Annual Report for the year ended 30 June 2014 City West Water Corporation ABN 70 066 902 467 Annual Report for the year ended 30 June 2014 City West Water Corporation ABN 70 066 902 467 Annual Report 2013-14 Contents A foreword from the Chairman and Managing Director ................................................................................................................................ 5 Report of Operations ............................................................................................................................................................................................... 6 Performance Report ...............................................................................................................................................................................................28 Certification of Performance Report for 2013-2014 ......................................................................................................................................31 Major non residential water users ......................................................................................................................................................................34 Attestation on Compliance with the Australian/New Zealand Risk Management Standard .............................................................46 Statement of Comprehensive Income ..............................................................................................................................................................47 Balance Sheet ...........................................................................................................................................................................................................48 Statement of Changes in Equity .........................................................................................................................................................................49 Cash Flow Statement .............................................................................................................................................................................................50 Notes to and forming part of the Financial Statements 1. Summary of significant accounting policies .....................................................................................................................................51 2. Financial risk management objectives and policies .......................................................................................................................63 3. Revenue and other income ....................................................................................................................................................................66 4. Expenses ......................................................................................................................................................................................................68 5. Income tax ..................................................................................................................................................................................................69 6. Deferred tax assets and deferred tax liabilities reconciliation .....................................................................................................70 7. Dividends ....................................................................................................................................................................................................71 8. Current assets - Cash and cash equivalents ......................................................................................................................................72 9. Current assets - Receivables ..................................................................................................................................................................72 10. Current assets - Prepayments ................................................................................................................................................................73 11. Non-current assets - Receivables .........................................................................................................................................................73 12. Non-current assets - Infrastructure, property, plant and equipment ........................................................................................73 13. Non-current assets - Intangible assets ................................................................................................................................................78 14. Current liabilities - Payables ..................................................................................................................................................................79 15. Current liabilities - Borrowings .............................................................................................................................................................79 16. Current liabilities - Provision for tax ....................................................................................................................................................79 17. Current liabilities - Other provisions ...................................................................................................................................................80 18. Current liabilities - Unearned income .................................................................................................................................................80 19. Current liabilities - Other ........................................................................................................................................................................81 20. Non-current liabilities - Borrowings ....................................................................................................................................................81 21. Non-current liabilities - Unearned Income ........................................................................................................................................81 22. Equity ...........................................................................................................................................................................................................81 23. Responsible persons and executives ..................................................................................................................................................83 24. Remuneration of auditor ........................................................................................................................................................................85 25. Contingent assets and liabilities ..........................................................................................................................................................86 26. Commitment for expenditure ...............................................................................................................................................................87 27. Provision for employee benefits ...........................................................................................................................................................88 28. Related party disclosure .........................................................................................................................................................................94 2 29. Economic dependency ............................................................................................................................................................................98 30. Ex gratia expenses ....................................................................................................................................................................................98 31. Events after reporting date ....................................................................................................................................................................98 32. Reconciliation of profit after income tax to net cash inflow from operating activities ........................................................99 33. Financial instruments ............................................................................................................................................................................100 Statutory Certification .........................................................................................................................................................................................106 Appendix 1 - Disclosure Index ...........................................................................................................................................................................109 Appendix 2 - Key Performance Indicators ......................................................................................................................................................111 Appendix 3 - Bulk Water Entitlement Reporting ..........................................................................................................................................112 3 Annual Report 2013-14 4 A foreword from the Chairman and Managing Director We are pleased to present City West Water’s 2013-14 Annual Report. This report provides a summary