LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

2010/2011 ANNUAL REPORT

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CONTENTS PAGE

Chief Executive Officer’s Report…………………………………………………………..3

About this Report……………………………………………………………………………4

About the Association……………………………………………………………………… 5

Vision……………………………………………………………………………….. 6

Mission……………………………………………………………………………… 6

Core Values…………………………………………………………………………6

Goals………………………………………………………………………………...6

Membership 2010 – 2011………………………………………………………………… 7

Local Government areas in the Northern Territory…………………………………… 8

Executive Committee Members……………………………………………………...... 9

Organisational Structure………………………………………………………………… .12

Service Providers & Sponsors………………………………………………………….. .13

President’s Report on Behalf of the Executive………………………………………....14

Strategic Plan Achievements 2010/2011……………………………………………… .16

Financial Reports as at 30 June 2011…………………………………………………. .32

Official publication of the Local Government Association of the Northern Territory ©

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CHIEF EXECUTIVE OFFICER'S REPORT

Alderman Kerry Moir

President

Local Government Association of the Northern Territory

PO Box 2017

PARAP NT 0804

Dear Madam President

In accordance with Clause 18.3 of the Local Government Association of the Northern Territory (LGANT) constitution I submit the Annual Report (‘the Report’) and audited financial statements for the 2010-11 financial year.

LGANT’s financial position and performance were sound at 30 June 2011 and the Association was able to meet its debts as they fell due.

LGANT is very grateful for the continued support from both the Territory and Commonwealth governments and particularly in terms of their financial assistance to LGANT. Much of that assistance is aimed at improving conditions within the local government sector and in providing LGANT with resources to both facilitate and encourage coordination of activities amongst councils in the Northern Territory.

LGANT very much appreciated the Darwin City and Alice Springs Town Councils providing it with venues for LGANT’s general and reference group meetings. LGANT also thanks its sponsors and continued its acknowledgement of them in its publications.

LGANT also gives sincere thanks to firms that have provided it with advisory and consulting services, in particular Peter Anderson (local government index), Cridlands (legal services),the Western Australian Local Government Association (industrial relations and human resource services) and consultants to LGANT, Maree McLinden (internal finances) and Sue Davey (Human Resources and Training). All of these persons or entities enabled LGANT to expand its outcomes for member councils.

Tony Tapsell CHIEF EXECUTIVE OFFICER

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ABOUT THIS REPORT

This report is the 20th Annual Report of the Local Government Association of the Northern Territory and it is for the financial year 1 July 2010 to 30 June 2011 and is prepared for members of the Association and other parties.

This report has been prepared in compliance with clause 18.3 of the LGANT constitution which requires it to be tabled for the members of the Association at an Annual General meeting. This meeting will take place on 23 November 2011.

The report details the financial position and performance of the Association for the financial year, as well as background material on local government in the Northern Territory, the Association’s membership, directions and achievements during the year.

If anyone has any queries about the report they can contact the Association. Contact details are as follows:

Telephone: (08) 8944 9688

Facsimile: (08) 8941 2665

Email: [email protected]

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ABOUT THE ASSOCIATION

Business Overview

The office of the Association is located at the Parap Business Centre, 21 Parap Road, Parap, NT.

The Local Government Association of the Northern Territory was first incorporated in 1992 as the single peak body representing local government in the Northern Territory. LGANT is established as an incorporated body under section 242 of the Local Government Act 2008 of the Northern Territory.

LGANT has an eight member Executive Committee which has overall carriage of the Association’s affairs as detailed in the Association’s constitution and governance charter. The Chief Executive Officer has delegated authority for staff matters and implements decisions of the Executive and those made at general meetings. LGANT’s policy statements are regularly updated and reflect the local government sector response to particular issues.

The Executive and staff review the Association’s strategic plan each February and this report includes feedback on achievements against the plan for 2010/2011.

LGANT:  exists as a provider of support services, a coordinator of collective effort and as an advocate for its members and forms part of the system of local government in Australia which includes: 1. Councils 2. State and Territory Local Government Associations 3. the Australian Local Government Association  undertakes advocacy work for councils in the Northern Territory by being a ‘voice’ for member councils or representing their collective views to other spheres of government and the public. This helps increase their understanding of the views and positions of local government in the Northern Territory  obtains views from its members through various communication channels, most importantly at meetings where it calls for resolutions on a range of policies and actions. Progress reports are circulated regularly to members through minutes of meetings and reports  is a member of the Australian Local Government Association (ALGA), along with other State Local Government Associations and the Australian Capital Territory government. ALGA is local government’s voice at the national level with the Commonwealth government.  has a strong interest in the development of local government.

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High level elements of LGANT’s strategic plan

Vision For LGANT to lead, represent and be influential for the benefit of local government.

Mission To provide leadership, support and influential representation for the local government sector on all issues pertaining to local government.

Core Values To achieve the mission and vision identified, the guiding principle of LGANT is to be responsive and supportive to the needs of its members. Our values are:  transparency

 honesty

 accountability

 responsiveness

 accessibility

 flexibility

 innovation

Strategic Goals LGANT’s goals as stated in the strategic plan are:

 to enhance the status and performance of local government in the Northern Territory  to effectively advocate for and represent member councils  to promote communication between our members, stakeholders and the broader community  to provide effective and efficient services to our members.

Membership Membership of LGANT is voluntary and open to all local governments in the Northern Territory and it is also able to admit associate members under Clause 6.4 of its constitution. During 2010–2011 LGANT had two associate members. A list of members can be found on the following pages.

6 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY LGANT MEMBERSHIP 2010 – 2011

During 2010-11, 16 local governments in the Northern Territory were members of LGANT including:  5 municipalities  11 shires

The Mabunji Aboriginal Resource Centre, based in Borroloola, and the Nhulunbuy Corporation Limited continued as associate members throughout 2010-11. Both organisations are involved in the delivery of local government-type services.

Member organisations as at 30 June 2011

Alice Springs Town Council (Municipal Council) Local government Barkly Shire Council Local government Belyuen Shire Council Local government Central Desert Shire Council Local government City of Palmerston (Municipal Council) Local government Coomalie Shire Local government Darwin City Council (Municipal Council) Local government East Arnhem Shire Council Local government Katherine Town Council (Municipal Council) Local government Litchfield Council (Municipal Council) Local government Mabunji Aboriginal Resource Centre Association MacDonnell Shire Council Local government Nhulunbuy Corporation Limited Company Roper Gulf Shire Council Local government Tiwi Islands Shire Council Local government Victoria Daly Shire Council Local government Wagait Shire Council Local government West Arnhem Shire Council Local government

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LOCAL GOVERNMENT AREAS IN THE NORTHERN TERRITORY

AS AT 30 JUNE 2011

8 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY EXECUTIVE COMMITTEE MEMBERS 2010/2011 Clause 14.4 of the Constitution requires LGANT’s Executive to be made up of eight (8) members. Seven (7) members are elected and one (1) is appointed by the Darwin City Council. Of the eight member Executive, four members (three elected and one appointed), make up the representation from municipal councils and the other four members are elected from shire councils.

As at 30 June 2011 the Executive consisted of the following members:

President Alderman Kerry Moir (Darwin City Council) Vice President - Shires Councillor Ray Wooldridge (Victoria Daly Shire) Vice President - Municipals Mayor Damien Ryan (Alice Springs Town Council) Executive Members: Alderman Helen Galton (Darwin City Council); Mayor Tony Jack (Roper Gulf Shire); Mayor Robert MacLeod (City of Palmerston); Councillor David Norton (West Arnhem Shire); President Norbert Patrick (Central Desert Shire Council).

Alderman Kerry Moir President of the Association Kerry has served on the Darwin City Council continuously since 1992. In that time Kerry has been Deputy Lord Mayor as well as Chairman of the Corporate Services Committee. She serves on many Darwin City Council outside committees including the NT Regional Development Australia Committee (formerly known as the NT Area Consultative Committee) and the Settlement Planning Committee.

Kerry was first appointed to the Executive Committee in 2000 as the Darwin City Council representative and retained this position until October 2004 when she was elected as the Vice President representing municipals. In April 2005 Kerry was elected to the position of President. Kerry was appointed as a Director on the Board of the Australian Local Government Association in December 2006.

Councillor Ray Wooldridge Vice President of the Association representing Shire councils Ray served for two and a half years as a councillor with the Pine Creek Community Government Council before taking on the position of President, which he held until Pine Creek was amalgamated into the Victoria Daly Shire in 2008. Ray has served on LGANT’s Executive Committee since 2002, was elected as Vice President representing shires in March 2009 and is a Director on the Board of the Australian Local Government Association. Ray is a chartered chemist and Principal of North Australian Laboratories Pty Ltd in Pine Creek.

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Mayor Damien Ryan Vice President of the Association representing Municipal councils Damien was elected to the Alice Springs Town Council in March 2008 and serves on various council committees. Damien was elected to the LGANT Executive Committee as Vice President representing municipals at the annual general meeting in November 2010. Damien is currently involved in the Alice Springs Transformation Plan, Alice Springs Desert Knowledge Leadership Program, Alice Springs Planning for the Future, Outback Highway Development Council, Tourism Central Australia Executive, Regional Development Australia Northern Territory (RDA NT) and the Centralian Girls Academy Advisory Committee. He is a Commissioner of the NT Grants Commission, a member of the Indigenous Education and Employment Taskforce (IEET), Alice Springs Alcohol Reference Panel, NT Tobacco Control Advisory Committee and is Vice-President of the Finke Desert Race Committee and a Patron of Squash NT.

Alderman Helen Galton Executive Member representing Municipals Helen commenced as the appointed Darwin City Council representative on the LGANT Executive Committee in October 2004. Elected to Darwin City Council in the Lyons Ward in 1988-1992 (did not seek re-election) and 2004, Helen holds positions on a number of Council committees including Corporate and Economic Development Committee, the Audit Committee, Capital City Committee, Chairman of the Town Planning Committee and the CBD Parking Advisory Committee. She is also Secretary of the Australian Local Government Women’s Association (ALGWA) NT Chapter and held the position of Deputy Lord Mayor on the Darwin City Council for 2005-2006. Helen is a former General Manager of Tourism Top End and currently Vice President of the Automobile Association of the Northern Territory.

Mayor Tony Jack

Executive Member representing Shires Tony was elected to the Roper Gulf Shire in November 2008. Tony holds positions on a number of committees including the Mungoorbada Aboriginal Corporation, the Macarthur River Mines (MRM) Community Benefit Trust and the Mawa Association in Borroloola (an economic development organisation). He was a member of the former Aboriginal and Torres Strait Islander Commission (ATSIC) Regional Council, Indigenous Housing Authority of the NT (IHANT) and played an active part as the chair of the Shire Transitional Committee from 2006-2008. He was elected to the LGANT Executive Committee at the March 2009 Annual General meeting. Tony runs a 300 head cattle station on his homeland 60kms from Robinson River (South West Gulf Ward). He has a strong understanding of business, employment opportunities for local people, housing issues and many other issues surrounding Roper Gulf Shire service delivery.

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Mayor Robert Macleod Executive Member representing Municipals Robert was elected to the City of Palmerston Council in 2000 and became Mayor in May 2007. He represents the City of Palmerston on many committees and organisations including the National Local Government Drug and Alcohol Advisory Committee; Crimestoppers NT and Crimestoppers Australia; Partnership Steering Committee; Palmerston Regional Safe Communities Committee; Entrepreneurial Working Party; Palmerston Sister City Advisory Committee; Community Grants Scheme; Top End Regional Organisation of Councils; Palmerston Regional Business Association and the Top End Regional Executive Committee. Robert’s working background in the private sector is mainly in defence and the oil and gas sector, working with Halliburton and ConocoPhillips in senior management positions and he is a Justice of the Peace. He was elected to the Executive Committee at the March 2009 Annual General meeting.

Councillor David Norton Executive Member representing Shires David was elected to the West Arnhem Shire Council in 2010. He has lived in Jabiru since October 1989 and holds positions on the West Arnhem Shire Finance and Policy Committee and the West Arnhem Shire Audit Committee. David has held offices as Council Chairman, Vice Chairman and Administration Committee Chairman of the Jabiru Town Council, LGANT Vice President – Municipals and NT Grants Commissioner – Municipal. David has been a member of the management team of Jabiru Foodland since 2002 and is also a Justice of the Peace, a correspondent for the Territory Regional Weekly and a Norty Business Services Sole Trader. David’s working background has been in biology as a laboratory technician and he has worked for the Environment Research Institute for the Supervising Scientist and the London Borough of Croydon Planning Department, Appeals, Enforcement and Survey. He was elected to the Executive Committee at the November 2010 Annual General meeting.

President Norbert Patrick Executive Member representing Shires Norbert resides in Lajamanu and was elected President for the Central Desert Shire Council in September 2009. He has been employed as a Community Liaison Officer and as a Sport/Recreation Officer for the Lajamanu Community Government Council and has undertaken training in education, office administration, community management, first aid and fire safety. Norbert’s vision is to get people and organisations to work together to make their places better for everyone. He was elected to the Executive Committee in May 2010.

11 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY ORGANISATIONAL STRUCTURE

LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY ORGANISATIONAL STRUCTURE AS AT 30 JUNE 2010

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SERVICE PROVIDERS & SPONSORS TO LGANT

Kevin Blacker & Associates Auditor PO Box 38170 WINNELLIE NT 0821

Westpac Bank Bankers Smith Street DARWIN NT 0800

Jardine Lloyd Thomson Insurance PO Box 2321 FORTITUDE VALLEY BC QLD 4006

Association Sponsors LGANT offers thanks and acknowledges the assistance provided to it by its five major sponsors in the 2010-2011 year and its minor sponsors of Local Super, Collins Anderson Management, RBA - Exceloo and DA Christie P/L – All Park Products.

13 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY PRESIDENT'S REPORT ON BEHALF OF THE EXECUTIVE

Dear members,

LGANT was once again heavily engaged in carrying out activities on behalf of its member councils and associate members. It also met its commitments to the Territory and Commonwealth governments and the Australian Local Government Association.

Much of the advocacy work completed during the year carried on from the previous year as anyone familiar with advocacy would know and expect. Some issues, like legislative or policy change, take a long time to come to fruition and I can confidently say, were vigorously pursued throughout the year. Perhaps the most pleasing aspect of LGANT’s advocacy work was to learn of the Territory government’s announcement of three years’ funding for the eight large shires to be used for Indigenous employment. This was a crucial issue for the sector and LGANT is particularly proud of having played a part in achieving a successful outcome for shires.

Some of the more important issues and projects pursued by LGANT during the year included:

 obtaining financial commitments from the Territory and Commonwealth governments for Indigenous employment in shires until 2014

 collaborating with the Territory and Commonwealth governments to organise events to celebrate 2010 as the Year of Women in Local Government

 after being a long term advocate for a container deposit scheme in the Northern Territory LGANT was pleased to see the Territory government introduce container deposit legislation in November 2010

 lobbying the Territory government to present its plans for transferring 8000 kilometres of local roads from the Territory government to local government in years to come - an issue that hopefully will become clearer next financial year

 lobbying for, and achieving change, by the Territory government to elected member allowances

 developing a local government cost index for measuring the changes in council costs to be used by councils as one measure in the setting of general rates

 lobbying and gaining confirmation from the Territory government that financial sustainability studies of shire councils would be done next financial year

 providing input to Local Implementation Plans for ‘growth towns’ on Aboriginal land

 collaborating with the Territory government to secure funding for:

o asset and financial management for Northern Territory councils under the Commonwealth government’s ‘Local Government Reform Fund’

o the development of emergency management plans by councils

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o development of an Indigenous workforce development planning strategy for shires.

 pursuing with the Territory government issues to do with:

o local government elections and voting systems

o local government procurement

o local government engagement in the Remote Service Delivery processes

o an employee who can also be a councillor

o local government rates and charges

o local government reforms to do with the Wagait, Belyuen and Coomalie councils and areas of unincorporated land

o the recognition of local government in the Australian constitution and in a future Territory constitution

o planning in local government areas

o securing leases on Aboriginal land for properties shires have in interest in

o land being available in major centres to ease the burden on housing  support to LGANT from the Commonwealth government for the implementation of elected member professional development programs.

LGANT also committed to the work of the Australian Local Government Association on matters such as:

 the recognition of local government in the Australian constitution

 funding for local government, especially the extension of the Roads to Recovery program

 policy development, particularly to do with transport

 advocacy of local government issues at the Federal level the details of which are expanded on in the next section of this report.

The Executive Committee is once again grateful for the support of member councils in providing input to its work, including that which councils provide at LGANT meetings.

Kerry Moir President

15 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY STRATEGIC PLAN ACHIEVEMENTS 2010-2011 Key achievements against outcomes for 2010/2011

1.1 Outcome: Professional development of elected members and Council staff takes place Achievements: Some of the more significant projects LGANT assisted councils with during 2010/2011 included:  LGANT delivered training in September and November 2010 and April 2011 to 14 local government employees who completed a Certificate IV in Workplace Training and Assessment. The purpose of this training is to bring more resources to the effort of delivering elected member training in-house in specific areas of need such as induction training for new councilors  LGANT engaged the Northern Territory Chamber of Commerce to deliver time management training for human resource managers in councils  in May 2011 LGANT was contracted by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to coordinate a Governance Support Project, commencing in 2011/2012, specifically targeted at remote Indigenous shires to: o coordinate the development of governance plans for shires o facilitate network opportunities for indigenous representatives of local government entities o support governance training activities of the shires, including further rounds of the train the trainer program o develop and maintain appropriate support materials o assist with the development and implementation of mentoring programs for elected members  asset management workshops for staff were delivered to six councils through the Local Government Reform Fund  long term asset and financial planning management workshops for elected members were delivered to five councils through the Local Government Reform Fund  All 16 member councils attended individual Emergency Management and Disaster Recovery workshops and forums facilitated by LGANT, as part of the Northern Territory Emergency Services “Natural Disaster Resilience Program” to assist member councils to develop Emergency Recovery Plans  elected member training was provided to: o City of Palmerston Council o The Mayor of West Arnhem Shire  assistance with CEO performance reviews was provided to: o Darwin City Council o Roper Gulf Shire o Victoria Daly Shire o Tiwi Islands Shire  assistance with the recruitment of staff was provided to: o West Arnhem Shire o Mabunji Aboriginal Resource Association Incorporated o Mungoorbada Aboriginal Corporation 16 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

1.2 Outcome: Policy formulation, implementation and review is undertaken Achievements: LGANT:  continued the relationship with the Western Australian Local Government Association (WALGA) Workplace Solutions throughout the year. As part of this agreement Workplace Solutions provided a comprehensive human resource policy manual which was regularly updated and available online to LGANT members  researched and submitted drug and alcohol and accounting policy examples for shires to consider for adoption  adopted its own procedures for: o content management of the LGANT website o reporting of IT issues o the development/review of LGANT policy statements  updated the LGANT Governance Charter over the course of the year to clarify the process for members to nominate to represent local government on formal and informal committees, and to provide members with a clear process for submitting motions for LGANT meetings.

LGANT policies adopted, amended or deleted during the year following Executive or general meetings included those to do with:  climate change  minimum energy performance requirements  housing for Indigenous persons  regional housing  transport and infrastructure  regional development  environment  waste management  international links  policy development  rating  tendering  Agenda 21 plans  Councils acting as enforcement agencies

1.3 Outcome: A requirement for extensive plans to be in place prior to the transfer of barge landings, boat ramps and airports from the Territory Government to local government Achievements: LGANT:  continued to engage with its reference groups and Territory government agencies about the frameworks and principles to apply in the transfer of the above assets however the directions are only likely to become clear once the Territory

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government releases its NT Transport Strategy which is expected some time next financial year  lobbied and advocated, along with member councils, for the NT government to provide funds for employing and training airport reporting officers in shires and was pleased when the government agreed to this request.

1.4 Outcome: Local government revenues are boosted, costs are reduced and councils are assessed for their financial sustainability Achievements: LGANT:  sought independent financial sustainability reviews to be done for councils and this was confirmed by the Territory government during the year, with work to commence next financial year for shire councils  continued its negotiations with the Territory government over the incapacity of councils to access Territory government contracts for the supply of goods and services with outcomes likely to see such access being achieved next financial year  sought amendments to the Local Government Act that would allow councils to save on costs by increasing the options available to them for accessing tenders called by other councils and for allowing councils to arrange collective tenders  sought an exemption under Regulation 31 of the Local Government (Accounting) Regulations from councils having to call tenders for mobile garbage bins/industrial containers and associated products and services as well as tractors, slashers, ride-on mowers and other associated equipment and to access such equipment under the Local Government National Procurement Network tender using local suppliers.

1.5 Outcome: A requirement for extensive plans demonstrating an orderly appropriately funded transfer to be in place prior to the transfer of local roads from the Territory government to local government Achievements: LGANT:  lobbied the Territory government to provide details of its plans for effecting the transfer which included a submission to the Minister for Transport. LGANT expects the government will release details next financial year  sought data on local roads which the Territory government undertook to collect (in the form of Local Roads Baseline Condition Survey and Gap Analysis reports detailing the recurring repair and maintenance required on these roads) with the reports expected to be released next financial year  met with the Federal Minister for Transport the Hon Anthony Albanese MP at a Commonwealth government’s Community Cabinet meeting in Palmerston to address road funding and the transfer of local roads from the NT government to local government.

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1.6 Outcome: An asset and financial management framework for councils in the Northern Territory is implemented Achievements: In 2010 LGANT was engaged by the Northern Territory Department of Housing, Local Government and Regional Services to facilitate the delivery of an asset and financial management and planning project under the Federal Local Government Reform Fund. This project is ongoing and involves coordinating and facilitating workshops for council staff and elected members to increase understanding (and practice of) the importance of planning and catering for the lifecycle costs of assets. Further outcomes included:  the establishment of a Steering Committee, with representatives from the Department of Housing, Local Government and Regional Services, LGANT, the Institute of Public Works Engineering Australia (IPWEA), the Northern Shires and Big Rivers Region Councils and the Southern Region Councils  ‘Sustainable Communities’ (a two-hour training program designed by IPWEA for elected members) which was delivered to elected members at Roper Gulf Shire Council, Katherine Town Council, Tiwi Islands Shire Council, City of Palmerston Council and Litchfield Council  two training packages for staff which were delivered to councils, being: o ‘NAMS (National Asset Management Strategy).PLUS’ a four day training program designed by IPWEA specifically for staff of municipal councils which was delivered to Darwin City Council, Litchfield Council and the City of Palmerston Council o Asset Management for Small Rural Remote Councils (AM4SRRC), a two day training program designed by IPWEA specifically for staff of small, rural and remote councils which was delivered to Roper Gulf Shire Council, Katherine Town Council and Victoria Daly Shire Council.

1.7 LGANT continues to service infrastructure and manage parts of the local road network in the Northern Territory on behalf of local government Achievements: LGANT is responsible for the maintenance of 2,174 km of a local road network on behalf of local government in the Northern Territory (12 km sealed, 290km gravel, 501km formed and 137km flat bladed track) in the Central Desert, Barkly, East Arnhem and Roper Gulf Shire areas. LGANT:  managed and acquitted funds used under the Roads to Recovery Program for two projects, being the resheeting of Mungulwurru Road and construction of culverts on the McLaren Creek Road both of which also had successful audits completed  with the assistance of the NT Department of Housing, Local Government and Regional Services and under the auspices of the Natural Disaster Recovery Relief Agreement (NDRRA) rehabilitated 250km of road network damaged following Cyclone Paul in the East Arnhem Shire area  completed maintenance grades on local roads in the Central Desert, Barkly, East Arnhem and Roper Gulf Shire areas  provided input towards the “Local Roads Baseline Condition Survey and Gap Analysis” reports (which deal with recurring repair and maintenance only) for the above road network. The reports identified the recurrent funding gap for these roads 19 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

at $1,250,000 per annum. The road condition rating found the network inspected resulted in 17% of it being good, 64% fair and 19% poor.

1.8 Outcome: Proposals are submitted in response to legislation enacted or proposed by the Territory and Commonwealth governments Achievements: LGANT provided submissions throughout the year on the following legislation:  Residential Tenancies Act  Environment Protection (Beverage Containers and Plastic Bags) Bill 2010  Ministerial Investment Guidelines for Councils  Local Government Act  NT Heritage Conservation Act  Alice Springs Public Places Bylaw  Public and Environmental Health Bill 2010  Environment Protection and Biodiversity Conservation Act 1999  Local Government Electoral Regulations  Local Government Accounting Regulations – procurement provisions  Pastoral Lands Act and Native Vegetation Bill

1.9 Outcome: Sustaining environments including securing land tenure and influencing land use planning in local government areas is performed Achievements: LGANT:  progressed the development of Urban and Rural Subdivision Guidelines courtesy of funding provided by the NT Department of Housing, Local Government and Regional Services with this work due to be completed in late November 2011  facilitated a Planning Forum on 14 February 2011 with government agencies and member councils on issues and matters of collaboration between the two spheres of government over land use planning in local government areas  the President and officers of LGANT attended the Northern Territory government’s Weddell Design Forum in September 2010 and provided input  submitted in May 2011 comment to the Northern Territory government on the Greater Darwin Region Land Use Plan. Some of the recommendations made included: o that sites for waste management facilities be identified in the Land Use Plan following consultation with councils o that the development of a public transport strategy be included as a target in the Land Use Plan rather than being mentioned as an option o that the Land Use Plan mentions the focus of public transport will be on making it excellent rather than suggesting it only be introduced on the grounds of economic forecasts o that public transport land corridors be clearly depicted in the Land Use Plan for future rapid transit of public transport

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o that the Land Use Plan be altered to say that the Territory government will fully (commencing at an early stage) involve local government in its land use planning decisions so that local government can itself make and implement plans of its own in a timelv manner  continued its involvement with Charles Darwin University (CDU) and Batchelor Institute of Indigenous Tertiary Education (BIITE) to coordinate the delivery of waste management training to employees in shires. This included: o contributing to the development of certificate level training materials o facilitating discussions between the above organisations and East Arnhem Shire Council  met with the Parliamentary Secretary for Climate Change, Mark Dreyfus, at the Commonwealth government’s Community Cabinet meeting in Palmerston. Issues discussed included: o local government’s concern over the impact of a carbon pricing mechanism o local government’s role in the Northern Territory government’s planning and climate change adaptation plans o the need for local government to obtain relevant data to make good decisions about climate change o the vulnerability of some Northern Territory ‘growth towns’ and Commonwealth government remote service delivery sites to climate change impacts  met on 6 June 2011 with Professor Ross Garnaut, climate change advisor to the Commonwealth government, about carbon pricing mechanisms  submitted a local government position paper to the NRM Board on the Integrated Natural Resource Management Plan for the NT.

2.1 Outcome: Member councils engage with LGANT on key issues to ensure collaboration and/or representation is achieved Achievements: The principal means of engagement LGANT has with its member councils is through attendance at council meetings and at LGANT Executive, general and reference group meetings. Apart from engagements reported elsewhere in this report some of the more important areas LGANT collaborated with its members included:  attending meetings of the following councils to advise on LGANT’s actions and issues relevant to them: o Victoria Daly Shire on 19 October 2010 o Coomalie Community Government Council on 19 October 2010 o Alice Springs Town Council on 25 October 2010 o Tiwi Islands Shire on 27 October 2010 o City of Palmerston on 2 November 2010 o Roper Gulf Shire on 17 November 2010 o Barkly Shire on 18 November 2010 o Katherine Town Council on 6 December 2010 o Central Desert Shire on 8 December 2010 21 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

o West Arnhem Shire on 8 December 2010 o MacDonnell Shire on 9 December 2010  Convening CEO Forums and dealing with matters such as: o CEO remuneration packages o procurement in local government o governance support for councils o leases on Aboriginal land o subdivisional guidelines o swimming pool guidelines o amendments to the Local Government Act and related legislation o growth towns and service delivery o transfer of roads to local government o activities of the Australian Centre for Excellence in Local Government o elected member allowances o Indigenous employment o infrastructure fund applications o the future of local government reform in the NT  Mayors and Presidents Forums were convened by LGANT and matters dealt with included: o council employees who are elected members o elected member training o recruiting a CEO o Indigenous economic development o recogniton of local government in the Australian Constitution o leasing on Aboriginal land  the Environment, Transport and Infrastructure Reference Group (EITRG) meetings were convened by LGANT with meetings held in Alice Springs 7/8 July 2010 (with 11 participants), Nhulunbuy 4/5 November 2010 (with 15 participants) and Palmerston 3/4 March 2011 (with 13 participants). Presenters and issues of relevance and interest to local government included: o Department Lands and Planning:  bituminous surfacing working group  land use planning and land tenure  local road data collection gap analysis  Black Spot Program and local area traffic management program  the functions of the Surveyor General  the Place Names Committee’s role and processes

o Institute of Public Works Engineers Australia (IPWEA)  asset and financial management and planning

o Department of Natural Resources, Environment, the Arts, and Sports  container deposit legislation

o Queensland Local Government Association - Local Buy  National Procurement Network

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o Department of Housing, Local Government and Regional Services  Local Government Reform Fund

o Council of Commonwealth government Road Reform Plan  heavy vehicle reform

o Northern Territory Fire and Emergency Services  bushfire safer place strategy  emergency recovery/resilience plan

o the work of Natural Resource Management Board o the work of Top End Training o the work of Australian Road Research Board  Outcomes from the ETIRG meetings included:  responses to LGANT’s procurement proposals  guidelines for the management of remote pools were developed and will be launched in November 2011  local government sub divisional guidelines are being produced and will be issued in November 2011  agreement to develop emergency management resilience/recovery plans  LGANT obtained associate membership of IPWEA Queensland Chapter which was extended to two officers from each of its member councils so that councils could access IPWEA services  a legal opinion on local roads management and control was obtained for all councils.  the Human Resource Reference Group meetings were convened by LGANT and matters dealt with included: o the importance of CEO and council communications o sector wide employment o elected member capacity development activities o Government Skills Australia activities and impacts on councils o Critical Skills Investment Fund – ensured members were up to date with application guidelines and considered the potential for NT local government projects o national skills shortages  the following presentations were given to this group at its meetings: o Job Services Australia – services available to employers o Working with Children cards – two presentations by the NT Department of Justice on council responsibilities in relation to these cards and how remote shires can assist employees to obtain them o Occupational Health & Safety legislation – how national harmonization will impact on councils o Workplace Solutions – transitioning of staff from Community Development Employment Projects (CDEP) to full or part time employment o the importance of standard data collection for employment statistics.  the Finance Reference Group meeting was convened in November 2010 by LGANT and matters dealt with included:

23 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

o audit committees o financial reporting and grant acquittals o rates and services charges o fraud protection plans o LGANT budget submission to the NT government o local government land lease costs o asset management o risk management o financial sustainability of councils o rate capping and conditional rating. Other areas of engagement included:  an agreement with WALGA Workplace Solutions LGANT where members have access to industrial relations advice. This service was accessed 451 times by Northern Territory councils for services including advocacy, unfair dismissal, enterprise agreements, employee contracts and award interpretation  funding through the Department of Business and Employment (on behalf of the Department of Education, Employment and Workplace Relations) to implement a workforce planning and development program for local government in the NT. The first phase of the project was commenced during the year with a template being designed and available for councils to use next financial year in developing their own workforce development plans  producing a template (which included a framework and guidelines) to determine local road hierarchies as a tool for assisting councils to prioritise their road expenditures and works  assisting the East Arnhem and Tiwi Islands Shire Councils to adopt road hierarchies for their local government areas.

2.2 Outcome: Northern Territory local government representatives are appointed to relevant boards and committees Achievements: Throughout the year LGANT managed processes to do with the nomination of representatives to Territory and Commonwealth government committees including the:  Indigenous Economic Development Taskforce  Remote Pools Working Group  Local Government Reform Fund Steering Committee  NT Tobacco control Advisory Committee  Aboriginal Peak Body for Children, Youth & Families in NT Working Group  Neighbourhood Watch NT Committee  Northern Territory Grants Commission  Local Government (Accounting) Advisory Committee  NT Place Names Committee  NT Water Safety Advisory Council  Human Services Training Advisory Council

24 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

 NT 2011 Towards State 7 Constitutional Convention  EnvironmeNT Grants Committee  EcoLinks Stakeholder Reference Group  NT Climate Change Policy Committee and participation in NT Climate Change Adaptation Taskforce  Plastic Bag Stakeholder Reference Group

LGANT also provided:  a part time liaison officer function for the Regional Operations Centre run jointly by the Territory and Commonwealth governments to help coordinate responses from local government on its reporting of progress in Local Implementation Plans for growth towns and remote service delivery sites  local government representation on the Australian Sports Commission’s Sports Demonstration Projects steering committee  local government representation in the delivery of the National Partnership for Remote Service Delivery in the Northern Territory through membership of: o The Northern Territory Regional Operations Centre – Board of Management o The Governance and Leadership Working Group o The Healthy Homes Working Group o Every Child, Every Day School Attendance Working Group o NT Homelessness Working Group o Integrated Family Services Working Group o Community Services Working Group.

2.3 Outcome: Local government has partnership agreements with the NT and Commonwealth governments that bring maximum benefit to members and are honoured by all parties Achievements: LGANT:  submitted a draft partnership agreement to the Territory government in November 2010 and is waiting for a response to it  participated in activities at the national level through ALGA on the review of the Inter- governmental Agreement establishing Principles Guiding Inter-Governmental Relations on Local Government Matters (‘the IGA’). The IGA expired in April 2011 and a decision on its future will be made next financial year.

2.4 Outcome: the interests of Northern Territory local government are promoted at the national level through the Australian Local Government Association (ALGA). Achievements: LGANT’s CEO, President and Vice President Shires participated in the following ALGA meetings:  all general meetings and the annual general meeting  ALGA strategic planning meeting on 23 February 2011

25 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

 the National General Assembly of Local Government from 19-22 June 2011  the ALGA Post General Assembly Teleconference on 29 July 2010  the National Local Roads and Transport Congress in Bunbury, Western Australia, from 13-15 October 2010

Outcomes from these meetings and the processes that flow from them included:  the adoption of the ALGA annual budget for 2011/2012  the adoption of the Draft Action Plan 2011 – 14, Headline Priority Actions and Key Performance Indicators  the issuing of the State of the Regions Report for 2010/11  the issuing of the report titled: The Local Roads Funding Gap – A study of local roads funding in Australia 1999-2000 to 2019-2020  the issue of the ALGA 2010/11 Federal Budget Submission including the provision of services to Indigenous communities  the development of a national report on local government legal liability, mitigation and litigation arising from climate change with a view to developing an advocacy proposal to governments to address the issue if necessary  the reports to the LGANT Executive and members on ALGA general meeting issues and activities  promotion of recognition of local government in the Australian constitution.

LGANT has represented and promoted the interests of local government at the national level in the Northern Territory in such forms as:  ALGA led national discussions related to the National Broadband Network and Digital Television switchover  the Indigenous Enumeration Working Group, hosted by the Australian Bureau of Statistics in preparation for the 2011 census  attendance at Australian Centre for Excellence in Local Government (ACELG) Indigenous and Workforce Development round tables. LGANT’s engagement with ACELG ensures that the unique characteristics of local government in the Northern Territory are acknowledged in ACELG projects  the National Local Government Workforce Development Working Group with members from all State/Territory local government associations  the Government Skills Australia Industry Advisory Committee in relation to the local government training package  the Climate Change Policy working group, including participation in the ACELG climate change roundtable.

2.5 Outcome: The interests of local government are promoted at the Territory level Achievements: LGANT has for a long time had a policy supporting container deposit legislation (CDL) and has lobbied over many years the NT government for the introduction of it. In November 2010 LGANT was most pleased when the NT government passed legislation that would bring a container deposit scheme into effect in 2011.

26 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

LGANT and its member councils are represented on the following important bodies both of which deliberated over legislative and financial matters, including: :  Administration and Legislation Advisory Committee o Elected member allowances o procurement by local government o $100 deposit for candidates for council elections o postal voting and local government electoral system o a councillor who can also be an employee o conditionally rateable land o local government charges o portability of long service and accrued recreation leave between the Territory and local government sectors

 Local Government Accounting Advisory Committee o local government investment guidelines o grant acquittal processes o local government borrowings o elected member allowances o local government cost index o financial sustainability

LGANT further promoted the interests of local government through:  meetings with the Department of Housing, Local Government and Regional Services in July, August and December 2010 and May and June 2011  meetings with the Minister for Local Government in September, October, November and December 2010 and February 2011  a teleconference with the Minister for Local Government and Mayors and Presidents to discuss funding for Indigenous employment in July 2010  meetings with the Hon Gerry Wood MLA to discuss legislative changes  meetings with the Shadow Minister for Local Government the Hon Willem Westra van Holthe MLA to discuss LGANT activities and legislative change  meetings with representatives from the NT Department of Natural Resources, Environment, The Arts and Sport (NRETAS) regarding container deposit legislation  a meeting with the NT Environmental Protection Agency (EPA) consultants to provide input into the Environmental Assessment Act review process  meetings with the Chief Minister’s Department regarding the Climate Change Adaptation Action Plan  meetings with representatives from the NT Department of Natural Resources, Environment, The Arts and Sport to clarify changes to landfill licensing for small community landfills  participation in the NT Asbestos Disposal Working Group to improve methods for disposing of asbestos from NT and Australian government buildings in remote communities  attending Darwin Harbour Catchment Gamba Grass Strategy Stakeholder meetings  attending the Southern Region Fires Working Group meeting.

27 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

3.1 Outcome: LGANT identifies and responds to information and communication needs of member councils Achievements: LGANT receives many requests for information and advice from its members most of which are answered by telephone or email. Other information and advice LGANT provided included:  publication of a 2011 calendar circulated to member councils in 2010. This calendar highlights dates of significance to local government and the Northern Territory and is a promotional tool for both member councils and external organisations. The theme for 2011 was “community services” and member councils were asked to submit photographs from their council that reflected services that they provide to their communities. Councils responded well to the request and as a result the quality of the calendar was greatly improved with the inclusion of wide range of photos from across the NT  publication of a 2011-2012 LGANT Directory which is issued to all councils in the NT and not for profit organisations free of charge. Commercial organizations are charged a nominal fee to cover delivery costs. The aim of the directory is to facilitate communication with the member councils and external organisations and to provide information about the nature of local government in the NT  a fortnightly newsletter, This Week at LGANT, which is distributed on-line to around 200 recipients with articles broadly sorted into the following categories: o top news o roads and infrastructure o environment and sustainability o people and capacity development o other news  a member satisfaction survey in September 2010 with results reported in November 2010 at the Association’s general meeting. The results were also used as part of the review of LGANT’s strategic plan for 2011/12  subscribing to the EasyGrants Newsletter which is emailed to member councils  paying the annual Austroads subscription so member councils have access to expertise and publications to assist them in managing their local road networks  subscribing, on behalf of its members, to the IPWEA Queensland Chapter.

3.2 Outcome: Organised opportunities are provided for networking amongst members and between members and stakeholder groups Achievements: As well as securing the nomination of members to the committees mentioned in Outcome 2.2, LGANT representatives from across the Northern Territory participated in a variety of external committees including the:  Regional Development Australia NT Committee (formerly the NT Area Consultative Committee)  Public Library Advisory Committee  NT Settlement Planning Committee

28 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

 Road Safety Black Spot Committee  NT Road Safety Coordination Group  NT Population Intelligence Working Group  Community Safety Working Group  Animal Welfare Advisory Committee  National Local Government Drug and Alcohol Advisory Committee  NT weed Advisory Committee  Sports Demonstration Project Steering Committee Reports from representatives of most committees were included in the agendas at Executive meetings as well as the annual general meeting in November 2010.

LGANT organised (or helped organise) other events and meetings including:  CEO Forums in August and November 2010, and March 2011  Mayors and Presidents Forums in November 2010, and March 2011  Finance Reference Group in November 2010  Human Resources Reference Group in July and November 2010, and March 2011  Environment, Transport and Infrastructure Group in July and November 2010 and March 2011  monthly Executive meetings (except in January 2011)  general meetings in November 2010 and March 2011  workshops with each member council, government agencies and non government organizations to develop individual local government emergency recovery plans  two forums between member councils, Strategic Indigenous Housing and Infrastructure Program (SIHIP) and government agencies on planning and asset handover of municipal services in subdivisions in Indigenous urban living areas as well as the growth towns  a Year of Women in Local Government dinner function to look at ways more women can be encouraged to become involved in the local government sector. More than 50 women attended to show their support for women in local government and the function provided a networking opportunity for them  presentations to the eight remote/regional shire councils to encourage current female elected members and, where appropriate, council staff to engage with women at the community level to promote women’s participation in shire councils as elected members or local board members as part of the Year of Women in Local Government. 185 people attended these presentations with 63 females participating  a briefing session that was attended by representatives from Litchfield, Darwin, Palmerston and Alice Springs (telephone) councils where container deposit industry experts “Boomerang Alliance” provided the following information: o An explanation of the various mechanisms that this scheme could function under – what works in what areas, and how to make the most of it o awareness of the issues that may arise o clarification of some of the costs o how to channel money back into litter management.

29 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

4.1 Outcome: Plans, systems and processes, financial, human resources and asset management practices are in place and operating effectively Achievements: LGANT’s effective operating practices include:  Territory Technology Solutions were engaged to supply regular IT support to LGANT  weekly/monthly managers’ and staff meetings were held over the 2010/2011 period  the Association’s Executive Committee reviewed LGANT’s strategic plan in February 2011. The plan and annual budget was adopted by members at the general meeting on 1 April 2011  financial reports were submitted to each meeting of the Executive  two minor sponsorships were cancelled (RBA-Exceloo and the Australian Institute of Company Directors) but other current sponsorships were reaffirmed  performance appraisals were undertaken for staff members  LGANT’s asset register was updated and vehicles were replaced during the year  body corporate issues were attended to in terms of security alarms, parking, signage, cleaning, tenancy management and participation in an emergency fire drill  a review of LGANT telecommunications infrastructure was implemented resulting in the purchase of a new phone system which will return a saving of $4000/yr over 5 years  LGANT called for tenders for its banking services and has remained with Westpac Banking.

4.2 Outcome: LGANT promotes its activities to its members and key stakeholders Achievements: LGANT:  issued media releases and the LGANT President and Vice President Shires engaged in radio and television interviews on local government issues  published the annual report for the 2009/10 financial year which was published in November 2010  upgraded the LGANT website which has now had a full 12 months online. During this period a total of 7480 unique visitors were recorder to the site, viewing an average of 3.7 pages per visit for a total of 10 761 visits. 69% of these visitors were new visits. The key traffic sources for these visits were Google (44%), nt.gov.au (7%) and ALGA (5%). 21% of the total visits were from direct traffic. The top 10 pages visited were: o LGANT Home page o About LGANT o People Development o Current Council Vacancies o Advocacy & Representation o Infrastructure o Members Map o Contact Us o Sustainability and Environment

30 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

 trained LGANT staff to enable responsible officers to maintain the content of their section of the LGANT web site  developed two 30 second advertisements in early 2011 to raise the profile of local government in the Northern Territory. These ads will be made available to members in late 2011 and will be shown on TV commencing in Local Government Week in October 2011. Development of the advertisements was made possible through the payment of a levy by members  made key LGANT documents available for download from the LGANT website and regularly updated them. These include the LGANT Policy document, Governance Charter and Constitution  planned for Local Government Week to be held from 10-16 October 2011  published a President’s report in the Local Government Focus newspaper in July 2010  released a LGANT Media Release re $30M funding for Indigenous jobs in April 2011  wrote letters to the Editor, NT News on ‘Shires Here To Stay’ in May 2011.

5.1 Outcome: The case for a fair share of funds for local government in the Northern Territory is maintained Achievements: LGANT:  put a 2011/2012 budget submission to the NT Treasurer in November 2010 on the funding needs of local government for key areas including: o building on local government reforms o infrastructure and the environment o people and community o COAG reforms – financial and asset management  Provided input to ALGA for its 2010/11 Federal budget submission.

31 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

STATEMENT BY THE PRESIDENT

I, Kerry Moir, President of the Local Government Association of the Northern Territory, state that in my opinion, the financial statements (as set out) are properly drawn up so as to present fairly the state of affairs of the Association as at 30 June 2011 and of the results and cash flows of the Association for the year then ended.

July 2011 PRESIDENT

STATEMENT BY THE CHIEF EXECUTIVE OFFICER

I, Tony Tapsell, being the Chief Executive Officer of the Local Government Association of the Northern Territory, state that to the best of my knowledge and belief the financial statements (as set out) present fairly the state of affairs of the Association as at 30 June 2011 and of the results and cash flows of the Association for the year then ended.

July 2011 CHIEF EXECUTIVE OFFICER

32

LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011

2011 2010

$ $ ASSETS Notes

Current Assets Cash (2) 5 817 572 5 114 720 Debtors (3) 57 158 29 785 Prepayments 21 561 21 518 5 896 291 5 166 023

Non-Current Assets Motor Vehicles (4) 72 025 73 149 Furniture and Fittings (4) 58 725 73 932 Buildings (4) 3 149 067 2 372 877 3 279 817 2 519 958

Total Assets 9 176 108 7 685 981

LESS LIABILITIES

Current Liabilities Creditors 66 465 99 863 Payments Received in Advance (5) 310 308 271 614 Income Deferral (5) 1 305 671 941 119 Accruals 23 598 16 100 Loans – Motor Vehicles (6) 0 0 Loans – Building (6) 0 0 Provision – Annual Leave 112 903 106 176 Provision – Long Service Leave 78 028 72 277 Other Current Liabilities 0 0 1 896 973 1 507 149

Non-current Liabilities Loans – Motor Vehicles (6) 69 612 52 547 Loans – Building (6) 2 100 000 2 100 000 Provision – Long Service Leave 21 460 22 741 Provision –Capital Equipment Purchases 13 000 13 000 Provision –Property, Mobile Equipment, other assets 469 000 319 000 Provision – Legal and Constitutional Activities 50 000 0 2 723 072 2 507 288

Total Liabilities 4 620 045 4 014 437

NET ASSETS 4 556 063 3 671 544

ACCUMULATED FUNDS Balance at the beginning of the year 3 671 544 4 597 045 To Reserves (200 000) (160 000) Revaluation of Premises 796 243 0 Surplus (Deficit) for the year 288 276 (765 501) Balance at the end of the year 4 556 063 3 671 544

1 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2011

Notes 2011 2010 $ $ INCOME FROM ORDINARY ACTIVITIES

User Charges and Fees (7) 911 408 916 631 Interest 189 817 120 473 Other Revenues from ordinary activities 10 000 10 000 NT Govt Contributions for Operating Purposes (8) 1 178 994 264 818 Federal Govt Contributions for Operating Purposes (9) 1 499 244 1 430 208

Total Income from ordinary activities 3 789 463 2 742 130

Add Net Profit from sale of assets 1 620 682

Total Income 3 791 083 2 742 130

EXPENDITURE FROM ORDINARY ACTIVITIES

Employee Costs 681 759 623 870 Materials and contracts 2 244 437 2 367 108 Depreciation 77 842 63 552 Other operating expenses (10) 352 672 264 210 Interest Charges 143 476 190 430

Total Expenses from ordinary activities 3 500 186 3 514 170

Add Net Loss on disposal of assets 2 621 369

Total Expenditure 3 502 808 3 514 539

Total Income 3 791 083 2 742 812 Less Total Expenditure 3 502 807 3 514 539

Surplus (Deficit) for the year from ordinary activities 288 276 (771 727) Add Extraordinary Item

Insurance Claim 0 6 226

NET SURPLUS/(DEFICIT) FOR THE YEAR 288 276 (765 501)

2 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2011

Cash Flows from operating activities Notes 2011 2010 $ $ Payments to Suppliers (2 273 838) (2 281 183) Payments to Employees (667 104) (607 694) Payment of Interest (143 476) (146 184) Payment of other Expenses (318 002) (229 558) Borrowing Costs (34 670) (34 652) Receipts from members 599 583 595 095 Interest received 62 349 56 991 Interest received for other projects 127 468 63 481 Northern Territory Government 1 238 994 264 818 Commonwealth Government 1 439 244 1 430 208 Other User Fees and Charges 257 090 391 830 Other Contributions to Projects 0 0 Sponsorship – Association 37 363 31 182 Net Cash Flows used in operating activities 325 001 (465 666) Cash flows from Investing Activities Purchase of fixed assets (41 494) (37 296) Proceeds from sale of fixed assets (1 001) 312 Net cash Flows used in investing activities (42 459) (36 984) Cash flows from Financing Activities Loans – Parap Building 0 0 Loans – Parap Building Principal Repayments 0 0 Loans - Motor Vehicles 43 893 0 Loans – Motor Vehicles Principal Repayments (26 829) (16 151) Advances Received 38 694 18 590 Income Deferred 364 552 941 119 Net Cash Flows used in financing activities 420 310 943 558 Cash flows from Insurance Recoveries Insurance payment – repairs to building 0 6 226 Net Cash Flows from insurance recoveries 0 0

Net Increase/(Decrease) in cash held 702 852 447 134 Cash at the beginning of the year 5 114 720 4 667 586 Cash at the end of the year 5 817 572 5 114 720

3 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 1. STATEMENT OF ACCOUNTING POLICIES a) Basis of Accounting

This special purpose financial report has been prepared for distribution to the members. The accounting policies used in the preparation of this report are consistent with the previous year and are described below.

(i) The accounts have been prepared using the accrual basis of accounting including the historical cost convention and the going concern assumption. (ii) The requirements of Australian Accounting Standards promulgated by the accounting profession do not have mandatory applicability to the Local Government Association of the Northern Territory in relation to the year ended 30 June 2011 because the entity is not a “reporting entity” as defined therein. The Association has, however prepared the financial statements in accordance with all Australian Accounting standards, with the following exceptions: AAS33: Presentation and Disclosure of Financial Instruments. b) Economic Dependency

The Association is reliant upon the receipt of government grants and members subscriptions to operate as a going concern. c) Fixed Assets

Fixed assets are carried at cost. Depreciation is provided on a straight line basis on all fixed assets recorded in the balance sheet at rates calculated to allocate the cost less estimated residual value at the end of the estimated useful lives of the assets of the Association against revenue over those estimated useful lives. Depreciation is calculated on the permanent fixtures of the premises. The premises itself is not depreciated. A sinking fund has been established by the body corporate for future maintenance and asset renewals of common areas. d) Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

 Grants All grants are brought to account as revenue in the statement of income and expenditure when received and the unexpended portion is taken up as a liability in the Balance Sheet. Unexpended grants received during the 2010/11 financial year being grants recognized as revenues which were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged at year end are taken up as income deferred in the balance sheet.

 Subscriptions Subscriptions are recorded on an accrual basis

 User charges User charges are recorded on an accrual basis 4 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (continued) e) Cash For the purposes of the statement of cash flows, the Association considers cash to include cash on hand and in banks. f) Employee Entitlements

Provision is made for employee entitlement benefits accumulated as a result of employees rendering service up to the reporting date. The benefits include wages and salaries, annual leave and long service leave. g) Taxation

The Local Government Association of the Northern Territory is an exempt body under the Income Tax Assessment Act. h) Superannuation

The contribution made to the Local Government Superannuation Scheme was at the rate of 11% for contributory Association employees and 9% for non-contributory Association employees. i) Loans Vehicles:

The Association has loans with the Westpac Bank for its vehicles. See note 5 for commitment details. Office Building:

The Association has a Commercial Loan with the Westpac Bank for the purchase of this asset. See note 5 for commitment details

2. CASH Cash at bank at 30th June 2011 at Westpac Darwin comprised the following:

2011 2010 $ $ LGANT Reserve Term Deposit Account 549 088 365 985 Project Holding Account 3 670 871 2 303 980 Natural Resource Management Account 7 222 181 148 Swimming Pool Term Deposit – Commonwealth Funds 276 021 336 108 Community Infrastructure OIPC Term Deposit Account 174 897 226 773 Barkly Tablelands – Stewardship for Oil Account 62 580 50 752 Loan Repayment Account 19 841 17 323 Payroll Account 18 233 52 489 Tasks of Opportunity Account 0 58 375 Tied Project Holding Account 767 132 1 027 417 Operating Account 271 187 493 869 5 817 072 5 114 219 Petty Cash 500 500 5 817 572 5 114 719

5 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (continued)

3. DEBTORS 2011 2011 $ $ Debtors 57 158 29 785 Provision for Doubtful Debts 0 0 57 158 29 785

4. FIXED ASSETS 2011 2010 $ $ Motor Vehicles 104 321 95 973 Less Accumulated Depreciation 32 296 22 825 Total Motor Vehicles 72 025 73 148

Furniture, fittings & equipment at cost 211 852 220 274 Less Accumulated Depreciation 153 127 146 342 Total Furniture and Fittings 58 725 73 932

Building – Parap 2 436 279 2 436 279 Plus Asset Revaluation 796 243 0 Less Accumulated Depreciation on fixtures 83 455 63 401 Total Building – Parap 3 149 067 2 372 878

Total Fixed Assets 3 279 817 2 519 958

5 INCOME DEFFERED AND RECEIVED IN ADVANCE 2011 2010 $ $ Federal Assistance Grant – Local Roads Funding 290 398 271 614 Roads to Recovery 70 719 0 Natural Disaster Relief Recovery Programme 367 154 0 Local Government Reform Fund Asset Management Programme 166 450 0 Subdivision Guidelines 45 455 0 NT Natural Disaster Resilience Programme 59 912 180 346 Binjari Multi Purpose Centre 0 351 960 Guidelines Design & Construction of Pools 0 60 000 Elected Member Capacity Building Stage 2 77 802 188 219 Year of Women in Local Government – Emerging Leaders 13 839 90 133 Year of Women in Local Government – Event 12 285 70 461 Governance Support Programme 399 258 0 Workforce Planning & Development Programme 112 707 0 1 615 979 1 212 733

6 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (continued)

6. EXPENDITURE COMMITMENT 2011 2010 $ $ Bank Loan - vehicles not later than 1 year 31 010 28 101 later than 1 year but not later than 2 years 45 494 11 723 later than 2 years but not later than 5 years 0 17 815 76 504 57 639 less future interest charge 6 892 5 092 loan liability 69 612 52 547 The break-up of this loan liability is as follows: current liability 26 396 25 221 non current liability 43 216 27 326 69 612 52 547

Parap Building Purchase

Commercial Loan:

A Commercial Loan of $2,100,000 with an annual interest charge of approximately $176,984 is held with the Westpac bank for the Association’s Parap premises. The date of commencement of the loan was 22 November 2006. The time frame for this loan is 5 years. The loan will be renegotiated in the 2011/2012 financial year with a view to changing to principal and interest payments. The interest payments are made on a quarterly basis with the interest being deducted in advance from the loan amount.

The status of this loan is as follows:

Non current liability 2 100 000

7. USER CHARGES AND FEES $ Subscriptions, Meeting Charges and Sponsorship 652 775 Rental Charges 213 015 Project Management and Consultancy Fees 45 618 Total User Charges and Fees 911 408

8. NT GOVERNMENT CONTRIBUTIONS FOR OPERATING PURPOSES $ Transport and Infrastructure 718 441 Local Government Reform Fund 28 750 Natural Disaster Resilience Programme 120 434 Corporate Governance 311 370 Total NT Government Contributions 1 178 995

9. FEDERAL GOVERNMENT CONTRIBUTIONS FOR OPERATING PURPOSES $ Local Roads Funding 1 126 836 Roads to Recovery – LGANT 79 615 Binjari Multi-Purpose Building 232 051 Swimming Pool Guidelines 60 000 Governance Support Programme 742 Total Federal Government Contributions 1 499 244 7 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (continued)

10. OTHER OPERATING EXPENSES $ Internal Management 115 954 Advocacy, Representation and Information Services 47 874 Human Resource Support and Development 100 933 Engineering and Environment Project Management 87 911 Total Other Operating Expenses 352 672

11. STATEMENT OF CASH FLOWS 2011 2010 $ $ a) Reconciliation of Cash Cash at Bank 5 817 072 5 514 220 Petty Cash Imprest 500 500 5 817 572 5 514 720 b) Reconciliation of Net Cash Used in Operating Activities to Operating Result

Operating result 288 276 (771 728) Add/(Subtract) non cash items Depreciation 77 842 63 552 Amortisation 0 0 Interest Adjustment on Commercial Loan 0 44 246 Profit/Loss on Sale of Fixed Assets 1001 (312) 367 119 (664 242) Add/(Subtract) operating flows Increase/(Decrease) in Trade Creditors, Accruals (25 900) 77 496 Increase/(Decrease) in Provisions 11 198 21 175 (Increase)/Decrease in Debtors (27 373) 91 476 (Increase)/Decrease in Prepayments (43) 8 429

Net Cash used in operating activities 325 001 465 666

12. SEGMENT INFORMATION

The Local Government Association manages grants and other Government funded monies on behalf of councils in the Northern Territory. The Association operates in Darwin, Australia.

13. CONTINGENT LIABILITIES

The Local Government Association is not aware of any contingent liabilities at 30 June 2011, however it is a member of CouncilBiz and that membership may carry some exposure to future liability.”

8 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (continued)

14. UNEXPENDED GRANT MONIES CARRIED FORWARD TO THE 2011/2012 FINANCIAL YEAR

The Association has contingent liabilities to repay grants received but not fully expended at year end for projects of $3 767 207. Included in this figure are unexpended grants totaling $1 615 970 received in advance or income deferred until the 2011/2012 financial year.

Movements Opening Closing Balance Received/ Balance

1 July 2010 Receivable Expended 30 June 2011

$ $ $ $

Local Roads Funding 1006037 1126836 654151 1478722 Local Roads Funding received in advance (refer note 5) 0 290398 0 290398 Binjari Multi Purpose Building Fit-out 0 50000 50000 0 Binjari Multi Purpose Building ICSI 0 130000 130000 0 Binjari Multi Purpose Building LPF 0 171960 171960 0 Swimming Pool Refurbishment - Commonwealth 338378 14233 107959 244652 Transfer of Roads and Alliance 12416 0 0 12416 Community Services Programme 176802 10125 31070 155857 Local Adaptation Pathways Programme - Climate Change 108858 1506 109618 746 Sustainability Programmes Co-ordinator 6710 0 730 5980 Stewardship - Barkley Waste Oil Project 55252 6126 0 61378 Local government Reform - Rates Impact Statements 66324 0 8250 58074 Governance Resource Kit 133412 0 0 133412 Elected Member Capacity Building Stage 1 115779 0 115779 0

Grant income received in advance or deferred to 2011/12 financial year (refer note 5) Elected Member Capacity Building Stage 2 0 188219 110417 77802 Year of Women in Local Government-Emerging Leaders 0 90133 76294 13839 Year of Women in Local Government - Event 0 70461 58176 12285 Governance Support 0 400000 742 399258 Roads to Recovery - LGANT 60626 150334 140241 70719 Guidelines Design & construction of Pools 0 60680 60680 0 Workforce Planning and Development 0 179180 66483 112697 NT Natural Disaster Resilience Programme 0 180346 120434 59912 Flood Relief 0 1085595 718440 367155 Local Government Reform Fund 0 195200 28750 166450 Subdivision Guidelines 0 45455 0 45455

TOTAL UNEXPENDED GRANTS 2080594 4446787 2760174 3767207

15. OTHER COMMITTED FUNDS CARRIED FORWARD TO THE 2011/2012 FINANCIAL YEAR

Movements Opening Closing Balance 1 Balance 30 July 2011 Received/Receivable Expended June 2011 $ $ $ $ Engineering Management Charges 656645 216223 104006 768862 Environmental Management Charges 58570 21948 7757 72761 Human Resource and Industrial Relations Charges 0 95371 46706 48665

TOTAL OTHER COMMITTED FUNDS 715215 333542 158469 890288 9 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (continued)

BUDGET COMPARISON REPORT AS AT 30 JUNE 2011 INCOME

Comparison of Original Actual Income to Actual to Original Actual Income DIRECTORATE Budget 30/6/11 Budget over(under) to 30/6/10 $ $ $ $ Office of the Chief Executive 877000 983653 106653 919599 People and Development 64000 340056 276056 54192 Technical and Environmental Services 1732000 2631177 899177 1775246

TOTAL INCOME 2673000 3954886 1281886 2749037

EXPENDITURE

Actual Comparison of Actual Original Expenditure to Actual to Original Expenditure to DIRECTORATE Budget 30/6/11 Budget over(under) 30/6/10 $ $ $ $ Office of the Chief Executive 803000 910164 107164 799473 People and Development 400000 520617 120617 284416 Technical and Environmental Services 2358000 2279028 -78972 2484695

TOTAL EXPENDITURE 3561000 3709809 148809 3568584

Total income and expenditure figures include capital income and expenditure and internal transfers during the 2010/2011 financial year. See notes 13 and 14 on funds carried forward to the 2011/2012 financial year Notes to Budget Comparison Report:

Office of the Chief Executive Income and Expenditure: Income included funds for the purchase of assets during the 2010/2011 financial year The increase in expenditure was due to the employment of a Policy Development Officer

People and Development Income: Additional grant funding was received for specific projects identified during the 2010/11 financial year Grant funding obtained on the condition that they be expended in a particular or used over a particular period and those conditions were undischarged at year end has been transferred to liabilities as income deferred This income will be recognised in the 2011/2012 operational statement to match the expenditure.

Expenditure: Expenditure in line with project funding carried forward from the 09/10 financial year Other expenditure matches increased revenue. Other unexpended funds to be carried forward to the 2011/12 financial year

Technical and Environmental Services Income: Additional funding was received for specific projects identified during the 2010/11 financial year Grant funding obtained on the condition that they be expended in a particular or used over a particular period and those conditions were undischarged at year end has been transferred to liabilities as income deferred This income will be recognised in the 2011/2012 operational statement to match the expenditure.

Expenditure: Expenditure in line with project funding carried forward from the 09/10 financial year. Other expenditure matches increased revenue. Other unexpended funds to be carried forward to the 2011/12 financial year

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