Dubbo Regional Council GENERAL PURPOSE FINANCIAL STATEMENTS for the Period 13 May 2016 to 30 June 2017
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Dubbo Regional Council GENERAL PURPOSE FINANCIAL STATEMENTS for the period 13 May 2016 to 30 June 2017 Place "Great community, great council" Council’s logo here !! Financial Statements 2017 Dubbo Regional Council General Purpose Financial Statements for the period 13 May 2016 to 30 June 2017 Contents Page 1. Statement by Councillors and Management 2 2. Primary Financial Statements: – Income Statement 3 – Statement of Comprehensive Income 4 – Statement of Financial Position 5 – Statement of Changes in Equity 6 – Statement of Cash Flows 7 3. Notes to the Financial Statements 8 4. Independent Auditor’s Reports: – On the Financial Statements(Sect 417 [2]) 79 – On the Conduct of the Audit(Sect 417 [3]) 82 Overview (i) These financial statements are General Purpose Financial Statements and cover the operations for Dubbo Regional Council. (ii) Dubbo Regional Council is a body politic of NSW, Australia – being constituted as a local government area by proclamation and is duly empowered by the Local Government Act 1993 (LGA). Council’s guiding principles are detailed in Chapter 3 of the LGA and includes: i principles applying to the exercise of functions generally by council, i principles to be applied when making decisions, i principles of community participation, i principles of sound financial management, and i principles for strategic planning relating to the development of an integrated planning and reporting framework. A description of the nature of Council’s operations and its principal activities are provided in Note 2(b). (iii) All figures presented in these financial statements are presented in Australian currency. (iv) These financial statements were authorised for issue by the Council on dd/mm/yy. Council has the power to amend and reissue these financial statements. page 1 Financial Statements 2017 Dubbo Regional Council Income Statement for the period 13 May 2016 to 30 June 2017 Actual 13/5/16 $ ’000 Notes to 30/6/17 Income from continuing operations Revenue: Rates and annual charges 3a 59,787 User charges and fees 3b 55,912 Interest and investment revenue 3c 6,291 Other revenues 3d 1,778 Grants and contributions provided for operating purposes 3e,f 37,994 Grants and contributions provided for capital purposes 3e,f 36,155 Other income: Net gains from the disposal of assets 5 3,696 Net share of interests in joint ventures and associates using the equity method 19 183 Total income from continuing operations 201,796 Expenses from continuing operations Employee benefits and on-costs 4a 43,183 Borrowing costs 4b 5,215 Materials and contracts 4c 38,940 Depreciation and amortisation 4d 35,131 Other expenses 4e 18,056 Total expenses from continuing operations 140,525 Operating result from continuing operations 61,271 Net operating result for the period 61,271 Gain on local government amalgamation Assets and liabilities transferred from former councils 29 2,266,670 Net result for the period 2,327,941 Net operating result attributable to Council 2,327,941 Net operating result for the period before grants and contributions provided for capital purposes 25,116 1 Original budget as approved by Council – refer Note 16 This statement should be read in conjunction with the accompanying notes. page 3 Financial Statements 2017 Dubbo Regional Council Statement of Comprehensive Income for the period 13 May 2016 to 30 June 2017 Actual 13/5/16 $ ’000 Notes to 30/6/17 Net result for the year (as per Income Statement) 2,327,941 Other comprehensive income: Amounts which will not be reclassified subsequently to the operating result Gain (loss) on revaluation of I,PP&E 20b (ii) 122,836 Total items which will not be reclassified subsequently to the operating result 122,836 Amounts which will be reclassified subsequently to the operating result when specific conditions are met Nil Total other comprehensive income for the period 122,836 Total comprehensive income for the period 2,450,777 Total comprehensive income attributable to Council 2,450,777 This statement should be read in conjunction with the accompanying notes. page 4 Financial Statements 2017 Dubbo Regional Council Statement of Financial Position as at 30 June 2017 Actual $ ’000 Notes 2017 ASSETS Current assets Cash and cash equivalents 6a 25,752 Investments 6b 45,138 Receivables 7 18,198 Inventories 8 1,876 Other 8 463 Total current assets 91,427 Non-current assets Investments 6b 117,235 Receivables 7 755 Inventories 8 1,993 Infrastructure, property, plant and equipment 9 2,335,646 Investments accounted for using the equity method 19 1,333 Other 8 495 Total non-current assets 2,457,457 TOTAL ASSETS 2,548,884 LIABILITIES Current liabilities Payables 10 7,688 Income received in advance 10 770 Borrowings 10 4,652 Provisions 10 15,047 Total current liabilities 28,157 Non-current liabilities Payables 10 1 Borrowings 10 67,356 Provisions 10 2,593 Total non-current liabilities 69,950 TOTAL LIABILITIES 98,107 Net assets 2,450,777 EQUITY Retained earnings 20 2,327,941 Revaluation reserves 20 122,836 Total equity 2,450,777 This statement should be read in conjunction with the accompanying notes. page 5 Financial Statements 2017 Dubbo Regional Council Statement of Changes in Equity for the period 13 May 2016 to 30 June 2017 13/5/16 to 30/6/17 Asset revaluation Other Non- Retained reserve reserves Council controlling Total $ ’000 Notes earnings (Refer 20b) (Refer 20b) interest interest equity Opening balance – – – – – – a. Correction of prior period errors 20 (c) – – – – – – b. Changes in accounting policies (prior year effects) 20 (d) – – – – – – Revised opening balance – – – – – – c. Net result for the year 2,327,941 – – 2,327,941 – 2,327,941 d. Other comprehensive income – Revaluations: IPP&E asset revaluation reserve 20b (ii) – 122,836 – 122,836 – 122,836 Other comprehensive income – 122,836 – 122,836 – 122,836 Total comprehensive income (c&d) 2,327,941 122,836 – 2,450,777 – 2,450,777 e. Distributions to/(contributions from) non-controlling interests – – – – – – f. Transfers between equity – – – – – – Equity – balance at end of the reporting period 2,327,941 122,836 – 2,450,777 – 2,450,777 This statement should be read in conjunction with the accompanying notes. page 6 Financial Statements 2017 Dubbo Regional Council Statement of Cash Flows for the period 13 May 2016 to 30 June 2017 Actual 13/5/16 $ ’000 Notes to 30/6/17 Cash flows from operating activities Receipts: Rates and annual charges 66,266 User charges and fees 57,616 Investment and interest revenue received 6,163 Grants and contributions 66,592 Bonds, deposits and retention amounts received 305 Other 8,062 Payments: Employee benefits and on-costs (42,612) Materials and contracts (47,744) Borrowing costs (5,707) Other (19,475) Net cash provided (or used in) operating activities 11b 89,466 Cash flows from investing activities Receipts: Sale of investment securities 88,594 Sale of real estate assets 4,962 Sale of infrastructure, property, plant and equipment 2,562 Deferred debtors receipts 80 Payments: Purchase of investment securities (122,268) Purchase of infrastructure, property, plant and equipment (52,872) Purchase of real estate assets (860) Deferred debtors and advances made (472) Net cash provided (or used in) investing activities (80,274) Cash flows from financing activities Receipts: Nil Payments: Repayment of borrowings and advances (5,434) Net cash flow provided (used in) financing activities (5,434) Net increase/(decrease) in cash and cash equivalents 3,758 Plus: cash transferred on amalgamation of councils 29 21,994 Cash and cash equivalents – end of the year 11a 25,752 Additional Information: plus: Investments on hand – end of year 6b 162,373 Total cash, cash equivalents and investments 188,125 Please refer to Note 11 for information on the following: – Non-cash financing and investing activities – Financing arrangements – Net cash flow disclosures relating to any discontinued operations This statement should be read in conjunction with the accompanying notes. page 7 Financial Statements 2017 Dubbo Regional Council Notes to the Financial Statements for the period 13 May 2016 to 30 June 2017 Contents of the notes accompanying the financial statements Note Details Page 1 Summary of significant accounting policies 9 2(a) Council functions/activities – financial information 24 2(b) Council functions/activities – component descriptions 25 3 Income from continuing operations 26 4 Expenses from continuing operations 32 5 Gains or losses from the disposal of assets 36 6(a) Cash and cash equivalent assets 37 6(b) Investments 37 6(c) Restricted cash, cash equivalents and investments – details 38 7 Receivables 41 8 Inventories and other assets 42 9(a) Infrastructure, property, plant and equipment 44 9(b) Externally restricted infrastructure, property, plant and equipment 45 9(c) Infrastructure, property, plant and equipment – current year impairments 46 10(a) Payables, borrowings and provisions 46 10(b) Description of (and movements in) provisions 47 11 Statement of cash flows – additional information 48 12 Commitments for expenditure 50 13 Statement of performance measures: 13a Local government industry indicators (consolidated) 51 13b Local government industry indicators (by fund) 52 14 Investment properties 53 15 Financial risk management 53 16 Material budget variations 56 17 Statement of developer contributions 57 18 Contingencies and other liabilities/assets not recognised 60 19 Interests in other entities 62 Retained earnings, revaluation reserves, changes in accounting 20 65 policies, changes in accounting estimates and errors 21 Financial result and financial position by fund 66 22 ‘Held for sale’ non-current assets and disposal groups 68 23 Events occurring after the reporting date 68 24 Discontinued operations 68 25 Intangible assets 68 26 Reinstatement, rehabilitation and restoration liabilities 69 27 Fair value measurement 70 28 Related party disclosures 75 29 Local Government amalgamation 76 Additional council disclosures 30 Council information and contact details 78 page 8 Financial Statements 2017_ Dubbo Regional Council Notes to the Financial Statements for the period 13 May 2016 to 30 June 2017 Note 1.