FINANCIAL STATEMENTS
30 JUNE 2004
1
CRADLE COAST AUTHORITY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2004 Note 2004 $
2003 $
CURRENT ASSETS Cash
6
1,212,879
640,712
Receivables
7
164,743
73,905
1,377,622
714,617
206,061
198,899
206,061
198,899
1,583,683
913,516
TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment
8
TOTAL NONCURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Creditors
9
174,949
149,458
Provisions
10
35,615
29,955
210,564
179,413
Provisions
0
0
TOTAL NONCURRENT LIABILITIES
0
0
TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES
TOTAL LIABILITIES NET ASSETS
210,564
179,413
1,373,119
734,103
1,373,119
734,103
EQUITY Accumulated Funds
11
The accompanying notes form part of these financial statements.
2
CRADLE COAST AUTHORITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2004 Note 2004 $
2003 $
2,541,077
1,611,299
(729,921)
(511,661)
CLASSIFICATION OF EXPENSES BY NATURE Revenues from ordinary activities
2
Employee benefits expense Depreciation and amortisation expenses
3
(60,260)
(35,269)
Other expenses from ordinary activities
4
(1,111,880)
(862,312)
639,016
202,057
Surplus/ (Deficit) from ordinary activities before income tax expense
The accompanying notes form part of these financial statements. 3
CRADLE COAST AUTHORITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2004 Note
2004 $
2003 $
2,621,262
1,703,688
(2,006,739)
(1,415,464)
20,477
15,246
635,000
303,470
(119,196)
(152,411)
56,363
26,818
(62,833)
(125,593)
Loan Proceeds
0
0
Net cash used in financing activities
0
0
Net increase / (decrease) in cash held
572,167
177,877
Cash at beginning of financial year
640,712
462,835
1,212,879
640,712
CASH FLOW FROM OPERATING ACTIVITIES Receipts from Government Grants & Council Contributions Payments to suppliers and employees Interest received Net cash provided by operating activities
12
CASH FLOW FROM INVESTING ACTIVITIES Payment for property, plant and equipment Proceeds from sales of equipment Net cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES
Cash at end of financial year
13
The accompanying notes form part of these financial statements.
4
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board. Cradle Coast Authority is a Joint Authority established under Section 38 of the Local Government Act 1993 with participating Councils being Devonport, Burnie, Kentish, Latrobe, Central Coast, Waratah-Wynyard, Circular Head, West Coast and King Island Councils. The financial report has been prepared on an accrual basis and is based on historical cost and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. The following is a summary of the material accounting policies adopted by the Authority in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. a.
Property, Plant and Equipment In accordance with AASB 1041, the Authority has elected to value its property, plant and equipment at cost, less, where applicable, any accumulated depreciation or amortisation. The carrying amount of property, plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amounts of these assets. The depreciable amount of all fixed assets are depreciated over their useful lives commencing from the time the asset is held ready for use. The gain or loss on disposal of all fixed assts is determined by the carrying amount of the asset at the time of disposal and the proceeds of disposal, and is included in operating profit before income tax of the company in the year of disposal.
b.
Depreciation The depreciable amount of all fixed assets are depreciated on a diminishing value basis for their estimated useful lives to the Authority commencing from the time the asset is held ready for use.
The depreciation rates used for each class of assets are:
c.
Class of Fixed Asset
Depreciation Rate
Motor Vehicles
22.5%
Plant and equipment
7.5% - 60%
Employee Entitlements Provision is made for the Authority’s liability for employee entitlements arising from services rendered by employees to balance date. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been measured at their nominal amount. Other employee entitlements payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those entitlements. There were 14 full time employees at reporting date. In accordance with AASB 1028 employee entitlements includes on-costs of superannuation and workers compensation insurance totalling 10%. No long service leave has been accrued due to current employment arrangements. Contributions are made by the Authority to an employee superannuation fund and are charged as expenses when incurred.
5
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES d.
Cash For the purposes of the statement of cash flows, cash includes cash on hand and at call deposits with banks or financial institutions, investments in money market instruments maturing within less than two months and net of bank overdrafts.
e.
Revenue Revenue from Councils and Government Authorities are recognised when received. Interest revenue is recognised when received. All revenue is stated net of the amount of goods and services tax (GST).
f.
Income Tax The Authority is exempt from Income Tax under the provisions which apply to Local Government Authorities.
g.
Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods of which they are incurred.
h.
Investments Non-current investments are measured on the cost basis. The carrying amount of investments is reviewed annually by directors to ensure it is not in excess of the recoverable amount of these investments. The recoverable amount is assessed from the quoted market value for shares in listed companies or the underlying net assets for other non-listed corporations. The expected net cash flows from investments have not been discounted to their present value in determining the recoverable amounts.
i.
Financial Assets & Liabilities Debtors – Debtors are required to settle their accounts within 30 days of the invoice being issued. The Authority does not have any concerns regarding the payment of outstanding debts. Creditors - Creditors are generally settled within the specified terms or 30 days, whichever is earlier. Net fair value - The Authority considers the carrying amount of its financial assets and liabilities approximate their fair value. Interests in Joint Venture
j.
The Authority’s share of the assets, liabilities, revenue and expenses of the joint venture operations are included in the appropriate items of the financial statements. Details of the Authority’s interests are shown at Note 17. The Authority’s interests in the joint venture are brought to account using the proportional consolidation method on accounting in the financial statements. Adoption of Australian Equivalents to International Financial Reporting Standards
k.
Australia is currently preparing for the introduction of International Financial Reporting Standards (IFRS) effective for financial years commencing 1 January 2005. This requires the production of accounting data for future comparative purposes at the beginning of the next financial year. The entity’s management are assessing the significance of these changes and preparing for their implementation.
6
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The directors are of the opinion that the key differences in the economic entity’s accounting policies which will arise from the adoption of IFRS are: Impairment of Assets The entity currently determines the recoverable amount of an asset on the basis of undiscounted net cash flows that will be received from the assets use and subsequent disposal. In terms of the pending AASB 136 Impairment of Assets, the recoverable amount of an asset will be determined as the higher of fair value less costs to sell and value in use. It is likely that this change in accounting policy will lead to impairments being recognised more often than under the existing policy. Non-current Investments Under the pending AASB 139 Financial instruments: Recognition and measurement, financial instruments that are classified as available for sale instruments must be carried at fair value. Unrealised gains or losses may be recognised either in income or directly to equity. Current accounting policy is to measure non-current investments at cost, with an annual review by directors to ensure that the carrying amounts are not in excess of the recoverable value of the instrument.
7
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 Note NOTE 2: REVENUE
2004 $
2003 $
712,985
698,441
Operating activities Council Contributions Government Grants Other Income
1,637,640
573,937
113,613
166,340
Transfer from Cradle Coast Tourism Ltd.
130,517
Interest
20,476
15,246
56,363
26,818
2,541,077
1,611,299
15,562
10,602
— plant and equipment
44,698
24,667
Total depreciation
60,260
35,269
Non-operating activities — proceeds on disposal of property, plant and equipment Total revenue
NOTE 3: PROFIT FROM ORDINARY ACTIVITIES Surplus (Deficit) from ordinary activities has been determined after: Expenses:
Depreciation of non-current assets — motor vehicles
8
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 NOTE 4: PROFIT FROM ORDINARY ACTIVITIES
2004 $
2003 $
Surplus (Deficit) from ordinary activities has been determined after: Expenses: 2,120
2,710
Accounting
Auditors Remuneration
22,850
14,026
Advertising
62,359
41,647
Bank Charges
1,800
1,363
Communications
5,613
1,477
Directors Fees
51,311
43,600
Fringe Benefits Tax
17,254
10,778
Insurance
10,385
11,388
IT Support Expenses
22,650
11,204
Legal Costs
14,117
9,305
Light & Power
4,034
4,808
Lease Expenses
66,003
42,038
Written Down Value of Non Current Assets Sold
51,775
24,513
396,343
333,862
Management & Consulting Fees Meeting Expenses
58,455
22,792
Motor Vehicle Expenses
45,336
29,022 4,205
Office Equipment
3,004
Office Maintenance
7,034
9,855
Postage
7,375
4,215
103,689
52,254
Printing & Stationery Promotion Expenses
0
55,820
Recruitment & Relocation Costs
11,617
11,396
Rent
50,640
48,563
Seminar Expenses
6,827
5,901
Sundry Expenses
11,043
7,009
Telephone
31,724
25,347
Travelling
46,522
33,214
1,111,880
862,312
36,666
35,450
14,645
8,150
51,311
43,600
NOTE 5: REMUNERATION & RETIREMENT BENEFITS Remuneration of Directors Remuneration received or receivable by all directors of the Authority: - from the Authority or a related party in connection with the management of the Authority Salary Superannuation
9
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004
NOTE 5: REMUNERATION & RETIREMENT BENEFITS The names of the directors who have held office during the financial year: Mr Russell Paterson Mr Bob Wilson Mr Ross Hine Mr David Sales Ms Megan Cavanagh-Russell Ms Cathryn Fernon Mrs Mary Binks Mr David Reed Mr Alfred Mott Mr John Howard Mr Allan Leeson Mr David Brewster
NOTE 6: CASH (CURRENT)
2004 $
Cash on Hand Cash at Bank
2003 $
272
623
1,212,607
640,089
1,212,879
640,712
164,743
73,905
NOTE 7: RECEIVABLE (CURRENT) Trade Debtors
NOTE 8: PROPERTY, PLANT & EQUIPMENT Plant & Equipment - at cost
209,842
181,299
Less Accumulated Depreciation
(96,011)
(51,314)
113,831
129,985
Motor Vehicle - at cost
98,860
85,475
Less Accumulated Depreciation
(6,630)
(16,561)
92,230
68,914
206,061
198,899
10
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 NOTE 8: PROPERTY, PLANT & EQUIPMENT Plant and Equipment
Motor Vehicles
Total
$
$
$
Balance at the beginning of the year
129,985
68,914
198,899
Additions
28,544
90,653
119,197
0
(51,775)
(51,775)
Disposals Depreciation expense Capitalised borrowing costs and depreciation Carrying amount at the end of the year
(44,698)
(15,562)
(60,260)
0
0
0
113,831
NOTE 9: CREDITORS (CURRENT)
92,230
2004 $
Taxation Obligations
206,061
2003 $
64,255
7,639
110,694
141,819
174,949
149,458
35,615
29,955
Accumulated Funds at the beginning of the financial year
734,103
532,046
Net Surplus/(Deficit)
639,016
202,057
1,373,119
734,103
Trade Creditors
NOTE 10: PROVISIONS CURRENT Provision for Annual Leave
NOTE 11: EQUITY
Accumulated Funds at the end of the financial year
11
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 NOTE 12: RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO OPERATING PROFIT Operating Surplus/(Deficit)
2004 $
2003 $
639,016
202,057
Depreciation
60,260
35,269
Net profit on disposal of plant & equipment
(4,588)
(2,305)
(Increase) / Decrease in Debtors
(90,839)
(66,025)
Increase / (Decrease) in Provisions
5,660
12,925
Increase / (Decrease) in Creditors
25,491
121,549
635,000
303,470
272
623
1,212,607
640,089
1,212,879
640,712
NOTE 13: RECONCILIATION OF CASH
For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the balance sheet as follows: Cash on Hand Cash at Bank
NOTE 14: LEASE COMMITMENTS Payable: Not later than one year
89,279
37,956
Later than one year but not later two years
27,674
35,671
Later than two years but not later than five years
0
30,490
Later than five years
0
0
116,953
12
104,117
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004
NOTE 15: FINANCIAL INSTRUMENTS Weighted Average Effective Interest Rate
Floating Interest Rate
Fixed Interest Rate Maturing
Within 1 Year
1 to 5 Years
2004
2003
2004
2003
2004
2003
2004
2003
2004
2003
%
%
$
$
$
$
$
$
$
$
1.79
0.15
0
0
0
0
0
0
0
0
0
0
272
623
Financial Assets Cash
Non Interest Bearing
1,212,607 640,089
Cash on Hand Debtors Total Financial Assets
0
0
0
0
1,212,607 640,089
0
0
0
0
164,743 73,905
0
0
0
0
165,015
74,528
Financial Liabilities Creditors
NOTE 16: UNEXPENDED SPECIFIC GRANT FUNDS
0
0
64,255
7,639
0
0
110,694 141,819
0
0
64,255
7,639
0
0
110,694 141,819
2004
2003
$
$
Grants: Bushcare Grant
5,500
10,427
Waste Management Strategy Grant
1,763
0
Recreation Planning Project Grant
12,444
12,510
Cradle Coast Local Agenda 21 Project Grant
16,751
25,000
NHT – Regional NRM Strategy Grant
172,199
0
2,589
35,306
Sustainable Regions Grant NHT – Regional NRM Support Officer Grant
16,486
0
Sustainable Regions Grant (Education)
149,109
123,288
0
6,483
Department of Transport & Regional Services Grant Tourism Tasmania
155,000
160,868
Arts – Cultural Arts Audit
6,315
11,745
Events Tasmania
75,705
30,000
Tasmanian Carnivals Grant
814
3,352
NHT – Regional NRM Facilitators Grant
59,747
0
NHT – Priority Projects Soil Condition Grant
33,000
0
NHT – Priority Projects Whole Farm Plan Grant
100,000
0
NHT – Strategy Assistance Grant
100,000
0
Touring Route Strategy Grant
36,909
0
Stanley Precinct Grant
71,651
0
Arboretum Strategy Grant
10,000
0
1,025,982
418,979
13
CRADLE COAST AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004
NOTE 17: INTEREST IN JOINT VENTURE OPERATIONS:
2004
2003
$
$
The Authority has a 33.33% interest in a joint venture with the Burnie City Council and Tasmanian Development & Resources whose principal activity is to purchase, demolish and rehabilitate a site in Burnie. The Authority’s share of assets in the joint venture is: Current Assets
0
0
Non Current Assets
0
0
TOTAL ASSETS
0
0
Other Information: The Authority’s share of joint venture capital commitments
0
The Authority’s share of joint venture contingent liabilities
0
CRADLE COAST AUTHORITY DIRECTORS’ DECLARATION
14
CRADLE COAST AUTHORITY DIRECTORS’ DECLARATION The directors of the Authority declare that: 1.
the financial statements and notes, as set out on pages 1-14 present fairly the Authority’s financial position as at 30 June 2004 and its performance for the year ended on that date in accordance with Accounting Standards and other mandatory professional reporting requirements;
2.
in the directors’ opinion there are reasonable grounds to believe that the Authority will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors Director
Signed by Megan Cavanagh-Russell Ms Megan Cavanagh-Russell
Director
Signed by Allan Leeson Mr Allan Leeson
Dated this 5th
of October
2004
15
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