The financial statements must be certified by senior personnel as a "fair representation" of the Board's financial results for the year and approved by the Board, ensuring both responsibility for and ownership of the financial statements. About the Auditor's Reports The Board's financial statements must be audited by the NSW Audit Office.
Statement of Comprehensive Income
Amounts not subsequently transferred to operating income Gain (loss) on revaluation of infrastructure, property, plant and equipment Total items not subsequently transferred to operating income. The above statement of comprehensive income should be read in conjunction with the accompanying notes.
Statement of Financial Position
Opening balance as at 1 July Changes due to the application of AASB 1058 and AASB 15 Restated opening balance Net operating income for the year Restated net operating income for the period Other comprehensive income Gain (loss) on revaluation of infrastructure, property, plant and equipment Other comprehensive income Total realized and unrealized results Closing balance as at 30 June The above statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of Cash Flows
Contents for the notes to the Financial Statements
A About Council and these financial statements 17
E1 Related party disclosures
F3 Statement of developer contributions as at 30 June 2021
F4 Statement of performance measures
G Additional Council disclosures (unaudited)
A About Council and these Financial Statements
A1-1 Basis of preparation
Historical cost convention
Significant accounting estimates and judgements
Critical accounting estimates and assumptions
Monies and other assets received by Council
The Consolidated Fund
The Trust Fund
Goods and Services Tax (GST)
Volunteer services
New accounting standards & interpretations issued but not yet effective
New accounting standards and interpretations issued not yet effective
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Noncurrent
AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Noncurrent – Deferral of Effective Date
Council does not expect any material impact from the above amendments and to its classification of liabilities as current or non-current
AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018- 2020 and Other Amendments
AASB 116 requires an entity to recognize sales revenue from the sale of items produced in the preparation of property, plant and equipment for their intended use and the related cost in profit or loss, rather than deducting the amounts received from the cost of active. AASB 137 to specify the costs that an entity includes when assessing whether a contract will be unprofitable and.
Council does not expect any material impact from the above amendments
IAS 141 to remove the requirement to exclude cash flows from taxation in fair value measurement, thereby aligning the fair value measurement requirements in IAS 141 with those in other Australian Accounting Standards.
New accounting standards adopted during the year
Note/Subtotal§ §TocItem§§TocItem§ §Footnote§ Revenues, expenses, and assets were directly attributed to the following functions or activities.
B Financial Performance B1 Functions or Activities B1-1 Functions or activities – income, expenses and assets
B1-2 Components of functions or activities
Details relating to the Council’s functions or activities as reported in B1-1 are as follows
Building a Vibrant Community & Prosperous Economy
Shaping Growth
Delivering & Maintaining Infrastructure
Valuing Our Surroundings
Proactive Leadership (Governance)
General Purpose Revenue
B2 Sources of Income B2-1 Rates & Annual Charges
B2 Sources of Revenue B2-1 Fees & Annual Fees. per s.502 - specific 'actual use' charges) Other user fees and charges. Timing of revenue recognition for user fees and charges User fees and charges recognized over time (1).
B2-2 User Charges and fees
B2-3 Other revenue (continued)
18,404 21,730 49,422 64,280General purpose grants and non-developer
B2-4 Grants and contributions
Developer contributions
Certain grants and contributions are obtained by the Council on the condition that they be spent in a specified manner or in a future period, but not yet spent in accordance with these conditions, are as follows:.
Unspent grants and contributions
B2-5 Interest and investment income
B2-6 Other income
Employee Leave Entitlements (ELE) Superannuation – defined contribution plans Superannuation – defined benefit plans Workers' Compensation Insurance Fringe Benefits Tax (FBT). The Council contributes to various defined benefit schemes and defined contribution schemes on behalf of its employees.
B3 Costs of providing services B3-1 Employee benefits and on-costs
Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. The Council participates in a defined benefit plan under the Local Government Superannuation Scheme, but there is not sufficient information available to justify the plan as a defined benefit plan and therefore the Board accounts for its obligations to defined benefit plans on the same basis as its obligations to defined benefit plans. contribution plans, i.e.
B3-2 Materials and services
Aggregate Materials and Services Aggregate Materials and Services. i) Interest-bearing liability costs Interest on leases.
B3-4 Depreciation, amortisation and impairment of non-financial assets
3,856) 1,565Gain (or loss) on disposal of plant and equipment
B4 Gains or losses
B5 Performance against budget B5-1 Material budget variations
Total cash and cash equivalents for the Balance Sheet Statement of Financial Position according to the Statement of Cash Flows. Bank overdrafts are presented under borrowings in current liabilities in the Statement of Financial Position.
C Financial position
For the purposes of presenting the Cash Flow Statement, cash and cash equivalents include: cash on hand; deposits held on call at financial institutions; other short-term, highly liquid investments with original maturities of three months or less that are readily convertible into known amounts of cash and that are subject to an insignificant risk of changes in value; and bank overdrafts.
C1 Assets we manage
C1-1 Cash and cash equivalents
The Council's financial assets measured at amortized cost consist of trade and other receivables, term deposits and cash and cash equivalents in the Statement of Financial Position. Term deposits with an initial term of more than 3 months are classified as investments rather than cash and cash equivalents.
C1-2 Investments
All recognized financial assets are subsequently measured in their entirety at amortized cost or fair value, depending on the classification of the financial assets. Internal restrictions on cash, cash equivalents and investments are those assets that are limited only by a resolution of the elected Board.
C1-3 Restricted cash, cash equivalents and investments
Interest on investments State support - RMS State support - Education State support - Other net VAT receivables Debtors - deposits Other debtors - biobanking. Receivables are initially recognized at fair value, and later measured at amortized cost using the effective interest method, less provisions for impairment.
C1-4 Receivables
In determining whether the credit risk of a financial asset has increased significantly since initial recognition and in assessing ECL, the Board considers reasonable and supported information that is relevant and available without undue cost or effort. When the Council renegotiates the terms of receivables from certain customers, the new expected cash flows are discounted at the original effective interest rate and any resulting differences to the book value are recognized in profit or loss.
C1-5 Inventories
Borrowing costs included in the cost of land held for resale are those costs that would have been avoided if the costs of acquiring and developing the land had not been incurred. Changes in fair value are recorded in the income statement as part of other income.
C2 Leasing activities C2-1 Council as a lessee
The amounts recognized in the Income Statement in respect of operating leases where the Council is a lessor are shown below. Rental income (excluding variable rental payments not dependent on an index or rate) Total income relating to operating rents for Council assets. iii) Distribution analysis of lease receivable.
C3 Liabilities of Council C3-1 Payables
Recognized revenue included in the contract liability balance at the beginning of the period. Total revenue recognized that was included in the contract liability balance at the beginning of the period.
C3-2 Contract Liabilities (continued)
Therefore, the monies received are recognized as a contract liability upon receipt and recognized as revenue when the performance obligation is satisfied. At the beginning of the year Additional provisions Amounts used (payments) Total ELE provisions at the end of the year.
C4 Reserves
The revaluation reserve infrastructure, tangible fixed assets (IPPE) is used to book markups and discounts in the revaluation of infrastructure, tangible fixed assets.
C4-1 Nature and purpose of reserves
Interest rate risk – the risk that movements in interest rates may affect returns and earnings. Liquidity risk – the risk that the municipality will not be able to pay its debts when they fall due.
D Risks and accounting uncertainties
Price risk – the risk that the capital value of investments may fluctuate as a result of changes in market prices, whether caused by factors specific to individual financial instruments or their issuers or caused by factors affecting similar instruments traded in a market. Credit risk – the risk that the counterparty to the investment will default on its obligations in relation to a financial instrument, resulting in a financial loss to the Board – whether capital or income. a) Market risk – interest rate and price risk.
D1-1 Risks relating to financial instruments held
The Council's activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity risk and (4) interest rate risk. Financial risk management is carried out by the Council's finance section according to policies approved by the Council.
D2 Fair value measurement
The fair value of assets and liabilities must be estimated in accordance with different accounting standards for recognition and measurement requirements or for disclosure. During the year there were no transfers between Level 1 and Level 2 fair value hierarchies for recurring fair value measurements.
D2 Fair value measurement (continued)
For parcels that are not in the general assessment report, the value is derived from the average unit rate of land parcels in the community and not the average of the municipality. The same actuarial assumptions are currently used with respect to the employees of each sponsoring employer.
D3-1 Contingencies
Other liabilities
The Council is from time to time involved in various claims relating to the ordinary course of business, including claims for damages relating to its services. The Council has classified a number of privately owned land parcels as local open space or woodland. ii) Potential land acquisitions as a result of planning restrictions imposed by the Council.
E People and relationships
Key Management Personnel (KMP) of the council are those persons who have the authority and responsibility for planning, directing and controlling the activities of the council, directly or indirectly.
E1 Related party disclosures
E1-1 Key management personnel (KMP)
E1-2 Councillor and Mayoral fees and associated expenses
Auditors of Council - NSW Auditor-General:. i) Audit and other audit services Audit and review of accounts.
E2 Other relationships E2-1 Audit fees
Depreciation and amortization Net losses/(gains) on disposal of assets Capital grants and contributions in kind Adoption of AASB 15/1058. Net cash flows from/(used in) operating activities from the statement of cash flows. b) Non-cash investing and financing activities.
F Other matters
Reversal of previous year's IP&E revaluation write-downs / impairment previously expensed directly to P&L.
F1-1 Statement of Cash Flows information
F2-1 Commitments
F3 Statement of developer contributions as at 30 June 2021 F3-1 Summary of developer contributions
- Operating performance ratio Total continuing operating revenue
- Own source operating revenue ratio Total continuing operating revenue
- Unrestricted current ratio Current assets less all external
- Debt service cover ratio Operating result before capital
- Rates and annual charges outstanding percentage
- Cash expense cover ratio Current year’s cash and cash
Opening balance as of July 1, 2020 Cash Non-interest income and investments earned Amounts expended Internal borrowings held as a restricted asset as of June 30, 2021 Operating performance report Title of continuing operating income Total income continuing operating excluding capital grants and contributions minus operating.
F4 Statement of performance measures
Debt coverage ratio Operating profit before capital Operating profit before capital excluding interest and depreciation/. Rates and Annual Fees Outstanding Percentage Outstanding Percentage Rates and Annual Fees. Cash expense coverage ratio Current year's cash and cash Current year's cash and cash. equivalents plus all time deposits 471,459 Monthly payments from cash flow. of operating and financing activities 10,484.
F4-1 Statement of performance measures - consolidated results
Operating performance ratio
Own source operating revenue ratio
G Additional Council disclosures (unaudited)
G1-1 Statement of performance measures - consolidated results (graphs)
Debt service cover ratio
Rates and annual charges outstanding percentage
Cash expense cover ratio
Di Kaɔnsil de kɔba kɔntribyushɔn, levi levi ɛn mek planin agrimɛnt fɔ divɛlɔpmɛnt wok dɛn we di Kaɔnsil go kɛr divɛlɔpmɛnt kɔnsɛnt go kɔt. Nɔn-kɛsh kɔntribyushɔn dɛn de ripresent di tɔtal valyu fɔ infrastukchɔ wok dɛn we divɛlɔpmɛnt ɔpreshɔn dɛn de gi insay di ples fɔ kɔntribyushɔn.
Notes to the Financial Statements for the year ended 30 June 2021 G1-2 Statement of developer contributions without Internal Borrowings
Notes to the FINANCIAL STATEMENTS for the year ended June 30, 2021 G1 -2 Statement of Developer Contributions Excluding Internal Borrowings (continued) $'000 S7.11 CONTRIBUTIONS - UNDER A PLAN CONTRIBUTION PLAN NUMBER 9 - Castle Hill City Center Roads Open Space Other CONTRIBUTION PLAN NUMBER 11 - Annangrove Industrial Roads Traffic Facilities. Notes to the FINANCIAL STATEMENTS for the year ended June 30, 2021 G1 -2 Statement of Developer Contributions Excluding Internal Borrowings (continued) $'000 S7.11 CONTRIBUTIONS - NOT UNDER A PLAN Drainage Roads Parking Open Space Other Expenses During the Year Non- cash TARGET ContributionsInterestInternHeld as Asset.
Elected members MAYOR
Officers
Other information
G1-3 Council information and contact details
INDEPENDENT AUDITOR’S REPORT
Opinion
Basis for Opinion
I believe that the audit evidence obtained is sufficient and suitable as a basis for my audit conclusion.
Other Information
The Councillors’ Responsibilities for the Financial Statements
Auditor’s Responsibilities for the Audit of the Financial Statements
A description of my responsibilities for the audit of the financial statements can be found on the website of the Auditing and Assurance Standards Board at: www.auasb.gov.au/auditors_responsibility/ar4.pdf.
SYDNEY
BAULKHAM HILLS NSW 2153
Report on the Conduct of the Audit for the year ended 30 June 2021
The Hills Shire Council
SIGNIFICANT AUDIT ISSUES AND OBSERVATIONS
Rural fire-fighting equipment not recognised in the financial statements
INCOME STATEMENT Operating result
STATEMENT OF CASH FLOWS
FINANCIAL POSITION
Cash and investments
PERFORMANCE
Performance measures
The 'Own Resources Operating Income Ratio' measures the council's fiscal flexibility and the extent to which it relies on external sources of funding such as operating grants and contributions. The "unrestricted current ratio" is specific to local government and represents the council's ability to meet its short-term obligations in a timely manner.
Infrastructure, property, plant and equipment renewals
The percentage of outstanding fees and annual charges assesses the impact of uncollected fees and annual charges on the municipality's liquidity and the adequacy of collection efforts. This liquidity ratio indicates the number of months that the municipality can continue to pay its direct expenses without an additional inflow of money.
OTHER MATTERS
Legislative compliance
Special Purpose Financial Statements
SPECIAL PURPOSE
FINANCIAL STATEMENTS
Contents
General Purpose Financial Statements
Notes - Significant Accounting Policies 104 Auditor’s Report on Special Purpose Financial Statements 107
Background
We are not aware of any matter that would make these statements false or misleading in any way.
Statement by Councillors and Management
Income Statement of Child Care
Provisions for employee benefits Total current liabilities Non-current liabilities Provisions for employee benefits Total non-current liabilities Total liabilities.
Statement of Financial Position of Child Care
Note - Significant Accounting Policies
In my opinion, the financial statements present, in all material respects, the financial position of the Council's stated Business Activity as at 30 June 2021, and its financial performance for the year then ended, in accordance with the Australian Accounting Standards described in the Significant accounting policy note and the Local Government Code of Accounting Practice and Financial Reporting 2020–21 (LG Code). My responsibilities under the standards are described in the 'Auditor's responsibilities for the audit of the financial statements'.
Emphasis of Matter - Basis of Accounting
The Board's annual report for the year ending 30 June 2021 includes other information in addition to the financial statements and my Independent Auditor's Report thereon. The Board members are responsible for the preparation and fair presentation of the financial statements and for determining that the accounting policy, described in the Significant accounting policy note to the financial statements, is appropriate to meet the requirements in the LG Code.
SPECIAL
SCHEDULES
Permissible income for general rates 113
Report on infrastructure assets as at 30 June 2021 117
Total allowable income Min nominal general income return Catch-up or (excess) result To be carried forward to next year 6 Explanation. The OLG takes these amounts from the Council's Permitted Income Statement for General Rates in the Financial Data Return (FDR) to administer this process.
Permissible income for general rates
My responsibilities under the standards are described in the 'Auditor's responsibilities for the audit of the schedule' section of my report. The Board's annual report for the year ending 30 June 2021 includes other information in addition to the Annexure and my Independent Auditor's Report thereon.
The Councillors’ Responsibilities for the Schedule
As of the date of this Independent Auditor's Report, the other information I have received includes the financial statements for general purposes, financial statements for special purposes and the special plan "Report on infrastructure assets as of June 30, 2021". If, based on the work I have performed, I find that there is a material anomaly in other information, I must report this fact.
Auditor’s Responsibilities for the Audit of the Schedule
Cost of bringing assets up to agreed service level Estimated cost of bringing assets up to an agreed service level which by. Measure: ―>100.00% Source of measure: Code of Accounting Practice and Financial Reporting Cost to bring assets to agreed service level Cost to bring assets to agreed service level This ratio provides a snapshot of the proportion of outstanding renewal works compared to the total value of assets under the Council's care and stewardship.
THE HILLS SHIRE COUNCIL
