The Council's financial statements must be audited by the Audit Office of NSW. An opinion on whether the financial statements fairly reflect the Council's financial performance and position, and.
Cash and cash equivalents – end of the year
Total cash, cash equivalents and investments
Summary of significant accounting policies
The significant accounting policies adopted in the preparation of these consolidated financial statements are presented below. The preparation of financial statements requires the use of certain critical accounting estimates (in accordance with the AASB).
Summary of significant accounting policies (continued)
The Council is a member of the following county councils (which are bodies incorporated under the Local Government Act):. The amount of the impairment loss is recognized in the income statement within other expenses.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
Income from continuing operations
Other user fees and charges. i) Fees and charges – statutory and regulatory functions (under paragraph 608) General administration.
Income from continuing operations (continued)
TOTAL INTEREST AND INVESTMENT REVENUE
TOTAL OTHER REVENUE
Financial assistance - general component Financial assistance - local road component Subsidies for pensioners - general component Total general purpose.
TOTAL GRANTS AND CONTRIBUTIONS
Expenses from continuing operations
Retirement - contribution-based pension schemes Retirement - benefit-based pension schemes Work injury insurance Fringe benefit tax (FBT).
TOTAL EMPLOYEE COSTS EXPENSED
TOTAL MATERIALS AND CONTRACTS
Expenses from continuing operations (continued)
- Operating lease payments are attributable to
Audit and Review of Financial Statements: Remuneration of the Auditor of the Council for Auditing and Other Assurance Services Total Remuneration of the Auditor.
TOTAL DEPRECIATION AND IMPAIRMENT COSTS EXPENSED
TOTAL OTHER EXPENSES
Gains or losses from the disposal of assets
NET GAIN/(LOSS) ON DISPOSAL OF ASSETS
TOTAL CASH ASSETS, CASH
EQUIVALENTS AND INVESTMENTS
Receivables
TOTAL NET RECEIVABLES
Inventories and other assets
TOTAL INVENTORIES
TOTAL OTHER ASSETS
The Council has not recognized any impairment losses during the reporting period nor has it reversed any prior period losses.
TOTAL PAYABLES, BORROWINGS
Statement of cash flows – additional information
Statement of cash flows – additional information (continued)
Commitments for expenditure
Local government industry indicators – consolidated
- Operating performance ratio
- Own source operating revenue ratio Total continuing operating revenue (1)
- Unrestricted current ratio
- Debt service cover ratio
- Rates, annual charges, interest and extra charges outstanding percentage
- Cash expense cover ratio Current year’s cash and cash equivalents
- Investment properties
- Financial risk management
- Financial risk management (continued)
- Material budget variations
- Material budget variations (continued)
To assess the impact of uncollected rates and annual charges on the Council's liquidity and the adequacy of. The Council's activities expose it to a number of financial risks, including (1) price risk, (2) credit risk, (3) liquidity risk and (4) interest rate risk. A comparison by category of the accounting values and fair values of the Council's financial assets and financial liabilities recognized in the accounts is presented below.
Credit risk – the risk that the other party to the investment will not meet its obligations particularly to a financial instrument, resulting in a financial loss to the Council – whether of a capital or revenue nature.
TES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017
Development Contribution Statement (continued) $ '000 S94 CONTRIBUTIONS - UNDER A PLAN CONTRIBUTION PLAN NUMBER 7 - Southern Precincts Roads Traffic Facilities Open Space Community Facilities Other CONTRIBUTION PLAN NUMBER 8 - Rouse Hill Drainage Roads Traffic Facilities Open Space Community Facilities Other1(Specify) Other. Development Contribution Statement (continued) RIBUTIONS – UNDER A PLAN TION PLAN NUMBER 9 - Castle Hill Town Center e ION PLAN NUMBER 11 - Annangrove Industrial cilities.
TES TO THE FINANCIAL STATEMENTS OR THE YEAR ENDED 30 JUNE 2017
Contingencies and other assets/liabilities not recognised
The following assets and liabilities do not qualify for UNRECOGNIZED LIABILITIES (continued):. inclusion in the balance sheet, but. their knowledge and disclosure is considered relevant 2. Other obligations towards the users of the Board's financial report. The Council is involved in various member councils from time to time and is responsible for ensuring that claims relating to the ordinary course of business have sufficient resources to meet the requirement, including claims for damages, in respect of its pay for services. The Board believes it is properly covered. The most recent full actuarial assessment of the plan for all claims through the insurance coverage and indicated that the net assets of the plan are not expected to accrue material liabilities.
These plans also indicate proposed future contributions to be made towards the defined benefit expenditure to be undertaken by the Council, which scheme to correct the net deficit position will be funded by levies and receipt of funds recognized as an expenditure make when it becomes year in the future or where a deficit exists through the use of payable – similar to the accounting for defined Council's general funds.
Contingencies and other assets/liabilities not recognised (continued)
Interests in other entities
Retained earnings, revaluation reserves, changes in accounting policies, changes in accounting estimates and errors (continued).
Retained earnings, revaluation reserves, changes in accounting policies, changes in accounting estimates and error policies (continued), changes in accounting estimates and errors (continued). As a result, the Council has adjusted the accumulated depreciation for the following asset classes at 30/6/15 to reflect the correct value of accumulated depreciation. In accordance with AASB 108 – Accounting Policies, Changes in Accounting Estimates and Errors, the above prior period errors have been recognized retrospectively.
Retained earnings, revaluation provisions, changes in accounting policies, changes in accounting estimates and errors (continued) practices, changes in accounting estimates and errors (continued) (d) Voluntary changes in accounting policies.
Financial result and financial position by fund
Held for sale’ non-current assets and disposal groups
Events occurring after the reporting date
Boundary Adjustments
Intangible assets
Reinstatement, rehabilitation and restoration liabilities
These assets were last revalued on June 30, 2015 in accordance with the fair valuation policy as mandated by the Office of Local Government. The Council's Community Land was last revalued on 30 June 2016 in accordance with the Fair Valuation Policy as mandated by the Office of Local Government. The Council's operating land was last revalued on 30 June 2013 in accordance with the fair-valuation policy as mandated by the Office of Local Government.
Council's Land under Roads was last revalued on 30 June 2014 in accordance with the fair valuation policy as mandated by the Office of Local Government.
Fair value measurement (continued)
Key management personnel Key management personnel (KMP) of the council are those persons who have authority and responsibility for direct or indirect planning, direction and control of the council ac. The total amount of KMP benefits included in the income statement is: Remuneration: Short-term benefits (including annual leave) Other long-term benefits Total 1,754,550.
Council information and contact details
The Council collects contributions, levies and enters into planning agreements for development works subject to a development consent issued by the Council. All contributions must be spent/applied for the specific purpose for which they were charged and any interest applicable to unspent funds must be credited to remaining funds The following tables detail the receipt, interest and expenditure of the above contributions and charges and the value of any remaining funds , which are 'limited' in their fu SUMMARY OF CONTRIBUTIONS AND CHARGES Drainage Roads Traffic facilities Open space Utilities Planning agreement Other. Statement of Development Contributions Excluding Internal Indebtedness (Continued) $ '000 S94 CONTRIBUTIONS - UNDER PLAN NUMBER CONTRIBUTION PLAN 7 - South Areas Roads Transportation Facilities Open Space Public Facilities Other CONTRIBUTIONS PLAN NUMBER 8 - Rouse Hill Drainage Roads Transportation Facilities Open Space Community Facilities Agreement on planning Other. Statement of Contributions by Developers Excluding Internal Indebtedness (Continued) $ '000 S94 CONTRIBUTIONS - INCLUDING PLAN NUMBER PLAN CONTRIBUTION 12 - Balmoral Road Drainage Roads Traffic Facilities Open Space Community Facilities Other PLAN CONTRIBUTION NUMBER 13 - North Kellyville Drainage Roads Traffic Facilities Open Space Utilities Other.
Statement of developer contributions without internal loans (continued) $'000 S94 CONTRIBUTIONS - NOT UNDER PLAN Drainage Roads Parking Open space Other.
Qualified Opinion
Basis for Qualified Opinion
Other Matter
The Councillors’ Responsibility for the Financial Statements
Auditor’s Responsibility for the Audit of the Financial Statements
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Report on the Conduct of the Audit for the year ended 30 June 2017
The Hills Shire Council
SIGNIFICANT AUDIT ISSUE AND OBSERVATION
Net operating profit before capital sums increased by 23 percent due to the increase in operating grants and interest from investments. Tariff and annual levy revenues are down due to the loss of the south of M2 to the town of Parramatta due to border adjustments in 2016. Capital grants and contributions were down due to less Section 94 revenue and subdivision allocations in the current year in comparison to last year.
This was mainly due to loss of income due to border adjustments as well as a reduction in capital allowances and contributions.
STATEMENT OF CASH FLOWS
External constraints Reduction of external constraints due to greater spending on the purchase of public infrastructure compared to the previous year. Internal restrictions increased due to the receipt of proceeds from the sale of long-term assets sold in previous years.
PERFORMANCE RATIOS
Operating performance ratio
Own source operating revenue ratio
The 'unrestricted current ratio' is specific to local government and represents the council's ability to meet its short-term obligations as they fall due.
Rates and annual charges outstanding ratio
Cash expense cover ratio
Legislative compliance
SPECIAL PURPOSE FINANCIAL STATEMENTS
Statement by Councillors and Management 2. Special Purpose Financial Statements
Income statement - Water supply Business activity Income statement - Sewerage Business activity Income statement - Other business activities. Statement of financial position – Water supply company Statement of financial position – Sewerage Business activity Statement of financial position – Other business activities 3.
Auditor’s Report
Surplus (deficit) from continuing operations before capital amounts Grants and contributions provided for capital purposes. Infrastructure, property, plant and equipment Investments accounted for using the equity method. Total non-current assets.
NET ASSETS
Significant accounting policies
A statement setting out the supplementary accounting policies adopted in the preparation of the Special Purpose Financial Statements (SPFS) for National Competition Policy (NCP) reporting purposes follows. These financial statements have been prepared by SPFS for use by the Council and the Office of Local Government. The figures presented in these Special Purpose Financial Statements have been prepared in accordance with the recognition and measurement criteria of relevant Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and Australian Accounting Interpretations.
The disclosures in these special purpose financial statements have been prepared in accordance with the Local Government Act 1993 (NSW), the Local Government (General) Regulation and the Local Government Code of Accounting Practice and Financial Reporting.
Significant accounting policies (continued)
Operating profit before capital income + interest expense I,PP&E stated value on June 30. As a minimum, business activities must generate a return equal to the 10-year Commonwealth bond rate, which is 2.38% at 30/6/17.
Opinion
Basis for Opinion
Emphasis of Matter - Basis of Accounting
The Board members are responsible for the preparation and fair presentation of the financial statements and for determining that the accounting policy, described in Note 1 to the financial statements, is appropriate to meet the requirements in the LG code. The Board members' responsibility also includes such internal control as the Board members determine is necessary to enable the preparation and fair presentation of the financial statements which are free from material misrepresentation, whether due to fraud or error. In preparing the financial statements, the Board members must assess the Board's ability to continue as a going concern, except where the Board will be dissolved or amalgamated by an Act of Parliament. Reasonable assurance is a high level of assurance, but does not guarantee that an audit performed in accordance with Australian Auditing Standards will always detect material misstatements.
Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to affect the economic decisions that users make based on the financial statements.
SPECIAL SCHEDULES
Special Schedules 1
Community services and education Administration and education Social protection (welfare) Elderly and disabled people Children's services. Community centers and halls Performing arts venues Other performing arts Other cultural services Sports venues and facilities Swimming pools. Parks and gardens (lakes) Other sports and recreation Total recreation and culture Fuel and energy.
Paved rural roads (SRR) – local Paved rural roads (SRR) – regional Unpaved rural roads (URR) – local Unpaved rural roads (URR) – regional Bridges on UR – local.
CIAL SCHEDULE 7 - REPORT ON INFRASTRUCTURE ASSETS AS AT 30 JUNE 2017
Infrastructure asset performance indicators * consolidated
- Infrastructure renewals ratio Asset renewals (1)
- Infrastructure backlog ratio
- Asset maintenance ratio Actual asset maintenance
- Cost to bring assets to agreed service level
In any year, municipalities can claim the value of the lost income due to valuation objections. I have reviewed the attached Special Purpose Financial Statement which contains the reconciliation of The Hills Shire Council (the Council) Total Allowable General Income (Special Schedule No. 8) for the year ended June 30, 2018. 8 of The Hills Shire Council before 30 June 2018 has been prepared in all material respects in accordance with the requirements of the Local Government Code of Accounting Practice and Financial Reporting (LG Code) issued by the Office of Local Government (OLG), and is in compliance with the books and Board records.
My responsibilities under the standards are described in the 'Auditor's Responsibilities for the Audit of Special Annex No.8'.
Auditor’s Responsibility for the Audit of Special Schedule No. 8
In preparing Special Program No.8, Councilors must assess the Council's ability to continue as a going concern, unless the Council is to be dissolved or amalgamated by an Act of Parliament. The assessment should reveal, as appropriate, issues related to the continuity and appropriateness of the use of the going concern basis of accounting.
