Annual Report 2017-18 Download

FINANCIAL REPORT Page Certification of the Financial Statements 3 Victorian Auditor-General's Office Report 4

Financial Statements ANNUAL REPORT 2017-18 Comprehensive Income Statement 6 Balance Sheet 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Statement of Capital Works 10

Overview Introduction 11 Statement of compliance 11 Significant accounting policies 11

Notes to Financial Statements Note 1 Performance against budget 12 1.1. Income and expenditure 12 1.2. Capital Works 13 Note 2 Funding for the delivery of our services 14 2.1. User fees and charges 14 2.2. Grants 14 2.3. Contributions 15 2.4. Other income 15 Note 3 The cost of delivering services 16 3.1. Employee costs 16 3.2. Materials and services 16 3.3. Depreciation and amortisation 17 3.4. Borrowing costs 17 3.5. Net loss on disposal of property, plant and equipment 17 3.6. Other expenses 17 Note 4 Our financial position 18 4.1. Financial assets 18 4.2. Non-financial assets 19 4.3. Payables 19 4.4. Interest bearing liabilities 19 4.5. Provisions 21 4.6. Financing arrangements 22 4.7. Commitments 23 Note 5 Assets we manage 24 5.1. Property, infrastructure, plant and equipment 24 Note 6 People and relationships 28 6.1. Board and key management remuneration 28 6.2. Related party disclosure 30 Note 7 Managing uncertainties 31 7.1. Contingent assets and liabilities 31 7.2. Change in accounting standards 31 7.3. Financial instruments 32 7.4. Fair value measurement 34 7.5. Events occurring after balance date 36 FINANCIAL REPORT Pagep1 Note 8 Other matters 36

ACKNOWLEDGEMENT OF COUNTRY

West Gippsland Libraries acknowledges the Traditional Owners of the lands our libraries serve: the Boon wurrung, Wurundjeri, and Taungurung peoples of the Kulin nation, and the Brataualung people of the GunaiKurnai nation. We pay our respects to Elders past and present.

OUR COMMITMENT TO CHILD SAFETY

West Gippsland Libraries is committed to the safety and wellbeing of all children and young people.

SPECIAL THANKS

The photos within this Report were taken by local West Gippsland photographer Lauren Murphy.

Lauren took the brief - that we wanted to show how libraries are first and foremost about people - and worked with us to create something that is unlike anything we've ever produced.

West Gippsland Libraries would sincerely like to thank Lauren for her amazing work. TABLE OF CONTENTS

INTRODUCTION

Messages from our Chair and CEO 4-5 Vision, Mission and Values 6-7 Our Year in Numbers 9 Board 11 Community Advisory Committee 13 People 15 Celebrating our Success 16-17

STRATEGIC ACHIEVEMENTS

Enhancing our library service models to better meet the needs of the community 18-19

Enable and facilitate new learning opportunities led by the community 20-21

Improve our engagement with early years and young people 22-23

Explore new and renovated spaces that reflect modern learning approaches 24-25

Test alternative engagement approaches to promote true inclusivity and accessibility 26-27

Support our community to explore and learn about new and emerging trends 28-29

Promote a culture that encourages flexibility, exploration and personal growth 30-31

Explore diverse revenue opportunities to complement our service 32-33

LIBRARY PERFORMANCE

Statistics 37-41 Business plan 43 Governance 45

FINANCIAL STATEMENTS

Statements 47-86

p3 CR GEOFF ELLIS Chair of the Board

The theme of 2017-18 has been change that leads to growth in library usage.

Our increased investment in e-resources and fresh technology reflects commitment to the future while we ensure continued amenity and inclusion for everyone in our community.

Our libraries provide essential connectivity and social interaction as well as equitable access to information and lifelong learning.

I look forward to seeing our librarians continue their great work.

p4 MESSAGES FROM OUR CHAIR AND CEO

LEANNE WILLIAMS Chief Executive Officer

We are well on the path to meet the strategic objectives in our Library Plan.

This reflects the endeavour of the entire organisation to challenge our assumptions about what a library service can – and should – be to our communities.

This year has positioned us to enter 2018-19 in a strong and healthy position. This means better and more relevant library services for both new and existing users across Bass Coast, Baw Baw and South Gippsland Shires.

We are really excited by what the team has planned for this coming year and I look forward to sharing it with you along the way.

p5 OUR VISION

We build knowledge and skills that strengthen our communities

DISCOVER CONNECT ENJOY

Our libraries We support Our libraries are the centre everyone in our are creative and for reading and community innovative learning

p6 OUR MISSION AND VALUES

We provide library services, programs and collections that are accessible and equitable. We will create partnerships to improve our service, share our knowledge and facilitate interaction within our communities. We will continuously improve our value to the community.

ACCOUNTABLE COLLABORATION EQUITABLE

We are accountable for We work in collabora- We provide equitable high standards of pro- tion with our community, and trusted access to fessionalism, customer stakeholders and the library information and autho- service and integrity sector to foster innovation ritative resources. and ensure we remain relevant.

UNIVERSAL KNOWLEDGE

We are universally acces- We build knowledge and sible centres for infor- skills that strengthen our mation, reading, learning communities. and enjoyment.

p7 p8 OUR 2017-18 BY THE NUMBERS

p9 p10 OUR BOARD

West Gippsland Libraries is established under section 196 of the Local Government Act 1989 as a separate entity to that of the Council’s that have established it.

West Gippsland Libraries is governed by a Board that is made up of six representatives, two from each Shire, comprising one Councillor and one Senior Officer representative.

The Board met on six occasions during 2017.18 at alternating locations across the region.

In December 2017 the Board voted to elect Cr. Geoff Ellis (pictured) to the position of Chair and Cr. Alyson Skinner to Deputy Chair.

The Board provides essential guidance and governance to West Gippsland Libraries, offering invaluable direction and promotion of our services to best meet the needs of the communities they represent.

BASS COAST BAW BAW SOUTH GIPPSLAND SHIRE COUNCIL SHIRE COUNCIL SHIRE COUNCIL

Cr Geoff Ellis Cr Mikaela Power Cr Meg Edwards (whole year) (1/7/17 to 1/12/17) (1/7/17 to 31/8/17)

David Elder Cr Keith Cook Cr Alyson Skinner (whole year) (1/12/17 to 30/6/18) (1/9/17 to 30/6/18)

Malcolm Lewis Faith Page (1/7/17 to 30/11/17) (whole year)

Mark Dupe (1/12/17 to 20/6/18)

p11 p12 OUR COMMUNITY ADVISORY COMMITTEE

West Gippsland Libraries has a Community Advisory Committee (CAC) that provides guidance to the Board on Library service matters.

The purpose of the CAC is to:

• Provide advice to the Board and Chief Executive Officer (CEO) on matters or projects that fall within the CAC objectives. • Seek advice from the Board on the strategic direction of West Gippsland Libraries. • Promote West Gippsland Libraries to members of the community.

The CAC, Board, and member Councils are committed to:

• Improving the quality of the library service for residents of the Region. • Meeting the needs and interests of the users/potential users of the service. • Achieving the best possible standard of service. • Communicating effectively, supporting each other and working in a partnership based on mutual respect. • Recognising the vital role each party plays and their reliance upon each other in meeting service objectives.

BASS COAST BAW BAW SOUTH GIPPSLAND REGION REGION REGION

Nola Thorpe David Lyons Christine Kemper (whole year) (whole year) (whole year)

Mary Schooneveldt Gordon Dadswell Christine McKinlay (whole year) (whole year) (appointed 2/3/18)

Holly Perriam (appointed 29/6/18)

p13 p14 OUR PEOPLE

2016-17 2017-18 West Gippsland Libra- Full time 40.49 39.7 ries employs a team of equivalent full time, part time and casual staff across three Full time 9 10 Shire regions and 12 locations. Part time 51 51

Casual 22 20

Below is the governance and organisational structure

p15 CELEBRATING OUR SUCCESS

Pictured is our Librarian This year West Gippsland Julie-Anne acting out this Libraries had a branding years National Simultaneous face lift. We ran a number Storytime book Hickory Dickory of promotional activities to Dash written by Tony Wilson, attract new members to join illustrated by Laura Wood and our libraries and get our new published by Scholastic. brand out into the community.

West Gippsland Libraries took We hosted two visits from the library to the train platform the fabulous Judy Nunn at Warragul Station early one (pictured with our CEO Leanne October morning to promote Williams). Judy spoke about her the delights of BorrowBox to latest book ‘Sanctuary’ to big train commuters. audiences at Warragul Library and the Cowes Cultural Centre.

This display featured in The Friends of Corner Inlet Inverloch library Library Lovers Libraries hosted a very special Day in February. Staff couldn’t Jane Austen-themed event bring themselves to take it as part of the Fish Creek Tea down. Cosy Festival. Actress Lise Rogers provided a delightful performance.

Reader development programs A very big well done to Gemma include lunch time book chats. for being the first child in our Pictured is Foster library region to graduate from the patrons enjoying hearing from 1000 Books Before School Margaret and Julie talk about program. Gemma is a regular their latest reads and share library visitor some of their own.

p16 CELEBRATING OUR SUCCESS

The Warragul Library hosted The Friends of Corner Inlet amazing little yogis for a Libraries hosted a book sale at special school holiday yoga the Foster War Memorial Arts practice for kids with Nourish Centre in January this year. n Flourish Yoga, Birthing & There was a great selection Beyond of books on offer at very reasonable prices.

Author Katherine Boland We celebrated Book Week shared the stories behind in August 2017. Our young her latest book, ‘Hippy Days, patrons across all branches Arabian Nights’ at both celebrated by wearing their Warragul and Phillip Island favourite book-themed outfit Library in November 2017. to Story Time sessions.

The Friends of Inverloch Warragul Library partnered Library hosted author Jock with The Hobby Bastion to Serong. The evening featured host a unique event for young Jock talking about his book people that explored the ‘Quota: The Rules of Backyard world of tabletop war-gaming, Cricket’ and his exciting new board gaming and trading card novel ‘On the Java Ridge’. gaming.

This year West Gippsland Our Manga drawing workshop Libraries subscribed to was a huge success at Drouin Universal Class so members Library in April 2018. Tickets can enjoy the amazing for this event sold out. The database of courses. Universal program engaged young Class gives members access attendees to learn manga to over 500 online courses. drawing skills with a pro tutor.

p17 STRATEGY ONE ENHANCE OUR LIBRARY SERVICE MODELS TO BETTER MEET THE NEEDS OF OUR COMMUNITY

• Drouin Library received an increase of five operating hours in August 2017.

• Additional hours featured Monday mornings and an additional half hour on Wednesdays and Thursdays. This achievement was made possible by Baw Baw Shire Council at a cost of $13,650 per annum.

• We recognise that Drouin Library usage continues to grow as does the population. 2018.19 is focusing on redeveloping the physical space at Drouin Library to provide a new meeting room, young people space that focuses on technology and an outdoor deck area. Once these works are completed we will again review the opening hours to ensure they are meeting the needs of our community.

• Trafalgar received an additional two hours per week to deliver a baby rhyme time program. This program is delivered on Fridays when the mobile library is visiting.

p18 IN PROGRESS

A pilot is underway of a new tablet that Pilot a roaming customer service integrates with the Library model Management System.

Deploy modern mobile library A review is being undertaken that services. explores usage of the service.

Review opening hours across all sites to assess if we are Sustainable ways of enhancing the accommodating the needs of our service hours is being developed. community

p19 STRATEGY TWO ENABLE AND FACILITATE NEW LEARNING OPPORTUNITIES LED BY THE COMMUNITY

This year featured a number of community led programs that partnered with our libraries.

The Phillip Island Whale Festival was run by volunteers and the festival included a Whale Story Time and craft activity.

Mirboo North Library held a Yoga for Kids session run by volunteers.

Warragul Library hosted local business Hobby Bastion for a table top gaming day with another session included in the Meet Up 18 festival scheduled for September 2018.

Warragul Library also hosted local business Industry Studios for a special dance class.

p20 IN PROGRESS

A festival for young people is scheduled Pilot a regional learning festival for the 1st to 17th September 2018 called Meet Up 18.

As part of the Meet Up 18 festival, new Identify opportunities for sim- methods for taking bookings, promoting plifying the events process. events and analysing the successes are being tested.

p21 IN PROGRESS

A festival for young people is scheduled for the 1st to 17th September 2018 called Meet Up 18. As part of the Better understand and address festival, a detailed review will be un- the drop off of young people who dertaken to capture attendee’s details previously use the library and learn about the events they like. A new website and brand that specifically targets the 12 to 17 age group is also being developed.

p22 STRATEGY THREE IMPROVE OUR ENGAGEMENT WITH EARLY YEARS AND YOUNG PEOPLE

This year we continued to enhance our early years outreach programs. Schools were specifically targeted this year to build stronger relationships with.

This year there were 50% more school sessions held in Bass Coast Shire than the prior year that resulted in 191 attendees.

Baw Baw Shire had 100% increase in the number of outreach sessions with 385 attendees.

South Gippsland Shire had a 400% increase in the number of sessions that resulted in 942 total attendees.

With 100% of the host schools inviting us back, the outreach focus this year was highly successful.

p23 IN PROGRESS

Develop a renewal plan for dyna- To be developed in 2018.19. mic library furniture.

p24 STRATEGY FOUR EXPLORE NEW AND RENOVATED SPACES THAT REFLECT MODERN LEARNING APPROACHES

This year featured a number of modern design concepts that were created including a co-working space, temporary Korumburra Library and Foster open access library.

The Foster concept was included in a grant application for the Living Libraries infrastructure fund.

p25 p26 STRATEGY FIVE TEST ALTERNATIVE ENGAGEMENT APPROACHES TO PROMOTE TRUE INCLUSIVITY AND ACCESSIBILITY

A review of the West Gippsland Libraries website was undertaken during the year to make it modern and accessible.

A plan was developed and the major initiative to be funded in the 2018.19 Annual Budget is the website redevelopment.

The redevelopment of the website was supported by the Board at the May 2018 Board meeting and the website redevelopment will take place during quarters two and three of 2018.19.

Another action delivered this year was the enhancement of social media reach of West Gippsland Libraries.

At the start of the financial year the Facebook page had 1,554 followers.

As at 30 June 2018 the total followers had increased to 1,811, an increase of 257 or 16.5%. The Facebook page average weekly engagement was 329 and the average weekly reach was 4,100.

The enhancement was attributed to the re-brand of West Gippsland libraries and new logo to reflect a modern and vibrant library service.

IN PROGRESS

Go above and beyond to Ongoing. Research and piloting is engage with our missing de- currently underway on how best to mographics engage with our patrons.

p27 p28 STRATEGY SIX SUPPORT OUR COMMUNITY TO EXPLORE AND LEARN ABOUT NEW AND EMERGING TRENDS

Highlights of the year included the installation of the NBN across the network and building a content creation station that supports gaming and other creative programs. New technology integrated into the programs included Stop Motion and Green Screen as part of the kids school holiday programs.

IN PROGRESS

Integrate new technology into Ongoing our programs.

p29 STRATEGY SEVEN PROMOTE A CULTURE THAT ENCOURAGES FLEXIBILITY, EXPLORATION AND PERSONAL GROWTH

A significant achievement this year was the implementation of a cloud- based rostering system called Deputy.

This has taken West Gippsland Libraries from a manual and slow paper based rostering and timesheet process to an agile, fast and modern cloud- based solution.

Another feature of the system is that staff can now see who they are working with at any location, tasks can be created, assigned and tracked and organisational policies and procedures are communicated and accepted via the Deputy newsfeed.

A review of the Staff Code of Conduct was also completed that now includes West Gippsland Libraries child safety commitment and refreshed language to reflect our values and modern direction. This was communicated to staff via the Deputy newsfeed.

IN PROGRESS

Pilot flexible cloud based em- This will be explored during ployee management systems 2018.19. to support our people. A new management position (Manager Organisational Develop- ment) was created at the start of the year that provides a dedicated resource for human resources, risk and occupational health and safety. Keep our people safe. A key project in this area is the implementation of a cloud based solution called DoneSafe. This system records all incidents, risk assessments, workplace inspec- tions and WorkCover. At the end of the financial year this system was partly implemented.

p30 p31 STRATEGY EIGHT EXPLORE DIVERSE REVENUE OPPORTUNITIES TO COMPLEMENT OUR SERVICE

A highlight this year as part of West Gippsland Libraries strategy to explore diverse revenue opportunities was receiving a grant from Fonterra of $2,000 to promote early years literacy.

This grant will provide new babies born in the West Gippsland Libraries region with a board book called ‘Moo’ written by Alison Lester and will support promotional story time sessions that will be delivered in Spring 2018.

p32 IN PROGRESS

Explore opportunities for funding value adding Ongoing services. Seek alternative revenue opportunities to support our Ongoing projects and programs.

p33 p34 LIBRARY PERFORMANCE

p35 p36 Comparative Performance Summary July 2013 – June 2018

2013/14 2014/15 2015/16 2016/17 2017/18 Membership and Visits

Members 38,207 41,326 42,293 42,336 40,404

New Members 7,787 7,271 6,063 6,003 5,946 Total Number of Visits 537,351 579,324 592,175 585,995 567,897 Visits per Member 14.06 14.02 14.00 13.84 14.06 Visits per Capita 5.23 5.56 5.61 5.51 4.99 Total Region Population (A) 102,777 104,145 105,505 106,377 113,711 Total Open Hours per Week @ All Service Points (B) 400.0 399.0 396.75 397.75 402.75 Total EFT Staff 35.10 36.97 40.89 40.49 39.70

Total Circulation (Includes e-Library Renewals) 826,528 849,053 855,556 830,163 846,239

Total e-Resource circulation 26,039 27,949 37,883 46,757 64,675 e-Library Renewals 45,401 *44,649 51,988 53,149 58,784 e-Library Renewals as % of Total Circulation 5.49% 5.69% 6.08% 6.40% 6.95% Reservations (Includes e-Library Holds) 182,319 190,437 197,813 189,881 196,987 e-Library Holds 111,384 122,184 131,697 130,350 140,320 e-Library Holds as % of Reservations 61.09% 64.16% 66.58% 68.65% 71.23% e-Library Access (C) 299,090 301,380 206,077 208,426 202,150 Online Library Databases 58,180 51,947 51,508 58,881 29,138 New Purchases (physical items) 23,341 17,303 18,456 19,687 19,704 Program attendees 29,091 38,040 40,783 41,933 45,885 Wifi users (D) - - 25,579 30,231 32,691 Public PC sessions 58,677 66,366 65,179 65,080 60,506 Game console sessions - 2,448 2,314 2,448 3,622 Overdue Notices 29,054 30,304 31,532 29,204 27,989 Loans per Capita 8.04 8.15 8.11 7.80 7.44 Loans per Member 21.63 20.55 20.23 19.61 20.94 Loans per Visit 1.54 1.47 1.46 1.42 1.49 Loans per Open Hour 39.74 40.92 41.47 40.14 40.41 Reservations as % of Loans 22.06% 22.43% 23.12% 22.87% 23.28% Overdue Notices as % of Loans 3.52% 3.65% 3.69% 3.52% 3.31%

Notes: A) Population statistics from ERP (released April 2018) B) Includes NDSC hours C) From January 2014 to February 2015 external and internal network changes resulted in overcounting of sessions. *Figure updated p37 D) Aerohive Wifi Network installed at All Branches commencing February 2015. p38 Visitation statistics July 2014 – June 2018

Shire Branch 2014/15 2015/16 2016/17 2017/18 Bass Coast Shire Inverloch 71,991 72,742 67,264 64,232

Phillip Island 59,100 62,767 64,396 64,362

South Coast Mobile 6,119 6,439 5,379 5,657 Wonthaggi 142,638 147,195 146,039 138,294

Totals 279,848 289,143 283,078 272,545 Baw Baw Shire Northern Mobile 16,112 16,675 16,413 16,441

Drouin 38,876 38,531 37,433 38,102 Neerim South 7,948 7,882 6,955 3,265 Noojee 728 - - - Warragul 104,701 111,324 114,563 113,168 Totals 168,365 174,412 175,364 170,976 South Gippsland Shire Foster 20,629 19,149 19,096 18,349

Korumburra 23,677 25,451 24,812 24,612

Leongatha 58,633 58,343 58,514 55,218

Mirboo North 18,853 17,001 17,326 18,487 Poowong 6,565 7,049 5,696 5,351 Northern Mobile 559 430 465 661 (Nyora Stop) South Coast Mobile 1,922 1,712 1,644 1,506 Totals 130,838 129,135 127,553 124,187 Regional Support Centre - - - 189 Grand Totals 579,051 592,690 585,995 567,897

Notes:

15th January 2014 - 19th February 2014 - Northern Mobile (including Nyora stop) Thermal Counter NOT operating. 20th November 2014 - 19th December 2014 - Warragul Library closed due to a fire. 24th June 2015 - Noojee Library closed 1st April 2016 - 3rd May 2016 - South Coast Mobile, Bass Coast Shire Mobile & Nyora - South Coast Mobile off the road. Small van used at sites for circulations & holds. August 2015 - May 2016 - Phillip Island thermal counter resulted in under counting the number of visits for this period. Corrected figures for the period were added retrospectively in September 2016 South Coast Mobile - No Library visits 4th January 2017 unitil 8th February 2017 - Faulty Thermal counter power injector. February 2017 - May 2017 - Neerim South Library (NS) main door access ramp closed off due to major renovations. Regional Support Centre visits are meeting room hire attendees

p39 p40 Circulation Statistics July 2014 – June 2018

Shire Branch 2014/15 2015/16 2016/17 2017/18 Bass Coast Shire Inverloch 71,993 67,467 60,935 63,702 Phillip Island 67,744 72,572 77,664 79,421 South Coast Mobile 20,278 18,139 17,808 16,855 Wonthaggi 140,399 139,582 127,634 119,057 Totals 300,414 297,760 284,041 279,035 Baw Baw Shire Northern Mobile 49,583 48,986 48,055 43,879 Drouin 68,174 63,479 61,940 66,146

Neerim South 9,308 10,909 7,579 6,407 Noojee 773 9 - - Warragul 161,669 173,994 170,109 172,587 Totals 289,507 297,377 287,683 289,019 South Gippsland Shire Foster 37,163 35,978 34,421 35,088 Korumburra 39,435 41,993 40,127 39,256 Leongatha 102,523 98,861 92,943 92,914 Mirboo North 27,836 25,636 22,782 24,370 Poowong 9,012 8,160 9,755 10,584 Northern Mobile 2,698 1,224 1,280 1,727 (Nyora Stop) South Coast Mobile 6,593 5,755 5,815 5,051 Totals 225,260 217,547 207,123 208,990 Regional Support Centre 5,923 4,989 4,559 4,520

eResources (eAudiobooks & eBooks) 27,949 29,460 46,757 64,675 Grand Totals 849,053 855,556 830,163 846,239

Notes : Noojee Library closed June 30th 2015. Neerim South Library (NS) main door access ramp closed off due to major renovations February 2017 - May 2017

p41 p42 BUSINESS PLAN

West Gippsland Libraries operates in accordance with the provisions of the Local Government Act 1989, and a range of legislative and regulatory frameworks.

The Corporation also acts in accordance with the Regional Library Agreement (2014). The Corpora- tion will therefore:

• Meet the legislative and regulatory requirements of a Regional Library Corporation • Deliver organisational financial accountability • Demonstrate good governance • Advocate and lobby for the recognition of the importance of library service funding at a local and state government level • Maintain and enhance efficiencies in corporate support services, including enhanced electronic service delivery • Effectively manage staff resources across eleven static libraries, two mobile library services, three mobile library depots and the Regional Support Centre • Annually review the Corporation’s 4 Year Financial Plan and refine the 10 Year Long Term Fi- nancial Plan • Provide the financial capacity to ensure that new infrastructure and technology can be implemented, delivering the best result for each dollar to be expended • Act in accordance with the Enterprise Agreement 2017-2020 • Brief new Board members as and when required • Review Corporation Strategic Plans: • Marketing, Collection, Digital and Early Years • Become a more sustainable organisation, reviewing mobile services, reviewing debt recovery, local laws, loan commitments, Friends of Library support and, staffing structures • Comply with statutory and good governance requirements by reporting and preparing regular financial statements • Enter into funding Agreements with the State Government that enhance library services for West Gippsland users • Give priority to improving Occupational Health and Safety, region wide • Obtain access to an expert Copyright resource • Improve reporting processes to ensure knowledgeable staff and Board members • Provide support to small and emerging businesses

p43 p44 GOVERNANCE

EQUAL EMPLOYMENT OPPORTUNITY West Gippsland Libraries continues to have a strong focus on equal employment opportunity with measures in place to ensure that the workplace is free of discrimination and harassment. No com- plaints have been lodged with the Equal Opportunity Commission about the Corporation’s activities.

FREEDOM OF INFORMATION The public has the right under the FOI Act to apply for access to Corporation information, including viewing documents and/or obtaining personal copies. Applicants dissatisfied with an FOI decision have the opportunity to apply for a review by the CEO, independent of the FOI decision-maker. No requests were received during 2017-18. In addition the Corporation makes available the required documentation pursuant to the Local Government Act 1989.

INFORMATION PRIVACY The primary legislative obligations applying to the Corporation’s treatment of personal information are contained in the Victorian Government’s Privacy and Data Protection Act 2014. The legislation prescribes a number of Information Privacy Principles that the Corporation is required to comply with to promote and ensure the fair and reasonable collection and handling of personal and health information. West Gippsland Libraries will continue to comply with the privacy principles contained in the Act.

PROTECTED DISCLOSURES ACT The purpose of the Protected Disclosures Act 2012 is to encourage and facilitate the making of disclosures in relation to the improper conduct of Council and its employees and to provide protection for persons making disclosures against detrimental action. The Corporation fully supports the Act, having a high regard for transparency and accountability. In accordance with Section 70 of the Protected Disclosure Act, the following information is provided: a) Information about how to access the Protected Disclosure Procedures document. The procedures are available by request. b) The number of disclosures made to the Corporation and notified to the IBAC for assessment. There were no disclosures made to the Corporation during the period of 1 July 2017 and 30 June 2018.

INSURANCE West Gippsland Libraries has placed its required insurance policies with the Municipal Association of Victoria’s Liability Mutal Insurance. As an agent for the Victorian WorkCover Authority, and as required by the Accident Compensation Act 1985, the Corporation placed its workers compensation insurance needs with Gallagher Bassett Services, Workers Compensation Vic Pty Ltd.

p45 p46 FINANCIAL STATEMENTS

p47 p49

Independent Auditor’s Report To the Board Members of West Gippsland Regional Library Corporation

pinion I have audited the financial report of West Gippsland Regional Library Corporation (the corporation) which comprises the:

• balance sheet as at 30 June 2018 • comprehensive income statement for the year then ended • statement of changes in equity for the year then ended • statement of cash flows for the year then ended • notes to the financial statements, including significant accounting policies • certification of the financial report. In my opinion the financial report presents fairly, in all material respects, the financial position of the corporation as at 30 June 2018 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 6 of the Local Government Act 1989 and applicable Australian Accounting Standards.

sis or I have conducted my audit in accordance with the Audit Act 1994 which incorporates the pinion Australian Auditing Standards. I further describe my responsibilities under that Act and those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. My independence is established by the Constitution Act 1975. My staff and I are independent of the corporation in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Victoria. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

ord The Board Members of the corporation are responsible for the preparation and fair eers’ presentation of the financial report in accordance with Australian Accounting Standards and responsiiities the Local Government Act 1989, and for such internal control as the Board Members or te determine is necessary to enable the preparation and fair presentation of a financial report inni that is free from material misstatement, whether due to fraud or error. report In preparing the financial report, the Board Members are responsible for assessing the corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is inappropriate to do so.

p50

Independent Auditor’s Report To the Board Members of West Gippsland Regional Library Corporation

pinion I have audited the financial report of West Gippsland Regional Library Corporation (the corporation) which comprises the:

p51

COMPREHENSIVE INCOME

oinion he ris of not detecting a aterial isstateent resulting fro fraud is EXPENSES Employee Costs 3.1 3,617,633 3,569,670 higher than for one resulting fro error, as fraud ay inole collusion, forgery, Materials and services 3.2 748,716 789,768 intentional oissions, isreresentations, or the oerride of internal control Depreciation & Amortisation 3.3 762,652 623,488 • obtain an understanding of internal control releant to the audit in order to design Borrowing Costs 3.4 102,922 106,038 audit rocedures that are aroriate in the circustances, but not for the urose Net loss on disposal of property, plant and equipment 3.5 - 4,339 of eressing an oinion on the effectieness of the cororation’s internal control Other Expenses 3.6 381,303 365,914 • ealuate the aroriateness of accounting olicies used and the reasonableness of accounting estiates and related disclosures ade by the Board ebers TOTAL EXPENSES 5,613,226 5,459,217 • conclude on the aroriateness of the Board ebers’ use of the going concern basis of accounting and, based on the audit eidence obtained, hether a aterial SURPLUS FOR THE YEAR 371,273 430,378 uncertainty eists related to eents or conditions that ay cast significant doubt on the cororation’s ability to continue as a going concern. If I conclude that a material TOTAL COMPREHENSIVE RESULT 371,273 430,378 uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial reort or, if such disclosures are inadeuate, to The above comprehensive income statement should be read with the accompanying notes. odify y oinion y conclusions are based on the audit eidence obtained u to the date of my auditor’s report. However, future events or conditions may cause the cororation to cease to continue as a going concern • ealuate the oerall resentation, structure and content of the financial reort, including the disclosures, and hether the financial reort reresents the underlying transactions and eents in a anner that achiees fair resentation counicate ith the Board ebers regarding, aong other atters, the lanned scoe and tiing of the audit and significant audit findings, including any significant deficiencies in internal control that identify during y audit

EBE i oughnan 1 Seteber 01 as deleate for the Auditoreneral of ictoria

p52

COMPREHENSIVE INCOME

Auditor’s As reuired by the Audit Act y resonsibility is to eress an oinion on the financial STATEMENT rsosiiitis reort based on the audit y obecties for the audit are to obtain reasonable assurance For the year ending 30 June 2018 or t udit about hether the financial reort as a hole is free fro aterial isstateent, hether o t ii due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable Note 2018 2017 rort assurance is a high leel of assurance, but is not a guarantee that an audit conducted in $ $ accordance ith the Australian Auditing Standards ill alays detect a aterial isstateent hen it eists isstateents can arise fro fraud or error and are INCOME considered aterial if, indiidually or in the aggregate, they could reasonably be eected User Fees 2.1 76,868 86,970 to influence the econoic decisions of users taen on the basis of this financial reort Grants (recurrent) 2.2 857,487 796,277 Grants (non-recurrent) 2.2 6,250 66,692 As art of an audit in accordance ith the Australian Auditing Standards, eercise Contributions - monetary 2.3 4,969,948 4,874,892 rofessional udgeent and aintain rofessional sceticis throughout the audit also Other Income 2.4 73,946 64,764 • identify and assess the riss of aterial isstateent of the financial reort, hether due to fraud or error, design and erfor audit rocedures resonsie to those riss, TOTAL INCOME 5,984,499 5,889,595 and obtain audit eidence that is sufficient and aroriate to roide a basis for y oinion he ris of not detecting a aterial isstateent resulting fro fraud is EXPENSES Employee Costs 3.1 3,617,633 3,569,670 higher than for one resulting fro error, as fraud ay inole collusion, forgery, Materials and services 3.2 748,716 789,768 intentional oissions, isreresentations, or the oerride of internal control Depreciation & Amortisation 3.3 762,652 623,488 • obtain an understanding of internal control releant to the audit in order to design Borrowing Costs 3.4 102,922 106,038 audit rocedures that are aroriate in the circustances, but not for the urose Net loss on disposal of property, plant and equipment 3.5 - 4,339 of eressing an oinion on the effectieness of the cororation’s internal control Other Expenses 3.6 381,303 365,914 • ealuate the aroriateness of accounting olicies used and the reasonableness of accounting estiates and related disclosures ade by the Board ebers TOTAL EXPENSES 5,613,226 5,459,217 • conclude on the aroriateness of the Board ebers’ use of the going concern basis of accounting and, based on the audit eidence obtained, hether a aterial SURPLUS FOR THE YEAR 371,273 430,378 uncertainty eists related to eents or conditions that ay cast significant doubt on the cororation’s ability to continue as a going concern. If I conclude that a material TOTAL COMPREHENSIVE RESULT 371,273 430,378 uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial reort or, if such disclosures are inadeuate, to The above comprehensive income statement should be read with the accompanying notes. odify y oinion y conclusions are based on the audit eidence obtained u to the date of my auditor’s report. However, future events or conditions may cause the cororation to cease to continue as a going concern • ealuate the oerall resentation, structure and content of the financial reort, including the disclosures, and hether the financial reort reresents the underlying transactions and eents in a anner that achiees fair resentation counicate ith the Board ebers regarding, aong other atters, the lanned scoe and tiing of the audit and significant audit findings, including any significant deficiencies in internal control that identify during y audit

EBE i oughnan 1 Seteber 01 as deleate for the Auditoreneral of ictoria

p53

BALANCE SHEET STATEMENT OF As at 30 June 2018 CHANGES IN EQUITY

For the year ending 30 June 2018 Note 2018 2017

$ $ Accumulated Revaluation Facilities Note Total Surplus Reserve Reserve ASSETS 2018 2018 2018 2018 Current Assets $ $ $ $ Cash and cash equivalents 4.1 1,307,774 1,881,232

Other financial assets 4.1 1,000,000 - 2018 Trade and other receivables 4.1 22,761 33,850 Balance at beginning of the financial Other assets 4.2 12,562 9,852 year 3,675,174 2,743,806 634,239 297,129 Total Current Assets 2,343,097 1,924,934 Surplus for the year 371,273 371,273 - -

Transfer to Reserves 8.1 - (142,855) - 142,855 Non-Current Assets Balance at end of the financial year 4,046,447 2,972,224 634,239 439,984 Property, plant and equipment 5.1 4,135,020 4,252,118

Total Non-Current Assets 4,135,020 4,252,118 Accumulated Revaluation Facilities Total Surplus Reserve Reserve TOTAL ASSETS 6,478,117 6,177,052 2017 2017 2017 2017

$ $ $ $ LIABILITIES

Current Liabilities 2017 Trade and other payables 4.3 313,455 261,800 Balance at beginning of the financial Provisions 4.5 753,047 739,663 year 3,244,796 2,610,557 634,239 - Interest-bearing liabilities 4.4 114,647 118,636 Surplus for the year 430,378 430,378 - - Total Current Liabilities 1,181,149 1,120,099 Transfer to Reserves 8.1 - (297,129) - 297,129 Balance at end of the financial year 3,675,174 2,743,806 634,239 297,129 Non-Current Liabilities Provisions 4.5 70,753 87,364 The above statement of changes in equity should be read with the accompanying notes. Interest-bearing liabilities 4.4 1,179,768 1,294,415 Total Non-Current Liabilities 1,250,521 1,381,779

TOTAL LIABILITIES 2,431,670 2,501,878

NET ASSETS 4,046,447 3,675,174

EQUITY Accumulated Surplus 2,972,224 2,743,806 Reserves 8.1 1,074,223 931,368 TOTAL EQUITY 4,046,447 3,675,174

The above balance sheet should be read with the accompanying notes.

p54

BALANCE SHEET STATEMENT OF As at 30 June 2018 CHANGES IN EQUITY

For the year ending 30 June 2018 Note 2018 2017

$ $ Accumulated Revaluation Facilities Note Total Surplus Reserve Reserve ASSETS 2018 2018 2018 2018 Current Assets $ $ $ $ Cash and cash equivalents 4.1 1,307,774 1,881,232

Transfer to Reserves 8.1 - (142,855) - 142,855 Non-Current Assets Balance at end of the financial year 4,046,447 2,972,224 634,239 439,984 Property, plant and equipment 5.1 4,135,020 4,252,118

Total Non-Current Assets 4,135,020 4,252,118 Accumulated Revaluation Facilities Total Surplus Reserve Reserve TOTAL ASSETS 6,478,117 6,177,052 2017 2017 2017 2017

$ $ $ $ LIABILITIES Current Liabilities 2017 Trade and other payables 4.3 313,455 261,800 Balance at beginning of the financial Provisions 4.5 753,047 739,663 year 3,244,796 2,610,557 634,239 - Interest-bearing liabilities 4.4 114,647 118,636 Surplus for the year 430,378 430,378 - - Total Current Liabilities 1,181,149 1,120,099 Transfer to Reserves 8.1 - (297,129) - 297,129 Balance at end of the financial year 3,675,174 2,743,806 634,239 297,129 Non-Current Liabilities Provisions 4.5 70,753 87,364 The above statement of changes in equity should be read with the accompanying notes. Interest-bearing liabilities 4.4 1,179,768 1,294,415 Total Non-Current Liabilities 1,250,521 1,381,779

TOTAL LIABILITIES 2,431,670 2,501,878

NET ASSETS 4,046,447 3,675,174

EQUITY Accumulated Surplus 2,972,224 2,743,806 Reserves 8.1 1,074,223 931,368 TOTAL EQUITY 4,046,447 3,675,174

The above balance sheet should be read with the accompanying notes.

p55

STATEMENT OF CASH STATEMENT OF

FLOWS CAPITAL WORKS For the year ending 30 June 2018 For the year ending 30 June 2018

Note 2018 2017 Note 2018 2017 Inflows/ Inflows/ $ $

(Outflows) (Outflows) $ $ PROPERTY Buildings CASH FLOWS FROM OPERATING ACTIVITIES Leasehold User Fees 83,447 95,463 Improvements 1,650 8,048 Grants 863,737 862,969 TOTAL PROPERTY 1,650 8,048 Contributions and Donations 4,968,459 4,874,404 Interest 42,696 51,163 PLANT & EQUIPMENT Other receipts 26,792 14,021 Motor Vehicles - 45,790 Net GST Refund 173,457 195,378 Fixtures, Fittings & Furniture 22,450 12,114 Payments to Suppliers (1,254,781) (1,439,107) Computers & Telecommunications 27,160 533,605 Payments to Employees (3,608,259) (3,572,576) Library Collection 594,294 529,301 Other payments (1,687) (3,217) TOTAL PLANT & EQUIPMENT 643,904 1,120,810 NET CASH PROVIDED BY OPERATING ACTIVITIES 8.2 1,293,861 1,078,498 TOTAL CAPITAL WORKS EXPENDITURE 5.1 645,554 1,128,858 CASH FLOWS USED IN INVESTING ACTIVITIES Payments for property, plant and equipment (645,554) (1,128,858) Represented by: Payments for investments (1,000,000) - New Asset Expenditure 49,610 591,509 Proceeds from sale of property, plant and equipment - 14,600 Asset Renewal Expenditure 594,294 529,301 NET CASH USED IN INVESTING ACTIVITIES (1,645,554) (1,114,258) Asset Upgrade Expenditure 1,650 8,048 TOTAL CAPITAL WORKS EXPENDITURE 5.1 645,554 1,128,858 CASH FLOWS USED IN / FROM FINANCING ACTIVITIES Finance costs (103,129) (106,330) The above statement of capital works should be read with the accompanying notes. Proceeds from borrowings - 284,427 Repayment of borrowings (118,636) (117,465) NET CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES (221,765) 60,632

Net increase / (decrease) in cash and cash equivalents (573,458) 24,872

Cash and cash equivalents at the beginning of the financial year 1,881,232 1,856,360

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 4.1 1,307,774 1,881,232

The above statement of cash flows should be read with the accompanying notes.

p56

STATEMENT OF CASH STATEMENT OF

FLOWS CAPITAL WORKS For the year ending 30 June 2018 For the year ending 30 June 2018

Note 2018 2017 Note 2018 2017 Inflows/ Inflows/ $ $

Net increase / (decrease) in cash and cash equivalents (573,458) 24,872

Cash and cash equivalents at the beginning of the financial year 1,881,232 1,856,360

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 4.1 1,307,774 1,881,232

The above statement of cash flows should be read with the accompanying notes.

p57

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

OVERVIEW Note 1 Performance against budget

Introduction The performance against budget notes compare the Corporation's financial plan, expressed through its The West Gippsland Regional Library Corporation was established by an Order of the Governor in Council on 11 annual budget, with actual performance. The Local Government (Planning and Reporting) Regulations December 1995 and is a body corporate. 2014 requires explanation of any material variances. The Corporation has adopted a materiality threshold of the lower of 10 percent or $50,000 where further explanation is warranted. Explanations have not been The Corporation's main office is located at 65 Victoria Street, Warragul. provided for variations below the materiality threshold unless the variance is considered to be material because of its nature.

Statement of Compliance The budget figures detailed below are those adopted by the Corporation on 7 July 2017. The Budget was These financial statements are a general purpose financial report that consists of a Comprehensive Income based on assumptions that were relevant at the time of adoption of the Budget. The Corporation sets Statement, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, Statement of Capital Works guidelines and parameters for income and expense targets in this budget in order to meet the and notes accompanying these financial statements. The general purpose financial report complies with the Corporations planning and financial performance targets for both the short and long-term. The budget Australian Accounting Standards (AAS), other authoritative pronouncements of the Australian Accounting did not reflect any changes to equity resulting from asset revaluations, as their impacts were not Standards Board, the Local Government Act 1989, and the Local Government (Planning and Reporting) considered predictable. Regulations 2014. These notes are prepared to meet the requirements of the Local Government Act 1989 and the Local

Government (Planning and Reporting) Regulations 2014. Significant accounting policies

(a) Basis of Accounting 1.1. Income and Expenditure The accruals basis of accounting has been used in the preparation of these financial statements, whereby

assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, Budget Actual Variance regardless of when cash is received or paid. 2018 2018 2018

Ref $ $ $ Judgements, estimates and assumptions are required to be made about the carrying values of assets and INCOME liabilities that are not readily apparent from other sources. The estimates and associated judgements are Grants 872,572 863,737 (8,835) based on professional judgement derived from historical experience and various other factors that are Contributions 4,967,108 4,969,948 2,840 believed to be reasonable under the circumstances. Actual results may differ from these estimates. User Fees 76,415 76,868 453

Interest 1 65,435 47,456 (17,979) Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in Other Income 2 18,299 26,490 8,191 future periods that are affected by the revision. Judgements and assumptions made by management in the TOTAL INCOME 5,999,829 5,984,499 (15,330) application of AAS's that have significant effects on the financial statements and estimates relate to:

EXPENSES - the fair value of land, buildings, plant and equipment (refer to Note 5.1) Employee Benefits 3 3,826,281 3,617,632 208,649 - the determination of depreciation for buildings, plant and equipment (refer to Note 5.1) Operating Expenses 4 1,249,695 1,130,019 119,676 - the determination of employee provisions (refer to Note 4.5) Depreciation & Amortisation 5 742,674 762,652 (19,978)

Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where Finance Costs 105,524 102,922 2,602

appropriate, comparative figures have been amended to accord with current presentation, and disclosure TOTAL EXPENSES 5,924,174 5,613,225 310,949

has been made of any material changes to comparatives. SURPLUS/(DEFICIT) FOR THE YEAR 75,655 371,273 295,618

p58

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

OVERVIEW Note 1 Performance against budget

Government (Planning and Reporting) Regulations 2014. Significant accounting policies

(a) Basis of Accounting 1.1. Income and Expenditure The accruals basis of accounting has been used in the preparation of these financial statements, whereby

assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, Budget Actual Variance regardless of when cash is received or paid. 2018 2018 2018

Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where Finance Costs 105,524 102,922 2,602

appropriate, comparative figures have been amended to accord with current presentation, and disclosure TOTAL EXPENSES 5,924,174 5,613,225 310,949

has been made of any material changes to comparatives. SURPLUS/(DEFICIT) FOR THE YEAR 75,655 371,273 295,618

p59

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 1 Performance against budget (cont'd) Note 1 Performance against budget (cont'd)

(i) Explanation of material variations (i) Explanation of material variations

Ref Item Explanation Ref Item Explanation 1 Interest Interest rates were less than budgeted. 1 Furniture & Equipment Capital expenditure was less than budgeted this year due to the New asset expenditure postponement of the public facing computer equipment upgrade. 2 Other Income Other Income is quite varied and includes a range of items, including Asset renewal expenditure Opportunities are being explored to seek partnerships for minor item sales, room hire income and other miscellaneous amounts. purchase of the equipment as well as reviewing what public The amount of income is difficult to predict, being largely consumer facing computer equipment is required to ensure the library is driven. For 2018 room hire income was the main reason for the higher servicing the needs of the community for the next three to five than budgeted income. years. This will instead be delivered in 2018/19. Computer equipment purchases were split between renewal of existing IT 3 Employee Benefits Employee benefits was less than budgeted due to having a number of infrastructure and new equipment requirements. vacant positions during the year including the Team Leader Bass Coast Libraries, Wonthaggi Library Branch Manager and the Coordinator 2018 2017 Marketing and Communications. $ $ 4 Operating Expenses Operating expenses are less than budget due to a reduction in the cleaning contract ($58K) due to a new service provider, reduction in Note 2 Funding for the delivery of our services postage and stationery costs ($20K) as the transition to web based systems continues and less than budgeted motor vehicle ($15K) and memberships ($15K) expenses. 2.1. User Fees Fines & Penalties 23,194 30,897 5 Depreciation and Amortisation Depreciation is greater than budgeted due to this being the first full year Photocopying & Printing 48,781 47,562 of depreciation for RFID equipment and the staff computer upgrade. Other Fees & Charges 4,893 8,511 76,868 86,970 1.2. Capital Works User fees are recognised as revenue when the service has been provided or the Corporation has Budget Actual Variance otherwise earned the income. 2018 2018 2018 Ref $ $ $ 2.2. Funding from other levels of government CAPITAL WORKS EXPENDITURE Grants were received in respect of the following: Book Stock 584,800 594,294 (9,494) Furniture & Equipment 1 185,000 49,610 135,390 S umm ary of Grants Motor Vehicles - - - State funded grants 857,487 796,277 Leasehold Improvements - 1,650 (1,650) Others - non-government 6,250 66,692 TOTAL CAPITAL WORKS Total grants received 863,737 862,969 EXPENDITURE 769,800 645,554 124,246 (a) Operating Grants REPRESENTED BY Recurrent New asset expenditure 1 20,000 49,610 (29,610) State Government - General Purpose Asset renewal expenditure 1 749,800 594,294 155,506 Public Libraries Grant Program 831,575 770,365 Asset upgrade expenditure - 1,650 (1,650) Premier's Reading Challenge 25,912 25,912 TOTAL CAPITAL WORKS Total recurrent operating grants 857,487 796,277 EXPENDITURE 769,800 645,554 124,246 N on-re current State Government - General Purpose Local Priorities Grant - 39,761 Total State Government - General Purpose - 39,761 p60

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 1 Performance against budget (cont'd) Note 1 Performance against budget (cont'd)

(i) Explanation of material variations (i) Explanation of material variations

p61

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $ $ $ $

Note 2 Funding for the delivery of our services (cont'd) Note 3 The cost of delivering services

3.1. Employee costs Others - Specific Purpose Wages and salaries 3,299,059 3,260,561 Ramahyuck District Aboriginal Corporation - Yarning WorkCover 17,799 15,858 Program 4,000 8,000 Superannuation 300,775 293,251 High Road to Reading Program 250 250 Total employee costs 3,617,633 3,569,670 Fonterra Australia Children and Young People Grant 2,000 - (b) Superannuation

Tech Savvy Seniors Program - 12,864 The Corporation made contributions to the following funds: Commercial Lighting Rebate - 4,560

FRRR Grant - 1,257 D efine d Benefits Funds Total Others - Specific Purpose 6,250 26,931 Employer contributions to Local Authorities Superannuation Fund (Vision Super) 30,704 33,405 Total non -recurrent operating grants 6,250 66,692 30,704 33,405

Total operating grants 863,737 862,969 Employer contributions payable at reporting date - -

Grant income is recognised when the Corporation obtains control of the contribution. Control is A ccum ulation Funds normally obtained upon receipt (or acquittal) or upon earlier notification that a grant has been Employer contributions to Local Authorities Superannuation secured. Fund (Vision Super) 164,524 165,289 Employer contributions - other funds 105,548 94,557 2.3. Contributions 270,072 259,846 Monetary 4,969,948 4,874,892

4,969,948 4,874,892 Employer contributions payable at reporting date - -

Monetary contributions are recognised as revenue when the Corporation obtains control over the Refer to note 8.3 for further information relating to the Corporation's superannuation obligations.

contributed funds.

3.2. Materials and services

2.4. Other income Accounting Fees 44,451 59,320

Interest 47,456 51,842 Cleaning 98,908 134,125

Fuel Tax Credits 2,706 2,539 Computers and equipment lease payments 14,677 12,899

Other 23,784 10,383 Consultants 27,015 33,263 Total Other Income 73,946 64,764 Property rents 40,662 41,421 Memberships 72,304 86,392 Interest is recognised as it is earned. Equipment - minor purchases 9,345 14,477 Other income is measured at the fair value of the consideration received or receivable and is Postage and Stationery 35,158 49,052 recognised when the Corporation gains control over the right to receive the income. Marketing and Advertising 59,698 75,365 Insurance 40,201 17,008 Motor vehicle expenses 52,603 45,364 Collection Subscriptions 76,066 80,742 General expenses 177,628 140,340 Total materials and services 748,716 789,768

p62

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $ $ $ $

Note 2 Funding for the delivery of our services (cont'd) Note 3 The cost of delivering services

Tech Savvy Seniors Program - 12,864 The Corporation made contributions to the following funds: Commercial Lighting Rebate - 4,560

Total operating grants 863,737 862,969 Employer contributions payable at reporting date - -

4,969,948 4,874,892 Employer contributions payable at reporting date - -

Monetary contributions are recognised as revenue when the Corporation obtains control over the Refer to note 8.3 for further information relating to the Corporation's superannuation obligations. contributed funds.

3.2. Materials and services

2.4. Other income Accounting Fees 44,451 59,320

Interest 47,456 51,842 Cleaning 98,908 134,125

Fuel Tax Credits 2,706 2,539 Computers and equipment lease payments 14,677 12,899

p63

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $ $ $ $

Note 3 The cost of delivering services (cont’d) Note 4 Our financial position

3.3. Depreciation and amortisation 4.1. Financial assets Motor Vehicles 32,078 31,947 (a) Cash and cash equivalents Furniture, Equipment and Computers 229,598 160,692 Cash on hand 1,490 1,440 Library Collections 460,556 390,943 Cash at bank 706,284 479,792 Buildings 35,000 35,000 Term Deposits - current 600,000 1,400,000 Leasehold Improvements 5,420 4,906 Total cash and cash equivalents 1,307,774 1,881,232 Total depreciation and amortisation 762,652 623,488 (b) Other financial assets 3.4. Borrowing Costs Term Deposits - current 1,000,000 - Interest - Borrowings 102,922 106,038 Total cash and cash equivalents 1,000,000 - Total finance costs 102,922 106,038 The Corporation's cash and cash equivalents are not subject to any external restrictions that limit Borrowing costs are recognised as an expense in the period in which they are incurred, except amounts available for discretionary use. where they are capitalised as part of a qualifying asset constructed by the Corporation. Cash and cash equivalents include cash on hand, deposits at call, and other highly liquid 3.5. Net loss on disposal of property, plant and equipment investments with original maturities of 90 days or less, net of any outstanding bank overdrafts. Proceeds of sale - 14,601 Other financial assets are valued at fair value, at balance date. Term deposits are measured at Written down value of assets disposed - (18,940) original cost. Any unrealised gains and losses on holdings at balance date are recognised as either a revenue or expense.

Total net loss on disposal of property, plant and equipment - (4,339) (c) Trade and other receivables The profit or loss on disposal of an asset is determined when control of the asset has passed to the Current buyer. Statutory receivables GST Refundable 19,653 31,930 3.6. Other expenses Non statutory receivables Auditors' remuneration - VAGO - audit of the financial statements 9,100 9,000 Trade and Other Receivables 2,850 1,360 Bank Charges 1,687 3,217 Other debtors 258 560 Utilities 92,700 91,633 Total current trade and other receivables 22,761 33,850 Maintenance - Information Systems & Equipment 209,900 160,652 Maintenance - Facilities 48,558 88,344 Short term receivables are carried at invoice amount. A provision for doubtful debts is recognised Maintenance - Vehicles 19,358 13,068 when there is objective evidence that an impairment has occurred. Long term receivables are Total other expenses 381,303 365,914 carried at amortised cost using the effective interest rate method.

p64

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $ $ $ $

Note 3 The cost of delivering services (cont’d) Note 4 Our financial position

p65

NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 NOTES TO THE FINANCIAL REPORT

For the year ended 30 June 2018 2018 2017

$ $ 2018 2017

$ $ Note 4 Our financial position (cont'd)

Note 4 Our financial position (cont'd) Ageing of Receivables

The ageing of the Corporation's trade & other receivables (excluding statutory receivables) that are (a) The maturity profile for the Corporation's borrowings is: not impaired was:

Not later than one year 56,353 52,419 Current (not yet due) 2,876 560 Later than one year and not later than five years 280,127 257,736 Past due by up to 30 days - 600 Later than five years 773,199 851,943 Past due between 31 and 180 days 232 760 1,109,679 1,162,098 Past due by more than 1 year - -

Total Trade & Other Receivables 3,108 1,920

Borrowings are initially measured at fair value, being the cost of the interest bearing liabilities, net

At balance date, other debtors representing financial assets were past due but not impaired. These of transaction costs. The measurement basis subsequent to initial recognition depends on whether

amounts relate to a number of independent customers for whom there is no recent history of the Corporation has categorised its interest-bearing liabilities as either financial liabilities

default. designated at fair value through the profit and loss, or financial liabilities at amortised cost. Any

difference between the initial recognised amount and the redemption value is recognised in net result over the period of the borrowing using the effective interest method. 4.2. Non-financial assets

(a) Other assets The classification depends on the nature and purpose of the interest bearing liabilities. The Prepayments - 2,049 Corporation determines the classification of its interest bearing liabilities at initial recognition. Accrued income 12,562 7,803

Total other assets 12,562 9,852 (b) The maturity profile for the Corporation's finance lease liabilities

is:

4.3. Payables

(a) Trade and other payables Not later than one year 58,294 66,217

Trade payables 149,488 108,958 Later than one year and not later than five years 126,442 184,736 Accrued Expenses 163,967 152,842 184,736 250,953

Total trade and other payables 313,455 261,800

Minimum future lease payments 196,409 271,700 4.4. Interest -bearing liabilities Current Less future finance charges (11,673) (20,747) Borrowings - secured 56,353 52,419 Present value of minimum lease payments 184,736 250,953 Finance Leases 58,294 66,217 114,647 118,636

The finance lease obligations represent liabilities in respect of the purchase of a motor vehicle and N on-cu rrent rental of RFID equipment. The Corporation will retain possession of the motor vehicle on completion Borrowings - secured 1,053,326 1,109,679 of the term of the finance agreement, with no further contingency. The agreement for the rental of Finance Leases 126,442 184,736 RFID equipment will require the equipment of be returned at the completion of the term, or a 1,179,768 1,294,415 further term to be negotiated.

Total 1,294,415 1,413,051

Borrowings are secured by the property situated at 65 Victoria Street, Warragul.

p66

NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 NOTES TO THE FINANCIAL REPORT

For the year ended 30 June 2018 2018 2017

$ $ 2018 2017

$ $ Note 4 Our financial position (cont'd)

Note 4 Our financial position (cont'd) Ageing of Receivables

The ageing of the Corporation's trade & other receivables (excluding statutory receivables) that are (a) The maturity profile for the Corporation's borrowings is: not impaired was:

Total Trade & Other Receivables 3,108 1,920

Borrowings are initially measured at fair value, being the cost of the interest bearing liabilities, net

At balance date, other debtors representing financial assets were past due but not impaired. These of transaction costs. The measurement basis subsequent to initial recognition depends on whether

amounts relate to a number of independent customers for whom there is no recent history of the Corporation has categorised its interest-bearing liabilities as either financial liabilities

default. designated at fair value through the profit and loss, or financial liabilities at amortised cost. Any

difference between the initial recognised amount and the redemption value is recognised in net result over the period of the borrowing using the effective interest method. 4.2. Non-financial assets

Total other assets 12,562 9,852 (b) The maturity profile for the Corporation's finance lease liabilities

is:

4.3. Payables

(a) Trade and other payables Not later than one year 58,294 66,217

Trade payables 149,488 108,958 Later than one year and not later than five years 126,442 184,736 Accrued Expenses 163,967 152,842 184,736 250,953

Total trade and other payables 313,455 261,800

Total 1,294,415 1,413,051

Borrowings are secured by the property situated at 65 Victoria Street, Warragul.

p67

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $ $ $ $

Note 4 Our financial position (cont'd) Note 4 Our financial position (cont'd)

4.5. Provisions The calculation of employee costs and benefits includes all relevant on-costs and are calculated as follows at reporting date.

Annual Annual leave Long service leave Total W ages a nd salaries and annual leave 2018 $ $ $ Liabilities for wages and salaries, including non -monetary benefits, annual leave and accumulated sick

Balance at beginning of the financial year 194,233 632,794 827,027 leave expected to be wholly settled within 12 months of the reporting date are recognised in the provision Additional provisions 274,857 76,260 351,117 for employee benefits in respect of employee services up to the reporting date, classified as current Change in the discounted amount arising liabilities and measured at their nominal values. because of time and the effect of any change in the discount rate - (1,031) (1,031) Liabilities that are not expected to be wholly settled within 12 months of the reporting date are recognised in

Amounts used (275,541) (77,773) (353,313) the provision for employee benefits as current liabilities, measured at the present value of the amounts Balance at the end of the financial year 193,549 630,251 823,800 expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. 2017 $ $ $ Balance at beginning of the financial year 200,305 667,286 867,591 L ong se rvice leave Additional provisions 243,388 84,990 328,378 Liability for long service leave (LSL) is recognised in the provision for employee benefits. LSL is measured at

Change in the discounted amount arising present value. Unconditional LSL is disclosed as a current liability. Conditional LSL that has been accrued,

because of time and the effect of any change in where an employee is yet to reach a qualifying term of employment, is disclosed as a non - current liability.

the discount rate - (7,632) (7,632) Amounts used (249,460) (111,850) (361,310) Key assumptions: Balance at the end of the financial year 194,233 632,794 827,027 - discount rate 2.34% 2.20%

- inflation rate 3.88% 3.81%

2018 2017 - settlement rate 98.29% 98.53% $ $

4.6. Financing Arrangements Current provisions expected to be settled within 12 months

Annual leave 193,549 194,233 2018 2017

Long service leave 94,811 75,126 $ $ 288,360 269,359 The Corporation has the following funding arrangements in place as at the end of the period. Current provisions expected to be settled after 12 months Leases 184,736 250,953 Long service leave 464,687 470,304 Loans 1,109,679 1,162,098 464,687 470,304 Used facilities (1,294,415) (1,413,051) Unused facilities - - Total Current Provisions 753,047 739,663

Non-current Long service leave 70,753 87,364

Total Non -current Provisions 70,753 87,364

Aggregate carrying amount of employee provisions 823,800 827,027 p68

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 2018 2017 $ $ $ $

Note 4 Our financial position (cont'd) Note 4 Our financial position (cont'd)

4.5. Provisions The calculation of employee costs and benefits includes all relevant on-costs and are calculated as follows at reporting date.

Annual Annual leave Long service leave Total W ages a nd salaries and annual leave 2018 $ $ $ Liabilities for wages and salaries, including non -monetary benefits, annual leave and accumulated sick

Change in the discounted amount arising present value. Unconditional LSL is disclosed as a current liability. Conditional LSL that has been accrued, because of time and the effect of any change in where an employee is yet to reach a qualifying term of employment, is disclosed as a non - current liability. the discount rate - (7,632) (7,632) Amounts used (249,460) (111,850) (361,310) Key assumptions: Balance at the end of the financial year 194,233 632,794 827,027 - discount rate 2.34% 2.20%

- inflation rate 3.88% 3.81%

2018 2017 - settlement rate 98.29% 98.53% $ $

4.6. Financing Arrangements Current provisions expected to be settled within 12 months

Annual leave 193,549 194,233 2018 2017

Non-current Long service leave 70,753 87,364

Total Non -current Provisions 70,753 87,364

Aggregate carrying amount of employee provisions 823,800 827,027 p69

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 Note 5 Assets we manage $ $ 5.1. Property, plant and equipment Note 4 Our financial position (cont'd) Summary of property, plant and equip men t

4.7. Commitments The Corporation has entered into the following commitments. Commitments are not recognised in the

Balance Sheet. Commitments are disclosed at their nominal value and presented inclusive of the GST payable.

FairAt Value 30 June 2017 Acquisition of assets and Depreciation amortisation (note 3.3) FairAt Value 30 June 2018

2018 $ $ $ $ Motor Vehicles 152,154 - (32,078) 120,077

Furniture, equipment and computers 819,184 49,610 (229,598) 639,196 Not later year 1 than Later than 1 year and not later than 2 years Later than 2 years and not later than 5 years Total Library collections 1,533,682 594,294 (460,556) 1,667,419 $ $ Leasehold improvements 43,126 1,650 (5,420) 39,356 Buildings 1,703,972 - (35,000) 1,668,972 2018 Total property, plant and IT services 62,990 55,957 9,326 128,273 equipment 4,252,118 645,554 (762,652) 4,135,020 Cleaning contracts 61,101 61,101 10,184 132,386 124,091 117,058 19,510 260,659 Asset recognition thresholds and depreciation periods 2017 No commitments - - - - Depreciation Threshold - - - - Property Period Limit $ Library Collection At the reporting date, the Corporation had obligations under non-cancellable operating leases for the lease Materials 2 - 10 years All of equipment for use within the Corporations activities (these obligations are not recognised as liabilities) as e-Collection 2 years All outlined above. Buildings Leasehold Improvements 7 - 10 years 500 O peratin g lease commitments Freehold 50 years 500 2018 2017 Furniture and Equipment $ $ Furniture and Equipment - Not later than 1 year 14,188 14,188 other 5 - 10 years 500 Later than 1 year and not later than 5 Furniture and Equipment - years 23,647 37,836 electronic 2 - 5 years 500

37,835 52,024 Plant Vehicles 5 - 10 years 500

Lease payments for operating leases are required by the accounting standard to be recognised on a straight line basis, rather than expensed in the years in which they are incurred.

p70

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

2018 2017 Note 5 Assets we manage $ $ 5.1. Property, plant and equipment Note 4 Our financial position (cont'd) Summary of property, plant and equip men t

4.7. Commitments The Corporation has entered into the following commitments. Commitments are not recognised in the

Balance Sheet. Commitments are disclosed at their nominal value and presented inclusive of the GST payable.

FairAt Value 30 June 2017 Acquisition of assets and Depreciation amortisation (note 3.3) FairAt Value 30 June 2018

2018 $ $ $ $ Motor Vehicles 152,154 - (32,078) 120,077

37,835 52,024 Plant Vehicles 5 - 10 years 500

Lease payments for operating leases are required by the accounting standard to be recognised on a straight line basis, rather than expensed in the years in which they are incurred.

p71

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 5 Assets we manage (cont’d) Note 5 Assets we manage (cont’d)

(a) Property (b) Plant and equipment

Furniture, Furniture, and equipment computers Library collections Motor vehicles Total plant and equipment

Buildings non specialised Leasehold improvement s Total Buildings $ $ $ $ $ $ $ At fair value 1 July 2017 1,536,660 5,893,623 418,261 7,848,545 At fair value 1 July 2017 1,750,000 216,312 1,966,312 Accumulated depreciation at 1 July

Accumulated depreciation at 1 July 2017 (46,028) (173,186) (219,214) 2017 (717,476) (4,359,941) (266,107) (5,343,524)

1,703,972 43,126 1,747,098 819,184 1,533,682 152,154 2,505,020

Movements in fair value Movements in fair value

Additions - 1,650 1,650 Additions 49,610 594,293 - 643,904

- 1,650 1,650 Disposal (30,374) - - (30,374)

19,236 594,293 - 613,530 Movements in accumulated depreciation Depreciation and amortisation (35,000) (5,420) (40,420) Movements in accumulated (35,000) (5,420) (40,420) depreciation Depreciation and amortisation (229,598) (460,556) (32,077) (722,232) At fair value 30 June 2018 1,750,000 217,962 1,967,962 Accumulated depreciation of disposals 30,374 - - 30,374 Accumulated depreciation at 30 June 2018 (81,028) (178,606) (259,634) (199,224) (460,556) (32,077) (691,858) 1,668,972 39,356 1,708,328 At fair value 30 June 2018 1,555,896 6,487,916 418,261 8,462,074 Accumulated depreciation at 30 June 2018 (916,700) (4,820,497) (298,184) (6,035,382) 639,196 1,667,419 120,077 2,426,692

p72

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 5 Assets we manage (cont’d) Note 5 Assets we manage (cont’d)

(a) Property (b) Plant and equipment

Furniture, Furniture, and equipment computers Library collections Motor vehicles Total plant and equipment

Accumulated depreciation at 1 July 2017 (46,028) (173,186) (219,214) 2017 (717,476) (4,359,941) (266,107) (5,343,524)

1,703,972 43,126 1,747,098 819,184 1,533,682 152,154 2,505,020

Movements in fair value Movements in fair value

Additions - 1,650 1,650 Additions 49,610 594,293 - 643,904

- 1,650 1,650 Disposal (30,374) - - (30,374)

p73

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 5 Assets we manage (cont’d) Note 5 Assets we manage (cont’d)

Acquisition Valuation of land and buildings The purchase method of accounting is used for all acquisitions of assets, being the fair value of assets provided Valuation of land and buildings were undertaken by a qualified independent valuer Corey McMahon of CJA Lee as consideration at the date of acquisition plus any incidental costs attributable to the acquisition. Fair value is Property [API Member Number 62829]. The valuation of land and buildings is at fair value, being market value the price that would be received to sell an asset (or paid to transfer a liability) in an orderly transaction based on highest and best use permitted by relevant land planning provisions. Land and buildings have not between market participants at the measurement date. been revalued during 2017/18 as the movement in land and buildings values were not significant based on Valuer-General indices published by the Department of Treasury and Finance Victoria. Where land use is In accordance with the Corporation's policy, the threshold limits have applied when recognising assets within restricted through existing planning provisions the valuation is reduced to reflect this limitation. This an applicable asset class and unless otherwise stated are consistent with the prior year. adjustment is an unobservable input in the valuation. The adjustment has no impact on the comprehensive income statement. Depreciation and amortisation Buildings, land improvements, plant and equipment, infrastructure, and other assets having limited useful Details of the Corporation’s land and buildings and information about the fair value hierarchy as at 30 June lives are systematically depreciated over their useful lives to the Corporation in a manner which reflects 2018 are as follows: consumption of the service potential embodied in those assets. Estimates of remaining useful lives and residual values are made on a regular basis with major asset classes reassessed annually. Depreciation rates and methods are reviewed annually. Level 1 Level 2 Level 3 Date of Valuation $ $ $ Where assets have separate identifiable components that are subject to regular replacement, these Buildings - - 1,668,972 Mar 2016 components are assigned distinct useful lives and residual values and a separate depreciation rate is determined for each component.

Straight line depreciation is charged based on the residual useful life as determined each year. Note 6 People and relationships

Depreciation periods used are listed below and are consistent with the prior year unless otherwise stated. 6.1. Board and key management remuneration

Finance leases (a) Key Management Personnel Leases of assets where substantially all the risks and rewards incidental to ownership of the asset are

transferred to the Corporation are classified as finance leases. Finance leases are capitalised, recording an asset and a liability at the lower of the fair value of the asset and the present value of the minimum lease Details of persons holding the position of key management personnel at any time during the year are: payments, including any guaranteed residual value. Lease payments are allocated between the reduction of the lease liability and the interest expense. Leased assets are depreciated on a straight line basis over their Board Members estimated useful lives to the Corporation where it is likely that the Corporation will obtain ownership of the Cr Geoff Ellis Bass Coast Shire Council asset or over the term of the lease, whichever is the shorter. Leased assets are currently being amortised over Mr David Elder Bass Coast Shire Council a 2 to 5 year period. Cr Mikaela Power (from 1/7/17 to 1/12/17) Baw Baw Shire Council Cr Keith Cook (from 1/12/17 to 30/06/18) Baw Baw Shire Council Repairs and maintenance Mr Malcolm Lewis (from 1/7/17 to 30/11/17) Baw Baw Shire Council Where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation Mr Mark Dupe (from 1/12/17 to 30/06/18) Baw Baw Shire Council threshold the cost is capitalised and depreciated. The carrying value of the replaced asset is expensed. Cr Meg Edwards (from 1/7/17 to 31/8/17) South Gippsland Shire Council Cr Alyson Skinner (from 1/9/17 to 30/6/18) South Gippsland Shire Council Leasehold improvements Ms Faith Page South Gippsland Shire Council Leasehold improvements are recognised at cost and are amortised over the unexpired period of the lease or the estimated useful life of the improvement, whichever is the shorter. At balance date, leasehold Chief Executive Officer improvements are amortised over a 10 to 20 year period. Ms Leanne Williams

p74

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 5 Assets we manage (cont’d) Note 5 Assets we manage (cont’d)

Straight line depreciation is charged based on the residual useful life as determined each year. Note 6 People and relationships

Depreciation periods used are listed below and are consistent with the prior year unless otherwise stated. 6.1. Board and key management remuneration

Finance leases (a) Key Management Personnel Leases of assets where substantially all the risks and rewards incidental to ownership of the asset are transferred to the Corporation are classified as finance leases. Finance leases are capitalised, recording an asset and a liability at the lower of the fair value of the asset and the present value of the minimum lease Details of persons holding the position of key management personnel at any time during the year are: payments, including any guaranteed residual value. Lease payments are allocated between the reduction of the lease liability and the interest expense. Leased assets are depreciated on a straight line basis over their Board Members estimated useful lives to the Corporation where it is likely that the Corporation will obtain ownership of the Cr Geoff Ellis Bass Coast Shire Council asset or over the term of the lease, whichever is the shorter. Leased assets are currently being amortised over Mr David Elder Bass Coast Shire Council a 2 to 5 year period. Cr Mikaela Power (from 1/7/17 to 1/12/17) Baw Baw Shire Council Cr Keith Cook (from 1/12/17 to 30/06/18) Baw Baw Shire Council Repairs and maintenance Mr Malcolm Lewis (from 1/7/17 to 30/11/17) Baw Baw Shire Council Where the repair relates to the replacement of a component of an asset and the cost exceeds the capitalisation Mr Mark Dupe (from 1/12/17 to 30/06/18) Baw Baw Shire Council threshold the cost is capitalised and depreciated. The carrying value of the replaced asset is expensed. Cr Meg Edwards (from 1/7/17 to 31/8/17) South Gippsland Shire Council Cr Alyson Skinner (from 1/9/17 to 30/6/18) South Gippsland Shire Council Leasehold improvements Ms Faith Page South Gippsland Shire Council Leasehold improvements are recognised at cost and are amortised over the unexpired period of the lease or the estimated useful life of the improvement, whichever is the shorter. At balance date, leasehold Chief Executive Officer improvements are amortised over a 10 to 20 year period. Ms Leanne Williams

p75

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 6 People and relationships (cont’d) Note 6 People and relationships (cont’d)

2018 2017 The number of Senior Officers are shown below in their relevant income bands: No. No. Total Number of Board Members 9 11 2018 2017 Chief Executive Officer and other Key Management No. No. Personnel 1 2 Income Range: Total Key Management Personnel 10 13 $40,000 - $49,999 - 1 (b) Remuneration of Key Management Personnel $50,000 - $59,999 - 2 $100,000 - $109,999 1 - 2018 2017 $110,000 - $119,999 2 - $ $ $120,000 - $129,999 1 1 Total remuneration of key management personnel was as follows: - - 4 4 Short-term benefits 154,118 150,864 Post-employment benefits 14,104 14,062 Total remuneration for the Long-term benefits 3,862 3,284 reporting year for Senior Officers Termination benefits - - included above amounted to: 453,790 290,120 Total 172,084 168,210 6.2. Related party disclosure The numbers of key management personnel whose total remuneration from the Corporation and any related (a) Transactions with related parties entities fall within the following bands: During the period the Corporation entered into the following transactions with parties with related parties: 2018 2017 No. No. Shire Contributions to the Corporation as per Nil 9 11 the Regional Library Agreement $70,000 - $79,999 - 1 $80,000 - $89,999 - 1 2018 2017 $170,000 - $179,999 1 - Board Member $ $ 10 13 Cr. Mikaela Power, Baw Baw Shire Council (c) Senior Officers Remuneration Mr Malcolm Lewis, Baw Baw Shire Council 1,790,414 1,742,232 A Senior Officer is an officer of the Corporation, other than Key Management Personnel, who: (a) has management responsibilities and reports directly to the Chief Executive Officer; or Cr Geoff Ellis, Bass Coast Shire Council (b) whose total annual remuneration exceeds $145,000. Mr David Elder, Bass Coast Shire Council 1,794,943 1,759,999

Cr. Meg Edwards, South Gippsland Shire Council Ms Vanessa Adams, South Gippsland Shire Council 1,381,751 1,354,829

No further transactions were entered into with related parties by the Corporation during the period.

(b) Outstanding balances with related parties The are no balances outstanding at the end of the reporting period in relation to transactions with related parties. (2016/17, nil)

p76

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 6 People and relationships (cont’d) Note 6 People and relationships (cont’d)

Cr. Meg Edwards, South Gippsland Shire Council Ms Vanessa Adams, South Gippsland Shire Council 1,381,751 1,354,829

No further transactions were entered into with related parties by the Corporation during the period.

(b) Outstanding balances with related parties The are no balances outstanding at the end of the reporting period in relation to transactions with related parties. (2016/17, nil)

p77

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 6 People and relationships (cont’d) Note 7 Managing uncertainties (cont’d)

(c) Loans to/from related parties Revenue from contracts with customers (AASB 15) (applies 2019/20 for LG sector) No loans have been made, guaranteed or secured by the Corporation to key management personnel during The standard shifts the focus from the transaction-level to a contract-based approach. Recognition is the reporting year. (2016/17, nil) determined based on what the customer expects to be entitled to (rights and obligations), while measurement encompasses estimation by the entity of the amount expected to be entitled for performing (d) Commitments to/from related parties under the contract. The full impact of this standard is not known however it is most likely to impact where No transactions other than remuneration payments or the reimbursement of approved expenses were contracts extend over time, where there are rights and obligations that may vary the timing or amount of the entered into by the Corporation with key management personnel, or related parties of such key management consideration, or where there are multiple performance elements. This has the potential to impact on the personnel during the reporting year. (2016/17, nil) recognition of certain grant income.

Note 7 Managing uncertainties Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities (AASB 2016-7) (applies 2019/20) 7.1. Contingent assets and liabilities This Standard defers the mandatory effective date of AASB 15 for not-for-profit entities from 1 January 2018

(a) Contingent assets to 1 January 2019. There are no anticipated contingent assets.

L ease s (AASB 16) (applies 2019/20) (b) Contingent liabilities Superannuation The classification of leases as either finance leases or operating leases is eliminated for lessees. Leases will

The Corporation has obligations under a defined benefit superannuation scheme that may result in the need be recognised in the Balance Sheet by capitalising the present value of the minimum lease payments and

to make additional contributions to the scheme, matters relating to this potential obligation are outlined showing a ‘right-of-use’ asset, while future lease payments will be recognised as a financial liability. The below. As a result of the volatility in financial markets the likelihood of making such contributions in future nature of the expense recognised in the profit or loss will change. Rather than being shown as rent, or as periods exists. leasing costs, it will be recognised as depreciation on the ‘right-of-use’ asset, and an interest charge on the lease liability. The interest charge will be calculated using the effective interest method, which will result in a Future superannuation contributions gradual reduction of interest expense over the lease term. The Corporation was not required to pay any unfunded liability payments to Vision Super during the 2017/18 year. There were no contributions outstanding and no loans issued from or to the above schemes as at 30 I ncom e of Not-for-Profit Entities (AASB 1058 ) (applie s 201 9/20 ) June 2018. There are no expected contributions to be paid to the Defined Benefit category of Vision Super for This standard replaces AASB 1004 Contributions and establishes revenue recognition principles for the year ending 30 June 2019. transactions where the consideration to acquire an asset is significantly less than fair value to enable to not- for-profit entity to further its objectives.

7.2. Change in accounting standards 7.3. Financial instruments The following new AAS's have been issued that are not mandatory for the 30 June 2018 reporting period. (a) Objectives and policies The Corporation has assessed these pending standards and has identified the following potential impacts The Corporation's principal financial instruments comprise cash assets, term deposits, receivables will flow from the application of these standards in future reporting periods. (excluding statutory receivables), payables (excluding statutory payables) and bank borrowings. Details of

the significant accounting policies and methods adopted, including the criteria for recognition, the basis of

Financial Instruments - Disclosures (AASB 7) (applies 2018/19) measurement and the basis on which income and expenses are recognised, in respect of each class of

This Standard requires entities to provide disclosures in their financial statements that enable users to financial asset, financial liability and equity instrument is disclosed in Note 1 of the financial statements. evaluate: (a) the significance of financial instruments for the entity’s financial position and performance; and Risk management is carried out by senior management under policies approved by the Corporation. These (b) the nature and extent of risks arising from financial instruments to which the entity is exposed. policies include identification and analysis of the risk exposure to the Corporation and appropriate procedures, controls and risk minimisation. F inan cial Instruments (AASB 9) (applies 2018/19)

The key changes include the simplified requirements for the classification and measurement of financial (b) Market Risk assets, a new hedging accounting model and a revised impairment loss model to recognise impairment Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate losses earlier, as opposed to the current approach that recognises impairment only when incurred. because of changes in market prices. The Corporation’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to which we are exposed are discussed below.

p78

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 6 People and relationships (cont’d) Note 7 Managing uncertainties (cont’d)

(a) Contingent assets to 1 January 2019. There are no anticipated contingent assets.

L ease s (AASB 16) (applies 2019/20) (b) Contingent liabilities Superannuation The classification of leases as either finance leases or operating leases is eliminated for lessees. Leases will

the significant accounting policies and methods adopted, including the criteria for recognition, the basis of

Financial Instruments - Disclosures (AASB 7) (applies 2018/19) measurement and the basis on which income and expenses are recognised, in respect of each class of

p79

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 7 Managing uncertainties (cont’d) Note 7 Managing uncertainties (cont’d)

Interest Rate Risk (d) Liquidity Risk Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the Liquidity risk includes the risk that, as a result of our operational liquidity requirements or we will not have instrument will fluctuate due to changes in market interest rates. The Corporation does not hold any interest sufficient funds to settle a transaction when required, we will be forced to sell a financial asset at below bearing financial instruments that are measured at fair value, and therefore has no exposure to fair value value or may be unable to settle or recover a financial asset. interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument To help reduce these risks the Corporation: will fluctuate because of changes in market interest rates. The Corporation has minimal exposure to cash - have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be flow interest rate risk through its cash and deposits that are at floating rates. maintained; - have readily accessible standby facilities and other funding arrangements in place; Investment of surplus funds is made with approved financial institutions under the Local Government Act - have a liquidity portfolio structure that requires surplus funds to be invested within various bands of liquid 1989. We manage interest rate risk by adopting an investment policy that ensures: instruments; - diversification of investment product, - monitor budget to actual performance on a regular basis; and - monitoring of return on investment, - set limits on borrowings relating to the percentage of loans to revenue and percentage of loan principal - benchmarking of returns and comparison with budget. repayments to revenue. There has been no significant change in the Corporation's exposure, or its objectives, policies and processes The Corporation's maximum exposure to liquidity risk is the carrying amounts of financial liabilities as for managing interest rate risk or the methods used to measure this risk from the previous reporting period. disclosed in the face of the balance sheet and is deemed insignificant based on prior periods' data and Interest rate movements have not been sufficiently significant during the year to have an impact on the current assessment of risk. Corporation's year end result. There has been no significant change in the Corporation's exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period.

(c) Credit Risk Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument With the exception of borrowings, all financial liabilities are expected to be settled within normal terms of

and cause us to make a financial loss. We have exposure to credit risk on some financial assets included in trade. Details of the maturity profile for borrowings are disclosed at Note 4.4. our balance sheet. To help manage this risk: - we have a policy for establishing credit limits for the entities we deal with; (e) Sensitivity disclosure analysis - we may require collateral where appropriate; and Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, the Corporation believes the following movements are - we only invest surplus funds with financial institutions which have a recognised credit rating specified in ‘reasonably possible’ over the next 12 months. our investment policy. • A parallel shift of + 1% and -1% in market interest rates (AUD) from year-end rates of 1.75%.

These movements will not have a material impact on the valuation of the Corporation's financial assets and Trade and other receivables consist of a large number of customers, spread across the consumer, business liabilities, nor will they have a material impact on the results of the Corporation's operations. and government sectors. Credit risk associated with the Corporation's financial assets is minimal because

the main debtor is the Victorian Government. Apart from the Victorian Government we do not have any 7.4. Fair value measurement significant credit risk exposure to a single customer or groups of customers. Fair value hierarchy There are no material financial assets which are individually determined to be impaired. The Corporation's financial assets and liabilities are not valued in accordance with the fair value hierarchy. We may also be subject to credit risk for transactions which are not included in the balance sheet, such as The Corporation's financial assets and liabilities are measured at amortised cost. when we provide a guarantee for another party. Details of our contingent liabilities are disclosed in note 7.1. The Corporation measures certain assets and liabilities at fair value where required or permitted by Australian Accounting Standards. AASB 13 Fair value measurement, aims to improve consistency and reduce The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying complexity by providing a definition of fair value and a single source of fair value measurement and amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to disclosure requirements for use across Australian Accounting Standards. the financial statements. The Corporation does not hold any collateral.

p80

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 7 Managing uncertainties (cont’d) Note 7 Managing uncertainties (cont’d)

p81

NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 7 Managing uncertainties (cont'd) Note 7 Managing uncertainties (cont'd)

AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in Where the assets are revalued, the revaluation increments are credited directly to the asset revaluation an orderly transaction between market participants at the measurement date. Fair value under AASB 13 is reserve except to the extent that an increment reverses a prior year decrement for that class of asset that an exit price regardless of whether that price is directly observable or estimated using another valuation had been recognised as an expense in which case the increment is recognised as revenue up to the amount technique. of the expense. Revaluation decrements are recognised as an expense except where prior increments are included in the asset revaluation reserve for that class of asset in which case the decrement is taken to the All assets and liabilities for which fair value is measured or disclosed in the financial statements are reserve to the extent of the remaining increments. Within the same class of assets, revaluation increments categorised within a fair value hierarchy, described as follows, based on the lowest level input that is and decrements within the year are offset. significant to the fair value measurement as a whole:

Impairment of assets Level 1 Quoted (unadjusted) market prices in active markets At each reporting date, the Corporation reviews the carrying value of its assets to determine whether there is for identical assets or liabilities any indication that these assets have been impaired. If such an indication exists, the recoverable amount of Level 2 Valuation techniques for which the lowest level input the asset, being the higher of the asset's fair value less costs of disposal and value in use, is compared to the that is significant to the fair value measurement is assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to directly or indirectly observable; and the comprehensive income statement, unless the asset is carried at the revalued amount in which case, the Level 3 Valuation techniques for which the lowest level input impairment loss is recognised directly against the revaluation surplus in respect of the same class of asset that is significant to the fair value measurement is to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset. unobservable. 7.5. Events occurring after balance date For the purpose of fair value disclosures, the Corporation has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value No matters have occurred after balance date that require disclosure in the financial report. (2016/17, nil) hierarchy as explained above. In addition, the Corporation determines whether transfers have occurred between levels in the hierarchy by Note 8 Other matters re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. 8.1. Reserves

Revaluation

Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment, are measured at their fair value, being the price that would be received to sell an asset (or paid to transfer a

liability) in an orderly transaction between market participants at the measurement date. At balance date, Balance at beginning of reporting period from Transfer Accumulated Surplus Increment (decrement) end Balance at of reporting period the Corporation reviewed the carrying value of the individual classes of assets measured at fair value to $ $ $ $ ensure that each asset materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date, the class of asset was revalued. (a) Asset Revaluation Reserve

Fair value valuations are determined in accordance with a valuation hierarchy. Changes to the valuation

hierarchy will only occur if an external change in the restrictions or limitations of use of an asset result in 2018

changes to the permissible or practical highest and best use of the asset. In addition, the Corporation Buildings 393,732 - - 393,732 Library Collections 240,507 - - 240,507 undertakes a formal revaluation of land and buildings on a regular basis ranging from 5 to 7 years. The

valuation is performed either by independent experts. 634,239 - - 634,239

2017 Buildings 393,732 - - 393,732 Library Collections 240,507 - - 240,507 634,239 - - 634,239

The asset revaluation reserve is used to record the increased (net) value of the Corporation's assets over time.

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NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 7 Managing uncertainties (cont'd) Note 7 Managing uncertainties (cont'd)

Revaluation

Fair value valuations are determined in accordance with a valuation hierarchy. Changes to the valuation

hierarchy will only occur if an external change in the restrictions or limitations of use of an asset result in 2018

valuation is performed either by independent experts. 634,239 - - 634,239

2017 Buildings 393,732 - - 393,732 Library Collections 240,507 - - 240,507 634,239 - - 634,239

The asset revaluation reserve is used to record the increased (net) value of the Corporation's assets over time.

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NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 8 Other matters (cont’d) Note 8 Other matters (cont’d)

8.3. Superannuation

The Corporation makes the majority of its employer superannuation contributions in respect of its

employees to the Local Authorities Superannuation Fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, each of which is funded differently. Obligations for Balance at Balance at beginning of reporting period Transfer from Accumulate d Surplus Increment (decrement) Balance at of end reporting period $ $ $ $ contributions to the Fund are recognised as an expense in the Comprehensive Income Statement when they are made or due. (b) Facilities Reserve A ccumu lation 2018 The Fund's accumulation categories, Vision MySuper /Vision Super Saver, receive both employer and Facilities Reserve 297,129 142,855 - 439,984 employee contributions on a progressive basis. Employer contributions are normally based on a fixed 297,129 142,855 - 439,984 percentage of employee earnings (for the year ended 30 June 2018, this was 9.5% as required under Superannuation Guarantee legislation). 2017 Facilities Reserve - 297,129 - 297,129 D efined Benefit - 297,129 - 297,129 The Corporation does not use defined benefit accounting for its defined benefit obligations under the Fund's Defined Benefit category. This is because the Fund's Defined Benefit category is a pooled multi- Total Reserves 931,368 142,855 - 1,074,223 employer sponsored plan.

There is no proportional split of the defined benefit liabilities, assets or costs between the participating The facilities reserve is used to retain any unspent budgeted facilities maintenance expenditure, to be employers as the defined benefit obligation is a floating obligation between the participating employers utilised for future facility improvements. and the only time that the aggregate obligation is allocated to specific employers is when a call is made.

As a result, the level of participation of the Corporation in the Fund cannot be measured as a percentage 2018 2017 compared with other participating employers. Therefore, the Fund Actuary is unable to allocate benefit $ $ liabilities, assets and costs between employers for the purposes of AASB 119.

8.2. Reconciliation of cash flows from operating activities to surplus Funding Arrangements Surplus for the year 371,273 430,378

The Corporation makes employer contributions to the Defined Benefit category of the Fund at rates determined by the Trustee on the advice of the Fund Actuary. Depreciation and amortisation 762,652 623,488

(Profit)/loss on disposal of property, plant and equipment - 4,339 As at 30 June 2017, a full triennial actuarial investigation was held as the Fund provides lifetime pensions Finance Costs 102,922 106,330 in the Defined Benefit category. The vested benefit index (VBI) of the Defined Benefit category of which the

Corporation is a contributing employer was 103.1%. To determine the VBI, the fund Actuary used the C hange in assets and liabilities: following long-term assumptions: (Increase)/decrease in trade and other receivables 11,089 10,328 Net Investment Returns - 6.5% p.a (Increase)/decrease in prepayments 2,049 (2,049) Salary Information - 4.25% p.a (Increase)/decrease in accrued income (4,759) (679) Price inflation (CPI) - 2.5% p.a Increase/(decrease) in trade and other payables 51,862 (53,074)

Increase/(decrease) in provisions (3,227) (40,563) Vision Super has advised that the VBI at 30 June 2018 was 106.0%. The VBI is to be used as the primary

funding indicator. Because the VBI was above 100%, the 30 June 2017 actuarial investigation determined Net cash provided by operating the Defined Benefit category was in a satisfactory financial position and that no change was necessary to activities 1,293,861 1,078,498 the Defined Benefit category’s funding arrangements from prior years.

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NOTES TO THE FINANCIAL REPORT NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018 For the year ended 30 June 2018

Note 8 Other matters (cont’d) Note 8 Other matters (cont’d)

8.3. Superannuation

The Corporation makes the majority of its employer superannuation contributions in respect of its

8.2. Reconciliation of cash flows from operating activities to surplus Funding Arrangements Surplus for the year 371,273 430,378

Increase/(decrease) in provisions (3,227) (40,563) Vision Super has advised that the VBI at 30 June 2018 was 106.0%. The VBI is to be used as the primary

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NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018

Note 8 Other matters (cont’d)

Employer Contributions Regular Contributions On the basis of the results of the 2017 triennial actuarial investigation conducted by the Fund Actuary, the Corporation makes employer contributions to the Fund’s Defined Benefit category at rates determined by the Fund’s Trustee. For the year ended 30 June 2018, this rate was 9.5% of members' salaries (9.5% in 2015/2016). This rate will increase in line with any increase to the contribution rate. In addition, the Corporation reimburses the Fund to cover the excess of the benefits paid as a consequence of retrenchment above the funded resignation or retirement benefit.

Funding Calls If the Defined Benefit category is in an unsatisfactory financial position at an actuarial investigation or the Defined Benefit category‘s VBI is below its shortfall limit at any time other than the date of the actuarial investigation, the Defined Benefit category has a shortfall for the purposes of SPS 160 and the Fund is required to put a plan in place so that the shortfall is fully funded within three years of the shortfall occurring. The Fund monitors its VBI on a quarterly basis and the Fund has set its shortfall limit at 97%. In the event that the Fund Actuary determines that there is a shortfall based on the above requirement, the Fund’s participating employers (including the Corporation) are required to make an employer contribution to cover the shortfall. Using the agreed methodology, the shortfall amount is apportioned between the participating employers based on the pre-1 July 1993 and post-30 June 1993 service liabilities of the Fund’s Defined Benefit category, together with the employer’s payroll at 30 June 1993 and at the date the shortfall has been calculated. Due to the nature of the contractual obligations between the participating employers and the Fund, and that the Fund includes lifetime pensioners and their reversionary beneficiaries, it is unlikely that the Fund will be wound up. If there is a surplus in the Fund, the surplus cannot be returned to the participating employers. In the event that a participating employer is wound-up, the defined benefit obligations of that employer will be transferred to that employer’s successor.

2017 triennial actuarial investigation surplus amounts The Fund’s triennial actuarial investigation as at 30 June 2017 identified the following in the defined benefit category of which the Corporation is a contributing employer: A VBI surplus of $69.8 million A total service liability surplus of $193.5 million. A discounted accrued benefits surplus of $228.8 million.

The VBI surplus means that the market value of the fund’s assets supporting the defined benefit obligations exceed the vested benefits that the defined benefit members would have been entitled to if they had all exited on 30 June 2017. The total service liability surplus means that the current value of the assets in the Fund’s Defined Benefit category plus expected future contributions exceeds the value of expected future benefits and expenses. The Corporation was notified of the 30 June 2017 VBI during August 2017. 2 018 int erim actuarial investigation An interim actuarial investigation is being conducted for the Fund’s position as at 30 June 2018. It is anticipated that this actuarial investigation will be completed in December 2018.

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NOTES TO THE FINANCIAL REPORT For the year ended 30 June 2018

Note 8 Other matters (cont’d)

West

This report was produced by West Gippsland Libraries in 2018.

Photography by Lauren Murphy

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