LOCAL GOVERNMENT ASSOCIATION OF THE

LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

2009/2010 ANNUAL REPORT

1 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

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 2009 – 2010………………………………………………………………… 7

Local Governments 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 2009/2010……………………………………………… .16

Financial Reports as at 30 June 2010…………………………………………………. .28

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 LGANT constitution I submit the Annual Report (‘the Report’) and audited financial statements for the 2009-10 financial year.

This financial year the treatment of grant revenue was changed with respect to grants to reflect a more practical matching of revenues and expenses. Notes to the accounts 1 (d) and 13 provide further explanation, the gist of which is to match them so they reflect the actual grant revenue used and expenditure made during the year rather than the previous treatment of only recording all grant revenue in the year it was received and then matching the expenditure against it (whenever it occurred – sometimes years later). This was done to not only reflect the practice undertaken by other Local Government Associations (eg the LGA of SA) but also to make LGANT’s operating position more understandable. At 30 June 2010 LGANT was solvent and able to meet its debts as they fell due.

As always LGANT is very grateful for the grants that it receives from the Territory and Australian governments as without these sources of revenue it could not offer the level of support or services to its member councils. LGANT gives sincere thanks to the Darwin City and Alice Springs Town Councils for providing venues for LGANT’s general and reference group meetings. Support from sponsors was also much appreciated and they are welcome attendees at LGANT general meetings.

LGANT’s consultants in the names of Maree McLinden (LGANT’s finances) and the Western Australian Local Government Association (industrial relations and human resource services) enabled LGANT to fulfill its own internal obligations as well as provide support services to member councils.

Tony Tapsell CHIEF EXECUTIVE OFFICER

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ABOUT THIS REPORT

This report is the 19th Annual Report of the Local Government Association of the Northern Territory and it is for the financial year 1 July 2009 to 30 June 2010 and is prepared for members of the Association and other parties.

This report has been prepared in compliance with clause 18.3 of the Constitution which requires it to be tabled for the members of the Association at an Annual General meeting. This meeting will take place on 26 November 2010.

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) 8936 2888

Facsimile: (08) 8941 2665

Email: [email protected]

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ABOUT THE ASSOCIATION

Business Overview

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

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

The Association 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. The Association’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 2009/2010.

The Association: • 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 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 Australian government. • has a strong interest in the development of local government.

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High level elements of LGANT’s strategic plan

Vision Our vision is for local government to be powerful and influential as a sector for the benefit of Northern Territory communities.

Mission Our mission is to provide leadership, support and influential representation for the local government sector on priority issues.

Core Values To achieve the mission and vision identified, the guiding principle of the Association is to be responsive and supportive to the needs of its members and in doing so the broad values to be applied shall be: • transparency

• honesty

• accountability

• responsiveness

• accessibility

• flexibility

• innovation

Strategic Goals The Association’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 the Association is voluntary and open to all local governments in the Northern Territory. The Association is also able to admit associate members under Clause 6.4 of its Constitution. During 2009–2010 the Association 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 2009 – 2010

During 2009-10, 16 local governments in the Northern Territory were members of the Association including: • 5 municipalities • 11 shires

The Mabunji Aboriginal Resource Centre, based in Borroloola, and the Corporation Limited continued as associate members throughout 2009-10. Both organisations are involved in the delivery of local government-type services.

Member organisations as at 30 June 2010

Alice Springs Town Council (Municipal Council) Local government Barkly Shire Council Local government Council Local government Central Desert Shire Council Local government (Municipal Council) Local government 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 Council Local government West Arnhem Shire Council Local government

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LOCAL GOVERNMENT AREAS IN THE NORTHERN TERRITORY

AS AT 30 JUNE 2010

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EXECUTIVE COMMITTEE MEMBERS 2009/2010 Clause 14.4 of the Constitution requires the Association’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 2010 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 Alderman Jane Clark (Alice Springs Town Council) Executive Members: Alderman Helen Galton (Darwin City Council); Mayor Tony Jack (Roper Gulf Shire); Councillor Donna Iddon (West Arnhem Shire); Mayor Robert MacLeod (City of Palmerston); President Norbert Patrick (Central Desert Shire Council).

Alderman Kerry Moir President of the Association’s Executive Committee 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 has served on many Darwin City Council outside committees including Top End Regional Organisation of

Councils, the NT Regional Development Australia Committee (formerly known as the NT Area Consultative Committee) and the Settlement Planning Committee.

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

Councillor Ray Wooldridge Vice President of the Association’s Executive Committee Representing Shires 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 the Association’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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Alderman Jane Clark Vice President of the Association’s Executive Committee Representing Municipals Jane was elected to the Alice Springs Town Council in May 2004. Jane serves on various council committees including the Environment Advisory Committee and the Alice Springs Solar Cities Board. Jane was elected to the Executive Committee in June 2005 and took over the position of Vice President, Municipals in March 2009. She is a third generation Alice Springs resident and is proprietor of a web site design business.

EXECUTIVE COMMITTEE MEMBERS 2008/2009

Alderman Helen Galton Member of the Association’s Executive Committee Representing Municipals Helen commenced as the appointed Darwin City Council representative on the 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 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 Member of the Association’s Executive Committee 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 board for the Gulf Health Service (which was developed for the Borroloola community to combat chronic diseases) and the former ATSIC Regional Council, IHANT (Indigenous Housing) and played an active part as the chair of the Shire Transitional Committee. 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 residents.

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Mayor Robert Macleod Member of the Association’s Executive Committee 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.

Vice President Tony Boulter Member of the Association’s Executive Committee Representing Shires Tony was elected to the Barkly Shire Council in October 2008. He has lived in Tennant Creek since 1976 where he took up an appointment with the Department of Roads. He became involved in local government and ran for the position of Alderman with the then Tennant Creek Town Council in 1980, continuing in this capacity until 1993 when he resigned for personal reasons.

Tony has been involved with the Tennant Creek and District Show Society Inc for 28 years, 15 of which he was President and 8 years as Vice President, currently holding the position of Public Officer. He has also been a member of the Tennant Creek Rotary Club, the Tennant Creek Golf Club and the Return Service League of Australia.

President Norbert Patrick Member of the Association’s Executive Committee 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.

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ORGANISATIONAL STRUCTURE

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

LGANT Member Councils

Nominate delegates

to

General Meetings

Annual General Meetings

Elect

LGANT Executive Committee

Appoint

CONSULTANT

Accounting & Chief Executive Officer Executive

Payroll Tony Tapsell Assistant

HR Services Manager Policy Manager Transport Development Manager and Corporate & Infrastructure Services

WALGA/IR David Jan Executive Assistant Projects (Western Australian Local Government Association/Industrial Relations) Sustainability Programs Coordinator

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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 The Association offers thanks and acknowledges the assistance provided to it by its five major sponsors in the 2009-2010 year and its minor sponsors of Exeloo, Local Super, Collins Anderson Management 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,

The Association has had a busy and rewarding year in meeting its commitments to its member councils, associate members, the Territory and Australian governments and the Australian Local Government Association.

2010 was a demanding year again for local government with more challenges to come in 2011. For the shires the Territory government’s commitment to improving information and communication technology was a great step forward even though there is still more to do particularly in terms of getting systems operating more effectively in remote areas. For the municipal councils decisions by the Territory government on land availability for housing were welcome.

The decisions of the Territory and Australian governments often have profound impact upon local government operations and throughout the year LGANT and its members attended to some weighty issues with both governments, including:

• obtaining financial commitments from the Territory and Australian governments for Indigenous employment in shires until 30 June 2011

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

• lobbying the Territory government to complete its 2010/2011 budget submission to the Australian government for additional grants for local roads given 8000 kilometres of such roads are scheduled to transfer from the Territory government to local government in years to come

• commencing dialogue on the proposed transfer of airports and barge landings from the Territory government to local government in years to come

• lobbying the Territory government to increase NT operational grants paid to councils for public libraries given the uncertainty over funding arrangements and because current funding agreements are scheduled to cease in June 2011

• the drafting of Local Implementation Plans for ‘growth towns’ on Aboriginal land and the administrative effort that will commence next financial year with their monitoring and reporting

• asking what the Territory government will do with the following matters given local government has provided input:

o elected member allowances

o local government elections and voting systems

o local government procurement

o an employee who can also be a councillor

o local government rates and charges 14 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

o the future of financial sustainability studies of local government following those that have been done for the East and West Arnhem shires

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

• seeing what the Territory government has done

o to secure leases on Aboriginal land for its properties with a view to shires obtaining leases of their own

o to make land available in major centres to ease the burden on housing

• acknowledging the Alice Springs transformation plan for urban Aboriginal living areas and by extension its potential replication in other major Territory centres

• the agreement by the Territory and Australian governments to commit to elected member professional development in conjunction with LGANT

• collaborating with the Territory government to secure funding for asset and financial management for Northern Territory councils under the Australian government’s ‘Local Government Reform Fund’.

LGANT’s commitments to the Australian Local Government Association also entailed dealings on some significant issues such as:

• 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 is once again grateful for the support of member councils in providing input to its work including that which councils provide at LGANT meetings. There is much to plan for and follow up and next financial year will no doubt be important year for a host of developments the likes of which I refer to above.

Kerry Moir President

15 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY STRATEGIC PLAN ACHIEVEMENTS 2009-2010 Key achievements against outcomes for 2009/2010

1.1 Outcome: LGANT is responsive to the identified needs of member councils and provides appropriate support Achievements: Some of the more significant projects LGANT assisted councils with during 2009/2010 included: • climate change risk assessment and adaptation planning with a consortia of shire councils (Tiwi, East and West Arnhem) and (Coomalie, Wagait and Belyuen) • a natural disaster relief recovery agreement (NDRRA) funding submission which was successful for the Barkly Shire and LGANT managed the recovery work on behalf of council for flood damaged roads in the Alpara/Aherrenge region • organising workshops to assist councils develop and implement emergency management recovery plans with support from the Chief Ministers Department and Northern Territory Emergency Services under the Northern Territory Natural Disaster Resilience Program • completing Roads to Recovery projects for the Central Desert Shire including the Laramba access road, Yuendumu West camp and the Six Mile Camp at Ti Tree as well as the Galiwinku main road and Umbakumba Church road for the East Arnhem Shire • completing the Gan Gan access road causeway over the Durabudoi River and in the East Arhnem Shire and the Greenwood floodway in the Barkly Shire • facilitated water and sewage connections for 10 allotments at Yuendumu in the Central Desert Shire • the Wagait Tower Road Project and the Jabiru Drive Road Project (with funding from the Federal Road Safety Black Spot and Roads to Recovery programs) for the Wagait Shire and the West Arnhem Shire • completing maintenance grades on local roads in the Central Desert, Barkly and East Arnhem Shire areas • assisting councils with submissions to the Federal Road Safety Black Spot Program for the 2009/2010 financial year • assisting councils to obtain a certificate of exemption under Section 31 of the Local Government (Accounting) Regulations from the Department of Housing, Local Government and Regional Services (‘the Department’) to allow them to participate in the National Procurement Network for the supply of truck, vans and omnibuses • for shire swimming pools: o the drafting and issue of operating guidelines in remote areas o the provision of fencing and signage following the Royal Life Saving Society of Australia safety audit of remote pools courtesy of funds provided by the Department of Family, Housing, Community Services and Indigenous Affairs (FaHCSIA) • the publication ‘So you want to be on Council?’ was revised and updated for the East Arnhem Shire in March 2010 16 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

• commencing work on a waste management strategy for the MacDonnell Shire • providing industrial relations services on 366 contact occasions to Northern Territory councils courtesy of the West Australian Local Government Association to do with: o unfair dismissals o award interpretation and modernisation o collective agreements o advocacy in the Fair Work Australia Tribunal o staff disciplinary matters o employee remuneration • assisting Barkly and West Arnhem Shires with recruitment of temporary CEOs and Tiwi Shire with its CEO employment contract • assisting Wagait Shire with recruitment of its CEO and employee remuneration issues • facilitating CEO performance reviews for the Victoria Daly and Roper Gulf Shires and Darwin City Council and provided documentation for the performance review of the East Arnhem CEO • completing recruitment action for vacant positions and provided advice on remuneration packages for employees for Mabunji Aboriginal Resource Centre and Nhulunbuy Corporation • assisting Roper Gulf and Victoria Daly Shires with their recruitment advertisements, staff remuneration and employment contracts and Central Desert Shire with its CEO contract • assisting East Arnhem Shire with its recruitment processes and remuneration packages and Darwin City Council with employee issues • assisting CouncilBIZ with employee issues • organising an audit of a contract for the Barkly Shire Council and provided a report to council in May 2010

1.2 Outcome: Model policies required by member council are identified and prioritised for development along with the external policies of the LGANT Achievements: LGANT policies adopted, amended or deleted during the year included: • charging of administrative overheads • Building Code of Australia minimum energy performance requirements • access to taxation receipts • financial reporting and grant acquittals • roads • land use agreements – township leases • Northern Territory planning system • waste management Model policies, principally to do with human resources, were developed and provided to member councils online on: • recruitment processes – employment of volunteers 17 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

• noise mitigation • fraud protection • travel allowances • alcohol and drugs in the workplace • approval of local board members • use of the Internet in the workplace

1.3 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 is a member of ALGA and ALGA is a party to the Inter-Governmental Agreement Establishing Principles Guiding Inter-Governmental Relations on Local Government Matters along with Territory and State governments and the Australian government. The agreement was signed on 21 April 2006 and is due for review in 2011 • LGANT undertook research and commenced drafting a partnership agreement during the year between it and the Territory government

1.4 Outcome: High standards of ethical conduct within local government are maintained Achievements: LGANT undertook many of the issues to do with this area of work by telephone and email. More significant work was undertaken in respect of: • elected member training for the councils below which included sessions on local government codes of conduct: o East Arnhem Shire on 8-9 July 2009 o Victoria Daly Shire on 14 July 2009 o West Arnhem Shire on 10 September 2009 and 15 April 2010 o Litchfield Council on 5 November 2009 • Advice was provided to the Victoria Daly, West Arnhem, Central Desert, Barkly and Tiwi Shires on code of conduct issues

1.5 Outcome: The achievement of best practice in local government in the Northern Territory is maintained Achievements: Apart from issuing information LGANT provides ‘best practice’ examples in local government largely at meetings where presentations are given and which members are encouraged to pursue or learn about and hence it is professional development as well. Presentations were provided to members of the following reference groups: the Finance Reference Group • local government audit committees • financial sustainability of local government • rates impact statements • asset valuations 18 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

the Environment, Transport and Infrastructure Reference Group had presentations on: • emergency management plans • asbestos disposal • minimum energy performance requirements • waste management guidelines (these were adopted by the reference group) • subdivision guidelines • road hierarchies the Human Resources Reference Group • whistle blowers legislation • local government award modernisation • the culture of workplaces and the value of human resources in workplaces • discrimination in the workplace the Governance Reference Group • the development of council by-laws • Australian Bureau of Statistics strategic updates • ‘Closing the Gap and Working Futures’ policies • community engagement and strategic planning • local government annual reports • the Australian Centre of Excellence in Local Government the CEO Forum • local government cost index • financial sustainability • governance assessment toolkits

2.1 Outcome: Member councils engage on important issues affecting local government so that LGANT can fairly represent them to other parties and spheres of government Achievements: The principal means of engagement with member councils is through LGANT and council meetings and especially, Executive, general and reference group meetings. Some of the more important areas for engagement included: • the issues of procurement for local government to the extent that research was completed, a policy adopted and papers prepared for presentation to the Local Government (Administration and Legislation) Committee • assisting the Department with the development of a submission to the Australian government for additional funds for local roads in the Northern Territory to both quantify: o the amount of funds required o the local roads that are to transfer from the Territory government to local government 19 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

• collaborating with the Department to successfully gain funds of $1.3M from the Australian government from its Local Government Reform Fund to improve asset and financial management in local government in the NT • collaborating with the Department to secure nominations for sponsorship of two local government representatives (in the President and Chief Executive Officer of East Arnhem Shire) to the attend the Australia and New Zealand School of Government’s Excellence in Local Government Leadership Program in November 2010 • the steps for advancing constitutional recognition of local government at the March 2010 general meeting and a meeting of the Darwin City Council on 4 May 2010 • outlining capacity issues with the operation of local boards in a meeting with the Deputy Coordinator General, Remote Services Delivery, on 15 March 2010 • assisting with the development of waste management plans particularly for landfill sites • attending meetings of the following councils to advise on LGANT’s actions and issues relevant to the councils: o Tiwi Islands on 29 July 2009 o Coomalie Community Government Council on 15 September 2009 o Roper Gulf Shire on 23 February 2010 o City of Palmerston Council on 6 April 2010 o East and West Arnhem Shire Councils on 12 May 2010 • reaching consensus with the Human Resources Reference Group on transferring long service leave entitlements between local governments and the Territory government so that a submission can be prepared • notifying members of the local government awards at the November 2009 general meeting so they can consider whether or not to participate in them • Mayors and Presidents Forums were convened by LGANT with the following being some of the agenda items: o handling the media – some practical examples o relationships with CEOs – the importance and workings o code of conduct and managing issues amongst councillors o council meetings – some tips for the Presiding member • CEO Forums were convened by LGANT and matters dealt with included: o growth towns and remote service delivery – future directions and responsibilities for shires o Australian Centre of Excellence for Local Government – future directions and responsibilities for all councils o Aboriginal Areas Protection Authority – processes for councils wanting to gain certificates for undertaking work o Local Government Reform Fund – progress with LGANT submission for funds o elected member allowances – progress with the LGANT submission for change o 2010/2011 LGANT budget submission – endorsement of content o road hierarchy methodologies – adopted by councils as a practice for prioritising expenditure o animal management in rural and remote areas – some suggested initiatives o leases on Aboriginal land – proposed approach for shires to take including 20 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

valuations, collection of data about allotments required and the Northern Territory government’s stance on the issue o local government statistical data – what the Australian Bureau of Statistics has to offer o Alice Springs transformation plan – an approach for municipal councils in advancing issues in urban Aboriginal living areas o reference group achievements – a report on work completed and professional development undertaken o elected member training – upskilling council staff to undertake parts of this work • LGANT coordinated with councils and completed submissions to Ministers and departments on: o financial support for local governments to undertake climate change risk assessment initiatives in August 2009 o submission to the Minister for Local Government on the cessation of funding for shire employees transitioned from CDEP in August 2009 o Environmental Protection Agency – environmental impact assessment procedures in the NT in September 2009 o correspondence protocols between local government and the Northern Territory government - letter to the Chief Minister in September 2009 o submission to the Minister for Local Government on funding for the Tiwi Shire in September 2009 o 2010/2011 NT Budget submission in November 2009 o recognition of local government in the Australian constitution through letters and materials provided to the Minister and Shadow Minister for Local Government and the Attorney-General and the Shadow Attorney General in December 2009 o local government elected member allowances in February 2010 o the NT land release strategy particularly in municipal council areas - March 2010 o cultural heritage legislation in March 2010 o Northern Territory government employees who are councillors in March 2010 o progress with the Northern Territory government submission to the Federal government on local roads funding in March 2010 o local government elections review in April 2010 o analysis of grants of shires – to NT Coordinator General in May 2010 o the cessation of funding for Indigenous employees – the Federal Minister for Indigenous Affairs, the Hon Jenny Macklin MP in May 2010 o the Residential Tenancies Act in June 2010 o natural resource management plan for the NT in June 2010 • meetings were held with the Territory Minister for Local Government in July 2009 (the Hon Robert Knight MLA) and February and March 2010 (the Hon Malarndirri McCarthy MLA) and the stages reached on some issues included: o confirming that local governments would be providing services in urban Aboriginal living areas in major towns once issues such as land tenure were resolved o confirming that the Northern Territory government would continue to support the local government reforms it had implemented

21 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

o public housing for local government employees could not be guaranteed as preference would be given to Northern Territory government employees o the problems encountered with the implementation of the Northern Territory government’s information technology solution for shires would be fixed o local government procurement processes are outdated and legislation needs change which will be considered o a scoping study for securing additional funding for local roads in the Northern Territory would be undertaken in time for it to be considered in 2011/12 Federal budget processes o the supply of land for housing and waste management was a problem in many local government areas and would be addressed o more resources are needed for elected member training so that more training can take place o LGANT’s 2010/11 budget submission will be considered and responded to o the legislative changes proposed by LGANT and the Local Government (Administration and Legislation) Advisory Committee for the Local Government Act (and subordinate legislation) would be considered • meetings were held with the Shadow Minister for Local Government, the Hon Willem Westra van Holthe MLA in October 2009 and February 2010 to discuss local government issues and constitutional recognition • a meeting was held with the Member for Nelson, the Hon Gerry Wood MLA in September 2009 to discuss local government issues and constitutional recognition • a meeting was held with the Shadow Parliamentary Secretary for Northern and Remote Australia, Senator Ian McDonald, in January 2010 to discuss local government issues and especially local roads funding • issues brought before the Local Government (Administration and Legislation) Advisory Committee (‘the Committee’) at its meetings on 8 August 2009, 6 May 2010, 12 November 2009 included: o rate exemptions o a councillor who can also be an employee o local government procurement o conditional rating o Local Government Disciplinary Committee o charges under section 157 of the Local Government Act o resources and research for the Committee o the Committee’s governance charter o system of local government; section 7 of the Local Government Act The Committee reviewed its governance arrangements and forwarded minutes of its meetings to the Minister for Local Government.

2.2 Outcome: LGANT facilitates representation by Northern Territory local government on relevant boards and committees Achievements: Throughout the year LGANT managed processes to do with the nomination of representatives from councils to Territory and Australian government committees 22 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY including the: • Animal Welfare Advisory Committee • Darwin Harbour Advisory Committee • Neighbourhood Watch NT Committee • Northern Territory Grants Commission • NT Weeds Advisory Committee • NT Level Crossing Safety Committee • Code of Conduct Disciplinary Committee • National Local Government Drug and Alcohol Advisory Committee • Local Government (Administration and Legislation) Advisory Committee • Local Government (Accounting) Advisory Committee

2.3 Outcome: The interests of Northern Territory local government are promoted at the national level through the Australian Local Government Association Achievements: LGANT’s CEO, President and Vice President participated in the following ALGA meetings: • all general meetings and the annual general meeting • ALGA strategic planning meeting on 17 February 2010 • the National General Assembly of Local Government, 15-17 June 2010 • the Post General Assembly Teleconference 23 July 2009 • the National Local Roads and Transport Congress in Mackay, Queensland, 8-10 November 2009

Outcomes from these meetings and the processes that flow from them included: • the adoption of the ALGA strategic plan and annual budget for 2010/11 • issue of A Ten Point Plan, National Resilience – Local Communities in response to the forthcoming Federal election including calls for: o funding local services to benefit the communities o continued funding of the Regional and Local Community Infrastructure Program o permanent funding of Roads to Recovery o local government as a partner o supporting a referendum on local government o tackling climate change o reforming waste management o enabling local government to deliver essential municipal service to Indigenous communities under the Closing the Gap Initiative o promoting high-speed broadband for all Australians and ensuring least interference with local amenity • issue of The National Roads and Transport Policy Agenda 2010-20 for local government covering issues such as: o national planning o mobility and access in rural and regional Australia o mobility and access in urban Australia 23 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

o road safety o freight o local government capability • participation and reporting on the ALGA Climate Change Leaders Forum following which a draft strategy and discussion paper is being prepared • resolutions to do with population, productivity and participation in local government from councils represented at the National General Assembly of Local Government in June 2010 • the completion of comprehensive research and the development of materials on constitutional recognition of local government • the production of reports to the LGANT Executive and LGANT members on ALGA general meetings • production of the booklet, ‘Women in Politics’ as part of the effort to celebrate the Year of Women in Local government • an extension of funding for Roads To Recovery for a further five years including an extra $50m for all councils across Australia during 2009/10 • notification of communiques arising from Ministerial councils • the issue of the ALGA 2009/10 Federal Budget submission including the provision for services to Indigenous communities • production of the State of the Regions Report 2010-2011 in November 2009 • submissions on local government related matters including: o inquiry into rules governing referendums o the Senate select committee inquiry into the reform of the Australian Federation • policy development and positioning on issues to do with: o the National Broadband Network o digital television switchover o planning reform and urban policy o Australian’s future tax (Henry report) system.

3.1 Outcome: LGANT identifies and responds to the priority 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 attended to was: • the publication and issue of a local government directory in August 2009 and a calendar in January 2010 • a member satisfaction survey in October 2009 with results reported in November 2009 at the general meeting. The results were also used as part of the review of LGANT’s strategic plan for 2010/11 • providing guidelines to assist councils to develop local road network hierarchies as one means of prioritising expenditure on roads • subscribing to the EasyGrants Newsletter which is emailed to member councils • advice to councils on superannuation for elected members • information on the disability parking harmonisation initiative for relevant councils as a 24 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

means of improving consistency in the way in which concessions are issued, permits are designed and the eligibility criteria for disability permits is set • advice to Litchfield Council on place of residence and enrolment on the electoral roll in April 2010 • advice in April 2010 on the roads managed by the Northern Territory government that have been identified as potential roads to be transferred to local government in the future • advice on reviews of local government representation were provided to councils in May 2010 • March 2012 local government elections – Northern Territory Electoral Commission arrangements including timelines and costs - May 2010 • remote Indigenous public internet access projects – funds available for councils – May 2010 • paying the annual Austroads subscription so member councils have access to expertise and publications to assist them in managing their local road networks.

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: • Human Services Training Advisory Council • Remote Service Delivery Board of Management • NT Water Safety Advisory Council • Regional Development Australia Committee (formerly the NT Area Consultative Committee) • Public Library Coordinating Committee • NT Settlement Planning Committee • Road Safety Black Spot Committee • NT Road Safety Coordination Group • Regional Shires Forum • GoNT Committee • NT Population Intelligence Working Group • NT Place Names Committee • Community Safety Working Group • Statehood 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 2009.

LGANT organised (or helped organise) other events and meetings including:

25 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

• CEO forums in August and November 2009, and March and May 2010 • Mayors and Presidents Forums in October and November 2009, and March 2010 • Finance Reference Group in October 2009 and February 2010 • Human Resources Reference Group in July and October 2009, and April 2010 • Environment, Transport and Infrastructure Group in October 2009 and March 2010 • Executive meetings were held monthly except in November 2009 and January 2010 • General meetings were held in November 2009 and March 2010 • Sport and recreation workshop in April 2010 • Teleconference with the Minister for Local Government and Mayors and Presidents to discuss funding for Indigenous employment in June 2010

4.1 Outcome: Plans, systems and processes, financial, human resources and asset management practices are in place and operating effectively Achievements: • the Association implemented InfoXpert, an Electronic Document Records Management System (EDRMS) • LGANT’s information system was maintained by CouncilBIZ • weekly/monthly managers’ and staff meetings were held over the 2009/2010 period • the Association’s Executive Board reviewed LGANT’s strategic plan at a workshop on 2-3 February 2010. The plan and annual budget was adopted by members at the general meeting on 25 March 2010 • financial reports were submitted to each meeting of the Executive and progress reports on the strategic plan were submitted to all but two meetings • one new major sponsorship was secured (Maloney Field Services) and current sponsorships were reaffirmed • performance appraisals were undertaken for six staff members • LGANT’s asset register was undated and computers 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

4.2 Outcome: LGANT promotes its activities to its members and key stakeholders Achievements: • the Association issued media releases and the LGANT President and Vice President - Shires took part in a large number of radio and a few television interviews on local government issues • LGANT’s annual report for the 2008/09 financial year was published in November 2009 • LGANT upgraded its website in June 2010

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• the publication ‘This Week at LGANT’ was revised and the new format released in January 2010. The publication was printed and circulated to member councils and other parties on a fortnightly basis • a President’s report was published in the Local Government Focus newspaper in July 2009 • letters to the Editor, NT News on Federalism in May 2010 and on rates as a tax (not published) in June 2010 • National Press Club speech given by the President of ALGA, Cr Geoff Lake, on 31 March 2010 to launch the national campaign for the recognition of local government in the Australian Constitution

5.1 Outcome: The case for a fair share of funds for local government in the Northern Territory is maintained Achievements: • LGANT put a 2010/2011 budget submission to the NT Treasurer in November 2009 on the funding needs of local government for key areas including: o local roads funding o operational subsidies for public libraries o information systems for shires o waste management • ALGA’s A Ten Point Plan, National Resilience – Local Communities and 2010/2011 Federal budget submission (see Outcome 2.3) presented the case for ongoing funding for local government at the Federal level • letter sent to the Federal Minister for Indigenous Affairs, the Hon Jenny Macklin MP on the cessation of Federal funding for shire employees in May 2010 with the issue resolved until 30 June 2011 following action by the Minister and the Northern Territory government

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010

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 2010 and of the results and cash flows of the Association for the year then ended.

July 2010 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 2010 and of the results and cash flows of the Association for the year then ended.

July 2010 CHIEF EXECUTIVE OFFICER

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29 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

30 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010 2010 2009 $ $ ASSETS Notes Current Assets Cash (2) 5 114 720 4 667 586 Debtors (3) 29 785 121 261 Prepayments 21 518 29 947 5 166 023 4 818 794

Non-Current Assets Motor Vehicles (4) 73 149 91 907 Furniture and Fittings (4) 73 932 61 375 Buildings (4) 2 372 877 2 392 931 2 519 958 2 546 213

Total Assets 7 685 981 7 365 007

LESS LIABILITIES Current Liabilities Creditors 99 863 15 966 Payments Received in Advance (5) 271 614 253 023 Income Deferral (5) 941 119 0 Accruals 16 100 22 502 Loans – Motor Vehicles (6) 0 0 Loans – Building (6) 0 0 Provision – Annual Leave 106 176 87 603 Provision – Long Service Leave 72 277 73 605 Other Current Liabilities 0 0 1 507 149 452 699 Non-current Liabilities Loans – Motor Vehicles (6) 52 547 68 699 Loans – Building (6) 2 100 000 2 055 754 Provision – Long Service Leave 22 741 18 810 Provision –Capital Equipment Purchases 13 000 13 000 Provision –Property, Mobile Equipment, other assets 319 000 159 000 2 507 288 2 315 263

Total Liabilities 4 014 437 2 767 962

NET ASSETS 3 671 544 4 597 045

ACCUMULATED FUNDS Balance at the beginning of the year 4 597 045 10 124 814 To Reserves (160 000) (159 000) Surplus (Deficit) for the year (765 501) (5 368 769) Balance at the end of the year 3 671 544 4 597 045

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OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2010

Notes 2010 2009 $ $ INCOME FROM ORDINARY ACTIVITIES

User Charges and Fees (7) 916 631 1 154 390 Interest 120 473 331 156 Other Revenues from ordinary activities 10 000 12 279 NT Govt Contributions for Operating Purposes (8) 264 818 164 260 Federal Govt Contributions for Operating Purposes (9) 1 430 208 1 513 883

Total Income from ordinary activities 2 742 130 3 175 968

Add Net Profit from sale of assets 682 55 009

Total Income 2 742 812 3 230 977

EXPENDITURE FROM ORDINARY ACTIVITIES

Employee Costs 628 870 799 908 Materials and contracts 2 367 108 7 089 172 Depreciation 63 552 103 552 Other operating expenses (10) 264 210 443 354 Interest Charges 190 430 163 760

Total Expenses from ordinary activities 3 514 170 8 599 746

Add Net Loss on disposal of assets 369 0

Total Expenditure 3 514 539 8 599 746

Total Income 2 742 812 3 230 977 Less Total Expenditure 3 514 539 8 599 746

Surplus (Deficit) for the year from ordinary activities (771 727) (5 368 769) Add Extraordinary Item

Insurance Claim 6 226 0

NET SURPLUS(DEFICIT) FOR THE YEAR (765 501) (5 368 769)

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2010

Cash Flows from operating activities Notes 2010 2009 $ $ Payments to Suppliers (2 281 183) (7 466 795) Payments to Employees (607 694) (862 948) Payment of Interest (146 184) (163 760 Payment of other Expenses (229 558) (409 067) Borrowing Costs (34 652) (34 287) Receipts from members 595 095 592 506 Interest received 56 991 133 544 Interest received for other projects 63 481 197 611 Northern Territory Government 264 818 164 260 Commonwealth Government 1 430 208 1 560 247 Other User Fees and Charges 391 830 571 109 Other Contributions to Projects 0 0 Sponsorship – Association 31 182 29 318 Net Cash Flows used in operating activities (465 666) (5 688 262) Cash flows from Investing Activities Purchase of fixed assets (37 296) (87 413) Proceeds from sale of fixed assets 312 120 618 Net cash Flows used in investing activities (36 984) 33 205 Cash flows from Financing Activities Loans – Parap Building 0 0 Loans – Parap Building Principal Repayments 0 (299 209) Loans - Motor Vehicles 0 73 682 Loans – Motor Vehicles Principal Repayments (16 151) (52 829) Advances Received 18 590 253 023 Income Deferred 941 119 0 Net Cash Flows used in financing activities 943 558 (25 333) Cash flows from Insurance Recoveries Insurance payment – repairs to building 6 226 0 Net Cash Flows from insurance recoveries 0 0

Net Increase/(Decrease) in cash held 447 134 (5 680 390) Cash at the beginning of the year 4 667 586 10 347 975

Cash at the end of the year 5 114 720 4 667 586

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NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 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 2010 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 2009/10 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.

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NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 (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 30 th June 2010 at Westpac Darwin comprised the following: 2010 2009 $ $ LGANT Reserve Term Deposit Account 365 985 280 924 Project Holding Account 2 303 980 1 069 249 Natural Resource Management Account 181 148 25 381 Swimming Pool Term Deposit – Commonwealth Funds 336 108 519 878 Community Infrastructure OIPC Term Deposit Account 226 773 219 877 Roads to Recovery Consultancy Account 0 250 128 Barkly Tablelands – Stewardship for Oil Account 50 752 54 746 Loan Repayment Account 17 323 38 157 Payroll Account 52 489 20 976 Tasks of Opportunity Account 58 375 147 046 Tied Project Holding Account 1 027 417 1 330 364 Operating Account 493 869 710 360 5 114 219 4 667 086 Petty Cash 500 500 5 114 719 4 667 586

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NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 (continued)

3. DEBTORS 2010 2009 $ $ Debtors 29 785 135 709 Provision for Doubtful Debts 0 (14 448) 29 785 121 261 Doubtful Debts from previous financial years were either paid or written off with the latter action following independent advice on the probability of their recovery.

4. FIXED ASSETS 2010 2009 $ $ Motor Vehicles 95 973 95 973 Less Accumulated Depreciation 22 825 4 066 Total Motor Vehicles 73 148 91 907

Furniture, fittings & equipment at cost 220 274 196 477 Less Accumulated Depreciation 146 342 135 102 Total Furniture and Fittings 73 932 61 375

Building – Parap 2 436 279 2 436 279 Less Accumulated Depreciation on fixtures 63 401 43 348 Total Building – Parap 2 372 878 2 392 931

Total Fixed Assets 2 519 958 2 546 213

5 INCOME DEFFERED AND RECEIVED IN ADVANCE 2010 2009 $ $ Federal Assistance Grant – Local Roads Funding 271 614 252 445 MacDonnell Shire 0 578 Elected Member Capacity Building Stage 2 188 219 0 Year of Women in Local Government – Emerging Leaders 90 133 0 Year of Women in Local Government – Event 70 461 0 Binjari Multi Purpose Centre 351 960 0 NT Natural Disaster Resilience Programme 180 346 0 Guidelines Design & Construction of Pools 60 000 0 1 212 733 253 023

6. EXPENDITURE COMMITMENT 2010 2009 $ $ Bank Loan - vehicles not later than 1 year 28 101 20 228 later than 1 year but not later than 2 years 11 723 28 101 later than 2 years but not later than 5 years 17 815 29 538 57 639 77 867 less future interest charge 5 092 9 169 loan liability 52 547 68 698 The break-up of this loan liability is as follows: current liability 25 221 16 151 non current liability 27 326 52 547 52 547 68 698

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NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 (continued)

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 2011 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 loan figure has increased on last financial year due to an interest correction by the bank.

The status of this loan is as follows:

Non current liability 2 100 000

7. USER CHARGES AND FEES $ Subscriptions and Meeting Charges 842 385 Human Resource & Industrial Relations Services 54 192 Project Management and Consultancy 20 054 Total User Charges and Fees 916 631

8. NT GOVERNMENT CONTRIBUTIONS FOR OPERATING PURPOSES $ Transport and Infrastructure 261 503 Corporate Governance 3 315 Total NT Government Contributions 264 818

9. FEDERAL GOVERNMENT CONTRIBUTIONS FOR OPERATING PURPOSES $ Local Roads Funding 1 020 873 Roads to Recovery – LGANT 409 335 Total Federal Government Contributions 1 430 208

10. OTHER OPERATING EXPENSES $ Corporate Governance 144 485 Human Resource and Industrial Relation Services 19 848 Environmental Services 25 150 Project Management and Consultancy (Transport and Infrastructure Services) 74 726 Total Other Operating Expenses 264 209

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NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 (continued)

11. STATEMENT OF CASH FLOWS 2010 2009 $ $ a) Reconciliation of Cash Cash at Bank 5 514 220 4 667 086 Petty Cash Imprest 500 500 5 514 720 4 667 586 b) Reconciliation of Net Cash Used in Operating Activities to Operating Result

Operating result (771 728) (5 368 769) Add/(Subtract) non cash items Depreciation 63 552 103 552 Amortisation 0 0 Interest Adjustment on Commercial Loan 44 246 0 Profit on Sale of Fixed Assets (312) (55 009 ) (664 242) (5 320 226) Add/(Subtract) operating flows Increase/(Decrease) in Trade Creditors, Accruals, Amounts Received in Advance 77 496 (363 998) Increase/(Decrease) in Provisions 21 175 (63 040) (Increase)/Decrease in Debtors 91 476 72 627 (Increase)/Decrease in Prepayments 8 429 (13 625)

Net Cash used in operating activities 465 666 5 688 262

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.

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NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 (continued)

13. UNEXPENDED GRANT MONIES CARRIED FORWARD TO THE 2010/2011 FINANCIAL YEAR The Association has contingent liabilities to repay grants received but not fully expended at year end for projects of $3 293 327. Included in this figure are unexpended grants totaling $1 212 733 received in advance or income deferred until the 2010/2011 financial year.

Opening Movements Closing Balance 1 July Received/ Balance 30 2010 Receivable Expended June 2010 $ $ $ $ Local Roads Funding 664013 768428 426404 1006037 Local Roads Funding received in advance (refer note 5) 252445 271614 252445 271614 Roads to Recovery - LGANT 28533 409335 377242 60626 Yuendumu Subdivision SPG NT Government 174608 110032 284640 0 Intervention Programmes (includes 0708 interest 48876) 58602 0 58602 0 Swimming Pool Funds - Commonwealth 525768 12278 199668 338378 Swimming Pool Funds - NT Government 0 150000 150000 0 Roads Alliance 12416 0 0 12416 Community Services Programme 217384 6896 47478 176802 Local Adaptation Pathways Programme - Climate Change 280000 6767 177909 108858 Sustainability Programmes Co-ordinator 10490 0 3780 6710 Envirofunds - Commonwealth Government Project 9402 0 9402 0 Stewardship - Barkley Waste Oil Project 54007 1245 0 55252 Local government Reform - Rates Impact Statements 113212 0 46888 66324 Governance Resource Kit 150712 0 17300 133412 Elected Member Capacity Building Stage 1 150000 0 34221 115779 Grant income deferred to 2010/11 (refer note 5) Elected Member Capacity Building Stage 2 0 188429 210 188219 Year of Women in Local Government-Emerging Leaders 0 93133 3000 90133 Year of Women in Local Government - Event 0 70566 105 70461 Guidelines Design & construction of Pools 0 60000 0 60000 NT Natural Disaster Resilience Programme 0 181818 1472 180346 Binjari Multi Purpose Building Fit-out 0 50000 50000 Binjari Multi Purpose Building ICSI 0 130000 130000 Binjari Multi Purpose Building LPF 0 171960 171960 TOTAL UNEXPENDED GRANTS 2701592 2682501 2090766 3293327

14. OTHER COMMITTED FUNDS CARRIED FORWARD TO THE 2009/2010 FINANCIAL YEAR

Movements Opening Closing Balance 1 Balance 30 July 2010 Received/Receivable Expended June 2010 $ $ $ $ Project Management and Consultancy 1125819 35041 504221 656647 Enviromental Management Consultancy 46296 20054 7780 58570 Human Resource and Industrial Relations Services 31961 54192 106415 -20262 Asset Integration Management 40500 0 40500 0 Information Technology and Multi-media Servicers 18339 0 18339 0 TOTAL OTHER COMMITTED FUNDS 1262915 109287 677255 694955

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NOTES TO, AND FORMING PART OF, THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 (continued)

BUDGET COMPARISON REPORT AS AT 30 JUNE 2010 INCOME

Comparison of Original Actual Income to Actual to Original Actual Income DIRECTORATE Budget 30/6/10 Budget over(under) to 30/6/09 $ $ $ $ Office of the Chief Executive 897000 919599 22599 1339089 People and Development 120000 54192 -65808 34231 Technical and Environmental Services 1155000 1775246 620246 2450508

TOTAL INCOME 2172000 2749037 577037 3823828

EXPENDITURE

Actual Comparison of Actual Original Expenditure to Actual to Original Expenditure to DIRECTORATE Budget 30/6/10 Budget over(under) 30/6/09 $ $ $ $ Office of the Chief Executive 827000 799473 -27527 1443437 People and Development 190000 284416 94416 242596 Technical and Environmental Services 1374000 2484695 1110695 7872330

TOTAL EXPENDITURE 2391000 3568584 1177584 9558363

Total income and expenditure figures include capital income and expenditure and internal transfers during the 2009/2010 financial year. See notes 13 and 14 on funds carried forward to the 2010/2011 financial year Notes to Budget Comparison Report:

Office of the Chief Executive Income and Expenditure: There is minimal difference between the actuals and budgets for the 2009/2010 financial year

People and Development Income: Grant funding 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 has been transferred to liabilities as income deferred This income will be recognised in the 2010/2011 operational statement to match the expenditure. Expenditure: Expenditure in line with project funding carried forward from the 08/09 financial year

Technical and Environmental Services Income: Additional funding was received for specific projects identified during the 2009/10 financial year Grant funding 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 has been transferred to liabilities as income deferred This income will be recognised in the 2010/2011 operational statement to match the expenditure. Expenditure: Expenditure in line with project funding carried forward from the 08/09 financial year. Other expenditure matches increased revenue. Other unexpended funds to be carried forward to the 09/10 financial year

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41 LOCAL GOVERNMENT ASSOCIATION OF THE NORTHERN TERRITORY

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