liabilities
% $'000 $'000 $'000 $'000 $'000
Mary Valley Community
Holding Limited
1 100 - 24 (24) 194 Rattler
Railway Company
Limited
2 100 40 26 14 18 -
40 50 (10) 212 Controlled
Entity
Interest in
2015 Details Ownership Revenue Expenses Profit Assets Liabilities
% $'000 $'000 $'000 $'000 $'000
Mary Valley Community
Holding Limited
1 100 240 22 218 218 Rattler
Railway Company
Limited
2 100 41 37 4 4 -
281 59 222 222 -
1 Mary Valley Community Holding Limited owns the rolling stock assets and controls the leases for the
Mary Valley Rattler Steam Train Tourism Venture and wholly owns the Rattler Railway Company
Limited.
2 The Rattler Railway Company Limited operates the Mary Valley Rattler Steam Train Tourism Venture
and is wholly owned by the Mary Valley Community Holding Limited
The Mary Valley Rattler Steam Train Tourism Venture did not operate during the year. Future operations
are dependent upon the provision of State and Council funding.
98 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
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100 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
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101GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Current Year Financial Sustainability Statement
for the year ended 30 June 2016
Page 53
Actual Target
2016 2016
Measures of Financial Sustainability
Council's performance at 30 June 2016 against key financial ratios and targets.
Performance Indicators
1. Operating Surplus Ratio
Net Result (excluding capital items) -6.48% 0 - 10%
Total Operating Revenue (excluding capital items)
An indicator of which the extent to which revenues raised cover operational expenses only or are
available for capital funding purposes or other purposes.
2. Asset Sustainability Ratio
Capital Expenditure on the Replacement of Assets (renewals) 107.19% more than
Depreciation Expense 90%
An approximation of the extent to which the infrastructure assets managed are being replaced as these
reach the end of their useful lives.
3. Net Financial Liabilities Ratio
Total Liabilities less Current Assets -42.44% less than
Total Operating Revenue (excluding capital items) 60%
An indicator of the extent to which the net financial liabilities can be serviced by its operating revenue.
Note 1 - Basis of Preparation
The current year financial sustainability statement is a special purpose statement prepared in accordance
with the requirements of the Local Government Regulation 2012 and the Financial Management
(Sustainability) Guideline 2013. The amounts used to calculate the three reported measures are prepared
on an accrual basis and are drawn from the Council's audited general purpose financial statements for
the year ended 30 June 2016.
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105GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
GympieRegionalCouncilFinancialStatements2016
Long-TermFinancialSustainabilityStatement
preparedasat30June2016
Page57
TargetActualForecast
20162017201820192020202120222023202420252026
MeasuresofFinancialSustainability
Council'sperformanceat30June2016againstkey
financialratiosandtargets.
PerformanceIndicators
1.OperatingSurplusRatio
NetResult(excludingcapitalitems)(1)
TotalOperatingRevenue(excludingcapitalitems)(2)0-10%-6.48%2.2%1.84%3.58%3.34%2.40%1.43%3.27%3.22%4.34%4.99%
Anindicatorofwhichtheextenttowhichrevenues
raisedcoveroperationalexpensesonlyorareavailable
orcapitalfundingpurposesorotherpurposes.
2.AssetSustainabilityRatio
CapitalExpenditureontheReplacementofAssets(renewals)(3)>90%107.19%158.94%90.56%75.27%78.21%70.25%59.32%61.92%60.23%64.98%46.83%
DepreciationExpense
Anapproximationoftheextenttowhichthe
infrastructureassetsmanagedarebeingreplacedas
thesereachtheendoftheirusefullives.
3.NetFinancialLiabilitiesRatio
TotalLiabilitieslessCurrentAssets
TotalOperatingRevenue(excludingcapitalitems)(2)<60%-42.44%-71.21%-62.45%-56.08%-35.24%-38.11%-42.80%-42.73%-45.80%-52.16%-68.2%
Anindicatoroftheextenttowhichthenetfinancial
liabilitiescanbeservicedbyitsoperatingrevenue.
106 GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
Gympie Regional Council Financial Statements 2016
Current Year Financial Sustainability Statement
for the year ended 30 June 2016
Measures of Financial Sustainability
Gympie Regional Council Financial Management Strategy
Council measures revenue and expenditure trends over time as a guide to future requirements and to
make decisions about the efficient allocation of resources to ensure the most effective provision of
services. Council ensures that its financial management strategy is prudent and that its long-term
financial forecast shows a sound financial position whilst also being able to meet the community’s
current and future needs.
Council aims to operate within a set of conservative guide-posts to ensure we are financially sustainable in
the short, medium and long term. As part of our financial strategy,
we have adopted the above three sustainability indicators that have been set by the Department of Local
Government, Community Recovery and Resilience to help monitor the long-term sustainability of all
councils across Queensland. In summary, we achieved or bettered two of the three financial targets,
performing strongly in our ability to generate cash from day-to-day operations, meeting all financial
commitments in the financial year, and keeping debt to conservative and manageable levels. This was
achieved while maintaining community services and making ongoing investment in community
infrastructure.
107GYMPIE REGIONAL COUNCIL ANNUAL REPORT 2015–2016
Appendix D: Financial statements
GympieRegionalCouncil
1300307800
242MaryStreet(POBox155)
GympieQLD4570
gympie.qld.gov.au