SORELL COUNCIL 1862

Sorell Council Annual Report 2012-2013

COMMUNITY COAST COUNTRY Contents

Vision, Mission and Values 3 Fast Facts and Municipal Map 4 About Sorell 5 Mayor’s Report 6 General Manager’s Report 8 Senior Management Team 10 Senior Management Remuneration 11 Bushfire Feature 12 Your Councillors: Photos, Terms of Service and Representations 16 Councillor Attendance 18 Councillor Allowance and Expenses 18 Thank you to Carmel Torenius 18 Human Resources and Community Services 20 Engineering Services 22 Environment and Development 24 Finance and Information 26 The Way We Plan 30 Legislative Requirements Enterprise Powers Statement 47 Contract for the Supply of Goods and Services 47 Section 77 (1) donations 48 Copping Refuse Disposal Site Joint Authority 49 Environmental Health Statement 50 General Purpose Financial Report 53 Audit Opinion 96

2 Annual Report 2012-2013 Rotunda and roses in St George’s Square

Our Vision To be the focus for services to a healthy and diverse community which enjoys a wonderful lifestyle; a Council open to change in the best interest of its community. Our Mission To lead with strength and integrity for the community and provide effective service delivery from which all generations can prosper and grow. Our Organisational Values

INTEGRITY

We behave and act ethically and seek to be truthful in all our operations and undertakings.

EQUITABLE

We are fair and unbiased in our work and decisions.

RESPECT

We value the dignity and diversity of each person in our community.

OPENNESS

We are transparent and take responsibility for our actions.

Annual Report 2012-2013 3 Fast Facts Land Area 582.6 km2 Number of bridges 81

Population 13,194* Breakdown of revenue Major Populations Rates and charges 60% Sorell 2,476* Statutory fees and fines 2% Midway Point 2,598* User fees 4% Dodges Ferry 2,319* Operating Grants from Govt. 21% Primrose Sands 934* Interest from Funds Invested 3% Rateable Properties 8702 Investment income from Southern Water 3% Length of urban sealed road 90 km Capital Grants from Govt. 5% Length of rural sealed road 87 km Other 3% Length of urban unsealed road 28 km Total Revenue 100% Length of rural unsealed road 170 km *Figures taken from 2011 ABS Census

LOCATION

NUGENT PAWLEENA ORIELTON

BREAM CREEK PENNA WATTLE HILL KELLEVIE SORELL

MIDWAY POINT

FORCETT LEWISHAM COPPING MARION BAY

DODGES FERRY CARLTON RIVER BOOMER BAY CARLTON DUNALLEY TASMANIA PRIMROSE SANDS CONNELLYS MARSH

4 Annual Report 2012-2013 About Sorell Boat Park in Dodges Ferry

About Sorell Sorell is one of Tasmania’s oldest towns, and today it is town of Sorell was founded. Sorell soon established NUGENT popular for its history, beautiful southern beaches and itself to be the granary that fed the fledgling colony. PAWLEENA its growing suburbs. ORIELTON After forty years of growth and development it was Located 25km north-east of Hobart and spanning decided that a Council was needed to help build and approx. 583 km2, Sorell’s key entrance points are organise much needed facilities and services. The BREAM CREEK Midway Point, Dunalley and Orielton. The border first Council was elected on 26 May 1862 and met for extends south-east around the scenic coastline the first time on 30 June 1862. Much progress soon PENNA WATTLE HILL KELLEVIE which encompasses the townships of Dodges Ferry, followed, with the electric telegraph service introduced SORELL Lewisham, Carlton, Primrose Sands, Connelly’s Marsh, in 1876, the Bellerive-Sorell railway line built in 1892, a Dunalley, Marion Bay and Boomer Bay. The Municipal water supply connected in 1916 and electricity delivered MIDWAY POINT border extends through rolling hillsides and unique to the town in 1930. Tasmanian forests, incorporating the townships of During the early years of Sorell, residents relied on Forcett, Copping, Nugent and Kellevie. FORCETT ferries to cross Pitt Water; otherwise they had to travel LEWISHAM COPPING MARION BAY The Sorell area has a rich history. The Sorell district to Hobart via Richmond. In 1854 Sir William Denison was first explored by Lieutenant Governor Collins, who began negotiations to construct a causeway. The named the shallow stretch of water between Sorell causeway took eight years to complete, with the first and Midway Point, Pitt Water after the then Chancellor vehicles making the crossing in 1872. DODGES FERRY CARLTON RIVER BOOMER BAY of the Exchequer, William Pitt. The name Pitt Water As one of the fastest growing municipalities in the CARLTON was given to the whole district until 1821 when the State, the Sorell Municipality continues to attract settlement was named after Lieutenant Governor DUNALLEY families with its affordable housing, natural coastline PRIMROSE SANDS William Sorell. TASMANIA and inland environments and the convenience of major CONNELLYS MARSH Whilst Sorell was first settled around 1808, it remained shops and services. an isolated farming community until 1821 when the

Annual Report 2012-2013 5 2013 Citizen of the Year Bryan Dean with Mayor Kerry Vincent

Mayor’s Report

The start of my term as Mayor was marked by the Developments at the Boat Park in Dodges Ferry bushfires that devastated our community. The continue. This park is proving very popular and will see bushfires have been a big focus for our community a few more additions before it is finalised. and will remain so for several years to come as the To coincide with the 150th anniversary of the communities affected rebuild and revitalise. The establishment of Sorell Council, an Art Acquisition fires showed the strength of our smaller regional Prize was held. Six paintings were entered with Dawn communities and how they work together in the Gatehouse’s painting, All Roads Meet in Sorell, Market face of such disaster. It’s a credit to everyone in Town of the South East since the 1870’s, being selected the communities of Forcett, Copping, Boomer Bay, as the winner. This proved so popular that Council is Dunalley and Connellys Marsh in how they responded. now collaborating with Southern Beaches Regional Arts It was a busy year for Council with a number of to hold another art exhibition and prize. With twelve infrastructure projects being completed or begun. categories and fourteen prizes on offer there has already been much interest and excitement shown for Stage one developments at Pembroke Park are this initiative. progressing well. A Special Committee of Council was established to act as an advisory group to Council Council’s new Community Administration Centre (CAC) on the developments. The Pembroke Park Advisory is nearing completion. This building will be a valuable Committee also acts as a liaison between Council and asset for the community as it will allow for efficient community by feeding information back and forth. and effective operations of Council. The CAC has been Pembroke Park will provide fantastic recreational designed and is being built to achieve a NABERS 5 star opportunities for not only our community, but also the rating. NABERS measures the energy efficiency, water wider south-east region. This project will draw people usage, waste management and indoor environment into our community which will provide a flow on effect quality of a building and its impact on the environment of substantial proportions to local businesses. up to a maximum 6 star rating. Our present offices

6 Annual Report 2012-2013 have been sold to South Eastern Community Care (SECC) which will allow this organisation to expand and flourish in Sorell. SECC offers our community much needed in-home care for the elderly which helps keep them in their home.

Council continues to expand upon the C3 computer software. This is now in the early stages of being used for community engagement and provides an opportunity for Council to further engage the community in projects. This project has been funded by the Federal Government’s Digital Local Government Programme to the tune of $292,400.

The yellow house on the causeway has been demolished ready for entrance redevelopment. This will be completed in line with Council’s Streetscape Strategy.

The Waterway Trail along the Sorell Rivulet was completed. This is a fantastic recreational trail for our community. Access to the area around the rivulet was previously quite limited. The trail has opened the area up so the beautiful natural Carmel Torenius resigned from Council in September environment and history can be fully appreciated. 2012. Carmel served as an elected member on Council The bridge used to cross the rivulet is made of for 22 years, with 17 of those years as Mayor. On composite fibre and topped with enduroplank, behalf of Council I would like to thank Carmel for her which is made from recycled plastics. Sorell Council commitment to serving her community over many years. was the first in Tasmania to install a pedestrian bridge made out of composite fibre. I’d like to commend Deputy Mayor Brett McDonald for his time spent acting as Mayor. He did a fantastic The Waterway Trail also hosted Council’s Tassie-As job and I appreciate his efforts. I’d also like to thank all Day Firies Fun Run, which was a fantastic success. Councillors for their support throughout the year. It is As part of Betta Milk’s Tassie-As Day celebrations, much appreciated. Council held a Firies fun run to celebrate the hard work of the local fire brigades during the bushfires. In closing I would like to thank Council’s General The event was well supported by our firies and Manager, management and staff for all their hard work general community. Frank and Nikki, members over the past year. of the Betta Milk Protection Squad, arrived in a helicopter much to the delight of all those in Mayor Kerry Vincent attendance.

Sorell on Stage have continued to showcase our local talented artists by staging several productions throughout the year. Council has invested in some substantial refurbishments at the Sorell Memorial Hall over the last few years and it is wonderful to see these being utilised by the community.

Annual Report 2012-2013 7 Mayor Kerry Vincent, Labor MP Dick Adams and General Manager Bill Costin demonstrating Council’s emergency management software C3, using the NBN

General Manager’s Report

their time, who donated money, goods, support and/ “There is no or services and for those who continue to support our education like recovery we will be forever grateful. Despite the work and effort involved with the adversity.” bushfire recovery, Council was still able to undertake and progress many significant projects. Pembroke Benjamin Disraeli Park Stage 1, Sorell C3 Emergency Management and Collaboration Software, replacement of the Marion Bay Bridge and commencement of the Community Administration Centre to name just a few. Forcett, Kellevie, Copping, Connellys Marsh, Boomer Bay, Dunalley, Murdunna, Sommers Bay... the path of While there have been significant costs borne by the January 2013 bushfire disaster which swept through individuals and State and Federal Government, Sorell and Tasman. Council too has shouldered its fair share. The readily identifiable direct costs this Financial Year amount to The intensity of fire, the extent of destruction and the around $400,000 of which approximately a quarter community response were all simply amazing. That no will be recoverable. In terms of the short term rating, lives were lost was even more miraculous. We have a fee and charge revenue loss, we expect that to be in lot to be thankful for. the order of $85,000 per annum. Accordingly this necessitated a slight adjustment to our 10 year financial This single event will mark 2012/13 as a year of hardship plan for budget year 2013/14 of an additional 0.25% and trial. Counting the cost has been done in all areas average increase to the general rate. It is intended that and we will recover. To the thousands who gave of this be adjusted back in successive years.

8 Annual Report 2012-2013 There have, not surprisingly, been some varied community views on the construction of our new Council Offices. I would therefore like to devote a significant portion of my report to highlight the FORCETT positives in this $4.9M project. These positives are:

DODGES 1 It satisfies the 2006 Local Government FERRY Board report which recommended: BOOMER BAY “6.2 Accommodation of Staff. The Board CARLTON recommends that Council make provision DUNALLEY PRIMROSE CONNELLYS for suitable accommodation for the SANDS MARSH municipal offices as a matter of urgency.”

2 It complies with the Community Strategic Plan 2008-2013, Key Result Area 5.3 which MURDUNNA says; “Community Administration Centre developed in cooperation with the public SOMMERS and private sectors.” BAY

3 There has been and will be no impact to the EAGLEHAWK general rate. The project has been financed NECK through cash reserves, borrowings and asset sale e.g. our old Council offices. TARANNA 4 The sale of the old offices at 12 Somerville Street to South Eastern Community Care ensures that this provider of services to Sorell and the region for over 40 years can Path of destruction - January bushfire. not only remain in Sorell but can expand and develop as a freehold entity.

5 The project also complied with the Minister for Local Government wishes that Councils with 9 The project is the first major step in the larger cash reserves utilise these reserves as a economic development plan for the Cole Street local economic development stimulus during precinct. It is expected that growth will now the post GFC climate. begin and take advantage of the concentration of services and other new proposed developments 6 Local content and local input was a top priority. such as the Station Lane Park and Ride. 7 The project has come in under budget and three The building affords much needed space for weeks behind plan. Original cost estimates and 10 public gallery displays and meeting requirements. budget when redevelopment of the 12 Somerville It also takes advantage of and offers the latest Street site was approved was in the order of technological media and collaboration facilities $7M. Final comparative cost for the green field including the high capacity of the NBN. development at 47 Cole Street is $4.9M. Despite the severe impact of fire, floods and economic 8 The building and precinct development will stand as a far greater value asset than actual downturn throughout this year our financial position cost. Features such as a 5 star NABERS (energy remains strong and our 10 year plan is still solid. I wish efficiency) rating, 10 kw photovoltaic solar to thank all involved for their invaluable contributions panels and water sensitive urban design and support to this good result. ensure reductions in operating costs over time. Improved functional layout with all administrative elements collocated will also Bill Costin result in operational efficiencies. General Manager

Annual Report 2012-2013 9 Senior Management Team

BILL COSTIN SUE CHARLES General Manager Manager Finance and Information

• Governance • Strategic and Operational Financial Management and Reporting • Economic Development • Budgeting

BILL HYNDES • Strategic Risk Management Manager Environment • Corporate Governance Administration and Development • Payroll

• Natural Resource Management • Rating • Information, Communication and Technology • Environmental Health • Information Management • Animal Control • Fleet Management • Waste Management

• Land-use Planning ROBYN WATTS Manager Human Resources • Building Control and Community Services

STEVE HODGE • Youth Services Manager Engineering Services • Community Development • Children’s Services • Works Operations • Human Resources • Asset Management • Communications and Council Publications • Development Engineering • Management of Council Halls • Operational Risk Management • Community Recovery • Plumbing Services • Right to Information • Project Management

• Emergency Management The community bus begun its Primrose Sands to Sorell service in September 2012.

Senior Employee Remunerations

The table below provides the remuneration for those positions designated by Council as senior positions as required under the Local Government Act 1993. The positions deemed to be senior positions are General Manager, Manager Finance and Information, Manager Human Resources and Community Services, Manager Engineering Services and Manager Environment and Development.

TOTAL REMUNERATION BAND NO. OF POSITIONS

155,000 – 165,000 1

125,000 – 135,000 4

The above includes cash salary, superannuation and motor vehicle.

Annual Report 2012-2013 11 Governor General Quentin Bryce visited Dunalley and met with locals including Graham Millar

January Bushfires

A LONG ROAD TO RECOVERY COUNCIL’S INVOLVEMENT

The New Year was brought in with devastating bushfires During the fire Council supported the community across Tasmania. The Sorell Municipal area was hit through management of the fire refuge and recovery hard with the townships of Dunalley, Boomer Bay and centre, and provided residents with essential services Connellys Marsh facing the full ferocity of the fires. such as access to water, waste collection and extra green and hard waste collections. There is a long road to recovery and rebuilding for residents of the fire affected areas. Council also passed several rate remissions in order to aid bushfire-affected residents to recover and rebuild. STATS Upon verification that an owner-occupied property was destroyed or significantly damaged by bushfire, Blaze Aid re-built 177.1km of fences and had 3253 Council remitted the general rate, planning, building volunteer days worked. and plumbing fees, waste collection service charges, wastewater treatment system service charges, and The Lions Club of Sorell, with assistance from Lions caravan licenses. Club of Clarence and Glenorchy, helped man and organise donations at the recovery centre. The clubs From the very first days of the fire Council were on the combined put in approx. 448.9 voluntary hours during ground providing support and advice to the community the two weeks the refuge and recovery centre was in and this remains ongoing. Council staff have actively operation at the Sorell Memorial Hall. worked with Government Agencies and local communities to provide necessary services and advice Approx. 125 houses and shacks were destroyed or in regards to on the ground safety and reconstruction damaged in the Sorell Municipal Area. The majority of issues. Additional Environmental Health support was these were in Dunalley. provided to Dunalley 2-3 days per week for six months Up until the end of June 2013, Council had approved: on bushfire-related environmental health issues and property clean up. Parks and Reserves staff members n 21 houses to be rebuilt, provided expert assistance on burnt vegetation n 43 garages/outbuildings, removal for the safety of residents. Council’s NRM Facilitator also worked on the ground providing post- n 1 commercial building, fire weed and revegetation advice to landholders. n The new school, and Council is in the process of preparing a structure plan n Several temporary dwellings. for Dunalley and the surrounding areas that will assist in guiding longer term recovery efforts.

12 Annual Report 2012-2013 Dunalley from the air after the bushfires

Annual Report 2012-2013 13 Peter’s Story

A FIRST-HAND EXPERIENCE OF THE BUSHFIRE

On the morning of Friday 4 January, Peter wasn’t they slept at the hotel on the grass, but then stayed at concerned about the threat of bushfires. The family their fathers. This was difficult as there was no power packed the car with some of their things, but it was a or water. They managed to get a generator to get the calm day and didn’t look like it would come to much. pump working on the tank and Peter was then able to However, in the afternoon he received a few bushfire have a shower. warnings via text message. Peter and Sue had spent 25 years renovating their house As the fire was predicted to get worse, his wife Sue and into the family home they wanted. It was heartbreaking the kids took off in the car whilst Peter and his brother for it to be so close to being finished and then have it went to the family saw mill with the fire trucks. Not destroyed. long after they arrived at the mill, the fire came roaring Sue and the kids got a ferry out of Nubeena and went down the hill like a roller-coaster. Peter saw helicopters to stay with family in Pontville where Peter met back up in the sky and the smoke was very thick. It turned with them. They stayed at Sues mum’s house for a while pitch black dark and was very difficult to see. The fire back in Dunalley whilst she was staying with family in approached the mill so quickly there wasn’t even time Wynyard. But they needed something more permanent. to get the fire trucks set up to try and fight the fire. Peter met a friend from school at the Bream Creek Peter left the mill with his brother and another worker Show who knew someone with a house at Boomer Bay. from the mill. As they were driving away they realised A few days later they moved in. they should have left much earlier than they did. By Peter and his family made it through the initial fires ok, the time they’d travelled a kilometre and reached the but their future remains uncertain. They have started site of the Dunalley Bakery on the Highway, its garden the process of rebuilding their house but this has been was already alight; such was the speed at which the fire a long process. The family mill was started by Peter’s moved. They tried to put the fire out from the garden, father in the mid 1960’s and was built from scratch. but with no water, the darkness and such thick smoke, It employed many people in the area including Peter, it wasn’t possible. They rode on towards safety at the who was there for 22 years. With the loss of the mill, Dunalley Hotel. Peter is unsure what he will do for work. These days, he Sue and the kids had earlier arrived at the Hotel finds the hardest thing is dealing with the frustration with Sue’s mum in tow, but had been moved on to at the lack of direction and control he feels over what Murdunna and then Nubeena. Peter was very worried tomorrow might bring. about his family as he wasn’t sure where they were or if Whilst it was scary during the fire he didn’t feel much at they were ok. Communications were very difficult and the time. Adrenalin kept him on auto pilot. He is grateful it was hard to contact anyone. that there wasn’t a tree or debris across the road or it’s By the time Peter arrived at the hotel the fire had likely they wouldn’t have made it safely out of the path already reached Murdunna. Later that night Peter and of the fire. In hindsight he says they should have left the his brother went back to check on their houses and the mill for a safe place earlier than they did. The fire just mill. They drove as close as they could get but had to moved so quickly. It was like a fire tornado. detour through some paddocks and walk part of the The support they received from people right from way due to the debris. Peter, his brother and father all the time of the fire until today has been fantastic and lived in close proximity to the mill. All were destroyed greatly appreciated by Peter and Sue. by the fire except for his father’s house. That night

14 Annual Report 2012-2013 25 April 2013 saw Dunalley hold its first ever ANZAC Day dawn service

Annual Report 2012-2013 15 Councillors

MAYOR KERRY VINCENT DEPUTY MAYOR - BRETT MCDONALD Terms as Councillor Terms as Councillor 2009 - 2013 2007 - 2013 Term as Mayor Term as Deputy Mayor Nov 2012 – 2013 2011 to 2013

Representations: Representations:

• Dodges Ferry Recreation • Midway Point Hall Committee Centre Committee (chairperson) • Development Assessment • Emergency Management (chairperson) Special Committee (DASC) (chairperson)

• South East Region Development Association • Community Administration Centre (CAC) (SERDA) (chairperson) Steering Committee

• Local Government Association of Tasmania • Pembroke Park Advisory Committee (LGAT) • Sorell/Clarence Merger Joint Working Party • Southern Waste Strategic Authority

• St Georges Square Precinct Development ROBYN BUNYAN Committee Term as Councillor • Sorell Streetscape Committee (chairperson) 2011 to 2013

• Development Assessment Special Committee Representations: (DASC) • Dunalley Hall & Reserves • Sorell Code of Conduct Panel Committee

• Community Administration Centre (CAC) • Sorell Code of Conduct Panel Steering Committee • Community Administration Centre (CAC) • Council Representative at Tas Water Steering Committee

• MAST MOU • Pembroke Park Advisory Committee • Sorell/Clarence Merger Joint Working Party

• Sorell and Tasman Affected Areas Recovery LINDSAY WHITE Committee (co-chairperson) Term as Councillor 2011 to 2013 • Bushfire Taskforce Representations:

• Development Assessment Special Committee (DASC)

• Community Administration Centre (CAC) Steering Committee

• Sorell/Clarence Merger Joint Working Party

16 Annual Report 2012-2013 JAMES DUNBABIN MIKE PURDON Terms as Councillor Terms as Councillor 2005 – 2013 1988 – 2013

Representations: Representations:

• Development Assessment • Sorell Code of Conduct Panel Special Committee (DASC) • Community Administration • Community Administration Centre (CAC) Steering Centre (CAC) Steering Committee Committee

• MAST MOU ROB LEACH Term as Councillor GRAEME EVANS Nov 2012 – 2013 Terms as Councillor Representations: 1999 - 2013 Terms as Deputy Mayor • Copping Hall & Reserves 2001 – 2011 Committee

Representations: • Sorell Streetscape Committee • Development Assessment Special Committee • Copping Refuse Disposal Site Joint Authority (DASC)

• St Georges Square Precinct Development • Community Administration Centre (CAC) Committee Steering Committee • Development Assessment Special Committee (DASC) CARMEL TORENIUS • Community Administration Centre (CAC) Terms as Councillor Steering Committee 1991 - September 2012 • Sorell Memorial Hall Terms as Mayor 1994 - 1999 2000 to September 2012 KERRY DEGRASSI Terms as Councillor Representations: 1996 - 2013 • Dodges Ferry Recreation Centre Committee Terms as Mayor (chairperson) 1999 – 2000 • Emergency Management (chairperson) Representations: • South East Region Development Assoc (SERDA) • Primrose Sands Community (chairperson) Hall Committee • Local Government Association of Tasmania (LGAT) • Development Assessment Special Committee • St Georges Square Precinct Development (DASC) Committee (chairperson) • Risk Management & Ethics Committee • Sorell Streetscape Committee (chairperson) • Community Administration Centre (CAC) • Development Assessment Special Committee Steering Committee (DASC) (chairperson)

Annual Report 2012-2013 17 COUNCILLOR ATTENDANCE

Name Workshops/ Finance Council AGM DASC Budget Special Other Briefings & Works Meetings Meetings Meetings Council Meetings Meetings (inc Bus Meetings Tour)

Mayor Carmel Torenius 3 2 3 0 8 1 1 2 (resigned Sept 12)

Acting Mayor McDonald 2 1 1 0 6 0 0 1

Deputy Mayor 8 3 10 1 31 3 2 10 Brett McDonald

Clr Graeme Evans 11 2 11 1 36 3 2 10

Clr James Dunbabin 8 3 10 1 21 1 3 8

Clr Kerry Degrassi 9 4 9 1 22 1 2 13

Clr Mike Purdon 11 1 11 1 1 3 3 10

Mayor Kerry Vincent 6 0 8 1 21 3 2 13 (13 Nov 12)

Clr Kerry Vincent 6 4 4 0 15 1 1 5

Clr Lindsay White 12 4 12 1 37 3 3 11

Clr Robyn Bunyan 11 4 11 1 2 4 1 5

Clr Rob Leach (13 Nov 12) 5 0 8 1 25 3 2 15

92 28 98 9 225 26 22 103

COUNCILLOR ALLOWANCES AND EXPENSES

In 2012/2013 Council provided allowances and reimbursement for reasonable expenses to the Mayor, Deputy Mayor and Councillors.

Allowances $167,372 Expenses $626

THANK YOU CARMEL TORENIUS

Carmel Torenius resigned from her position as Mayor in September 2012.

Carmel was elected to Council in 1991 and served as an elected member on Council for 22 years. She was first elected as Mayor in 1994 and held this position for 17 years with only one two year term break. She was also the first female Mayor of Sorell.

Council sincerely thanks Carmel for her 22 years of dedication and contribution to the community and wishes her all the best for the future.

18 Annual Report 2012-2013 The inaugural Community Volunteer of the Year - Brian Keightley

Annual Report 2012-2013 19 Judy Young and the Dunalley Hall Committee catered a morning tea for the 150 years celebration event

Human Resources and Community Services

The past year has been marked by the bushfires in included presentations on topics including ovarian January and the subsequent and far-reaching aftermath cancer, posture, back care and diet and activities which has severely impacted our community. This including exercise sessions, barbecues and support for was a particularly challenging time for staff as the fundraising events such as Australia’s Biggest Morning responsibility for managing the Recovery Centre sits Tea and Save the Tasmanian Devil. within the Community Services Department. However, with the support and commitment of all staff, whether COMMUNITY SERVICES directly involved in the recovery process or supporting others in their substantive roles, we managed to survive Council celebrated its Sesquicentenary in July this year this difficult time very well. with the Sorell Council being elected on 26 May 1862 and meeting for the first time on 30 June 1862. The HUMAN RESOURCES occasion was marked by the re-enactment of the first Council meeting by the local amateur theatre group, Council provided staff access to a diverse range of Sorell on Stage. This was followed by morning tea and training and professional development opportunities entertainment provided by a duo performing tunes by throughout the year. These included Fire Warden, Alexander Laing and students from Sorell School who animal management, contract management and first played games from the period. aid training. Two employees completed a Diploma of The Sorell Council 150th Anniversatry Art Acquisition Management and two completed a Certificate III in Prize was held in the Sorell Memorial Hall in December. Business. While the number of entries was relatively small we were The Health and Wellbeing Committee has been very pleased to award the $1500 prize to Dawn Gatehouse for active and scheduled a variety of information sessions her work that depicted Sorell at the crossroads between and activities for staff throughout the year. These past and present. This work will hang in the new Council offices due for completion in late 2013. 20 Annual Report 2012-2013 Council held two other very successful community As I will be retiring in August 2013 this will be my last events this year. Australia Day was celebrated at contribution to an Annual Report for Council. I have a Family Fun Day organised in partnership with enjoyed the past twenty years immensely and have the Carlton Park Surf Life Saving Club. The Club seen a great deal of change in that time. I wish the staff provided a variety of activities for children and of the department and the wider Council well as they these were supported by food and entertainment continue to embrace further change and to provide an funded by Council. The Australia Day Awards excellent standard of service to the Sorell Municipality. and citizenship ceremony were the highlights of a special evening celebration attended by nominees Robyn Watts for the 2013 Awards, past winners and their family Manager Human Resources and friends. and Community Services

The second event was the Firies Fun Run along the Waterway Trail, ending in Pioneers Park in March. This event celebrated the invaluable contributions of the many fire fighters and brigades that exist in our municipality and was intended as a “thank you” for their amazing efforts earlier in the year. The excitement of the day was boosted by the visit of Frank and Nikki, Betta Milk Ambassadors, in a helicopter. Sorell was put on the map by their visit and the resulting television commercial that featured the activities in Pioneers Park.

Council commissioned a consultant to complete a Cultural Audit for the municipality and provide a report of findings and recommendations. As a result of this report Council called for expressions of interest for membership of an Arts & Culture Working Sorell on Stage reenacting the first meeting of Group. This group meets regularly and the Sorell Council in 1862 is considering opportunities for further development of the arts and culture in the Sorell Municipality.

The 150 years anniversary celebration cake

Annual Report 2012-2013 21 Roadworks in Sorell

Engineering Services

In 2012-2013 the Engineering Department undertook Projects of note that were either completed in the a number of significant capital works projects whilst financial year or are on-going included: sustaining a high level of service delivery in maintaining • Extension of upgrading to sealed standards for the existing infrastructure. In early January the Sorell sections of rural roads including Nugent and Municipality suffered destructive bushfires which Kellevie roads. impacted greatly on the community and forced the • Upgrade to the Sorell Memorial Hall toilets and actioning of the Council Emergency Management Plan. inclusion of showers (completed early August 2013). Changes also occurred to the Department structure due to retirement and resignation of some staff. • Continued footpath and kerb upgrades in Sorell, Southern Beaches and Dunalley.

• Pembroke Park stormwater capture, underground storage and re-use project.

• Construction of the Pembroke Park Amenities Building (nearing completion).

• Further upgrade of a section of Fulham Road to a sealed standard under the Roads to Recovery program.

• Construction of the Community Administration Centre (CAC).

• Replacement of the old timber bridge on Marion Bay Road with the unique modular Unibridge.

22 Annual Report 2012-2013 There was considerable activity on the human resources side of the Department. Three staff undertook higher level academic qualifications with one receiving a Diploma in Management, and two others working towards a Diploma and Advanced Diploma in Civil Engineering, hoping to obtain these by the end of the calendar year. We farewelled Wayne Darby, Asset Management Officer, who held a number of positions in Council over his lengthy employment. We wish him all the very best in his retirement. It was also time for the Council Risk Management Officer, Alice- Jane Webb, to leave to pursue a new career challenge. Due to the parting of these staff an opportunity was created to partially review the Engineering Department structure and implement some appropriate changes. Brenton Oakley, previously Development Engineering Manager, expressed a desire to take up the challenge of asset management and was subsequently appointed as Asset Management Engineer. The role has been expanded and includes new responsibilities such as CAC Building Manager. The focus on this position is now more related to management with the previous responsibility of data collection and maintenance to be transferred to IT.

The devastating bushfires that ravaged a large portion of the Municipality in early January caused wide destruction to private homes and buildings as well as other infrastructure. Initial engineering involvement related to the opening and operation of the community fire refuge centre in Capital Works in Dodges Ferry the Sorell Memorial Hall. This quickly upgraded to an evacuation centre and was well manned by Council staff and community volunteers. In the aftermath of the fires engineering involvement primarily focussed on processing Development Applications from fire affected areas with the Works staff providing assistance in the clean-up process.

Steve Hodge Manager Engineering Services

Annual Report 2012-2013 23 Environment & Development

PLANNING NATURAL RESOURCE MANAGEMENT

Council continues towards developing a new Planning Council created the new position of Natural Resource Scheme to guide development within the municipality. Management Facilitator in early 2013 to co-ordinate The review of the planning scheme is being undertaken the delivery of environmental programs and provide as part of a major state-wide planning reform process. strategic guidance and technical support within Council. The position is co-funded with NRM South Council’s Senior Planner continued to participate in the and this component of the role delivers on-ground Southern Tasmanian Regional Planning Project through environmental projects including rehabilitation of Pitt the regional planner’s technical reference group. This Water-Orielton Lagoon (PWOL) Ramsar site, assisting group, representing the twelve Southern Councils, is landholders with weed and vegetation enquiries and working towards a consistent and uniform Southern grant applications, as well as other duties within this Regional Planning Scheme that forms the basis of regional body. The result has also seen a strengthening Council’s own draft interim Planning Scheme which will of relationships between the two organisations and the include local provisions. achievement of on ground and strategic environmental Following the devastating bushfires in early January planning. 2013 Council initiated a number of responses Funds were secured and coordinated by the NRM including remitting all regulatory fees and fast Facilitator for works at key sites around PWOL totalling tracking development assessment processes. In $20,070 (including cash $14,180 and in-kind $5,890). some circumstances exemptions from planning This enabled strategic weed removals including approval under the Planning Scheme existed however boxthorn control on Woody and Barren Islands, Sorell the majority of residents, to date, have taken the causeway and Orielton Lagoon foreshore. Project opportunity to alter the location and design of partners were Council, NRM South, Parks and Wildlife dwellings. Service and DIER. In a further specific response to the Dunalley fires, The position also seeks outside funding such as Council has commenced a strategic review in the form with the Australian Government for improving Pitt of the Dunalley & Environs Structure Plan to guide both Water-Orielton Lagoon Ramsar site including fencing, the strategic planning for this area (to be incorporated weeding, revegetation and stormwater upgrades into the new planning scheme) as well as to guide ($795,411 over 5 years) and, in partnership with Tasman community, recreation, economic development Council/ Tasman Landcare group, a Biodiversity Fund and environment outcomes. This project is being recovery program for fire affected areas across the undertaken in conjunction with the State Government Tasman Catchment ($791,849 over four years). including the Department of Economic Development and the Bushfire Recovery Unit. This new role also adds value and strengthens Council’s environmental responsibilities through input Planning statistics for the financial year (including into assessment of development applications, re- minor amendments) include the following : establishing biannual Environmental Care Organisation • Development applications totalling 305; meetings and representing Council on the Regional Climate Change Initiative. • Subdivision applications totalling 28; Community interactions including responding to • 3 planning scheme amendments; and public enquiries, as well as providing post-fire recovery • 3 planning appeals (all resolved without going to a assistance to landholders and resident groups at formal hearing). Forcett, Primrose Sands, Connellys Marsh and Dunalley.

24 Annual Report 2012-2013 Dodges Ferry Boat Ramp

The NRM Facilitator has established linkages with Type Issued Resolved Dunalley Neighbourhood House garden restoration Building Notice - GM 32 4 program and was involved in the organisation of Building Order - GM 23 6 National Tree Day plantings at Dunalley. Emergency Order 6 4 Environmental advocacy includes community Building Inspection Direction 34 26 communications through articles in Sorell Times, Building Notice – BS 1 0 Southern Coastcare Association and BirdLife Building Order - BS 0 0 Tasmania newsletters, assistance with the Sorell Rivulet storyboards and progressing inclusion of NRM BUILDING PERMITS information in Council newsletter and website. A total of 288 Building Applications were processed by BUILDING ACT ENFORCEMENTS Council for the year. Of those, 80 applications related to fire affected properties. Some Building Orders have been resolved after Changes were made to the Building Act 2000 and the issue of the Permit to Proceed and Permit of Building Regulations 2004 in November 2012. A few key Substantial Compliance, however Workplace Standards changes included; Tasmania advise that these should still be in force until the Certificate of Completion has been obtained, unless • BAL Requirements for properties located in a the owner has removed the illegal works from the Bushfire Prone Area; property. • Certificate of Completion (Building) now unable Following up on illegal buildings is quite a time to be issued until Certificate of Completion (Plumbing) has been issued; consuming process with site visits, file notes, photos, issuing notices and orders following up after specified • All Building Applications to be lapsed if timeframes, but the illegal work is slowly being resolved construction has not started within 12 months through removal of work or Permit to Proceed or from the Building Permit being issued. Permit of Substantial Compliance process which Bill Hyndes improves the standards and safety of buildings within Manager Environment and Development the municipality.

Annual Report 2012-2013 25 Finance and Information Services

Another challenging year for the department The team’s work in automating manual process, was highlighted by key achievements in front line especially in the management of Council’s $230.5 management of the January 2013 Bushfire community million asset base, has allowed timelier recording of impacts, business process improvement, continued financial information. financial sustainability and greater staff flexibility in service delivery. I wish to thank the entire team for INFORMATION, COMMUNICATION AND their contributions for the year and their willingness TECHNOLOGY to increase their capacity to effectively manage scarce resources. As a support service to Council the team Council continues to invest in technology and provides systems, processes and tools to facilitate the communication infrastructure to provide Council staff achievement of goals and strategies detailed in the with appropriate and relevant resources to undertake Council’s Community Strategic Plan 2008-2013. their various roles within Council. In 2013 the team continued to update and renew systems and facilitated Some highlights for the year by area include: training to increase utilisation of our corporate systems. FINANCIAL MANAGEMENT INFORMATION MANAGEMENT Another year of intensive budget discussions saw Councillors unanimously endorsing the completion The team continued to digitalise Councils’ remaining of major projects and the commencement of new information and send permanent records off-site projects, as outlined in the Long Term Financial Plan in preparation for relocation to the new building. In 2013-2023. Council again reported a surplus in all key addition, the team continued to focus on ensuring reporting lines within the Comprehensive Income Council is compliant with the Archives Act 1993 with Statement and will consolidate its cash reserves in the management of information. next five years to a similar current favourable position. CORPORATE GOVERNANCE ADMINISTRATION A key focus for the revenue team was continuing to ensuring compliance of ratepayers in paying rates and Customer service is a continued focus within the team charges and managing fire affected residents’ take-up and over the next twelve months a new customer of Council remissions and property rating issues. Debt service strategy will be developed to cultivate a recovery continued to be a focus with approximately customer service focused organisational culture. $100,000 reduction in outstanding balances. The team continued to focus on improved customer Council continues to strengthen its governance service delivery, targeting increased responsiveness to structure with renewed focus on the development and ratepayers’ queries. implementation of key policies to mitigate risks. These included a tender evaluation criteria, standardised Council continues to be successful in its endeavours contract management process, draft bond and record to seek external funding through grants. Council is destruction policies. currently managing an external grant program of $2.6 million, which will be acquitted over the next few years. These additional funds have been instrumental Sue Charles in Council increasing investment in major social Manager Finance and Information infrastructure.

26 Annual Report 2012-2013 Nikki and Frank trying firies gear on at the Firies Fun Run

Annual Report 2012-2013 27 Sorell Spirit Cheerleaders performing at Australia Day family beach day

28 Annual Report 2012-2013 Annual Report 2012-2013 29 The way we plan 9 REPORTING AND PERFORMANCE The Annual Plan 2012-2013 identified the operational FRAMEWORK priorities and major actions that were required to be undertaken in this given year, both strategic and The Council’s planning activities incorporates the Local ongoing in nature. At the completion of this financial Government Act 1993, the vision of our community year, the success factors achieved in the Annual Plan leaders, the external and internal environment and our are reported in Council’s Annual Report. This illustrates community’s aspirations. Council has a Community to our community and key stakeholders Council’s Strategic Plan (CSP) which is complemented by our performance in reaching the goals and objectives Annual Plan and Budget, monitored and reviewed outlined in the overarching CSP and is divided into nine regularly through Council with monthly management sections based on individual KRAs. reporting and publication of the Annual Report. The Annual Budget 2012-2013 is formulated in The Community Strategic Plan 2008-2013 is the consultation with Councillors and Senior Managers strategic framework for Council and it provides the and includes the capital, financial and human resources strategic priorities derived from our community required to successfully realise the operational aspirations which are grouped by strategic themes. priorities contained in the Corporate Plan 2012-2013. The groupings are referred to in the CSP as Key Result Both the Corporate Plan and Budget are approved by Areas (KRA’s). Each KRA comprises of an overarching Councillors in a formal special meeting each year. goal and medium to long term objectives, providing Council the framework in developing and implementing The following nine KRA’s frame the strategies contained Annual Plans and Budgets. in our Community Strategic Plan, supplemented by detailed strategic priorities. The following narrative provides a detailed report of Council’s targeted performance on the strategic priorities which are either ongoing, in progress, completed or deferred.

30 Annual Report 2012-2013 KEY RESULT AREAS

Community Strategic Plan 2008-2013 Our Community

Vision Focus of services, healthy and diverse Aspirations and views community which enjoys a wonderful lifestyle; from our community and Council open to change. stakeholders.

Mission Lead with strength, integrity; provide effective service delivery, for all generations to prosper. Annual Report and AGM Values Integrity, equality, respect and openness. Aspirations and views Goals Council’s desired outcome. from the community and Objectives Results to be achieved within the life of the plan. stakeholders.

Annual Plan 2012-2013 Annual Budget 2012-2013 Reporting and Monitoring

Strategies identified to Financial, human and Quarterly to Council maximise opportunities capital resource allocation. Monthly to departments. and minimise threat complemented by priority actions for each department.

Annual Report 2012-2013 31 9 Key Result Areas STRATEGIC COMMUNITY PLAN 2008–2013 ROADMAP 9 KRA 1 Core Services Deliver core services that align with community expectations 1.1 Governance 1.2 Environment and 1.3 Engineering Services 1.4 Community Services 1.5 Finance and Information Development KRA 2 Financial Performance & Position Achieve a sustainable financial position 2.1 Plan, commit and 2.2 Access external funds 2.3 Review services and implement actions to support infrastructure associated costs and fees for to achieve financial development the purpose of costing the sustainability value propositions KRA 3 Asset Management Provide infrastructure assets and facilities to support agreed service levels 3.1 Continue the development and implementation of the Asset Management Strategy KRA 4 Sustainable Development Promote balanced development that recognises the needs of existing residents and allows for managed growth that is consistent with existing land use zoning 4.1 Land use planning 4.2 Environmental management KRA 5 Priority Projects Implement systems to ensure all projects meet objectives and are delivered on time and within budget 5.1 Establish and implement 5.2 Community 5.3 Traffic management and 5.4 Project communication efficient and effective Administration Centre parking project management developed in cooperation procedures with the public and private sectors KRA 6 Climate Change Recognise the importance of climate change and its impact on environmental values 6.1 Climate change 6.2 Foreshore protection awareness KRA 7 Community Wellbeing Consult with the community to identify needs and cooperatively deliver key community services 7.1 Seniors, youth and child 7.2 Safe community facilities 7.3 Supporting community 7.4 Cultural plans and 7.5 Support and recognition focused activities delivering focused events initiatives for volunteers valued community services KRA 8 Partnerships Develop partnerships for mutual benefit 8.1 Lobby other levels of 8.2 Partnership Agreement 8.3 Cooperation with other government to access funds Councils in the Southeast Region KRA 9 Organisational Health Ensure organisational health through the development of people, processes, products and partners 9.1 Achieve positive performance-oriented outcomes through cultural transformation and staff and system development

32 Annual Report 2013-2014 1 Core Services

DELIVER CORE SERVICES THAT ALIGN WITH COMMUNITY EXPECTATIONS

Goal Deliver core services that align with community expectations.

Objectives Deliver core services to agreed service levels. Establish service levels that provide the best value to the community. Update organisational practices as knowledge develops. Regional cooperation for community benefit.

1.1 GOVERNANCE Connection with key stakeholders 2012-2013 Initiatives/Achievements KPI Measure Continued to negotiate with respective service providers on the improvement of public O transport services to/from Sorell Successfully achieved funding commitment for Park and Ride in the Sorell Township Funding of $0.2m from State Government O

Continued to relay and influence Department of Infrastructure, Employment and Roads (DIER) on current and future transport issues and opportunities, key issue Midway Point O and future traffic impacts from growth suburb/s Increased contribution from the Commonwealth’s Financial Assistance Grant Program Funding increase of 4.2% for 2013-2014 O Continued to build stronger connections with State Government key personnel to Sorell Waterways Trail $0.2m grant completed C influence to gain greater appreciation of municipality opportunities Received $0.08m for SERSRC Precinct. Received O grant funding for Dunalley Restructure Plan Continued to build stronger connections with Federal Government key personnel to Collaborative software $0.3m grant 90% O influence to gain greater appreciation of municipality opportunities complete, GP clinic $0.7m grant 95% completed.

Governance enhancement with whole of organisation policy development and management, including distinction between internal and external issues 2012-2013 Initiatives/Achievements KPI Measure Implemented Code of Conduct Customer, draft Code of Conduct employees including Policies approved by Council 2013 C staff briefings

Community engagement through effective communication, such as publications, meetings, community forums and annual reporting process 2012-2013 Initiatives/Achievements KPI Measure Successfully implemented Council’s website with a facebook page Community reach via facebook 3,500, likes 560 O Communication of bushfire actions and strategies well understood by the community. 70% take up of Council Rating remissions. Facilitated $2.65m of Red Cross payments to the O Community Strong response to January 2013 bushfires with the establishment of the Sorell Emergency Centre established within 24 hours Emergency Co-ordination Centre, Council endorsed remissions. Council approved the amended Rating Strategy 15 C January 2013

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

Annual Report 2013-2014 33 Economic and Tourism program development and implementation; assisting the community to respond to the Cambridge developments, tourism attraction initiatives, investment and employment creation 2012-2013 Initiatives/Achievements KPI Measure Strong support for the South East Irrigation Scheme Council purchased water rights IP Completed the Sorell Waterway Trail and church history walk On time on budget C Completed the preliminary stage of the Orielton Lagoon site Clean up of the site IP Facilitated employment and infrastructure investment in health services with the Sorell Doctor Surgery opened 8th July 2013 C completion of the Sorell Doctor Surgery Further develop Dunalley as a tourism destination Commenced the Dunalley Structure Plan. IP Budget funding 2013-2015 for the Dunalley IP Cultural Trail Invest in social infrastructure where relevant to drive visitation to the municipality Sorell Waterway C Pioneers Park C Sorell Church History Walk C Dodges Ferry Boat Park C Flyway Island Park (Vancouver Park) design IP completed Pembroke Park Stage One underway IP Build awareness of Sorell Municipality through improved print media Parks and Recreation Guide C Sorell Waterways C Pembroke Park C

Drive and deliver on focused customer service 2012-2013 Initiatives/Achievements KPI Measure Continue to be an active member in the Australian Local Government O Customer network

Continue to embed effective risk management practices, protocols and policies into the organisation to improve decision making 2012-2013 Initiatives/Achievements KPI Measure Undertook awareness seminars for Managers and Supervisors of new OH&S legislation. Attendance 95% by Managers and Supervisors C Broadened Enterprise Risk Management within the organisation Public Liability Insurer (MAV) scored Council C 95% Revisited Business Continuity Plan Endorsed plan IP

Develop long term strategies for the Sorell Community 2012-2013 Initiatives/Achievements KPI Measure Continue the Sorell Municipality Tracks and Trail Strategy 2013 and beyond Council approved strategy IP Deferred Southern Beaches Settlement Strategy to 2013-2014 Council approved strategy D Undertook the community consultation for the Community Strategic Plan Council approved strategy IP 2013-2018 Deferred Property Management Strategy to 2013-2014 Council approved strategy D Furthered the land swap between Education Department and Sorell Council for Signed contract for sale IP acquisition of Dodges Ferry Oval Formed a partnership with NRM South to resource and develop environmental Signed contract C strategies for the municipality Co-funding from environmental groups to IP complete strategies

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

34 Annual Report 2013-2014 1.2 ENVIRONMENT AND DEVELOPMENT Solid Waste Management 2012-2013 Initiatives/Achievements KPI Measure Commenced the review of all Council’s waste management services including drop-off Scenarios developed and presented to Council IP and kerbside collection

Environmental Health 2012-2013 Initiatives/Achievements KPI Measure In-conjunction with Southern Water completed monitoring of the Southern Beaches Value added data on water quality C water quality and reviewed the data. Completed surveys of individual WWTS in the No of failing systems Southern Beaches Area. C

Building Control 2012-2013 Initiatives/Achievements KPI Measure Continue to comply with all regulatory and legislative requirements No Breaches O

Land Use Planning; strategic and regulatory 2012-2013 Initiatives/Achievements KPI Measure Continue to comply with all regulatory and legislative requirements No significant legal actions O Commenced new Sorell Planning Scheme in-line with the Southern Regional Planning Replacement of new provisions in Sorell IP framework Planning Scheme 1993 Continued with the land acquisition for Neil Davis Car Park All sale contracts executed IP

Dog Management, Fire Hazard Abatement and Municipal regulation 2012-2013 Initiatives/Achievements KPI Measure Enhanced service level with the completion of the new Municipal dog pound On time on budget C Completed a compliance program through door knocking for dog registrations Increased number of dog registrations C

Natural Resource Management 2012-2013 Initiatives/Achievements KPI Measure Continued to remediate Council owned sites identified for greater public access Reduction in the number of non-compliant IP sites Deferred access strategies around the Orielton Lagoon site. Planned developed in conjunction with Birds D Tas, Parks and Wildlife. Construction of platforms D Appointed NRM Co-ordinator to research and make recommendations on better land Complete partnership agreement with NRM C management practices Council and private. South Deferred the development of a foreshore access strategy Strategy endorsed by Council D

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

Annual Report 2013-2014 35 1.3 ENGINEERING SERVICES Maintenance Community Amenities, recreation, public open space and road and associated infrastructure 2012-2013 Initiatives/Achievements KPI Measure Continued to maintain Council’s asset base Inline with budget allocation C

Capital works for Community Amenities, recreation, public open space and road and associated infrastructure 2012-2013 Initiatives/Achievements KPI Measure Continue to renew, upgrade and enhance Council’s infrastructure, property, plant and Complete capital works budget 2012-2013 for equipment all infrastructure assets ensuring assets are C renewed to deliver the agreed level of service Completed the Primrose Sands Toilets On time on budget C Completed the Sorell Waterways and the Church History Trails On time on budget C Completed the Dodges Ferry Boat Park as per concept design On time on budget C Commenced the refurbishment of the Sorell Memorial Hall Toilets Completed 90% IP Commenced the first stage development of the Pembroke Park as the SESRCP Completed 40% IP Commenced the refurbishment of the Copping Hall Toilets Completed 85% IP

Technical Support Services 2012-2013 Initiatives/Achievements KPI Measure Continue to comply with all regulatory and legislative requirements No breaches in compliance O

Emergency Management 2012-2013 Initiatives/Achievements KPI Measure Reviewed current plan in line with key learning from the January 2013 Bushfires. Completed Council endorsed amended plan IP detailed response to the State Parliamentary Bushfire Inquiry

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

36 Annual Report 2013-2014 1.4 COMMUNITY SERVICES AND HUMAN RESOURCES Communication of services, such as the website, newsletter and service directory 2012-2013 Initiatives/Achievements KPI Measure Completed a social media policy Endorsed policy by Council C Completed the Parks and Beaches Guide Publication completed C

Children’s Services 2012-2013 Initiatives/Achievements KPI Measure Working towards ensuring compliance with legislation requirements of an educator at the Complete training IP centre by 2014. Appoint an Educator IP Increased the space within the current site by 2 Additional child placements C Commenced the opportunity to expand the Malunna Child Care Centre with co funding Additional child placements of 21 IP from DWEER

Youth Programs, Referrals and Recreation 2012-2013 Initiatives/Achievements KPI Measure Successful facilitation of another provider delivering front line youth services Council increased engagement with youth O Successful engagement with youth through the Youth Advisory Group Ongoing group meetings O

Community Development 2012-2013 Initiatives/Achievements KPI Measure Successful adoption of the Community Engagement Strategy. Accepted and in use by Council O Develop engagement groups such as Seniors, Arts and Culture Active membership and regular meetings O

Events Management 2012-2013 Initiatives/Achievements KPI Measure Successful use of social media types in promoting the Community Events calendar. Facebook page and current events calendar O on Council website Continued to support the running of smaller events, such as Australia Day, Arts Acquisition Strong community attendance O Prize, Seniors Week, Youth Week, Fires Fun Run

Community Recovery 2012-2013 Initiatives/Achievements KPI Measure Successful operation of the Community Recovery Centre during the bushfires Community awareness of centre C

Public Halls Management 2012-2013 Initiatives/Achievements KPI Measure Invested funds in Halls and associated recreation ground to facilitate broader community Increased utilisation of facility O use. Facilitate the community consultation for the rebuild of the Dunalley Hall. Agreed design and funding IP

Human Resources 2012-2013 Initiatives/Achievements KPI Measure Commenced a staff training plan Documented training plan IP Continue to Increase organisational capacity through the placement of staff in higher Diploma of Management four staff completed education learning C

Continued to monitor the National Model Awards Keep staff updated O Completed enhancements to Council’s Employee Handbook. Revised handbook C

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

Annual Report 2013-2014 37 1.5 FINANCE AND INFORMATION SERVICES Financial Management 2012-2013 Initiatives/Achievements KPI Measure Continued to build a strong sustainable financial position with a ten year financial plan reviewed Strong projected cash flow O regularly. position Actively sought to close the gap on lost revenue through aligning processes and systems to capture all Reduction in the number of O revenue. General Rate breaches Actively increase financial acumen throughout the organisation with regular meetings with line Monthly management report managers. Improve the financial management reporting on the health of the organisation to Councillors via Finance and O Works Committee. Improve capital reporting with monthly reporting O Increase Council’s access to funding through co-funding from successful grant applications, e.g. DEDTA Additional funds $0.4m O (soccer fields), DEDTA (Dunalley Restructure Plan), RDA (Dunalley Hall) Review GIS function throughout the organisation and seek to re-engineer processes to achieve greater Automated processes IP automation and business process improvement with value added information Continued to review the ten year funding model for capital works in Budget Estimates 2013-2023. Enhanced long term capital O works plan

Information and Communication Technology 2012-2013 Initiatives/Achievements KPI Measure Deferred Sorell Council’s Information Management Strategy Updated strategy endorsed by D Council Deferred the CIVICA Customer Request Service Module CRM implemented, deferred D until 2014 Expanded use of Power Budget throughout the organisation via the setup of value added reporting Greater automation of processes O Expanded the use of registers to automate workflow Greater automation of processes O Ongoing transfer of information from the S Drive to InfoXpert Reduction of information IP contained in the S Drive Deferred the integration of InfoXpert with Corporate Software Integration of InfoXpert IP Implemented upgrade of CIVICA to 6.7 On time and budget C Rolled out new software, benchmarking, Sorell C3 Utilisation by users C

Information Management 2012-2013 Initiatives/Achievements KPI Measure Digitalised all Council records Digitalise Subject Files C Digitalise Subdivision Files C Digitalise Titles C Digitalise Large Plans C Ensured compliance with Tasmanian Archive Act No Breaches O

Strategic Risk Management 2012-2013 Initiatives/Achievements KPI Measure Continued to maintain a current Strategic Risk Register (SRR) that identifies opportunities and threats Council endorsed SRR O and outlines the appropriate mitigation strategies to minimise threats and realise opportunities 2013-2014

Corporate Governance Administration 2012-2013 Initiatives/Achievements KPI Measure Identified and managed leases and licences to reduce Council’s risk exposure and facilitate greater Current leases and licences O ownership to community identities Monitored compliance charter to ensure sound internal governance of the organisation Follow up with Staff on O Compliance Deferred a policy register with workflow notification flagging policy review until InfoXpert integrated Automate policy register D

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

38 Annual Report 2013-2014 2 Financial Performance & Position

ENSURE THE COUNCIL REMAINS IN A FINANCIAL SUSTAINABLE POSITION IN THE MEDIUM TO LONG TERM AND IS ABLE TO FUND ENHANCED SERVICES IN A GROWING COMMUNITY

Goal Achieve a sustainable financial position.

Objectives Research targets for financial sustainability. Secure necessary funding. Identify opportunities and implement internal improvements.

2.1 FINANCIAL SUSTAINABILITY Plan for, commit to and implement actions to achieve financial sustainability 2012-2013 Initiatives/Achievements KPI Measure Continued to revise and improve ten year capital works funding with six monthly review 100% asset renewal O

Commenced strategic land holding review Strategy endorsed by Council IP Ensured sound financial governance throughout the organisation through continual review of internal Auditor General sign off controls for soundness, monthly financial reporting review and implementation of stronger processes Financial Statements with O to safeguard Council assets assurance low risk

2.2 ACCESSIBILITY TO EXTERNAL FUNDING Access external funds to support infrastructure development 2012-2013 Initiatives/Achievements KPI Measure Commenced an evaluation model for new assets with key assessment criteria Business case template IP approved by Council Continued to scan the external environment for major grant funding which facilitate the co-investment Increased level of external grant O of strategic projects funding

2.3 CREATE VALUE FOR STAKEHOLDERS Review services and associated costs and fees for the purpose of balancing service revenue and prices with the value created for stakeholders 2012-2013 Initiatives/Achievements KPI Measure Deferred a service delivery model for budgeting and segment reporting. Segment reporting by Service D

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

Annual Report 2013-2014 39 3 Asset Management

DELIVER INFRASTRUCTURE ASSETS WHICH FACILITATE SERVICE LEVELS INTO THE FUTURE

Goal Provide infrastructure assets and facilities to support agreed service levels.

Objectives Develop and implement Asset Management plans that identify and deliver agreed asset related service levels.

Entrench Asset Management as a core activity of the organisation.

3.1 ASSET MANAGEMENT STRATEGY Continue the development and implementation of the Asset Management Strategy 2012-2013 Initiatives/Achievements KPI Measure Commenced the condition survey of drainage assets in Midway Point and Sorell Survey data in system IP Deferred amended Asset Management Strategy and Policy. Council endorsed strategy and D policy using national templates. Complete Asset Management plans for all infrastructure Asset Management Plans IP

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

40 Annual Report 2013-2014

4 Sustainable Development

WORK TO IMPROVE THE QUALITY OF OUR NATURAL AND URBAN/RURAL DEVELOPMENT AND STIMULATE DEVELOPMENT ACTIVITY WITHIN A FRAMEWORK THAT PROTECTS AND ENHANCE THE NATURAL ENVIRONMENT, CULTURAL AND HISTORIC VALUES AND RESIDENTIAL AMENITIES

Goal Promote balanced development that recognises the needs of our existing residents and allows for managed growth that is consistent with existing land use zoning.

Objectives Manage residential and commercial growth within current land use zones until long-term infrastructure needs are further understood and plans developed.

Reduce the impact of the built environment on the health of the community.

4.1 LAND USE PLANNING 2012-2013 Initiatives/Achievements KPI Measure Commenced the preliminary scoping of the Southern Beaches Settlement Strategy and Township Endorsed by Council Masterplan considering Southern Water’s sewerage plans and retaining current residential areas. IP

Appointed a consultant to review the listing of heritage properties with recommendations to be Amendments to Scheme IP presented to Council in late 2013 endorsed by Council

4.2 ENVIRONMENTAL MANAGEMENT 2012-2013 Initiatives/Achievements KPI Measure Deferred the process to engage key environmental groups to participate in a committee to develop Formulation of group D sustainable land management practices. Deferred the establishment of a committee to review conservational and environmental land practices Agreed terms of reference aligned to east coast land use planning review.

• Committee to establish priorities for sustainable practices which can be actively managed by Council D and linked either to rate remissions or other levels of Government grants.

• Seek to protect high value agricultural land through planning control.

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

Annual Report 2013-2014 41 5 Priority Projects

DELIVER WITHIN THE LIFE OF THE PLAN KEY PROJECTS THAT DELIVER A HIGHER FUTURE SERVICE LEVEL AND ENHANCE ECONOMIC PROSPERITY OF OUR COMMUNITY

Goal Implement systems to ensure all projects meet objectives and are delivered on time and within budget.

Objectives Deliver projects scheduled within the life of this plan, on time and on budget.

Incorporate measurable milestones and performance objectives in each project plan.

Communicate project plans to key stakeholders.

5.1 PROJECT MANAGEMENT PROCESS Establish and implement efficient and effective project management procedures

2012-2013 Initiatives/Achievements KPI Measure Appointed a designated internal resource to project manage engineering infrastructure projects. Council endorsed C

5.2 COMMUNITY ADMINISTRATION CENTRE 2012-2013 Initiatives/Achievements KPI Measure Commenced the Service Centre to be completed by October 2013. On time, on budget IP

5.3 TRAFFIC MANAGEMENT (INCLUDING PARKING) 2012-2013 Initiatives/Achievements KPI Measure Continued with the development of the off street parking (Neil Davis) project to completion stage Commence drainage works D (June 2015). Seal car park D Additional land acquisition D

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

42 Annual Report 2013-2014 6 Climate Change

VALUE THE IMPORTANCE OF CLIMATE CHANGE AND THE IMPACTS TO OUR NATURAL ENVIRONMENT, RESIDENTIAL AMENITIES AND RURAL LANDSCAPE

Goal Recognise the importance of climate change and its impact on environment values.

Objectives Improve understanding of the impacts of climate change as it impacts environmental values.

Protect environmental values.

Communicate to key stakeholders the impacts and take proactive steps to incorporate appropriate changes to internal practices.

6.1 CLIMATE CHANGE AWARENESS 2012-2013 Initiatives/Achievements KPI Measure Setup C3 as a tool for collaboration and gathering the community’s thoughts and ideas O

6.2 FORESHORE PROTECTION 2012-2013 Initiatives/Achievements KPI Measure Continue to monitor the impact of climate change to our community through information gathering Councillor briefs O and disseminating this to Councillors and Managers

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

Annual Report 2013-2014 43 7 Community Wellbeing

WORK TO IMPROVE THE QUALITY OF LIFE FOR THE LOCAL COMMUNITY. COMMUNICATE CLEARLY WITH THE COMMUNITY AND CONSULT IN A MEANINGFUL AND APPROPRIATE WAY AND ENCOURAGE RESIDENTS AND OTHER STAKEHOLDERS TO PARTICIPATE IN COUNCIL DECISION MAKING.

Goal Consult with the community to identify needs and cooperatively deliver key community services.

Objectives Establish a long term plan that encourages a healthy community.

Promote the benefits of community participation in delivering the plan.

7.1 SENIORS, YOUTH AND CHILDREN Senior, youth and children focused activities delivering valued community services 2012-2013 Initiatives/Achievements KPI Measure Established a Senior Advisory Group for the exchange of information on the sectors needs. Seniors engagement with O activities

7.2 SAFE COMMUNITY FACILITIES 2012-2013 Initiatives/Achievements KPI Measure Continued to ensure Council community facilities comply with all relevant legislation. No breaches with all facilities O having the required Form 56

7.3 SUPPORTING COMMUNITY FOCUSED EVENTS 2012-2013 Initiatives/Achievements KPI Measure Deferred the development of a Community Events Kit and make available to community organisations Published events kit. Deferred D until 2013-2014

7.4 CULTURAL PLANS AND INITIATIVES 2012-2013 Initiatives/Achievements KPI Measure Completed a draft Cultural Plan (CP) including community consultation. Published CP IP

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

44 Annual Report 2013-2014 8 Partnerships

WORK TO ENHANCE PARTNERSHIPS WITH KEY STAKEHOLDERS FROM THE GOVERNMENT AND BUSINESS SECTORS, FURTHERING THE VALUE TO BOTH PARTIES.

Goal Develop partnerships for mutual benefit.

Objectives Identify opportunities for external partnerships that increase value.

Establish effective partnerships.

8.1 LOBBY OTHER LEVELS OF GOVERNMENT FOR ACCESS TO FUNDS 2012-2013 Initiatives/Achievements KPI Measure Continued to maximise lobbying opportunities with the Tasmanian Grant Commission for increased Increased level of funding O funding

8.2 CONTINUE THE PARTNERSHIP AGREEMENT WITH THE TASMANIAN GOVERNMENT 2012-2013 Initiatives/Achievements KPI Measure Progress the Marine Asset Strategy with DEDTA and SE Coast Councils Signed MOU and steering C committee formed

8.3 COOPERATION WITH OTHER COUNCILS IN THE SOUTHEAST REGION 2012-2013 Initiatives/Achievements KPI Measure Worked with Clarence City Council to discuss potential merger O

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

Annual Report 2013-2014 45 9 Organisational Health

MANAGE AND GROW OUR RESOURCES TO OFFER A BETTER SERVICE VALUE TO OUR RESIDENTS

Goal Ensure organisational health through the development of people, processes, products and partners

Objectives Develop and implement strategies that underpin organisational health.

9.1 POSITIVE PERFORMANCE Achieve positive performance orientated outcomes through cultural transformation and staff and system development 2012-2013 Initiatives/Achievements KPI Measure Develop KPI’s in-line with the agreed service levels IP

MEASURE C - COMPLETED IP - IN PROGRESS O - ONGOING D - DEFERRED

46 Annual Report 2013-2014 A fence and storyboards outlining the lives of some of those buried in St George’s Cemetery were installed in 2013

Legislative Requirements

ENTERPRISE POWER STATEMENT

Council has not resolved to exercise any powers or undertaken any activities in accordance with Section 21 of the Local Government Act 1993.

CONTRACT FOR THE SUPPLY OF GOODS AND SERVICES REGULATION 23(1)

In accordance with Section 23(1) of the Local Government Act Regulations, below is a list of Goods and Services valued at or above $100,000 excluding GST where entered into in the 2012/2013 financial year.

Item Description of Contract Contract Period Contract Value $ Successful Contractor(s) 1 Kerbside green waste and garbage collection services 5 years 477,000 Veolia Environmental 2 Civica Corporate Technology Solution 5 years 435,000 CIVICA 3 Marion Bay Bridge Replacement 1 year 386,781 GR Design & Construct 4 Amenities Building Pembroke Park 1 year 588,582 Taswide Building Pty Ltd 5 South East Irrigation Scheme Stage 3 3.5 years 229,500 Tasmanian Irrigation 6 Pembroke Park Stormwater Harvest & Reuse Project 1 year 414,400 Spectran 7 Sorell Doctors Surgery 1 year 362,670 Hansen Yunken 8 Sorell Memorial Hall Refurbishment 1 year 196,512 RJ Welsh and Sons

DONATION OF LAND STATEMENT

The Council has not resolved to donate any lands in accordance with Sections 177 of the Local Government Act 1993.

Annual Report 2013-2014 47 Legislative Requirements (Cont.)

GRANTS, ASSISTANCE AND BENEFITS PROVIDED UNDER SECTION 77 (1)

Funding Assistance for Sporting and Recreation Community Assistance Grants Representation Community Rites of Passage 630 State Soccer representation 150 Orielton Volunteer Fire Brigade 500 Touch F/Ball representation 150 Forcett Community Hall Committee 1,000 Hockey Championships 150 Salvation Army Carlton 1,000 State Sport Representation 600 Southern Tasmania Country Music Muster 1,000 Sorell Spirit Cheerleaders 2100 Southern Beaches Regional Arts 1,000 Sub Total Funding Assistance 3,150 Sorell Bowls Club 1,000

Pittwater Community Centre 1,000 Funding Assistance for Youth Projects Sorell and Districts Garden Club 800 Dunalley Tasman Neighbourhood House 2000 Dodges Ferry Senior Citizens 600 Midway Point Yacht Club 700 Midway Point Yacht Club 1,000 Salvation Army Carlton 2000 Nugent Community and Sports Association 1,000 Sorell Rural Youth Group 1000 C Smith 1,000 Uniting Aged Care Tasmania 528 Sustainable Production Research 1,000 Holyoake Tas Incorporated 2000 Southern Beaches Historical Society 1,000 Pittwater Scouts 475 Bream Creek Show Society 1,000 Primrose Community Youth 2000 Combined Churches of South East Tasmania 1,000 Anglicare Tasmania Incorporated 2000 Primrose Sands Hall Committee 1,500 Pittwater Community Centre 750 Midway Point Hall Committee 1,500 Sub Total Youth Projects 13,453 Copping Hall and Reserves 1,500

Contributions Salvation Army Carlton 1,000 Hobart Cat Centre 1,100 Sea Rescue Tasmania 2,000 Dunalley Hall and Reserve Committee 1,500

Donations Sub Total Community Assistance Grants 24,530 Land Carer Award 2012 100

Two bowls triples event 50 TOTAL Donations and Grants 54,572 Ten Days on the Island 5000

World Sailing Expedition 1000

Dodges Ferry Primary School 3000

D Axelsen 150

School Bursary Payments 900

School Gym Hire Sorell Spirit Cheerleaders 255

Girl Guide Rental payment 809

Sorell School Chaplaincy 675

Christmas Parade 200

Tassie As Day 200

Sub Total Donations 12,339

48 Annual Report 2012-2013 Council supported Living Legends horse Chief De Beers to visit Ningana during the Summer Racing Carnival in February

Copping Refuse Disposal Site Joint Authority

The Copping Refuse Disposal Site Joint Authority BUDGET AND PERFORMANCE (Trading as Southern Waste Solutions) was established under section 30 of the Local Government Act, 1993 by The net operating result for the year was a profit the Sorell Council, Clarence City Council and Tasman before income tax of $906,754 (2012 profit before Council. Kingborough Council joined the Authority in income tax $330,794), which was $774,817 above 2009. budget. The major reasons for the above budget result were increased gate fees due to fire debris, ACTIVITIES salaries and wages below budget due to reduced hours worked. These favourable variances were offset by The Copping Refuse Disposal Site Joint Authority’s the requirement to recognise a liability for capping function is to promote and manage a putrescible cells due to a new site operations contract, increased landfill disposal site which conforms to its Development cell write off due to increased volumes of waste (fire Proposal and Environmental Management Plan debris) and the necessity to cart leachate off site early (DP&EMP) and permit conditions. in the financial year.

Additional information is included in Note 18 of the financial statements.

Annual Report 2012-2013 49 Environmental Health Statement

The Environmental Health section is contained within No cases of Ross River Virus (RRV) were reported the Environment and Development Department and from residents and RRV was not isolated from any comprises the Senior Environmental Health Officer mosquitoes collected. (EHO), Environmental Health Officer, part-time The section is also responsible for parking Environmental Health Officer (bushfire), Municipal enforcement. Numerous parking offences occurred Inspector, Animal Management Officer, part-time during the period, particularly for parking in disabled Animal Control Officer, Enforcement Officer, part-time spaces, bus stops and no standing areas. Immunisation Nurse, contract Immunisation Nurse and Entomologist. In January 2013 the Municipal Area experienced one of Tasmania’s most devastating bushfires, EHO’s The section is responsible for public health activities were involved with; the operation of the emergency such as food business regulation, public health risk evacuation centre, worked with DHHS to identify public activities, places of assembly, water quality, mosquito health issues post and during the bushfire and worked vector monitoring and immunisations. Environmental with the Bushfire Recovery Unit and contractors Health Officers also assess building, planning and to have bushfire affected properties cleaned up. A plumbing applications, investigate pollution complaints contract EHO funded by DHHS has been working with and provide environmental health input into Council Sorell and Tasman Councils on this project. The senior business processes. The Senior EHO also chairs EHO and contract EHO presented a paper at the state the OH&S committee and is a member of the Risk conference of Environmental Health Australia on the Management & Ethics Committee. bushfires. The section regulates important public events in the In September 2012 EHO’s completed a survey of Municipal Area including the Falls Festival and Bream septic tank systems in the Southern Beach as part of Creek Show. EHO’s attend and check that permit a project to assess the needs for a Southern Beaches conditions are complied with. Both events are well sewerage scheme. EHO’s and Southern Water have organised and a high level of compliance was observed. been collecting water quality data at various sites from Recreational water quality monitoring at swimming Lewisham to Primrose Sands. beaches during the summer found a strong correlation EHO’s have investigated two significant pollution between rainfall and faecal bacterial indicator organisms incidents involving sewerage mains overflowing. The at the beach near stormwater outfalls. first was from Midway Point which resulted in the A significant number of complaints were received closure of marine farms in Pittwater and the second about backyard burning, barking dogs, environmental involved identofying the source of a leaking sewerage noise and dog attacks. Additional resources have pipe near a marine farm in Dunalley. Appropriate been allocated into investigating these complaints enforcement action was taken to resolve these issues. and Officers are using enforcement options including Following these incidents, EHO’s have completed warnings, infringement notices, seizures, and formal sanitary surveys in Boomer Bay and identified a number orders. Monitoring for mosquito borne disease of failing on-site systems and notices have been issued continued from spring to early autumn, the programme on the property owners. Investigation into point involves collecting larval and adult mosquitos for sources of pollution in Lewisham has also commenced. species identification, distribution and abundance.

50 Annual Report 2012-2013 PROGRAMME TASKS KPI COMMENTS COMPLETION DATE Food Businesses 1. Inspections Each business inspected on 76 inspections completed, below target Ongoing regulations an average of 1.5 per year level of 100. 2. Complaints Investigate as per complaints 3 Food complaints were investigated Ongoing policy about food products. 3. Assessment of new food Assess plans within 14 days as 2 New food businesses Ongoing business plans per Directors specified list applications approved.

4. Food Sampling Participate in regional food Several food samples were collected Ongoing sampling programme which complied with the Food Standards Code. 5. Temporary Food Business Assess applications and Inspections completed at Bream Creek During event inspect high risk businesses Show, Phoenix Festival and the Falls Festival. 6. Food Businesses Food Business 79 Food Businesses registered (excluding 30 June temporary businesses). 7. Enforcement Activities Take enforcement action N0 infringement or improvement notices Ongoing where the EHO considers were issued on any food business. One appropriate. outstanding improvement notice was complied with . Water Quality 1. Monitor Swimming Beaches Weekly sampling over Recreational water quality report August 2013 summer months and report completed. No change to classification. prepared annually by 30 June 2. Monitor Swimming pools Collect samples monthly Samples collected at Swimming Pools all Ongoing samples comply guidelines. Infectious 1. Immunisation sessions Conduct monthly infant Annual school and monthly infant Completed diseases immunisation sessions and immunisations completed. prevention annual school programme 2. Notifiable disease Investigate cases within 3 7 notifiable diseases were referred for Completed investigation working days when referred investigation. All investigations were by DHHS completed but time limits were exceeded in some cases. 3. Mosquito monitoring Conduct larval and adult RRV larval and adult monitoring Completed collection September - April completed. October - March and prepare a report on findings Pollution 1. Complaints investigation Investigate in accordance with Complaints received. Ongoing Prevention Customer Service Charter Backyard burning 19 (2 Infringement notice issued and 15 Cautions). On-site wastewater 20 (9 Abatement notices issued). Noise 53 Odour 10 Water 18 Littering - Enforcement actions 2 EPN 2. Level One activities EMPCA Monitor and investigate Level one activities have been complaints included in a register, no routine inspection programme, respond to complaints.

Annual Report 2013-2014 51 Application Assess application within: Applications assessed Assessments 1. SPP’s 14 days 84 Ongoing 2. DA’s 21 days 308 3. BA’s 7 days 301 4. 337 4 days 359 also assess subdivisions and rezoning application (included in DA numbers). Public Health 1. Place of Assembly Assess applications and Registration outstanding inspection being Registration by activities investigate complaints completed. 30 June 2. Unhealthy Housing Investigated as per Customer Numerous complaints received, failing Ongoing Service Charter septic tank systems, defective plumbing, damp proofing and electrical safety are the most common. Issued abatement notices and rectification notices. 3. Skin Penetration Register premises Premises registered. 30 June 4. Regulated Systems Inspect and issue a letter of Registration of cooling tower completed. 30 June compliance 5. Private Water Supplies Register water sources Need to investigate if some activities 30 June require registration. 6. Water Carters Inspected and issue letter of Inspection of new vehicles completed. 3 yearly compliance every 3 years Annual EH Prepare Annual Health Report Report completed SEHO completed report 30 June Report Dog 1. Investigate dog attacks Start investigation within 2 Dog attacks reported: Ongoing Management working days 14 on people 35 on other animals Investigations commenced within 2 days of report. 23 Dogs were destroyed and 4 declared dangerous. 2. Barking complaints Start investigation within 7 Infringement notices issued fines ranging Ongoing working days from $130 - $1000. Council received at least formal 178 complaints. 102 for barking dogs and 76 for dogs creating a nuisance. Complaints are investigated and the complainant is requested to keep a record of the dates and times that barking occurs. 3. Dog Management Plan Review plan every 5 years Completed in 2012/13. Due 2013 4. Dog Pound Dog pound construction Complete 2012/13 – now operating. By 1 December 2012 completed A significant improvement on the previous pound. 5. Collecting Stray Dogs Conduct routine patrols and 244 dogs impounded, and 209 Ongoing respond to complaints about infringement notices issued for dogs at stray dogs large. Door-to-door registration checks resulted in 307 new dogs being registered. 6. Kennel Licences Kennels licenced annually 41 Licenced Kennels. Ongoing Fire 1. Inspect Properties for Fire Conduct fire hazard 411 Abatement notices issued which is Commence October Management Hazards programme during spring/ slightly more than the previous year. each year summer Parking 1. Develop a Plan for Parking Conduct parking patrols Enforcement officer has started work and Ongoing Enforcement enforcing parking restrictions. 1. Complete a Plan for the Patrols conducted in Sorell 57 infringement notices issued for parking Ongoing Sorell Township every week offences. Typically for parking in disabled spaces or a bus zone. Littering 1. Investigate Littering Investigate in accordance Complaints investigated and 7 Ongoing Complaints with Customer Service infringement notices issued, focus on Charter rubbish dumping at recycling centres. 2. Conduct Littering Patrols Conduct designated patrols Conducting patrols at high risk sites such Ongoing each week and as part of as outside the shopping centres. At least other work activities 6 infringement notices were issued.

52 Annual Report 2013-2014 General Purpose Financial Report for the year ended 30 June 2013

Annual Report 2012-2013 53 Financial Report 2012-2013 Contents

Financial Statements Note 21 Trade and other receivables 72 Statement of Comprehensive Income 55 Note 22 Financial assets 73 Statement of Financial Position 56 Note 23 Inventories 73 Statement of Cash Flows 57 Note 24 Assets held for sale 73 Statement of Changes in Equity 58 Note 25 Other assets 73 Note 26 Property, infrastructure, plant and equipment 73 Notes to Financial Statements Note 27 Investment properties 78 Introduction 59 Note 28 Intangible assets 78 Note 1 Significant accounting policies 59 Note 29 Trade and other payables 78 Note 2 Functions/Activities of the Council 66 Note 30 Trust funds and deposits 78 Note 3 Rates and charges 67 Note 31 Provisions 79 Note 4 Statutory fees and fines 67 Note 32 Interest bearing loans and borrowings 80 Note 5 User fees 67 Note 33 Reserves 81 Note 6 Grants 68 Note 34 Adjustments directly to equity 83 Note 7 Contributions 69 Note 35 Reconciliation of cash flows from operating Note 8 Interest 69 activities to surplus 83 Note 9 Other income 69 Note 36 Reconciliation of cash and cash equivalents 83 Note 10 Net gain/(loss) on disposal PPE 69 Note 37 Restricted assets 83 Note 11 Investment income from Southern Water 69 Note 38 Superannuation 84 Note 12 Employee benefits 70 Note 39 Commitments 85 Note 13 Materials and services 70 Note 40 Contingent assets and contingent liabilities 85 Note 14 Depreciation and amortisation 70 Note 41 Financials instruments 86 Note 15 Finance costs 70 Note 42 Events occurring after balance date 92 Note 16 Other expenses 71 Note 43 Related party transactions 92 Note 17 Impairment expense 71 Note 44 Special committees 93 Note 18 Investment in associates 71 Note 45 Capital expenditure 93 Note 19 Investment in Southern Water 72 Note 46 Significant business activity 94 Note 20 Cash and cash equivalents 72 Certification of the Financial Report 95

54 Annual Report 2012-2013 Statement of Comprehensive Income for the year ended 30 June 2013

Budget Actual Actual 2013 2013 2012 Notes $’000 $’000 $’000 Income Recurrent Income Rates and charges 3 10,350 10,399 9,835 Statutory fees and fines 4 278 265 264 User fees 5 725 624 712 Grants operating 6 1,712 3,631 3,373 Contributions - cash 7 20 - 121 Interest 8 579 568 735 Other income 9 198 580 188 Investment income from Southern Water 11 467 505 502 14,329 16,572 15,730 Capital Income Grants capital 6 1,242 952 668 Contributions - non-monetary assets 7 - 126 536 Net gain/(loss) on disposal of property, infrastructure, plant and equipment 10 1 (105) (24) Share of interests in joint ventures and associates accounted for by the equity method 18 5 153 79 Fair value adjustments for investment property 27 30 - 80 Total income 15,607 17,698 17,069

Expenses Employee benefits 12 (5,434) (5,673) (5,302) Materials and services 13 (3,287) (4,191) (3,524) Impairment expense 17 - - (88) Depreciation and amortisation 14 (4,064) (3,891) (4,054) Finance costs 15 (251) (223) (232) Other expenses 16 (1,315) (1,618) (1,236) Total expenses (14,351) (15,596) (14,436)

Surplus 1,256 2,102 2,633

Other comprehensive income Items that will not be reclassified to surplus or deficit Fair value adjustments for financial assets available for sale investments - - (43) Net asset revaluation increment 33 (a) - 3,748 4,246 - 3,748 4,203 Items that may be reclassified subsequently to surplus or deficit Financial assets available for sale reserve - Fair value adjustments on available for sales assets 33 (b) - (6) 65 - (6) 65 Total Other Comprehensive Income - 3,742 4,268

Comprehensive result 1,256 5,844 6,901

The above statement should be read in conjunction with the accompanying notes

Annual Report 2013-2014 55 Statement of Financial Position as at 30 June 2013

2013 2012 Notes $’000 $’000 Assets Current assets Cash and cash equivalents 20 7,023 8,207 Trade and other receivables 21 2,138 797 Financial assets 22 - 3,109 Inventories 23 41 127 Non-current assets classified as held for sale 24 432 - Other assets 25 173 298 Total current assets 9,807 12,538

Non-current assets Trade and other receivables 21 53 63 Investments in associates accounted for using the equity method 18 711 198 Investment in water corporation 19 29,535 29,541 Non-current assets classified as held for sale 24 - 432 Property, infrastructure, plant and equipment 26 182,304 173,473 Investment property 27 1,127 1,127 Intangible assets 28 101 124 Other assets 25 4 4 Total non-current assets 213,835 204,962 Total assets 223,642 217,500

Liabilities Current liabilities Trade and other payables 29 2,066 1,570 Trust funds and deposits 30 173 145 Provisions 31 1,147 993 Interest-bearing loans and borrowings 32 432 467 Total current liabilities 3,818 3,175

Non-current liabilities Provisions 31 62 21 Interest-bearing loans and borrowings 32 3,261 3,695 Total non-current liabilities 3,323 3,716 Total liabilities 7,141 6,891

Net Assets 216,501 210,609

EQUITY Accumulated surplus 65,050 62,900 Reserves 33 151,451 147,709 Total equity 216,501 210,609

The above statement should be read in conjunction with the accompanying notes

56 Annual Report 2013-2014 Statement of Cash Flows for the year ended 30 June 2013

2013 2012 Inflows/ Inflows/ Outflows Outflows Notes $’000 $’000 Cash flows from operating activities Rates and charges 10,266 9,862 Statutory fees and fines 266 263 User charges (inclusive of GST) 681 714 Grants (inclusive of GST) 3,432 3,375 Developer contributions (inclusive of GST) - 121 Interest 605 704 Investment revenue from water corporation 506 505 Other receipts (inclusive of GST) 220 207 Net GST refund/payment 831 741 Payments to suppliers (inclusive of GST) (5,674) (5,209) Payments to employees (including redundancies) (5,513) (5,318) Finance costs (271) (201) Other payments (629) (439) Net cash provided by (used in) operating activities 35 4,720 5,325

Cash flows from investing activities Payments for infrastructure, property, plant and equipment (9,016) (5,122) Proceeds from sale of infrastructure, property, plant and equipment 114 119 Proceeds from sale of investment 3,109 - Equity injection SWS (312) - Investment water rights (23) - Payments for revaluation costs - (32) Net cash provided by (used in) investing activities (6,128) (5,035)

Cash flows from financing activities Trust funds and deposits 28 (62) Capital grants (inclusive of GST) 670 618 MPIA scheme (18) 15 Proceeds from interest bearing loans and borrowings - 1,500 Repayment of interest bearing loans and borrowings (456) (420) Net cash provided by (used in) financing activities 224 1,651

Net increase/(decrease) in cash and cash equivalents (1,184) 1,941 Cash, cash equivalents and investments at the beginning of the reporting period 8,207 6,266

Cash, cash equivalents and investments at the end of the reporting period 20 7,023 8,207

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

Annual Report 2013-2014 57 Statement of Changes in Equity for the year ended 30 June 2013

Asset Accumulated Fair value Revaluation Other Total Surplus Reserve Reserve Reserves 2013 2013 2013 2013 2013 Notes $’000 $’000 $’000 $’000 $’000

2013 Balance at beginning of the financial year 210,609 62,900 815 145,844 1,050

Surplus 2,102 2,102 - - - Other comprehensive income: Fair value adjustments for financial assets available for - - - - - sale investments Fair value adjustments for investments in water corporation - Fair value adjustment on available for sale assets 19 (6) - (6) - - Net asset revaluation increment(decrement) reversals 33 3,748 - 3,748 - Adjustment direct to equity 34 48 48 - - - Balance at end of the financial year 216,501 65,050 809 149,592 1,050

Asset Accumulated Fair value Revaluation Other Total Surplus Reserve Reserve Reserves 2012 2012 2012 2012 2012 Notes $’000 $’000 $’000 $’000 $’000

2012 Balance at beginning of the financial year 203,725 59,155 750 142,107 1,713 Surplus 2,633 2,633 - - - Other comprehensive income: Fair value adjustments for financial assets available for (43) (43) - - - sale investments Fair value adjustments for investments in water corporation - Fair value adjustment on available for sale assets 19 65 - 65 - - Net asset revaluation increment(decrement) reversals 33 4,246 - - 4,246 - Adjustment direct to equity 34 (17) (17) - - - Transfers (from) other reserves 33 - 1,172 - (509) (663) Balance at end of the financial year 210,609 62,900 815 145,844 1,050

The above statement should be read in conjunction with the accompanying notes

58 Annual Report 2013-2014 Notes to the Financial Report for the year ended 30 June 2013

INTRODUCTION within the next reporting period. Judgements made by Council that have (a) The Sorell Council was established in 1862 and is a body corporate with significant effects on the financial report are disclosed in the relevant notes perpetual succession and a common seal. The Council’s main office is as follows: located at 12 Somerville Street, Sorell, Tasmania. (b) The purpose of the Council is to: Employee entitlements - provide for the peace, order and good government in the Assumptions are utilised in the determination of Council’s employee municipality; entitlement provisions. These assumptions are discussed in note 1(o). - to provide for the health, safety and welfare of the community; Defined benefit superannuation fund obligations - to represent and promote the interests of the Actuarial assumptions are utilised in the determination of Council’s defined community. benefit superannuation fund obligations. These assumptions are discussed This financial report is a general purpose financial report that consists of in note 38. the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and notes Fair value of property, plant & equipment accompanying these financial statements. The general purpose financial Assumptions and judgements are utilised in determining the fair value report complies with Australian Accounting Standards, other authoritative of Council’s property, plant and equipment including useful lives and pronouncements of the Australian Accounting Standards Board (AASB), depreciation rates. These assumptions are discussed in notes 1(f) and in and the Local Government Act 1993 (LGA1993) (as amended). Council has note 26. determined that it does not have profit generation as a prime objective. Consequently, where appropriate, Council has elected to apply options Investment in water corporation and exemptions within accounting standards that are applicable to not- Assumptions utilised in the determination of Council’s valuation of its for-profit entities. As a result this financial report does not comply with investment in Southern Water are discussed in Note 1(k) and in Note 19. International Financial Reporting Standards. (b) Pending Accounting Standards Certain new accounting standards and interpretations have been published NOTE 1 SIGNIFICANT ACCOUNTING POLICIES that are not mandatory for 30 June 2013 reporting periods. Council’s assessment of the impact of these new standards and interpretations is set (a) Basis of accounting out below This financial report has been prepared on the accrual and going concern bases. (i) AASB 9 Financial Instruments, associated standards, AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB This financial report has been prepared under the historical cost 9 and AASB 2012-6 Amendments to Australian Accounting Standards convention, except where specifically stated in notes 1(f), 1(i), 1(j), 1(k), 1(l), – Mandatory Effective Date of AASB 9 and transitional disclosures 1(o), 1(q), 1(r) 1(w), 1(x), and 1(z). (effective for annual reporting periods commencing on or after 1 January Unless otherwise stated, all accounting policies are consistent with 2015) those applied in the prior year. Where appropriate, comparative figures have been amended to accord with current presentation, and disclosure AASB 9 Financial Instruments addresses the classification, measurement has been made of any material changes to comparatives. and derecognition of financial assets and financial liabilities. The standard is not applicable until 1 January 2015 but is available for early adoption. All entities controlled by Council that have material assets or liabilities, When adopted, the standard will affect in particular Council’s accounting such as Special Committees of Management, and material subsidiaries or for its available-for-sale financial assets, since AASB 9 only permits the joint ventures, have been included in this financial report. All transactions recognition of fair value gains and losses in other comprehensive income between these entities and Council have been eliminated in full. Details of if they relate to equity investments that are not held for trading. Fair value entities not included in this financial report based on their materiality are gains and losses on available-for-sale debt investments, for example, will detailed in note 44. therefore have to be recognised directly in profit or loss although there is currently a proposal by the IASB to introduce a Fair value through Other Judgements and Assumptions Comprehensive Income category for debt instruments. In the application of Australian Accounting Standards, Council is required to make judgements, estimates and assumptions about carrying values There will be no impact on Council’s accounting for financial liabilities, as of assets and liabilities that are not readily apparent from other sources. the new requirements only affect the accounting for financial liabilities The estimates and associated assumptions are based on historical that are designated at fair value through profit or loss and Council does experience and various other factors that are believed to be reasonable not have any such liabilities. The derecognition rules have been transferred under the circumstances, the results of which form the basis of making the from AASB 139 Financial Instruments: Recognition and Measurement and judgements. Actual results may differ from these estimates. have not been changed.

The estimates and underlying assumptions are reviewed on an ongoing (ii) AASB 10 Consolidated Financial Statements, AASB 11 Joint basis. Revisions to accounting estimates are recognised in the period in Arrangements, AASB 12 Disclosure of Interests in Other Entities, revised which the estimate is revised if the revision affects only that period or in AASB 127 Separate Financial Statements and AASB 128 Investments the period of the revision and future periods if the revision affects both in Associates and Joint Ventures and AASB 2011-7 Amendments to current and future periods. Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (effective for annual reporting periods Council has made no assumptions concerning the future that may cause commencing on or after 1 January 2013) a material adjustment to the carrying amounts of assets and liabilities

Annual Report 2013-2014 59 Notes to the Financial Report for the year ended 30 June 2013

This suite of five new and amended standards address the accounting Council has commenced reviewing its fair value methodologies (including for joint arrangements, consolidated financial statements and associated instructions to valuers, data used and assumptions made) for all items disclosures. of property, plant and equipment measured at fair value to determine whether those methodologies comply with AASB 13. To the extent that the AASB 10 replaces all of the guidance on control and consolidation in AASB methodologies don’t comply, changes will be necessary. While Council is 127 Consolidated and Separate Financial Statements, and Interpretation yet to complete this review, no substantial changes are anticipated, based 12 Consolidation – Special Purpose Entities. The core principle that a on the fair value methodologies presently used. Therefore, at this stage, no consolidated entity presents a parent and its subsidiaries as if they are consequential material impacts are expected for Council’s property, plant a single economic entity remains unchanged, as do the mechanics of and equipment as from 2013-14. consolidation. However, the standard introduces a single definition of control that applies to all entities. It focuses on the need to have both AASB 13 will require an increased amount of information to be disclosed power and rights or exposure to variable returns. Power is the current in relation to fair value measurements for both assets and liabilities. To the ability to direct the activities that significantly influence returns. Returns extent that any fair value measurement for an asset or liability uses data must vary and can be positive, negative or both. Control exists when the that is not ‘observable’ outside Council, the amount of information to be investor can use its power to affect the amount of its returns. There is disclosed will be relatively greater. also new guidance on participating and protective rights and on agent/ principal relationships. Council does not expect the new standard to have a (iv) Revised AASB 119 Employee Benefits, AASB 2011-10 Amendments to significant impact on its composition. Australian Accounting Standards arising from AASB 119 (September 2011) and AASB 2011-11 Amendments to AASB 119 (September 2011) arising from AASB 11 introduces a principles based approach to accounting for joint Reduced Disclosure Requirements (effective for annual reporting periods arrangements. The focus is no longer on the legal structure of joint commencing on or after 1 January 2013) arrangements, but rather on how rights and obligations are shared by the parties to the joint arrangement. Based on the assessment of rights and This revised standard on accounting for employee benefits includes obligations, a joint arrangement will be classified as either a joint operation significant revisions to the recognition, remeasurement, presentation or a joint venture. Joint ventures are accounted for using the equity and disclosure of defined benefit liabilities/assets. These changes will not method, and the choice to proportionately consolidate will no longer be affect Council as it does not have any defined benefit plans. Whilst this permitted. Parties to a joint operation will account their share of revenues, standard does include revision to multi-employer plans; such as Council’s expenses, assets and liabilities in much the same way as under the previous multi-employer sponsored plan the Quadrant Defined Benefit Fund (Refer standard. AASB 11 also provides guidance for parties that participate in joint Note 38); these are generally disclosure related and not expected to have a arrangements but do not share joint control. financial impact.

Council’s investment in the joint venture partnership will be classified as The standard also clarifies criteria for accounting for “short-term employee a joint venture under the new rules. As Council already applies the equity benefits” including treatment of terminations. Employee benefits ‘expected method in accounting for this investment, AASB 11 will not have any impact to be settled’ (as opposed to ‘due to be settled’ under current standard) on the amounts recognised in its financial statements. within 12 months after year end are short-term benefits, and therefore not discounted when calculating leave liabilities. Annual leave and other AASB 12 sets out the required disclosures for entities reporting under short-term benefits not expected to be used within 12 months of end of the two new standards, AASB 10 and AASB 11, and replaces the disclosure reporting period will in future be discounted when calculating the leave requirements currently found in AASB 127 and AASB 128. Application of this liability. Council has assessed the impact and due to Council’s policy on standard by Council will not affect any of the amounts recognised in the taking of Annual Leave when it is due, it will not have a material impact on financial statements, but will impact the type of information disclosed in the provisions relation to Council’s investments. (v) AASB 2012-2 Amendments to Australian Accounting Standards – Amendments to AASB 128 provide clarification that an entity continues to Disclosures – Offsetting Financial Assets and Financial Liabilities [AASB 132 apply the equity method and does not remeasure its retained interest as & AASB 7] (effective for annual reporting periods commencing on or after part of ownership changes where a joint venture becomes an associate, 1 January 2013) and vice versa. The amendments also introduce a “partial disposal” concept. Council is still assessing the impact of these amendments. This Standard amends the required disclosures in AASB 7 to include Council does not expect to adopt the new standards before their operative information that will enable users of an entity’s financial statements to date. They would therefore be first applied in the financial statements for evaluate the effect or potential effect of netting arrangements, including the annual reporting period ending 30 June 2014. rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position. (iii) AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to This Standard also amends AASB 132 to refer to the additional disclosures Australian Accounting Standards arising from AASB 13 (effective 1 January added to AASB 7 by this Standard. 2013) The adoption of this standard will not change the reported financial AASB 13 sets out a new definition of ‘fair value’ as well as new principles to position and performance of the entity, there are no impact on disclosures be applied when determining the fair value of assets and liabilities. The new as there are no offsetting arrangements currently in place. requirements will apply to all of Council’s assets and liabilities (excluding leases), that are measured and/or disclosed at fair value or another (vi) AASB 2012-3 Amendments to Australian Accounting Standards – measurement based on fair value. Offsetting Financial Assets and Financial Liabilities [AASB 132] (effective 1 January 2014)

60 Annual Report 2013-2014 This Standard adds application guidance to AASB 132 to address Non-monetary contributions inconsistencies identified in applying some of the offsetting criteria of Non-monetary contributions (including developer contributions) with a AASB 132, including clarifying the meaning of “currently has a legally value in excess of the recognition thresholds, are recognised as revenue enforceable right of set-off” and that some gross settlement systems may and as non-current assets. Non-monetary contributions below the be considered equivalent to net settlement. thresholds are recorded as revenue and expenses. The adoption of this standard will not change the reported financial position and performance of the entity, there are no impact on disclosures User fees and Statutory fees and fines Fees and fines (including as there are no offsetting arrangements currently in place. parking fees and fines) are recognised as revenue when the service has been provided, the payment is received, or when the penalty has been (vii) AASB 2012-5 Amendments to Australian Accounting Standards arising applied, whichever first occurs. A provision for impairment is recognised from Annual Improvements 2009–2011 Cycle (effective for annual reporting when collection in full is no longer probable. periods commencing on or after 1 January 2013) Sale of property, plant and equipment, infrastructure AASB 1 - this standard clarifies that an entity can apply AASB 1 more than The profit or loss on sale of an asset is determined when control of the once. AASB 101 - clarifies that a third statement of financial position is asset has irrevocably passed to the buyer. required when the opening statement of financial position is materially affected by any adjustments. ASB 116 - clarifies the classification of servicing Rent equipment. AASB 132 and Interpretation 2 - Clarifies that income tax relating Rents are recognised as revenue when the payment is due or the payment to distributions to holders of an equity instrument and to transaction is received, whichever first occurs. Rental payments received in advance are costs of an equity transaction shall be accounted for in accordance with recognised as a prepayment until they are due. AASB 112 Income Taxes. AASB 134- provides clarification about segment reporting. Interest Interest is recognised progressively as it is earned. The amendments arising from this standard are not expected to change the reported financial position or performance of the Council. Dividends Dividend revenue is recognised when Council’s right to receive payment is (c) Revenue recognition established.

Rates, grants and contributions Rates, grants and contributions (including developer contributions) are (d) Expense recognition recognised as revenues when Council obtains control over the assets Expenses are recognised in the Statement of Comprehensive Income when comprising these receipts. a decrease in future economic benefits related to a decrease in asset or an increase of a liability has arisen that can be measured reliably. Control over assets acquired from rates is obtained at the commencement of the rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates. A provision for Employee benefits impairment on rates has not been established as unpaid rates represents Employee benefits include, where applicable, entitlements to wages and a charge against the rateable property that will be recovered when the salaries, annual leave, sick leave, long service leave, superannuation and any property is next sold. other post-employment benefits.

Revenue is recognised when Council obtains control of the contribution Depreciation and amortisation of property, plant and equipment, or the right to receive the contribution, it is probable that the economic infrastructure and intangibles benefits comprising the contribution will flow to Council and the amount Buildings, land improvements, plant and equipment, infrastructure and of the contribution can be measured reliably. Control over granted assets other assets having limited useful lives are systematically depreciated over is normally obtained upon their receipt (or acquittal) or upon earlier their useful lives to the Council in a manner which reflects consumption notification that a grant has been secured, and are valued at their fair value of the service potential embodied in those assets. Estimates of remaining at the date of transfer. useful lives and residual values are made on a regular basis with major asset

classes reassessed annually. Depreciation rates and methods are reviewed Where grants or contributions recognised as revenues during the annually. financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions Where assets have separate identifiable components that are subject to were undischarged at balance date, the unused grant or contribution is regular replacement, these components are assigned distinct useful lives disclosed in Note 6. The Note also discloses the amount of unused grant or and residual values and a separate depreciation rate is determined for each contribution from prior years that was expended on Council’s operations component. during the current year.

Road earthworks are not depreciated on the basis that they are assessed as A liability is recognised in respect of revenue that is reciprocal in nature not having a limited useful life. to the extent that the requisite service has not been provided at balance date and conditions include a requirement to refund unused contributions. Artworks and Land are not depreciated. Revenue is then recognised as the various performance obligations under an agreement are fulfilled. Council does currently have any reciprocal grants.

Annual Report 2013-2014 61 Notes to the Financial Report for the year ended 30 June 2013

Straight line depreciation is charged based on the residual useful life as Finance costs include interest on bank overdrafts, interest on borrowings, determined each year. unwinding of discounts, and finance lease charges.

Major depreciation periods used are listed below and are consistent with (e) Recognition and measurement of assets the prior year unless otherwise stated: Acquisition Period The purchase method of accounting is used for all acquisitions of assets, being Property the fair value of assets provided as consideration at the date of acquisition plus Land improvements 10-50 years any incidental costs attributable to the acquisition. Fair value is the amount for which the asset could be exchange between knowledgeable willing parties in an Buildings arm’s length transaction. buildings 30-100 years The asset capitalisation threshold adopted by Council is, above $500 Leasehold improvements for plant, furniture and fittings and IT equipment and $1,000 to $10,000 for leasehold land improvements 15-30 years infrastructure depending on the class of asset . Assets valued at less than $500 for plant, furniture and fittings and IT equipment and less than $1,000 Plant and Equipment to $10,000 for infrastructure depending on the class of asset are charged to plant, machinery and equipment 3-15 years the Statement of Comprehensive Income in the year of purchase (other than fixtures, fittings and furniture 3-30 years where they form part of a group of similar items which are material in total). computers and telecommunications 3-10 years Where assets are constructed by Council, cost includes all materials used in Roads construction, direct labour, borrowing costs incurred during construction, road pavements (sealed) 40 years and an appropriate share of directly attributable variable and fixed road pavements (unsealed) 10 years overheads. road surface (gravel) 4.5 years The following classes of assets have been recognised in note 26. In road surface (bitumen) 15 years accordance with Council’s policy, the threshold limits detailed below have applied when recognising assets within an applicable asset class and unless road formation and earthworks non-depreciable otherwise stated are consistent with the prior year: Kerb and Channel and Table Drains 20-50 years Threshold $’000 Bridges Land bridges substructure 20-80 years land improvements 5 bridges super structure 20-80 years Buildings Other Infrastructure building improvements 5 footpaths and cycleways 10-50 years leasehold building improvements 5 drainage 40-100 years waste management 10-50 years Plant and Equipment off street car parks 15-30 years plant, machinery and equipment 1 fixtures, fittings and furniture 1 Intangible assets computers and telecommunications 1 intangible assets 5 years Roads Residual Value % road pavements and seals 5 Roads road substructure 10 road pavements (sealed) 40% road formation and earthworks n/a road pavements (unsealed) 50% road kerb, channel and minor culverts 5 road formation and earthworks 100% Bridges Repairs and maintenance bridges timber 5 Routine maintenance, repair costs, and minor renewal costs are expensed bridges concrete 25 as incurred. Where the repair relates to the replacement of a component Other Infrastructure of an asset and the cost exceeds the capitalisation threshold the cost is capitalised and depreciated. The carrying value of the replaced asset is footpaths and cycleways 10 expensed. drainage 5 waste management 5 Finance costs off street car parks 5 Finance costs are recognised as an expense in the period in which they are incurred, except where they are capitalised as part of a qualifying Intangible assets asset constructed by Council. Where specific borrowings are obtained for intangible assets 5 the purpose of specific asset acquisition, the weighted average interest rate applicable to borrowings at balance date, excluding borrowings associated with superannuation, is used to determine the borrowing costs to be capitalised. No borrowing costs were capitalised during the period.

62 Annual Report 2013-2014 (f) Recognition and measurement of assets From 1 July 2013, Councils ownership interest in Southern Water will Revaluation change to an ownership interest in Tas Water. Subsequent to the initial recognition of assets, non-current physical assets, Council has classified this asset as an Available-for-Sale financial asset as other than plant and equipment are measured at their fair value. Fair defined in AASB 139 Financial Instruments: Recognition and Measurement value is represented by the deprival value of the asset approximated by its and has followed AASB 132 Financial Instruments: Presentation and AASB written down replacement cost. At balance date, Council reviewed the 7 Financial Instruments: Disclosures to value and present the asset in the carrying value of the individual classes of assets measured at fair value to financial report. ensure that each asset class materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date the Council has derived returns from the corporation as disclosed at note 11. class of asset was revalue. (l) Investments In addition, Council undertakes a formal revaluation of land, buildings, and Investments, other than investments in associates and property, are infrastructure assets on a regular basis to ensure valuations represent fair measured at cost. value. The valuation is performed either by experienced Council officers or independent experts. (m) Accounting for investments in associates Council’s investment in associates is accounted for by the equity method Where the assets are revalued, the revaluation increments are credited as Council has the ability to influence rather than control the operations of directly to the asset revaluation reserve except to the extent that an the entities. The investment is initially recorded at the cost of acquisition increment reverses a prior year decrement for that class of asset that had and adjusted thereafter for post-acquisition changes in Council’s share of been recognised as an expense in which case the increment is recognised the net assets of the entities. Council’s share of the financial result of the as revenue up to the amount of the expense. Revaluation decrements are entities is recognised in the Statement of Comprehensive Income. recognised as an expense except where prior increments are included in the asset revaluation surplus for that class of asset in which case the decrement is taken to the reserve to the extent of the remaining (n) Tender deposits increments. Within the same class of assets, revaluation increments and Amounts received as tender deposits and retention amounts controlled by decrements within the year are offset. Council are recognised as Trust funds until they are returned or forfeited (refer to note 30). Land under roads Land under roads acquired after 30 June 2008 is brought to account at (o) Employee benefits cost and subsequently revalued on a fair value basis. Council does not Wages and salaries recognise land under roads that it controlled prior to that period. Liabilities for wages and salaries and rostered days off are recognised and measured as the amount unpaid at balance date and include appropriate (g) Cash and cash equivalents oncosts such as workers compensation and payroll costs. For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand, deposits at call, and other highly liquid investments Annual leave with original maturities of three months or less, net of outstanding bank Annual leave entitlements are accrued on a pro-rata basis in respect of overdrafts. services provided by employees up to balance date. Annual leave expected to be paid within 12 months is measured at nominal value based on (h) Trade and other receivables the amount, including appropriate oncosts, expected to be paid when Receivables are carried at amortised cost using the effective interest rate settled. method. A provision for impairment is recognised when there is objective evidence that an impairment loss has occurred. Annual leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these (i) Financial assets accrued entitlements. Commonwealth bond rates are used for discounting future cash flows. Managed funds are valued at fair value, being market value, at balance date. Any unrealised gains and losses on holdings at balance date are recognised Long service leave as either a revenue or expense. Long service leave entitlements payable are assessed at balance date having regard to expected employee remuneration rates on settlement,

(j) Inventories employment related oncosts and other factors including accumulated Inventories held for distribution are measured at cost adjusted when years of employment, on settlement, and experience of employee applicable for any loss of service potential. departure per year of service. Other inventories are measured at the lower of cost and net realisable value. Long service leave expected to be paid within 12 months is measured at nominal value based on the amount expected to be paid when settled. (k) Investments in water corporation Long service leave expected to be paid later than one year has been Council’s investment in Southern Water is valued at its fair value at measured at the present value of the estimated future cash outflows to be balance date. Fair value was determined by using Council’s ownership made for these accrued entitlements. Commonwealth bond rates are used interest against the water corporation’s net asset value at balance date for discounting future cash flows. based on Final Treasurer’s Allocation Order in 2011. Council has an ownership interest of 3.2% in the corporation. Any unrealised gains and loses on holdings at balance date are recognised through the Statement of Comprehensive Income to a Financial assets available-for-sale reserve each year. (refer note 33) Annual Report 2013-2014 63 Notes to the Financial Report for the year ended 30 June 2013

Long service leave expected to be paid later than one year has been is expected to be settled within the next twelve months, being Council’s measured at the present value of the estimated future cash outflows to be operational cycle, or if Council does not have an unconditional right to made for these accrued entitlements. Commonwealth bond rates are used defer settlement of a liability for at least 12 months after the reporting for discounting future cash flows. date.

Sick Leave (s) Taxation No accrual is made for sick leave as Council experience indicates that, on average, sick leave taken in each reporting period is less than the Council is exempt from all forms of taxation except Fringe Benefits Tax, entitlement accruing in that period, and this experience is expected to Payroll Tax and the Goods and Services Tax. recur in future reporting periods. Council does not make payment for untaken sick leave. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, Classification of employee benefits except where the amount of GST incurred is not recoverable from the An employee benefit liability is classified as a current liability if the Council Australian Tax Office. In these circumstances the GST is recognised as part does not have an unconditional right to defer settlement of the liability for of the cost of acquisition of the asset or as part of an item of the expense. at least 12 months after the end of the period. This includes all annual leave Receivables and payables in the balance sheet are shown inclusive of GST. and unconditional long service leave entitlements. Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which (p) Interest bearing liabilities are disclosed as operating cash flows. The borrowing capacity of Council is limited by the Local Government Act (t) Impairment of assets 1993. Interest bearing liabilities are initially recognised at fair value, net of transaction costs incurred. Subsequent to initial recognition these liabilities At each reporting date, Council reviews the carrying value of its assets to are measured at amortised cost. Any difference between the proceeds determine whether there is any indication that these assets have been (net of transaction costs) and the redemption amount is recognised in the impaired. If such an indication exists, the recoverable amount of the asset, Statement of Comprehensive Income over the period of the liability using being the higher of the asset’s fair value less costs to sell and value in use, is the effective interest method. compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the Statement of Comprehensive

Income, unless the asset is carried at the revalued amount in which case, (q) Leases the impairment loss is recognised directly against the revaluation reserve Finance leases in respect of the same class of asset to the extent that the impairment loss Leases of assets where substantially all the risks and rewards incidental does not exceed the amount in the revaluation surplus for that same class of to ownership of the asset, are transferred to the Council are classified asset. For non-cash generating assets of Council such as roads, drains, public as finance leases. Finance leases are capitalised, recording an asset and buildings and the like, value in use is represented by the deprival value of the a liability at the lower of the fair value of the asset and the present value asset approximated by its written down replacement cost. of the minimum lease payments, including any guaranteed residual value. Lease payments are allocated between the reduction of the lease liability (u) Rounding and the interest expense. Leased assets are depreciated on a straight line Unless otherwise stated, amounts in the financial report have been basis over their estimated useful lives to Council where it is likely that rounded to the nearest thousand dollars. Council will obtain ownership of the asset or over the term of the lease, whichever is the shorter. (v) Non-current assets held for sale A non-current asset held for sale (including disposal groups) is measured Operating leases at the lower of its carrying amount and fair value less costs to sell, and Lease payments for operating leases are required by the Australian are not subject to depreciation. Non-current assets, disposal groups and accounting standard to be recognised on a straight line basis, rather than related liabilities assets are treated as current and classified as held for expensed in the years in which they are incurred. sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only Leasehold improvements when the sale is highly probable and the asset’s sale (or disposal group Leasehold improvements are recognised at cost and are amortised sale) is expected to be completed within 12 months from the date of over the unexpired period of the lease or the estimated useful life of classification. the improvement, whichever is the shorter. At balance date, leasehold improvements are amortised over a 15 to 30 year period. (w) Investment property (r) Allocation between current and non-current Investment property, comprising freehold office complexes, is held to generate long-term rental yields. Investment property is measured initially In the determination of whether an asset or liability is current or non- at cost, including transaction costs. Costs incurred subsequent to initial current, consideration is given to the time when each asset or liability is acquisition are capitalised when it is probable that future economic benefit expected to be settled. The asset or liability is classified as current if it in excess of the originally assessed performance of the asset will flow to Council. Subsequent to initial recognition at cost, investment property is

64 Annual Report 2013-2014 Dawn Gatehouse, winner of the 150th Anniversary Art Acqusition Prize

carried at fair value, determined annually by independent valuers. Changes Sorell as defined in note 46 is considered a significant business activities. to fair value are recorded in the Statement of Comprehensive Income in Competitive neutrality costs include notional costs i.e. income tax the period that they arise. Rental income from the leasing of investment equivalent, rates and loan guarantees in preparing the information properties is recognised in the Statement of Comprehensive Income on a disclosed in relation to significant business activities. straight line basis over the lease term. (z) Contingent assets, contingent liabilities and (x) Financial guarantees commitments Financial guarantee contracts are recognised as a liability at the time the Contingent assets and contingent liabilities are not recognised in the guarantee is issued. The liability is initially measured at fair value, and if Statement of Financial Position, but are disclosed by way of a note and, if there is material increase in the likelihood that the guarantee may have quantifiable, are measured at nominal value. Contingent assets and liabilities to be exercised, at the higher of the amount determined in accordance are presented inclusive of GST receivable or payable respectively. with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation, where Commitments are not recognised in the Statement of Financial Position. appropriate. In the determination of fair value, consideration is given to Commitments are disclosed at their nominal value inclusive of the GST factors including the probability of default by the guaranteed party and the payable. likely loss to Council in the event of default. (aa) Budget (y) Significant Business Activities The estimated revenue and expense amounts in the Statement of Council is required to report the operating capital and competitive Comprehensive Income represent revised budget amounts and are not neutrality costs in respect of each significant business activity undertaken audited. by the council. The councils disclosure is reconciled in note 46. Council has determined, based upon materiality that Recreation Vehicle Park

Annual Report 2013-2014 65 Notes to the Financial Report for the year ended 30 June 2013

NOTE 2 FUNCTIONS/ACTIVITIES OF THE COUNCIL (a) Revenue, expenditure and assets attributable to each function as categorised in (c) below: Total Grants Other Total Revenue Expenditure Surplus/(Deficit) Total assets 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Functions/Activities

Governance ------649 565 (649) (565) - -

Administration 1,983 1,915 8,978 8,719 10,961 10,634 2,447 2,969 8,514 7,665 2,924 3,610

Public order safety - - 650 661 650 661 1,532 1,350 (882) (689) 39 11

Health 654 1 397 345 1,051 346 1,283 558 (232) (212) 388 2 Community services and 363 310 253 276 616 586 1,200 1,105 (584) (519) 308 301 education Housing and community - - 1,986 1,990 1,986 1,990 1,766 2,152 220 (162) 29,555 27,674 amenities Recreation and culture - 31 - 158 - 189 16 782 (16) (593) 6,969 6,881 Mining, manufacturing & - - 175 149 175 149 361 297 (186) (148) - - construction Transport and 1,576 1,783 781 814 2,357 2,597 6,409 4,713 (4,052) (2,116) 138,806 134,928 communications Economic affairs 7 1 - 5 7 6 38 34 (31) (28) 66 66

Other - not attributable ------44,587 44,027

Total functions & activities 4,583 4,041 13,220 13,117 17,803 17,158 15,701 14,525 2,102 2,633 223,642 217,500

(b) Reconciliation of Assets from note 2 with Statement of Community services and education Financial Position at 30 June: Administration, family day care, child care, youth services, other family and children, aged and disable services.

2013 2012 Housing and community amenities $’000 $’000 Housing, town planning, domestic waste management services, other Current assets 9,807 12,538 waste management services, street other sanitation and garbage, urban Non-current assets 213,835 204,962 stormwater drainage, public conveniences, cemeteries other community amenities. 223,642 217,500

Recreation and culture (c) Details of the functions or activities reported in Note 2 Public libraries, art galleries, community centres, public halls, other (a) are as follows: cultural services, sporting centres, parks and gardens, other sport and Governance recreation. Costs relating to the Council’s role as a component of democratic government, including elections, member’s fees and expenses, subscriptions Mining, manufacturing and construction to local authority associations, meetings of council and policy making Building control, quarries and pits. committees, area representation and public disclosure and compliance, together with related administration costs. Transport and communication Urban roads, sealed and unsealed rural roads, bridges, footpaths, parking Administration areas, bus shelters, water transport, street lighting. Costs of administration, finance and corporate service functions Economic affairs Public order and safety Camping areas, caravan parks, tourism and are promotion, industrial Fire protection, animal control, beach control, enforcement of local development promotion, real estate development, other business government regulations, emergency services, other. undertakings.

Health Other Administration and inspection, immunisations, food control, insect/vermin Represents net asset revaluation increment or decrements. control, noxious plants, other.

66 Annual Report 2013-2014 2013 2012 $’000 $’000 NOTE 3 RATES AND CHARGES Sorell Council commenced using Capital Value (CV) as the basis of valuation of all properties within the municipal district from 1 July 2011. In 2012-2013 the CV of all properties in our municipality totalled $2,318,471,900 ($2,306,815,900 2011-2012). The 2012-2013 general rate is a two tiered rating system with 42% of the general rate generated by a fixed rate of $406.97 ($381.50 2011-2012) and remaining by a rate $0.00207 ($0.00 2011-2012) on the CV varied by reason on the location of any land and/or the use. General rate Residential 6,914 6,508 Commercial 607 594 Industrial 95 94 Community purpose 175 139 Primary Production 326 357 Pensioner rebate payment (State Government) 558 515 Less pensioner rebate (Council) (43) (39) Less pensioner rebate (State Government) (550) (515) Total general rate 8,082 7,653

Charges Waste management services 1,639 1,527 Waste water treatment systems 326 302 Fire levy 352 353 Total charges 2,317 2,182 Total rates and charges 10,399 9,835 The date of the latest general revaluation of land for rating purposes within the municipality was 1 July 2010, and the valuation will be first applied in the rating year commencing 1 July 2010.

NOTE 4 STATUTORY FEES AND FINES Infringements and costs 25 30 Town planning fees 142 150 Land information certificates 92 78 Permits 6 6 Total statutory fees and fines 265 264

NOTE 5 USER FEES Animal 82 72 Building services 142 190 Caravan 18 19 Child care 253 276 Fire abatement 53 33 Health 6 19 Other 55 41 Private works 11 59 Recreational Vehicles 4 3 Total user fees 624 712

Ageing analysis of contractual receivables Please refer to note 41 for the ageing analysis of contractual receivables

Annual Report 2013-2014 67 Notes to the Financial Report for the year ended 30 June 2013

2013 2012 $’000 $’000 NOTE 6 GRANTS Grants were received in respect of the following: Summary of grants Federally funded grants 4,508 3,743 State funded grants 75 298 Total 4,583 4,041

Grants operating Commonwealth Government Financial Assistance Grants - General Purpose 1,758 1,902 Commonwealth Government Financial Assistance Grants - Roads 814 1,127 Commonwealth Government - training subsidy 16 12 Commonwealth Government - sustainability children 54 36 Commonwealth Government - child care benefit 309 276 Commonwealth Government - immunisation 5 1 Commonwealth Government - Family and children - 3 Commonwealth Government - Health 650 - Commonwealth Government - Natural resource management 5 - State Government - Transport 20 19 State Government - Family and children - (3) Total operating grants 3,631 3,373

The Australian Commonwealth Government provides Financial Assistance Grants to Council for general purpose use and the provision of local roads. On 11 May 2012 the Government announced in the Commonwealth Budget following the downturn in the economy that, “to assist local councils with planning for the recovery and to ensure local government has maximum certainty to begin planning their 2012-13 works programs”, it would bring forward for payment to all councils in June 2012, the first two instalments of the 2012-13 grant pool. Since 2009- 10 the Commonwealth has been making early payment of the first quarterly instalment for the following year. However, the above General Purpose and Roads Financial Assistance Grants for 2012-13 thus include an additional instalment over that received in 2011-12. In accordance with AASB1004 Contributions, Council recognises these grants as revenue when it receives the funds and obtains control. The effects of the early receipt of instalments each year has resulted in Commonwealth Government Financial Assistance Grants being above that originally budgeted in 2012-13 by $1,340,677 and 2011-12 by $1,461,781. This has impacted the Statement of Comprehensive Income resulting in the Net surplus from continuing operations being higher in both years. With fewer instalments due to be received in 2013-14, the reverse effect is expected to occur.

Capital grants received specifically for new or upgraded assets Commonwealth Government - Roads to recovery 230 355 Commonwealth Government - Culture, sport and recreation 667 - State Government - Culture, sport and recreation 55 292 State Government - Community access - 21 Total capital grants 952 668

Conditions on grants Non-reciprocal grants recognised as revenue during the year that were obtained on condition that they be expended in a specified manner that had not occurred at balance date were: Commonwealth Government - Community access - 190 State Government - Sport and recreation - 15 Total - 205

Non-reciprocal grants which were recognised as revenue in prior years and were expended during the current year in the manner specified by the grantor were: State Government - Sport and recreation 15 291 Total 15 291 Net increase in non-reciprocal grant revenue for the year: (15) (86)

68 Annual Report 2013-2014 2013 2012 $’000 $’000 NOTE 7 CONTRIBUTIONS (a) Cash Parks, open space and streetscapes - - Stormwater - 121 Total Cash - 121

(b) Non-monetary assets Land under roads - - Roads - - Stormwater 126 536 Total Non-monetary assets 126 536

Total contributions 126 657

NOTE 8 INTEREST Interest on financial assets - 258 Interest on cash and cash equivalents 457 328 Interest on rates 109 146 Interest MPIA 2 3 Total interest 568 735

NOTE 9 OTHER INCOME Diesel fuel rebates 8 4 Investment property rental 66 64 Rental income from leased properties 60 9 Rental income land Copping Refuse 59 55 Recovery of eligible Bush Fire relief expenditure 352 - Other 35 56 Total other income 580 188

NOTE 10 NET GAIN/(LOSS) ON DISPOSAL OF PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT Proceeds of sale 84 119 Written down value of assets disposed (189) (143) Total net gain/(loss) (105) (24)

NOTE 11 INVESTMENT INCOME FROM SOUTHERN WATER Dividend revenue received 361 297 Tax equivalent received 96 170 Guarantee fee received 48 35 Total investment income from Southern Water 505 502

Annual Report 2013-2014 69 Notes to the Financial Report for the year ended 30 June 2013

2013 2012 $’000 $’000 NOTE 12 EMPLOYEE BENEFITS Salaries and wages 4,625 4,243 Workers compensation 55 41 Annual leave and long service leave 619 579 Superannuation 642 606 Fringe benefits tax 28 23 Employee associated costs 60 50 Recruitment costs 14 3 Training costs 74 50 6,117 5,595 Less amounts capitalised (444) (293) Total employee benefits 5,673 5,302

NOTE 13 MATERIALS AND SERVICES Computers and associated costs 117 109 Consultants 452 75 Contracts 377 408 Fire reduction 12 9 Legal 116 89 Maintenance 1,461 1,213 Materials 28 34 Plant maintenance 163 185 Utilities 333 282 Valuation costs 34 59 Waste 1,098 1,061 Total materials and contracts 4,191 3,524

NOTE 14 DEPRECIATION AND AMORTISATION Plant and Equipment 284 279 Office equipment 40 39 IT equipment 191 207 Buildings 71 65 Land improvements 88 82 Leasehold land improvements 19 17 Infrastructure: Roads, bridges and footpaths 2,876 2,908 Stormwater drainage 223 353 Waste 53 58 Intangibles assets Intangible assets 46 46 Total depreciation and amortisation 3,891 4,054

NOTE 15 FINANCE COSTS Interest - Borrowings 221 227 Interest - Midway Point Improvement Act Scheme 2 5 Total finance cost 223 232

70 Annual Report 2013-2014 2013 2012 $’000 $’000 NOTE 16 OTHER EXPENSES External auditors’ renumeration (Tasmanian Audit Office) 22 23 Bad debts 3 3 Children services expenses 22 22 Collection costs 35 31 Community Development 54 62 Councillor allowances and expenses 167 161 Donations section 77 51 40 Governance 40 40 Government fire contributions 346 324 Insurance 147 172 Land tax 46 59 Bush Fire relief expenditure recoverable from State Government 352 Other 287 272 Operating leases 46 27 Total other expenses 1,618 1,236

NOTE 17 IMPAIRMENT EXPENSE PPE assets Opening written down value - Acquisitions - 88 Impairment expense - (88) Balance at end of financial year - -

NOTE 18 INVESTMENT IN ASSOCIATES Investments in associates accounted for by the equity method are; Waste - Southern Waste Solutions 711 198 Total 711 198

Waste - Southern Waste Solutions Background Sorell Council in financial year ending June 2009 maintained an ownership interest of 30%, however as a result from the buyout of equity from Kingborough Council in July 2009, Council now maintains an ownership interest of 24%.

Council’s share of accumulated surplus Balance at beginning of financial year 47 81 Transfer to reserves 360 (113) Reported surplus (deficit) for year 153 79 Balance at end of financial year 560 47

Council’s share of reserves Balance at beginning of financial year 150 55 Transfer from accumulated surplus - 95 Balance at end of financial year 150 150

Annual Report 2013-2014 71 Notes to the Financial Report for the year ended 30 June 2013

2013 2012 $’000 $’000 NOTE 18 INVESTMENT IN ASSOCIATES (CONT.) Net Assets Gross Assets 9,835 7,235 Gross Liabilities (6,879) (6,411) Net Assets 2,956 824 Council’s ownership interest in Southern Waste Solutions (24%) 711 198

Movement in carrying value of specific investment Balance at beginning of financial yea 198 136 Equity injection 312 - Transfer from accumulated surplus 48 (17) Share of surplus (deficit) for year 153 79 Balance at end of financial year 711 198

NOTE 19 INVESTMENT IN WATER CORPORATION Opening balance 29,541 29,476 Change in fair value of investment - Fair value adjustment on available for sale assets (6) 65 Total investment in Southern Water 29,535 29,541

Council has derived returns from the water corporation as disclosed in Note 11. Council has an ownership interest of 3.2% in Southern Water based on the Final Treasurer’s Allocation Order in 2011. Council does not have significant influence to allow it to use the equity method to account for this interest. From 1 July 2013, Council’s ownership interest in Southern Water will change to an ownership interest in Tas Water.

NOTE 20 CASH AND CASH EQUIVALENTS Cash at bank and on hand 1,764 3,207 Term deposits 5,259 5,000 Total cash and cash equivalents 7,023 8,207

Council cash and cash equivalents are subject to a number of internal and external restrictions that limit amounts available for discretionary or future use. These include: - Leave provisions (see note 32 1,209 1,014 - Reserve funds allocated for specific future purpose (see note 38) 989 989 - Trust funds and deposits (see note 31) 173 145 Restricted Funds 2,371 2,148 Total unrestricted cash and cash equivalents 4,652 6,059

NOTE 21 TRADE AND OTHER RECEIVABLES Current Rates debtors 209 300 Other debtors 1,183 361 GST receivable 387 135 Bush Fire relief expenditure, reimbursement claimable from State Govt 352 - MPIA debtors 7 1 Total current trade and other receivables 2,138 797

Non-current MPIA debtors 53 63 Total Non-current trade and other receivables 53 63

Total trade and other receivables 2,191 860

72 Annual Report 2013-2014 2013 2012 $’000 $’000 NOTE 22 FINANCIAL ASSETS Current Managed funds - 3,109 Total financial assets - 3,109

Held for trading: - Fixed rate bond - 3,109 - 3,109

NOTE 23 INVENTORIES Current Inventories held for distribution 39 126 Inventories held for sale 2 1 Total inventories 41 127

NOTE 24 NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Sorell Council Offices - Non Current - 432 Sorell Council Offices - Current 432 - Total assets held for sale 432 432

NOTE 25 OTHER ASSETS Current Prepayments 41 163 Accrued income 20 135 Income held in trust 112 - Total current other assets 173 298

Non-current Prepayments 4 4 Total Non-current other assets 4 4

Total other assets 177 302

NOTE 26 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT Summary at cost 37,508 33,191 Less accumulated depreciation (2,515) (2,210) 34,993 30,981

at fair value as at 30 June 193,018 184,005 Less accumulated depreciation (45,707) (41,513) 147,311 142,492 Total 182,304 173,473

Annual Report 2013-2014 73 Notes to the Financial Report for the year ended 30 June 2013

2013 2012 $’000 $’000 NOTE 26 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT (CONT.) Property Land at cost 288 76 at fair value as at 30 June 10,699 10,550 10,987 10,626 Land under roads at cost - 8 at fair value as at 30 June 346 338 346 346 Total land 11,333 10,972

Buildings at fair value as at 30 June 5,687 5,534 Less accumulated depreciation (1,919) (1,938) 3,768 3,596 Land improvements at fair value as at 30 June 3,187 2,697 Less accumulated depreciation (351) (263) 2,836 2,434 Leasehold land improvements at fair value as at 30 June 428 418 Less accumulated depreciation (93) (75) 335 343

Total buildings 6,939 6,373

Total property 18,272 17,345 Valuation of land (excluding land under roads) and buildings were valued utilising the municipal valuations undertaken by the Office of the Valuer General as at 01 July 2010. The valuation of buildings is at fair value less accumulated depreciation at the date of valuation. The valuation of land is at fair value, being market value based on highest and best use permitted by relevant land planning provisions. Land under roads is valued at deemed fair value. Deemed fair value is based on Council valuations at 30 June 2012 for land under roads in existence at that date.

Plant and Equipment Plant, machinery and equipment at cost 2,876 2,824 Less accumulated depreciation (1,298) (1,218) 1,578 1,606

Office equipment, furnishings and fittings at cost 706 621 Less accumulated depreciation (380) (346) 326 275

Information and communication technology at cost 2,326 1,756 Less accumulated depreciation (837) (646) 1,489 1,110 Total plant and equipment 3,393 2,991

74 Annual Report 2013-2014 2013 2012 $’000 $’000 NOTE 26 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT (CONT.) Infrastructure Roads at fair value as at 30 June 124,096 118,593 Less accumulated depreciation (23,873) (20,956) 100,223 97,637

Kerb and channel at fair value as at 30 June 5,991 5,589 Less accumulated depreciation (2,389) (2,194) 3,602 3,395

Footpaths at fair value as at 30 June 4,293 3,783 Less accumulated depreciation (1,156) (1,018) 3,137 2,765

Bulk earthworks at cost 26,621 26,554 26,621 26,554

Bridges at fair value as at 30 June 11,445 11,040 Less accumulated depreciation (6,028) (5,703) 5,417 5,337

Waste at fair value as at 30 June 1,988 2,020 Less accumulated depreciation (474) (453) 1,514 1,567

Stormwater at fair value as at 30 June 24,858 23,443 Less accumulated depreciation (9,424) (8,913) 15,434 14,530 Total infrastructure 155,948 151,785

Works in progress Land 8 - Buildings at cost 3,585 548 Office equipment, furnishings and fittings at cost - 61 Roads at cost 95 197 Stormwater at cost 1,003 546 Total works in progress 4,691 1,352

Total property, infrastructure, plant and equipment 182,304 173,473

Annual Report 2013-2014 75 Notes to the Financial Report for the year ended 30 June 2013

NOTE 26 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT (CONT.) As at 30 June 2012 As at 30th June 2013 Impairment Impairment Balance at Revaluation Depreciation losses Balance Balance at Revaluation Depreciation losses Balance beginning increments and recognised Transfers at end of beginning increments and recognised at end of of financial Acquisitions (decrements) amortisation WDV of in profit or to/(from) financial of financial Acquisitions (decrements) amortisation WDV of in profit or Transfers to/ financial year of assets (note 33) (note 15) disposals loss WIP year year of assets (note 33) (note 15) disposals loss (from) WIP year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Property Property land 10,849 75 57 - - - (355) 10,626 land 10,626 2 73 - - - 286 10,987

land under roads 338 8 - - - - - 346 land under roads 346 ------346

Total land 11,187 83 57 - - - (355) 10,972 Total land 10,972 2 73 - - - 286 11,333 Buildings 3,582 109 20 (65) (15) (88) 53 3,596 Buildings 3,596 351 - (71) (108) - - 3,768

Land improvements 1,901 605 10 (82) - - - 2,434 Land improvements 2,434 776 - (88) - - (286) 2,836 Leasehold land Leasehold land improvements 293 66 1 (17) - - - 343 343 11 - (19) - - - 335 improvements Total buildings 5,776 780 31 (164) (15) (88) 53 6,373 Total buildings 6,373 1,138 - (178) (108) - (286) 6,939

Total property 16,963 863 88 (164) (15) (88) (302) 17,345 Total property 17,345 1,140 73 (178) (108) - - 18,272

Plant and equipment Plant and equipment Plant, machinery and Plant, machinery and 1,503 436 - (279) (54) - - 1,606 1,606 332 - (284) (76) - - 1,578 equipment equipment Office equipment, furnishings Office equipment, 285 29 - (39) - - - 275 275 96 - (40) (5) - - 326 and fittings furnishings and fittings Information and Information and 1,075 234 - (207) 8 - - 1,110 1,110 570 - (191) - - - 1,489 communication technology communication technology Total plant and Total plant and equipment 2,863 699 - (525) (46) - - 2,991 2,991 998 - (515) (81) - - 3,393 equipment Infrastructure: Infrastructure: Roads 95,360 1,625 3,209 (2,557) - - - 97,637 Roads 97,637 2,198 2,898 (2,510) - - - 100,223

Kerb and channel 3,092 303 106 (106) - - - 3,395 Kerb and channel 3,395 235 95 (123) - - - 3,602

Footpaths 2,367 446 78 (92) (34) - - 2,765 Footpaths 2,765 403 73 (104) - - - 3,137

Bulk earthworks 26,505 49 - - - - - 26,554 Bulk earthworks 26,554 67 - - - - - 26,621

Bridges 5,345 - 193 (153) (48) - - 5,337 Bridges 5,337 52 167 (139) - - - 5,417

Waste 1,561 7 57 (58) - - - 1,567 Waste 1,567 - - (53) - - - 1,514

Stormwater 13,980 388 515 (353) - - - 14,530 Stormwater 14,530 685 442 (223) - - - 15,434

Total infrastructure 148,210 2,818 4,158 (3,319) (82) - - 151,785 Total infrastructure 151,785 3,640 3,675 (3,152) - - - 155,948

Works in progress Works in progress Land ------Land - 8 - - - - - 8

Buildings at cost 99 579 - - - - (130) 548 Buildings at cost 548 3,462 - - - - (425) 3,585 Office equipment, Office equipment, furnishings - 61 - - - - - 61 furnishings and fittings at 61 - - - - - (61) - and fittings at cost cost Roads at cost 170 27 - - - - - 197 Roads at cost 197 85 - - - - (187) 95

Stormwater at cost 60 486 - - - - - 546 Stormwater at cost 546 860 - - - - (403) 1,003

Total works in progress 329 1,153 - - - - (130) 1,352 Total works in progress 1,352 4,415 - - - - (1,076) 4,691 Total property, Total property, infrastructure, plant and 168,365 5,533 4,246 (4,008) (143) (88) (432) 173,473 infrastructure, plant and 173,473 10,193 3,748 (3,845) (189) - (1,076) 182,304 equipment equipment

76 Annual Report 2013-2014 NOTE 26 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT (CONT.) As at 30 June 2012 As at 30th June 2013 Impairment Impairment Balance at Revaluation Depreciation losses Balance Balance at Revaluation Depreciation losses Balance beginning increments and recognised Transfers at end of beginning increments and recognised at end of of financial Acquisitions (decrements) amortisation WDV of in profit or to/(from) financial of financial Acquisitions (decrements) amortisation WDV of in profit or Transfers to/ financial year of assets (note 33) (note 15) disposals loss WIP year year of assets (note 33) (note 15) disposals loss (from) WIP year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Property Property land 10,849 75 57 - - - (355) 10,626 land 10,626 2 73 - - - 286 10,987 land under roads 338 8 - - - - - 346 land under roads 346 ------346

Total land 11,187 83 57 - - - (355) 10,972 Total land 10,972 2 73 - - - 286 11,333 Buildings 3,582 109 20 (65) (15) (88) 53 3,596 Buildings 3,596 351 - (71) (108) - - 3,768

Land improvements 1,901 605 10 (82) - - - 2,434 Land improvements 2,434 776 - (88) - - (286) 2,836 Leasehold land Leasehold land improvements 293 66 1 (17) - - - 343 343 11 - (19) - - - 335 improvements Total buildings 5,776 780 31 (164) (15) (88) 53 6,373 Total buildings 6,373 1,138 - (178) (108) - (286) 6,939

Total property 16,963 863 88 (164) (15) (88) (302) 17,345 Total property 17,345 1,140 73 (178) (108) - - 18,272

Plant and equipment Plant and equipment Plant, machinery and Plant, machinery and 1,503 436 - (279) (54) - - 1,606 1,606 332 - (284) (76) - - 1,578 equipment equipment Office equipment, furnishings Office equipment, 285 29 - (39) - - - 275 275 96 - (40) (5) - - 326 and fittings furnishings and fittings Information and Information and 1,075 234 - (207) 8 - - 1,110 1,110 570 - (191) - - - 1,489 communication technology communication technology Total plant and Total plant and equipment 2,863 699 - (525) (46) - - 2,991 2,991 998 - (515) (81) - - 3,393 equipment Infrastructure: Infrastructure: Roads 95,360 1,625 3,209 (2,557) - - - 97,637 Roads 97,637 2,198 2,898 (2,510) - - - 100,223

Kerb and channel 3,092 303 106 (106) - - - 3,395 Kerb and channel 3,395 235 95 (123) - - - 3,602

Footpaths 2,367 446 78 (92) (34) - - 2,765 Footpaths 2,765 403 73 (104) - - - 3,137

Bulk earthworks 26,505 49 - - - - - 26,554 Bulk earthworks 26,554 67 - - - - - 26,621

Bridges 5,345 - 193 (153) (48) - - 5,337 Bridges 5,337 52 167 (139) - - - 5,417

Waste 1,561 7 57 (58) - - - 1,567 Waste 1,567 - - (53) - - - 1,514

Stormwater 13,980 388 515 (353) - - - 14,530 Stormwater 14,530 685 442 (223) - - - 15,434

Total infrastructure 148,210 2,818 4,158 (3,319) (82) - - 151,785 Total infrastructure 151,785 3,640 3,675 (3,152) - - - 155,948

Works in progress Works in progress Land ------Land - 8 - - - - - 8

Buildings at cost 99 579 - - - - (130) 548 Buildings at cost 548 3,462 - - - - (425) 3,585 Office equipment, Office equipment, furnishings - 61 - - - - - 61 furnishings and fittings at 61 - - - - - (61) - and fittings at cost cost Roads at cost 170 27 - - - - - 197 Roads at cost 197 85 - - - - (187) 95

Stormwater at cost 60 486 - - - - - 546 Stormwater at cost 546 860 - - - - (403) 1,003

Total works in progress 329 1,153 - - - - (130) 1,352 Total works in progress 1,352 4,415 - - - - (1,076) 4,691 Total property, Total property, infrastructure, plant and 168,365 5,533 4,246 (4,008) (143) (88) (432) 173,473 infrastructure, plant and 173,473 10,193 3,748 (3,845) (189) - (1,076) 182,304 equipment equipment

Annual Report 2013-2014 77 Notes to the Financial Report for the year ended 30 June 2013

2013 2012 $’000 $’000 NOTE 27 INVESTMENT PROPERTY At fair value Balance at beginning of financial year 1,127 1,047 Fair value adjustment - 80 Balance at end of financial year 1,127 1,127 Valuation of investment property for the Library site was determined by an independent Valuer 01 July 2011.

NOTE 28 INTANGIBLE ASSETS Municipal revaluation 64 96 Road revaluation 14 28 Water rights 23 - Total intangible assets 101 124

Municipal Water rights Road revaluation revaluation Total $ $ $ $ Gross carrying amount Balance at 1 July 2010 - 70 - 70 Additions - - 160 160 Balance at 1 July 2011 - 70 160 230 Balance at 1 July 2012 - 70 160 230 Balance at 1 July 2013 23 70 160 253

Accumulated amortisation Balance at 1 July 2010 - (14) - (14) Amortisation expense - (14) (32) (46) Balance at 1 July 2011 - (28) (32) (60) Amortisation expense - (14) (32) (46) Balance at 1 July 2012 - (42) (64) (106) Amortisation expense - (14) (32) (46) Balance at 1 July 2013 - (56) (96) (152)

Net book value at 30 June 2012 - 28 96 124 Net book value at 30 June 2013 23 14 64 101

2013 2012 $’000 $’000 NOTE 29 TRADE AND OTHER PAYABLES Goods and services 1,385 1,111 Accrued expenses 306 242 Revenue in advance 375 217 Total trade and other payables 2,066 1,570

NOTE 30 TRUST FUNDS AND DEPOSITS Refundable building deposits 4 4 Refundable contract deposits 132 126 Retention amounts 34 13 Other refundable deposits 3 2 Total trust funds and deposits 173 145

78 Annual Report 2013-2014 Annual leave Long service leave RDOs Totals $’000 $’000 $’000 $’000 NOTE 31 PROVISIONS 2013 Balance at the beginning of the financial year 435 558 21 1,014 Additions to provisions 446 175 143 764 Amounts used (381) (48) (140) (569) Balance at the end of the financial year 500 685 24 1,209

2012 Balance at the beginning of the financial year 440 438 16 894 Additions to provisions 364 85 135 584 Change in accounting policy - 94 - 94 Amounts used (369) (59) (130) (558) Balance at the end of the financial year 435 558 21 1,014

2013 2012 $’000 $’000 a) Employee benefits Current (i) Annual leave 500 435 Long service leave 623 537 RDOs 24 21 1,147 993 Non-current (ii) Long service leave 62 21 62 21 Aggregate carrying amount of employee benefit: Current 1,147 993 Non-current 62 21 1,209 1,014

The following assumptions were adopted in measuring the present value of employee benefits: Weighted average increase in employee costs 3.20% 3.50% Weighted average discount rates 3.15% 2.75% Weighted average settlement period 12 12 Current (i) All annual leave and the long service leave entitlements representing 10 or more years: - Short-term employee benefits, that fall due within 12 months after the end of the period measured at nominal value 1,123 972 - Other long-term employee benefits that do not fall due within 12 months after the end 24 21 1,147 993 Non-current (ii)

Long service leave representing less than 10 years of continuous service measured at present value 62 21 Employee numbers (iii) Full Time Equivalents 82 82

Annual Report 2013-2014 79 Notes to the Financial Report for the year ended 30 June 2013

2013 2012 $’000 $’000 NOTE 32 INTEREST-BEARING LOANS AND BORROWINGS Current Borrowings - secured 432 467 432 467 Non-current Borrowings - secured 3,261 3,695 3,261 3,695

Total 3,693 4,162 Borrowings are secured over Council’s assets The maturity profile for Council borrowings is: Not later than one year 432 467 later than one year and not later than five years 993 1,253 Later than five years 2,268 2,442 Total 3,693 4,162

Aggregate carrying amount of interest bearing loans and borrowing: Current 432 467 Non-current 3,261 3,695 3,693 4,162

80 Annual Report 2013-2014 Balance at beginning Transfer to Balance at end of reporting accumulated Increment of reporting period surplus (decrement) period $’000 $’000 $’000 $’000 NOTE 33 RESERVES (a) Asset revaluation 2013 Property Land 8,449 - 74 8,523 Land under roads 10 - - 10 Buildings 171 - - 171 PPE - - - - 8,630 - 74 8,704 Infrastructure Roads 124,314 - 3,065 127,379 Bridges 3,611 - 167 3,778 Drainage 8,592 - 442 9,034 Waste 642 - 642 137,159 - 3,674 140,833 Council equity interest Southern Waste Solutions 55 - - 55 55 - - 55

Total asset revaluation 145,844 - 3,748 149,592

2012 Property Land 8,392 - 57 8,449 Land under roads 10 - - 10 Buildings 141 - 30 171 PPE 509 (509) - - 9,052 (509) 87 8,630 Infrastructure Roads 120,920 - 3,394 124,314 Bridges 3,418 - 193 3,611 Drainage 8,077 - 515 8,592 Waste 585 - 57 642 133,000 - 4,159 137,159 Council equity interest Southern Waste Solutions 55 - - 55 55 - - 55

Total asset revaluation 142,107 (509) 4,246 145,844

The asset revaluation reserve was established to capture the movements in asset valuations upon the periodic revaluation of Council’s assets.

Annual Report 2013-2014 81 Notes to the Financial Report for the year ended 30 June 2013

Balance at beginning Transfer to Balance at end of reporting accumulated Increment of reporting period surplus (decrement) period $’000 $’000 $’000 $’000 NOTE 33 RESERVES (CONT.) 2013 Investment in Southern Water 234 - (6) 228 Investment property 581 - - 581 Total fair reserve 815 - (6) 809

2012 Investment in Southern Water 169 - 65 234 Investment property 581 - - 581 Total fair reserve 750 - 65 815 The fair value reserve was established to capture the fair value movements in Council’s investment in Southern Water.

(c) Other reserves Capital works reserves 2013 Pioneer Park and Dodges Ferry Recreational Park - - - - Plant replacement 5 - - 5 Children services 56 - - 56 Tracks and trails 23 - 23 Stormwater Southern Beaches 900 - - 900 Land 66 - 66 Total other reserves 1,050 - - 1,050

2012 Pioneer Park and Dodges Ferry Recreational Park 132 - (132) - Plant replacement 5 - - 5 Children services 56 - - 56 Tracks and trails 179 - (156) 23 Stormwater Southern Beaches 900 - - 900 Land 441 - (375) 66 Total other reserves 1,713 - (663) 1,050 Other reserves represents the appropriation of surplus to reserves for the near future Council capital works projects.

2013 2012 $’000 $’000

Total Reserves 151,451 147,709

82 Annual Report 2013-2014 2013 2012 $’000 $’000 NOTE 34 ADJUSTMENTS DIRECTLY TO EQUITY Southern Waste Solution prior year adjustments to profit/loss 48 (17) 48 (17)

NOTE 35 RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO SURPLUS Surplus 2,102 2,633

Depreciation/amortisation 3,891 4,054 Impairment expense - 88 Valuation of investment property at fair value - (80) (Gain)/Loss on interest in associate (153) (79) Contributions - Non-monetary (126) (536) Loss on disposal of property, plant and equipment, infrastructure 105 24 Capital grants (670) (618)

Change in assets and liabilities: (Increase) decrease in receivables current (1,341) 23 (Increase) decrease in inventories current 86 (68) (Increase) decrease in other assets current 125 (58) (Increase) decrease in receivables non-current 10 - (Increase) decrease in other non-current - 32 (Decrease) increase in trade payables and other payables 496 (210) (Decrease) increase in Provisions current 154 222 (Decrease) increase in Provisions non-current 41 (102) Net cash provided by/(used in) operating activities 4,720 5,325

NOTE 36 RECONCILIATION OF CASH AND CASH EQUIVALENTS Cash and cash equivalents (see note 20) 7,023 8,207 7,023 8,207

NOTE 37 RESTRICTED ASSETS Council cash and cash equivalents (note 20) that are subject restrictions. As at the reporting date, Council has restrictions in relation to:. Leave provisions (see note 32) 1,209 1,014 Reserve funds allocated for specific future purpose (see note 34) - Sorell Waterways Trail 23 23 - Stormwater Southern Beaches Major infrastructure plan 900 900 - Property Management Reserve 66 66 Trust funds and deposits (see note 31) 173 145 Restricted Funds 2,371 2,148 Total unrestricted cash and cash equivalents 4,652 6,059

Annual Report 2013-2014 83 Notes to the Financial Report for the year ended 30 June 2013

NOTE 38 SUPERANNUATION Council makes superannuation contributions for a number of its employees to the Quadrant Defined Benefits Fund, which is a sub fund of the Quadrant Superannuation Scheme. The Quadrant Defined Benefits Fund has been classified as a multi-employer sponsored plan. As the Fund’s assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to allocate benefit liabilities, assets and costs between employers. As provided under paragraph 32(b) of AASB 119, Council does not use defined benefit accounting for these contributions. For the year ended 30 June 2013 the Council contributed 9.5% of employees’ gross income to the Fund. Assets accumulate in the fund to meet member benefits as they accrue, and if assets within the fund are insufficient to satisfy benefits payable, the Council is required to meet its share of the deficiency. Bendzulla Actuarial Pty Ltd undertook the last actuarial review of the Fund at 30 June 2011. The review disclosed that at that time $4,793,408 and the value of total accrued benefits was $57,330,437. These amounts relate to all members of the fund at the date of valuation and no asset or liability is recorded in the Quadrant Superannuation Scheme’s financial statements for Council employees. The financial assumptions used to calculate the Accrued Benefits for the Fund were: Net Investment Return 0% p.a. for 2011/12 and 7.0% p.a. thereafter 0% p.a. for 2011/12 and 7.0% p.a. thereafter Salary Inflation 4.0% pa 4.0% pa Price Inflation n/a n/a The actuarial review concluded that: 1. The value of assets of the Quadrant Defined Benefit Fund was adequate to meet the liabilities of the Fund in respect of vested benefits as at 30 June 2011. 2. The value of assets of the Fund was adequate to meet the value of the liabilities of the Fund in respect of accrued benefits as at 30 June 2011. 3. Based on the assumptions used, and assuming the Employer contributes at the levels described below, the value of the assets is expected to continue to be adequate to meet the value of the liabilities of the Fund in respect of vested benefits at all times during the period up to 30 June 2014. The Actuary recommended that in future the Council contribute 9.5% of salaries in 2012/13, 10.5% of salaries in 2013/14, and 11% of salaries in 2014/15. The Actuary will continue to undertake a brief review of the financial position the Fund at the end of each financial year to confirm that the contribution rates remain appropriate. The next full triennial actuarial review of the Fund will have an effective date of 30 June 2014 and is expected to be completed late in 2014 or early in 2015. Council also contributes to other accumulation schemes on behalf of a number of employees, however the Council has no ongoing responsibility to make good any deficiencies that may occur in those schemes. During the year Council made the required superannuation contributions for all eligible employees to an appropriate complying superannuation fund as required by the Superannuation Guarantee (Administration) Act 1992. During the reporting period the amount of contributions paid to defined benefits schemes was $58,196 (2011-12, $57,416), and the amount paid to accumulation schemes was $596,500 (2011-12, $558,586).

2013 2012 $’000 $’000 Fund Defined benefits fund Employer contributions Quadrant Defined Benefits Fund 58 57 58 57 Accumulation funds Employer contributions to Quadrant Superannuation Scheme 346 411 Employer contributions to Tasplan 94 89 Employer contributions to Other 159 59 599 559

84 Annual Report 2013-2014 NOTE 39 COMMITMENTS The Council has entered into the following commitments:

Later than Later than 1 year and 2 year and Not later not later not later Later than than 1 year than 2 years than 5 years 5 years Total $’000 $’000 $’000 $’000 $’000 2013 Operating Recycling and Garbage Collection 764 795 - - 1,559 764 795 - - 1,559 2012 Operating Recycling and Garbage Collection 734 764 795 - 2,293 Information system 48 - - - 48 Information technology 259 - - - 259 1,041 764 795 - 2,600

2013 2012 $’000 $’000 Capital expenditure commitments Land improvements 8 - Buildings 55 152 Drainage 131 62 Reserve upgrades 28 3 Roads network 14 - Information system - 130 Share of associates and equity accounted jointly controlled entities capital commitments - 312 Total capital expenditure commitments 236 659 Contractual commitments Contractual commitments at the end of the financial year but not recognised in the financial reports are as follows:

Garbage collection contract (expires June 2015) 1,559 2,293 Corporate Software contract (expires 30 Sep 2012) - 88 Document management digitalisation contract (expires 31 Aug 2012) - 42 On-line emergency management software contract (expires June 2013) - 259 Total contractual commitments 1,559 2,682

NOTE 40 CONTINGENT LIABILITIES AND CONTIGENT ASSETS The council has no Contingent Assets or Liabilities.

Annual Report 2013-2014 85 Notes to the Financial Report for the year ended 30 June 2013

NOTE 41 FINANCIAL INSTRUMENTS (a) Accounting Policy, terms and conditions Recognised financial instruments Note Accounting Policy Terms and Conditions Financial assets Cash and cash equivalents 20 Cash on hand and at bank and money market On call deposits returned a floating interest call account are valued at face value. rate of 3.1% (3.75% in 2011/12). The Reserve Interest is recognised as it accrues. Bank Cash Rate at balance date was 2.75% (3.50% as at 30 June 2012). Managed funds 22 Investments are valued at market value. Investments returned fixed interest rate of Investments are held to maximise interest between 8.5% (8.5% in 2011/12) net of fees. returns of surplus cash. Interest revenues are recognised as they accrue. Trade and other receivables 21 “Receivables are carried at amortised cost General debtors are unsecured and arrears Other debtors using the effective interest method. A attract an interest rate of 3.75% (4.25% in provision for doubtful debts is recognised 2011/2012). Credit terms are based on 30 days. when there is objective evidence that an impairment loss has occurred. Collectability of overdue accounts is assessed on an ongoing basis.” Financial Liabilities Trade and other payables 29 Liabilities are recognised for amounts to be General Creditors are unsecured, not subject paid in the future for goods and services to interest charges and are normally settled provided to Council as at balance date within 30 days of invoice receipt. whether or not invoices have been received. Interest-bearing loans and 32 Loans are carried at their principal amounts, Borrowings are secured by way of mortgages borrowings which represent the present value of future over the general rates of the Council. The cash flows associated with servicing the debt. weighted average interest rate on borrowings Interest is accrued over the period it becomes is 6.1% (6.1% in 2011/2012). due and recognised as part of payables. Bank overdraft 32 Overdrafts are recognised at the principal The overdraft is subject to annual review. amount. Interest is charged as an expense as It is secured by a mortgage over Council’s it accrues. general rates and is repayable on demand.

86 Annual Report 2013-2014 NOTE 41 FINANCIAL INSTRUMENTS (CONT.) (b) Interest Rate Risk The exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognise and unrecognised, at balance date are as follows: Fixed interest maturing in: Weighted Floating Non- average interest 1 year or over 1 to 5 More than interest interest rate less years 5 years bearing Total rate $’000 $’000 $’000 $’000 $’000 $’000 2013 Financial assets Cash and cash equivalents 3.1% 7,022 - - - 1 7,023 Southern Water - - - - 29,535 29,535 Trade and other receivables 3.8% - 954 - 1,183 2,137 Midway Point improvement loan receivable 9.8% - 7 14 - 49 70 Total financial assets 7,022 961 14 - 30,768 38,765

Financial liabilities Trade and other payables - - - - 2,066 2,066 Trust funds and deposits - - - - 173 173 Interest-bearing loans and borrowings 5.9% - 430 989 2,268 6 3,693 Total financial liabilities - 430 989 2,268 2,245 5,932 Net financial assets (liabilities) 7,022 531 (975) (2,268) (28,523) (32,833) 2012 Financial assets Cash and cash equivalents 3.8% 8,206 - - - 1 8,207 Financial assets 8.5% - 3,109 - - - 3,109 Southern Water - - - - 29,541 29,541 Trade and other receivables 4.3% - 300 - - 361 661 Midway Point improvement loan receivable 9.8% 1 14 - 49 64 Total financial assets 8,206 3,410 14 - 29,952 41,582

Financial liabilities Trade and other payables - - - - 1,570 1,570 Trust funds and deposits - - - - 145 145 Interest-bearing loans and borrowings 5.9% - 467 1,253 2,434 8 4,162 Total financial liabilities - 467 1,253 2,434 1,723 5,877

Net financial assets (liabilities) 8,206 2,943 (1,239) (2,434) 28,229 35,705

Annual Report 2013-2014 87 Notes to the Financial Report for the year ended 30 June 2013

NOTE 41 FINANCIAL INSTRUMENTS (CONT.) (c) Net Fair Values The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows: Total carrying amount as per Aggregate net fair value 2013 2012 2013 2012 $’000 $’000 $’000 $’000

Financial assets Cash and cash equivalents 7,023 8,207 7,023 8,207 Financial assets - 3,109 - 3,109 Southern Water 29,535 29,541 29,535 29,541 Trade and other receivables 2,191 860 2,191 860 Total financial assets 38,749 41,717 38,749 41,717

Financial liabilities Trade and other payables 2,066 1,570 2,066 1,570 Trust funds and deposits 173 145 173 145 Interest-bearing loans and borrowings 3,693 4,162 3,487 3,930 Total financial liabilities 5,932 5,877 5,726 5,645

(d) Credit Risk The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is represented by the carrying amount of those assets as indicated in the Statement of Financial Position. Credit risk further arises in relation to financial guarantees given to certain parties.

(e) Risks and mitigation The risks associated with our main financial instruments and our policies for minimising these risks are detailed below. Market risk Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market prices. Council’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to which we are exposed are discussed below Interest rate risk Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that we use. Non derivative interest bearing assets are predominantly short term liquid assets. Our interest rate liability risk arises primarily from long term interest bearing liabilities at fixed rates which exposes us to fair value interest rate risk. Our loan borrowings are sourced from major Australian banks by a tender process and through Tascorp. Overdrafts are arranged with major Australian banks. We manage interest rate risk on our net debt portfolio by: - ensuring access to diverse sources of funds; - reducing risks of refinancing by managing in accordance with target maturity profiles; and - setting prudential limits on interest repayments as a percentage of rate revenue. We manage the interest rate exposure on our debt portfolio by appropriate budgeting strategies and obtaining approval for borrowings from the Department of Treasury and Finance each year. Investment of surplus funds is made with approved financial institutions under the Local Government Act 1993. We manage interest rate risk by adopting an investment policy that ensures: - conformity with State and Federal regulations and standards, - capital protection, - appropriate liquidity, - diversification by credit rating, financial institution and investment product, - monitoring of return on investment, - benchmarking of returns and comparison with budget. Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk.

88 Annual Report 2013-2014 NOTE 41 FINANCIAL INSTRUMENTS (CONT.) Credit risk Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause Council to make a financial loss. Council have exposure to credit risk on some financial assets included in our balance sheet. To help manage this risk: - we have a policy for establishing credit limits for the entities we deal with; - we may require collateral where appropriate; and - we only invest surplus funds with financial institutions which have a recognised credit rating specified in our Investment policy. Credit risk arises from Council’s financial assets, which comprise cash and cash equivalents, and trade and other receivables. Council’s exposure to credit risk arises from potential default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is addressed in each applicable note. Council generally trades with recognised, creditworthy third parties, and as such collateral is generally not requested, nor is it Council’s policy to securitise its trade and other receivables. It is Council’s policy that some customers who wish to trade on credit terms are subject to credit verification procedures including an assessment of their credit rating, financial position, past experience and industry reputation. In addition, receivable balance are monitored on an ongoing basis with the result that Council’s exposure to bad debts is not significant. We may also be subject to credit risk for transactions which are not included in the Statement of Financial Position, such as when we provide a guarantee for another party. Financial Government Other Total Institutions agencies (AA credit (BBBB credit (min BBB credit rating) rating) rating) $’000 $’000 $’000 $’000 2013 Cash and cash equivalents 7,023 - - 7,023 Total contractual financial assets 7,023 - - 7,023

2012 Cash and cash equivalents 8,207 - - 8,207 Investments and other financial assets 3,109 - - 3,109 Total contractual financial assets 11,316 - - 11,316

Annual Report 2013-2014 89 Notes to the Financial Report for the year ended 30 June 2013

2013 2012 $’000 $’000 NOTE 41 FINANCIAL INSTRUMENTS (CONT.) Ageing of Trade and Other Receivables At balance date other debtors representing financial assets were past due but not impaired. These amounts relate to a number of independent customers for whom there is no recent history of default. The ageing of the Council’s Trade & Other Receivables was: User fees Current 409 254 Due up to 30 days 321 20 Past due between 30 days and 60 days 1 - Past due between 61 days and 90 days 150 7 Past due by more than 90 days 91 73 Total user charges and fees 972 354

Midway Improvement loan receivable Due up to 30 days 6 - Past due by more than 90 days - 1 Total Midway Improvement loan receivable 6 1

Other receivables Current 144 3 Due up to 30 days - 1 Past due between 61 days and 90 days - 1 Total other receivables 144 5 Liquidity risk Liquidity risk includes the risk that, as a result of our operational liquidity requirements: - we will not have sufficient funds to settle a transaction on the date; - we will be forced to sell financial assets at a value which is less than what they are worth; or - we may be unable to settle or recover a financial assets at all. To help reduce these risks we: - have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained; - have readily accessible standby facilities and other funding arrangements in place; - have a liquidity portfolio structure that requires surplus funds to be invested within various bands of liquid instruments; - monitor budget to actual performance on a regular basis; and - set limits on borrowings relating to the percentage of loans to rate revenue and percentage of loan principal repayments to rate revenue. The Councils exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.

90 Annual Report 2013-2014 NOTE 41 FINANCIAL INSTRUMENTS (CONT.) The table below lists the contractual maturities for Financial Liabilities These amounts represent undiscounted gross payments including both principal and interest amounts 6 mths 6-12 1-2 2-5 >5 Contracted Carrying or less months years years years Cash Flow Amount $’000 $’000 $’000 $’000 $’000 $’000 $’000 2013 Trade and other payables 2,066 - - - - 2,066 2,066 Trust funds and deposits - 173 - - - 173 173 Interest-bearing loans and borrowings ------Total financial liabilities 2,066 173 - - - 2,239 2,239

2012 Trade and other payables 1,570 - - - - 1,570 1,570 Trust funds and deposits 50 95 - - - 145 145 Interest-bearing loans and borrowings 359 359 1,236 1,088 3,248 6,290 6,290 Total financial liabilities 1,979 454 1,236 1,088 3,248 8,005 8,005

(f) Sensitivity disclosure analysis Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, the Council believes the following movements are ‘reasonably possible’ over the next 12 months (Base rates are sourced from Reserve Bank of Australia): - A parallel shift of + 2% and -1% in market interest rates (AUD) from year-end rates of 3.5%. The table below discloses the impact on net operating result and equity for each category of financial instruments held by Council at year-end, if the above movements were to occur. Interest rate risk -1 % + 2 % -100 basis points +200 basis points Profit Equity Profit Equity $ $ $ $ $ 2013 Financial assets: Cash and cash equivalents 7,022 (70) 70 140 (140) Trade and other receivables 954 - - - (19) Financial liabilities: Interest-bearing loans 3,687 (37) 37 74 (74)

2012 Financial assets: Cash and cash equivalents 8,206 (82) 82 164 (164) Trade and other receivables 300 - - - (6) Financial liabilities: Interest-bearing loans 4,154 (42) 42 83 (83)

Annual Report 2013-2014 91 Notes to the Financial Report for the year ended 30 June 2013

NOTE 41 FINANCIAL INSTRUMENTS (CONT.) (g) Fair Value Hierarchy The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows: Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 inputs other than quoted prices included within level one that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices) Level 3 inputs for the asset or liability that are not based on observable market data

Level 1 Level 2 Level 3 Total 30-Jun-13 Available for sale financial assets Southern Water - - 29,535 29,535 Available for sale financial assets investments - - - - Total - - 29,535 29,535

30-Jun-12 Available for sale financial assets Southern Water - - 29,541 29,541 Available for sale financial assets investments 3,109 - - 3,109 Total 3,109 - 29,541 32,650

2013 2012 $’000 $’000 Reconciliation of Level 3 Fair Value Movements Opening Balance 29,541 29,476 Change in fair value movement in Southern Water (6) 65 Closing Balance 29,535 29,541

NOTE 42 EVENTS OCCURRING AFTER BALANCE DATE No significant events affecting these accounts occurred after balance date.

NOTE 43 RELATED PARTY TRANSACTIONS (i) Responsible Persons Names of persons holding the position of a Responsible Person at the Council at any time during the year are: Councillors Councillor Carmel Torenius Mayor Nov 2009 to Sep 2012 Councillor Kerry Vincent Mayor Oct 2012 to 2013 Councillor Kerry Vincent Councillor Nov 2009 to 2013 Councillor Brett McDonald Deputy Mayor Nov 2011 to 2015 Councillor Graham Evans Councillor Nov 2011 to 2015 Councillor Robyn Bunyan Councillor Nov 2011 to 2015 Councillor Lyndsay White Councillor Nov 2011 to 2015 Councillor Mike Purdon Councillor Nov 2009 to 2013 Councillor Kerry Degrassi Councillor Nov 2009 to 2013 Councillor James Dunbabin Councillor Nov 2011 to 2015 Councillor Rob Leach Councillor Oct 2012 to 2013 Chief Executive Officer Bill Costin Manager Finance and Information Sue Charles Manager Engineering Services Steve Hodge Manager Environment and Development Services Bill Hyndes Manager Human and Community Services Robyn Watts

92 Annual Report 2013-2014 2013 2012 $’000 $’000 NOTE 43 RELATED PARTY TRANSACTIONS (CONT.) (ii) Remuneration Total Remuneration for the reporting year for Councillors’ Emoluments and 168 162 reimbursements included above amounted to: Total Remuneration (inc. wages, superannuation and motor vehicle) for the 685 656 reporting year for senior management positions amounted to: (iii) Disclosure In accordance with s84(2)(b) of the Local Government Act 1993, no interests have been notified to the General Manager in respect of any body or organisation with which the Council has major financial dealings. Sales of fixed floating investment

NOTE 44 SPECIAL COMMITTEES Copping Hall and Reserves Committee Dodges Ferry Hall Committee Dunalley Hall and Reserves Committee Midway Point Hall Committee

2013 2012 Note $’000 $’000 NOTE 45 CAPITAL EXPENDITURE Capital expenditure area Plant 332 435 Furniture and fittings 11 15 Information technology 509 285 Buildings (inc. land improvements) 4,172 1,426 Roads, kerb and channel, footpaths and earthworks 2,766 2,252 Bridges 354 - Drainage 849 709 Total capital works 8,993 5,122

Represented by: Renewal and replacement (a) 2,117 2,560 Upgrade (b) 2,029 815 Expansion (c) 149 745 New (d) 4,698 1,002 Total capital works 8,993 5,122

Property, plant and equipment, infrastructure movement Capital works current year 8,993 5,122 Transfer (to)/from WIP - monetary (2) (125) Assets transferred to assets held for sale - - Impairment - (88) Contributions - non-monetary 7 126 536 Asset revaluation movement 33 3,748 4,246 Depreciation and impairment 26 (3,845) (4,008) Written down value of assets sold/transferred 26 (189) (143) Net movement in property, plant and equipment, infrastructure 26 8,831 5,540

Annual Report 2013-2014 93 Notes to the Financial Report for the year ended 30 June 2013

NOTE 45 CAPITAL EXPENDITURE (CONT.) (a) Renewal and replacement Expenditure on an existing asset which returns the service potential or the life of the asset up to that which it had originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time. (b) Upgrade Expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the council’s asset base. (c) Expansion Expenditure which extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. It is discretional expenditure which increases future operating and maintenance costs, because it increases council’s asset base, but may be associated with additional revenue from the new user group. (d) New Expenditure which adds a new asset providing greater service levels to the community. This will increase future maintenance expenditure however there may have been saving realised due to improved technology, increased labour efficiency and/or additional revenue.

2013 2012 $’000 $’000 NOTE 46 SIGNIFICANT BUSINESS ACTIVITY The operating capital and competitive neutrality costs of the Council’s significant business activities Recreational Vehicle Park Sorell Revenue User charges and fees 3,883 3,333 Total revenue 3,883 3,333

Expenses Employee Benefits and on-costs 2,421 828 Materials and contracts 9,455 4,722 Total expenses 11,876 5,550

Net operating result for the year (7,993) (2,217)

Neutrality Costs Insurance 368 357 Water 116 113 Council Rates 540 524 Land Tax 47 46 1,071 1,040

SUB TOTAL NOTIONAL INCOME BEFORE TAX (9,064) (3,257)

NOTIONAL INCOME BEFORE TAX (9,064) (3,257) Income Tax on Notion Income (30%) (2,719) (977) NOTIONAL INCOME AFTER TAX (6,345) (2,280)

Net Value of Assets 89,168 68,500 Neutrality cost 8.74% 7,793 5,987 Total Competitive Neutrality Cost (14,138) (8,267)

94 Annual Report 2013-2014 Certification of the Financial Report

The financial report presents fairly the financial position of the Sorell Council as at 30 June 2013, the results of its operations for the year then ended and the cash flows of the Council, in accordance with the Local Government Act 1993 (as amended), Australian Accounting Standards (including interpretations) and other authoritative pronouncements issued by the Australian Accounting Standards Board.

Robert Higgins

Acting General Manager

Dated 27th September 2013

Annual Report 2012-2013 95 Independent Auditor’s Report for the year ended 30 June 2013

Independent Auditor’s Report

To the Councillors of Sorell Council

Financial Report for the Year Ended 30 June 2013

Report on the Financial Report I have audited the accompanying financial report of Sorell Council (Council), which comprises the statement of financial position as at 30 June 2013 and the statements of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the Acting General Manager’s statement.

Auditor’s Opinion In my opinion Council’s financial report: (a) presents fairly, in all material respects, its financial position as at 30 June 2013 and financial performance, cash flows and changes in equity for the year then ended (b) is in accordance with the Local Government Act 1993 and Australian Accounting Standards.

The Responsibility of the Acting General Manager for the Financial Report The Acting General Manager is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and Section 84 of the Local Government Act 1993. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility My responsibility is to express an opinion on the financial report based upon my audit. My audit was conducted in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance as to whether the financial report is free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of risks of material misstatement of the financial report, whether due to …1 of 2

96 Annual Report 2013-2014

fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Acting General Manager’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate to the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Council’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Acting General Manager, as well as evaluating the overall presentation of the financial report.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

My audit is not designed to provide assurance on the accuracy and appropriateness of the budget information in Council’s financial report.

Independence In conducting this audit, I have complied with the independence requirements of Australian Auditing Standards and other relevant ethical requirements. The Audit Act 2008 further promotes independence by:  providing that only Parliament, and not the executive government, can remove an Auditor-General  mandating the Auditor-General as auditor of State Entities but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Tasmanian Audit Office are not compromised in their role by the possibility of losing clients or income.

Tasmanian Audit Office

Jara K Dean General Manager Financial Audit Services Delegate of the Auditor-General

Hobart 30 September 2013

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Annual Report 2013-2014 97 98 Annual Report 2012-2013 Annual Report 2012-2013 99 SORELL 12 Somerville Street, Sorell TAS 7172 COUNCIL PO Box 126, Sorell TAS 7172 1862 Phone 6269 0000 Fax 6269 0014 Email [email protected]

www.sorell.tas.gov.au

100 Annual Report 2012-2013