Creating a nationally significant
friendly city that people are proud to
call home
2013-2014
Community Economic Environmen...
2
3
Message from the Mayor................................................. 4
Chief Executive Officer’s Report.................
4
It’s an exciting time in Port Hedland as we continue our journey to
becoming a nationally significant friendly city wher...
5
Looking back on the 2013/14 year, I am pleased to report that the Town
of Port Hedland has successfully improved its fin...
6
Council as of 30 June 2014
Kelly Howlett
Mayor
Term expiring Oct 2017
Gloria Jacob
Deputy Mayor
Term expiring Oct 2015
G...
7
8
Executive Team ­— 2013/2014
Chief Executive
Officer
Mal Osborne
Director Engineering Services
Russell Dyer
Director Plan...
9
Acting Director Community
Development
Eddie Piper
Director Community
Development
Gordon Macmile
*resigned April 2014
Dir...
Port Hedland: who we arePort Hedland is a dynamic town in Western Australia’s
beautiful North West. We are home to around ...
11
Port Hedland: Pilbara’s Port City
*(based on 2011 Census and 2014 accommodation surveys)
Area: 11, 844 square kilometre...
12
Number of staff receiving remuneration $100,000 pa and over as of 30 June 2014
$100,000 - $109,999 $110,000 - $119,999 ...
13
Elected Member attendance -
July 2013 to June 2014
Ordinary Council
Meetings (12)
Special Council
Meetings (6)
Electors...
14
National competition and policy
statementThe Competition Principles Agreement is an Inter-government
Agreement between ...
15
Structural Review of Public Monopolies
In relation to Structural review of public monopolies, the Town of
Port Hedland ...
16
The Town has an ongoing commitment to good records
management practices. The Town reviewed its 5 year Record
Keeping Pl...
17
The Town’s Disability Access and Inclusion Plan was revised and
endorsed in September 2013.
The 2013 – 2017 plan articu...
Our vision is to become
a nationally significant
friendly city that people are
proud to call home. Central
to this vision ...
19
We are a friendly,
exciting city of
neighbours that
is vibrant and
diverse
Our economy
is resilient and
provides choice...
20
Community
We are a friendly,
exciting city of
neighbours that is
vibrant and diverse
20
2121
• South Hedland Aquatic Centre
The lighting and shade installation was completed in February
2014, allowing the faci...
Economic
Our economy
is resilient and
provides choice and
opportunities
22
23
• Commercial growth
Dome Coffees Pty Ltd received planning approval for the
refurbishment and renovation of the Distri...
Environment
A city in which
we live in balance
with our unique
surrounds
24
25
• Affordable housing
The Osprey Key Worker village is open and running with 293 units
of brand new housing.
• GP Hous...
Local Leadership
We are leaders in
the community,
with a structured
commitment to
transforming Port
Hedland
26
27
• Integrated planning and reporting framework
The Town developed a 4 year budget to align with the Strategic
Community...
Financial Statements
2013-2014
28
Town of Port Hedland
GENERAL PURPOSE FINANCIAL STATEMENTS
for the year ended 30 June 2014
"a nationally significant, frien...
Financial Statements 2014
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Town of Port He...
Financial Statements 2014
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Town of Port Hedland
Notes to the Financial Statements
for the year ended 30 June 2014
C...
Financial Statements 2014
Town of Port Hedland
Notes to the Financial Statements
for the year ended 30 June 2014
Note 1. S...
Financial Statements 2014
Town of Port Hedland
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for the year ended 30 June 2014
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for the year ended 30 June 2014
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for the year ended 30 June 2014
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Town of Port Hedland
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for the year ended 30 June 2014
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Town of Port Hedland
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Town of Port Hedland
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N...
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Notes to the Financial Statements
for the year ended 30 June 2014
N...
Town of Port Hedland
Notes to the Financial Statements
for the year ended 30 June 2014
Note 2. Operating Revenues and Expe...
Town of Port Hedland
Notes to the Financial Statements
for the year ended 30 June 2014
Note 2. Operating Revenues and Expe...
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Port Hedland Annual Report13:14

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Port Hedland Annual Report13:14

  • 1. Creating a nationally significant friendly city that people are proud to call home 2013-2014 Community Economic Environment Local Leadership
  • 2. 2
  • 3. 3 Message from the Mayor................................................. 4 Chief Executive Officer’s Report..................................... 5 Council as of 30 June 2014.............................................. 6 Management as of 30 June 2014.................................... 8 Port Hedland: who we are............................................... 10 Port Hedland: Pilbara’s Port City.................................... 11 Employee remuneration - salary range $....................... 12 Councillor attendance - July 2013 to June 2014........... 13 National competition and policy statement................... 14 Information management update................................... 16 Disability Access and Inclusion Plan.............................. 17 Our performance 2013-2014............................................ 18 Financial Statements 2013-2014..................................... 28 Contents
  • 4. 4 It’s an exciting time in Port Hedland as we continue our journey to becoming a nationally significant friendly city where people are proud to call home. Much work has been accomplished and some truly impressive results realised. While we have already achieved great things, there is more ground to be covered on our journey to achieving our vision. I am pleased to present the 2013/14 Town of Port Hedland Annual Report which documents our achievements during the past financial year, outlines our financial position and highlights key projects for the coming year. We know that our region significantly contributes to the Western Australian and national economies and at the same time we enjoy high quality facilities and services. Rapid growth has brought many positive changes to our community and set us on the path to becoming a vibrant and attractive regional city. 2013/14 saw the delivery of some major infrastructure projects for the town and the introduction of key community initiatives: • In August 2013 we held the second North West Festival with 3854 people attending the event • Renovation works to the Port Hedland International Airport commenced in June 2014. The $1.2 million interim works program will significantly improve passenger flow within the terminal and start to create a space that is reflective of Port Hedland and its stunning landscape. • Koombana Park received a $650,000 facelift including more playground equipment, BBQ facilities, shelter, a sealed car park and CCTV cameras. The upgrade was project managed by the Town with funding from Royalties for Regions. • In June 2014 we opened the new $4 million South Hedland Bowling and Tennis Club which was project managed by the Town with funding by the State Government’s Royalties for Regions program through the Pilbara Development Commission ($2.5 million), BHP Billiton Iron Ore ($1 million) and the South Hedland Bowling and Tennis Club ($500,000 via a self-supporting loan from the Town). • The Great Northern Highway realignment and Wallwork Road Bridge were both completed providing a safer uninterrupted road network • $1 pool entry fee was introduced at our aquatic centres in an effort to improve youth engagement • 24 hour gym service at Wanangkura Stadium was introduced to provide greater flexibility for our community • In-term swimming was re-introduced with support from Atlas Iron, Fortescue Metals Group and the Port Hedland Chamber of Commerce At the October 2013 Local Government Elections we welcomed three new elected members – Lorraine Butson, Troy Melville and David Van Vugt – and previous members Jan Gillingham and David Hooper to the council body. I’d like to thank outgoing Elected Members Arnold Carter and Bill Dziombak for their tremendous efforts in serving the community over the period of their respective terms. It is an honour and privilege to represent our community at a local, State or Federal level and one that my fellow elected members and I take very seriously. It is exciting to have new elected members on Council as they bring with them new perspectives. I would also like to thank the Town of Port Hedland Chief Executive Officer Mal Osborne and staff for their ongoing dedication and commitment. Together we are committed to transforming this town into a vibrant attractive regional city. Kelly Howlett Mayor Message from the Mayor
  • 5. 5 Looking back on the 2013/14 year, I am pleased to report that the Town of Port Hedland has successfully improved its financial position, delivered many key projects and continued to provide essential services for our community. Going into the 2013/14 year, the Town faced the challenge of achieving an efficiency dividend of $1.93 million which reflected the rapid rate of growth we had experienced over the past three years. We had been focused on growing for growth – which meant building the necessary infrastructure and services to prepare for an increased population and industry. During this time we saw the construction of new facilities like Wanangkura Stadium and Marquee Park, and the upgrade of existing facilities including the JD Hardie Youth Zone, the South Hedland Aquatic Centre and the Matt Dann Theatre and Cinema. We’ve also worked with Horizon Power to implement the Pilbara Underground Power Project in South Hedland and Wedgefield and introduced subsidised housing for GPs in partnership with BHP Billiton Iron Ore and Royalties for Regions. With all of these major projects and services delivered, we’re now focused on growing with growth – consolidating our projects, appropriately managing our existing assets, improving the provision of services and developing current and future business and investment opportunities. To address our efficiency dividend of $1.93 million we consolidated our operations and identified areas where methods and processes could be improved to achieve increased productivity. This included an organisational restructure with 15 contracted positions being made redundant. It was a difficult period for the administration, however I believe we have come out stronger and with a more united staff body. Some highlights of 2013/14: • Rolling out of our organisational values “Our Team, Our Way” and implementing our employee wellness program • Continually improving the way we manage our assets and relationships with tenants with the introduction of a new community leasing policy • Holding the biggest citizenship ceremony for Port Hedland held on Australia Day welcoming 63 new citizens to our country • Looking internally to improve our systems and processes such as finance, records and IT • Progress on the proposed solar farm project in Precinct 3 including advertising for a Request for Proposal • Negotiating a cashless transaction with Megara for the development of lots at Catamore Court, where Megara will build eight dwellings for staff housing in exchange for the sale of the remaining lots • Delivering on our commitment for continued asset improvement with Wedgefield upgrades and drainage works • Taking a moment to pause to check our vision and priorities are on track by starting the review of our Strategic Community Plan, Corporate Plan, Long-Term Financial Plan, IT and workforce plans • Working to establish new waste to energy plant which will convert majority of our industrial and municipal waste and convert to energy (enough to power 21,000 homes) and with this establishing a new landfill • Announcing the Pilbara’s first Bunnings and Dome Coffees While the resources sector moves from construction to operations, our town continues to grow with no evidence of ‘slowing down’. We are progressing to achieving our vision of becoming a vibrant attractive regional city and look forward to the journey. 2013/14 saw some significant staff movements - we said farewell to two outgoing directors, Corporate Services director Natalie Octoman and Community Development director Gordon MacMile. I’d like to thank them for their contributions to the Town. They will be greatly missed by the staff. I’d like to welcome our two new directors - Clare Phelan who steps into the role of Corporate Services director and Eddie Piper who will be acting in the Community Development director role for a fixed term. I look forward to working closely with you to achieve our organisational goals. Last but not least I would like to thank the Town’s staff for another year of hard work and successful outcomes. Mal Osborne Chief Executive Officer Chief Executive Officer’s Report
  • 6. 6 Council as of 30 June 2014 Kelly Howlett Mayor Term expiring Oct 2017 Gloria Jacob Deputy Mayor Term expiring Oct 2015 George Daccache Councillor Term expiring Oct 2015 Julie Hunt Councillor Term expiring Oct 2015 Jan Gillingham Councillor Term expiring Oct 2017 Troy Melville Councillor Term expiring Oct 2017 Penny Taylor Councillor Term expiring Oct 2015 Lorraine Butson Councillor Term expiring Oct 2017 David Van Vugt Councillor Term expiring Oct 2015 *resigned 1 May 2014 David Hooper Councillor Term expiring Oct 2017 Arnold Carter Councillor Term expired at October 2013 Local Government Election Bill Dziombak Councillor Term expired at October 2013 Local Government Election
  • 7. 7
  • 8. 8 Executive Team ­— 2013/2014 Chief Executive Officer Mal Osborne Director Engineering Services Russell Dyer Director Planning & Development Services Eber Butron The CEO’s Office is responsible for the overall management of the Town of Port Hedland at an operational and strategic level. The Engineering Services team oversees a range of services, such as: • Infrastructure Development, including major projects and building maintenance • Waste Operations, including South Hedland Landfill • Parks and Gardens • Technical Services • Engineering Operations • Airport Operations The Planning and Development directorate provides a range of services including permit authority, building approvals, assisting residents and developers with their planning and building applications and community safety. It includes the following departments: • Planning Services • Building Services • Environmental Health Services (including emergency management) • Economic and Strategic Planning • Ranger Services
  • 9. 9 Acting Director Community Development Eddie Piper Director Community Development Gordon Macmile *resigned April 2014 Director Corporate Services Natalie Octoman *resigned October 2013 Director Corporate Services Clare Phelan Corporate Services is responsible for high-quality corporate support for the organisation. The directorate included the following teams: • Corporate Information • People and Culture • Asset Management and Commercial Property • Finance • Information Technology and Communications • Customer Service The Community Development team manages a range of community facilities and events including: • Matt Dann Theatre & Cinema • JD Hardie Youth Zone • Main events such as Australia Day Celebrations, Portbound, Spinifex Spree Carnival and North West Festival • Wanangkura Stadium • South Hedland Aquatic Centre • Gratwick Gym and Aquatic Centre • All sporting grounds and reserves • Sporting club development
  • 10. Port Hedland: who we arePort Hedland is a dynamic town in Western Australia’s beautiful North West. We are home to around 20,000 people from diverse cultural backgrounds and cover 11,844 square kilometres of the Pilbara region. Our original inhabitants, the Karriyarra people, call the place Marapikurrinya for the hand shaped formation of the tidal creeks coming off the natural harbour. Our lifestyle is relaxed and our location on the ocean provides for a variety of leisure activities. Our two main residential centres Port and South Hedland offer a range of community services including cultural, recreation and shopping facilities. The Wedgefield Industrial Area contains a variety of light and service industry premises and the iron ore crushing and shipping facilities are features synonymous with our rugged landscape, along with the expanded port facilities. We are proud to be the world’s largest bulk export port with Pilbara Ports Authority recording a record annual tonnage throughput of 372.3 million tonnes in 2013/14. Our role is well established on the national and international stage, attracting internationally prominent resource companies and contributing at a nationally recognised level to the broader Australian economy. 10
  • 11. 11 Port Hedland: Pilbara’s Port City *(based on 2011 Census and 2014 accommodation surveys) Area: 11, 844 square kilometres Electricity supply: Horizon Power Water supply: Water Corporation Length of road: 181.65km sealed, 490.67 unsealed Local industries: iron ore export, salt, tourism, pastoral, light industrial, transport Distance from Perth: 1,765 kilometres via North West Coastal Highway 1,638 kilometres via Great Northern Highway elected members with one vacancy (as of 30 June 2014) 10 Total rates levied (2013/14): $22,522,391 Total operating revenue (2013/14): $76,370,000 • 40% are born overseas • 21% are aged between 25 years and 34 years • 15% are of Aboriginal or Torres Strait Islander descent • Estimated 72 nationalities New citizens naturalised 1 July 2013 to 30 June 2014: • 98 adults • 30 dependants/children as of 30 June 2014
  • 12. 12 Number of staff receiving remuneration $100,000 pa and over as of 30 June 2014 $100,000 - $109,999 $110,000 - $119,999 $120,000 - $129,999 $130,000 - $139,999 $140,000 - $149,999 $150,000 - 159,999 2013 10 5 6 10 1 0 2014 7 9 1 0 11 2 Number of staff receiving remuneration $100,000 pa and over as of 30 June 2014 $160,000, 169,999 $170,000 - $179,999 $180,000 - $189,999 $190,000 - $199,999 $300,000 - $309,999 $310,000 - $319,999 2013 0 2 1 2 1 0 2014 0 0 3 1 1 1 Employee remuneration - salary range $ Employees: • 225 employees including casual staff • 169 full-time employees
  • 13. 13 Elected Member attendance - July 2013 to June 2014 Ordinary Council Meetings (12) Special Council Meetings (6) Electors Meeting (2) Total (20) Mayor Kelly Howlett 10 5 2 17 Councillor Gloria Jacob 9 5 1 15 Councillor George Daccache 10 6 2 18 Councillor Jan Gillingham 10 5 2 17 Councillor David Hooper 10 5 2 17 Councillor Julie Hunt 10 5 1 16 Councillor Penny Taylor 8 4 2 14 Councillor Lorraine Butson* 9 of 9 3 of 3 2 14 of 14 Councillor Troy Melville* 8 of 9 2 of 3 1 11 of 14 Councillor David Van Vugt* 4 of 7 1 of 2 0 5 of 11 Councillor Arnold Carter* 1 of 3 3 of 3 N/A 4 of 6 Councillor Bill Dziombak 3 of 3 3 of 3 N/A 6 of 6 *Please note: Councillor Carter’s position expired at the October 2013 Ordinary Local Government Elections. Councillor Dziombak’s position expired at the October 2013 Ordinary Local Government Elections. Councillor Butson was elected at the October 2013 Ordinary Local Government Elections. Councillor Melville was elected at the October 2013 Ordinary Local Government Elections. Councillor Van Vugt was elected at the October 2013 Ordinary Local Government Elections and resigned on 1 May 2014.
  • 14. 14 National competition and policy statementThe Competition Principles Agreement is an Inter-government Agreement between the Commonwealth and State/Territory Governments that sets out how government will apply National Competition Policy principles to public sector organisations within their jurisdiction. The State Government released a Policy Statement effective from July 1996 called the Clause 7 Statement, which forms part of the Competition Principles Agreement. The Clause 7 policy document sets out nominated principles from the Agreement that now apply to Local Government. The provisions of Clause 7 of the Competition Principles Agreement require local government to report annually as to the implementation, application and effects of the Competition Policy. The Competition Principles Agreement, under Clause 7, specifies three broad areas of reporting. These are: • Competitive Neutrality • Structural Review of Public Monopolies • Legislative Review In accordance with the requirements of the National Competition Policy, the Town of Port Hedland makes the following disclosures for 2013/2014. Competitive Neutrality The objective of competitive neutrality is introducing measures which effectively remove any net competitive advantages arising as a result government ownership of a business entity. The Town of Port Hedland has previously assessed its operations and considers that it has two business activities that would be classed as significant under the current guidelines. The Town of Port Hedland does not operate a business enterprise that has been classified by the Australian Bureau of Statistics as either a Public Trading Enterprise or Public Financial Enterprise. The Port Hedland International Airport (PHIA) and the Town of Port Hedland Landfill are both significant business activity, as defined by Clause 7 of the Competition Policy Statement, as they both have an annual income from fees in excess of $200,000. A Competitive Neutrality Review has previously been undertaken where it was concluded that the Port Hedland International Airport is not seen as unfairly taking advantage of its local government ownership. Competitive Neutrality Reviews will continue to be undertaken for the PHIA in the future. For all other activities within the Town, opportunities are continually being examined in order to generate efficiency improvements. This must be balanced with the type and level of service provision and statutory and other. An activity requiring scrutiny in this regard for the Town of Port Hedland, and is not a public monopoly, is that of private works on private property; however during 2013/14 no individual private works project exceeded $200,000. The Town provides quotations or submits tenders in order to win private works. This process ensures the activity of private works is open to competitive market testing. The number of activities to which competitive neutrality principles have been applied in the reporting period is Zero (0). The number of activities to which competitive neutrality principles have been considered but not applied in the reporting period is Zero (0). During the reporting period the Town of Port Hedland did not become aware of any allegations of non-compliance with the competitive neutrality principles made by a private entity against the Town.
  • 15. 15 Structural Review of Public Monopolies In relation to Structural review of public monopolies, the Town of Port Hedland discloses the following: • Structural reform principles have been applied to the following number of activities in the reporting period: Zero (0); and • Structural reform principles have been considered but not applied to the following number of activities in the reporting period: Zero (0) As no structural reform has been applied to any activities, the review requirements of principal SR.3 of Clause 7 of the Competition Policy Statement have not been undertaken. Legislative Review Parties to the National Competition Policy package agreed that legislation should not restrict competition unless: • The benefits of the restriction to the community as a whole outweigh the costs; and • The objectives of the legislation can only be achieved by restricting competition. Accordingly, the Town of Port Hedland is required to implement a systematic review of all of its existing legislation to determine whether there are any direct or indirect effects on competition. The Local Government Act 1995 requires all existing Local Laws to be reviewed every eight years. As part of this process the intention to review Local Laws is advertised in the media giving residents and rate payers the opportunity to comment on any proposed changes, additions or deletions to the Town’s Local Laws.
  • 16. 16 The Town has an ongoing commitment to good records management practices. The Town reviewed its 5 year Record Keeping Plan in 2013 to ensure compliance with the State Records Act 2000. The Town creates and maintains proper and adequate records through its electronic records system, which provides centralisation for all corporate documents and increases efficiency in document retrieval, storage and retention. The Town continues to provide training to all staff to ensure they are advised of their record keeping obligations and responsibilities. During 2014/15 the Town will implement improvement to its information management and record keeping processes with a view to introducing a new electronic document management system in 2015/16. Information management update Review of Local Laws The Town commenced a review of its Local Laws with all the project scheduled to be completed by 30 June 2015. Section 3.16 of the Local Government Act 1995 requires that all Local Laws of a Local Government must be reviewed within an eight year period after their commencement to determine if they should remain unchanged or be repealed or amended. During 2013/14 the Standing Orders Local Law was reviewed. The following will be reviewed in 2014/15: • Parking Local Law • Dogs Local Law • Cat Control Local Law • Reserves and Foreshores Local Law • Aquatic and Recreation Centres Local Law • Town of Port Hedland International Airport Local Law • Cemeteries Local Law • Health Local Law • Signs, Hoardings and Bill Postings Local Law • Trading in Public Places Local Law • General Provisions Local Law Official conduct report The Local Government Act 1995 requires the Town to report on the number of official conduct complaints recorded under Section 5.121 during a financial year. The Town of Port Hedland received no complaints of this nature during the 2013/14 financial year. Freedom of Information (FOI) statistics In accordance with Section 10(1) of the Freedom of Information Act 1992, residents have the right to access documents (which are not otherwise exempt) held by State and Local Government agencies. The table below illustrates all the applications received the Town of Port Hedland in 2013/14. Access Type Personal Non-personal Total Access in full 1 3 4 Edited access 0 2 2 Access refused 0 0 0 No documents found 0 0 0 Withdrawn by applicant 0 0 0 Not finalised 0 0 0 Total 1 5 6
  • 17. 17 The Town’s Disability Access and Inclusion Plan was revised and endorsed in September 2013. The 2013 – 2017 plan articulates the Town’s commitment to creating a community that welcomes and includes people of all abilities and sets out how the Town will meet legislative requirements. A number of works were undertaken in 2013/14 to provide and improve disabled access: • Ongoing review of community programs to ensure access and inclusion • Hedland Community Living Association being involved in the development of Bike Week activities • Opportunities have been identified to engage access consultants to provide advice on planning and design processes for infrastructure projects including the Port Hedland International Airport redevelopment works • The Town’s People and Culture business unit has reviewed and updated a range of processes and procedures to ensure access and inclusion is embedded in the organisation • In February 2014 Council endorsed the Town of Port Hedland’s affiliation with the National Disability Services Commission Companion Card Program. As an affiliate of the Companion Card Program, the Town agrees to issue a companion ticket at no charge to cardholders who require attendant care support from a companion to participate at their venue/event The Disability Access and Inclusion Plan identifies the below outcomes which include goals on how to deliver the outcomes. 1. People with disability have the same opportunities as other people to access services of, and any event organised by, a public authority. 2. People with disability have the same opportunities as other people to access the buildings and other facilities of public authority. 3. People with disability receive information from a public authority in a format that will enable them to access the information as readily as other people are able to access it 4. People with disability receive the same level and quality service from the staff of a public authority as other people receive from the staff of that public authority. 5. People with disability have the same opportunities as other people to make complaints to a public authority. 6. People with disability have the same opportunities as other people to participate in any public consultation by a public authority. 7. People with disability have the same opportunities as other people to obtain and maintain employment with the Town of Port Hedland Disability Access and Inclusion Plan
  • 18. Our vision is to become a nationally significant friendly city that people are proud to call home. Central to this vision are four themes and outcomes. 2013-2014 18
  • 19. 19 We are a friendly, exciting city of neighbours that is vibrant and diverse Our economy is resilient and provides choice and opportunities A city in which we live in balance with our unique surrounds We are leaders in the community, with a structured commitment to transforming Port Hedland Building a unified and connected community is a key priority for our regional city. Recognised as a vibrant destination by local residents as well as national and international tourists, Prot Hedland will be a city of neighbours, alive with recreational, cultural and entertainment activities to enrich the quality of life of residents and visitors. An economic powerhouse of Australia, Port Hedland will be a domestic and international gateway into and out of Western Australia. We will be a diversified economy and major distribution and transport hub. The Town of Port Hedland will boast local employment and investment opportunities that allow families in our community to grow and prosper. Creating a vibrant and diverse place to live that is in balance with the natural elements of our surroundings and cultural heritage. A safe, modern and attractive city, Port Hedland is a community where generations of residents are proud to call home and establish themselves as a permanent fixture in the unique environment of Port Hedland. The Town of Port Hedland provides committed strategic planning and leadership, focused on strengthening Port Hedland’s community, providing growth opportunities, and diversifying the local economy. Bringing transformation to the Pilbara and enhancing the quality of life for Port Hedland’s residents, the organisation is governed in an ethically responsible manner that meets all of its legislative and community obligations. Community Economic Environment Local Leadership
  • 20. 20 Community We are a friendly, exciting city of neighbours that is vibrant and diverse 20
  • 21. 2121 • South Hedland Aquatic Centre The lighting and shade installation was completed in February 2014, allowing the facility to be used for longer periods of the day. Additional car parking is scheduled for construction in 2014/15. • North West Festival (NWF) The 2013 North West Festival was a great success with 3854 people attending the event. Council endorsed to expand the 2014 festival to a 3 day format and additional funding was secured. • South Hedland Bowling and Tennis Club The new facility was opened in June 2014, positioned to overlook the existing tennis courts and bowling greens. Dining and bar services to cater for 250 people are now provided. • Trails Master Plan The Trails Master Plan document was endorsed by Council in August 2013. The master plan provides options for a number of off- road walking and cycling trails throughout the Port Hedland, South Hedland and Finucane Island. • Recreation Services Events Recreation Services has held a number of highly attended community events which will continue in 2014/15. »» Paws Walk (October 2013) »» Hedland Community Awards (December 2013) »» South Hedland Aquatic Centre Opening Event (March 2014) »» Bike Week (March 2014) »» Mother’s Day Classic (May 2014) • In-Term Swimming Lessons The Town received funding from Atlas Iron to enable in-term swimming lessons to be offered to local primary schools. Until this funding was received many local primary schools had not offered in-term swimming lessons to students for a number of years. In 2013/2014 Port Hedland, Cassia and South Hedland Primary School participated in the program. • Annual Community Survey Highest number of responses received to date (641) highlighting facilities and services are performing well. Rating of town liveability increased. Feedback received illustrated areas of improvement. • Effective communication Daily posts to Facebook page - achieved 1146 page likes by 30 June 2014 and significant engagement with community. Engaged communtiy with e-newsletters, community notices, weekly radio segments and media releases. Held five Community Conversations. • Club Development The Town receives funding from the Department of Sport and Recreation for the Club Development Officer position. This position works with local sporting groups to strengthen governance, provide training, assist with areas of concern and to help ensure a strong local sporting community into the future. Key achievements in 2013/2014 included: »» Five club development workshops / training sessions »» Management of Kidsport funding »» Assisted with the development of five new sporting groups »» Supported state sporting associations involvement in the region »» Regular newsletters to sporting groups outlining sporting events, grant and training opportunities »» Regular support and assistance to local sporting groups • JD Hardie Youth Zone The JD Hardie Youth Zone experienced a substantial increase in attendance – by way of youth attending targeted programs and community hirers. The team continued to deliver a range of innovative term and school holiday programs. Planning for an external upgrade of the site commenced. • The SLAM Basketball Program With the support of a range of youth agencies and associated stakeholders, the SLAM has become an established fortnightly event. Based at the JD Hardie Youth Zone, the program provides local youth with sport based activity, healthy meals and informal interaction with youth workers. • Old Port Hedland Cemetery Restoration Project Following the completion of the specific consultation and archaeological stages, the project team collated information to produce concept and master plans of the restoration. Community engagement continued during the planning, with positive feedback received form key stakeholders. 2014/15 will see works start. • Five yearly review of the Disability Access and Inclusion Plan The Town of Port Hedland undertook a review and revision of its DAIP, which resulted in Council endorsement of the DAIP 2013 – 2017 at the September 2013 OCM. The document articulates the Town’s commitment to creating a community that welcomes and includes people of all abilities.
  • 22. Economic Our economy is resilient and provides choice and opportunities 22
  • 23. 23 • Commercial growth Dome Coffees Pty Ltd received planning approval for the refurbishment and renovation of the District Medical Quarter for operation as a café in Port Hedland. The lease agreement commenced in March 2013 and the café is expected to be open by early 2015. • Airport redevelopment Interim improvement program including $1.2 million terminal refurbishments and improved bus parking arrangements commenced and are expected to be completed in late 2014. Council endorsed a $100 million redevelopment program over 5 years, including new terminal, freight and logistics subdivision, apron, taxiway and runway expansions, transport configuration improvements, improved security and lighting, new operations building and installation of essential services. • Great Northern Highway realignment The Great Northern Highway realignment was delivered by Main Roads WA and was completed in May 2014, providing a safer road network between Port & South Hedland and the airport. • Wallwork Road Bridge Wallwork Road Bridge has been completed and was opened in May 2014, providing an uninterrupted road network between Port and South Hedland. • Memberships Continued memberships with Pilbara Regional Council and committed to becoming a member of the WA Regional Council Alliance. • State and Federal Government engagement The CEO and a Councillor attended the Pilbara Kimberley Joint Forum in Jakarta in May 2014. Meetings with Federal and State Ministers and representatives will continue in 2014/15 to ensure Port Hedland is on the national agenda. • Pilbara Regional Council and Pilbara Development Commission The Town participated in seven Pilbara Regional Council and regular Pilbara Development Commission meetings. The Town supported the WIFI infrastructure at roadside stops project. The Town has moved to the final stage Business Plan for the Regional Payroll Project. • Kingsford Smith Business Park Pre-sold seven lots and leased one lot to local and national businesses including Bunnings. Subdivision works ongoing - scheduled for completion at end of 2014. The Town will investigate contracting a real estate agent to maximise the sales/lease of lots. • Catamore Court development Signed agreement with Megara for the development of Catamore Court land - Megara to build eight dwellings for the Town in exchange for the right to build and sell remaining lots.
  • 24. Environment A city in which we live in balance with our unique surrounds 24
  • 25. 25 • Affordable housing The Osprey Key Worker village is open and running with 293 units of brand new housing. • GP Housing (stage one) An agreement with BHP Billiton for the construction of an additional three houses for medical practitioners, to be managed by the Town, was endorsed. This compliments the existing seven houses that have been constructed and leased. • GP Housing (stage two) Negotiate agreement with BHP Billiton Iron Ore for the delivery of Stage Two (additional five dwellings) on remaining lots on Dempster Street site. Expected completion end of 2014. • Dune restoration A Restoration Plan was completed. Care for Hedland undertook a planting day with volunteers. The Town applied for a grant to the Department of Transport with notification due at the end of July 2014. • Coastal access Additional facilities to the Port Hedland Information Bay/Rest Area (from Broome) and DeGrey Rest Area have been completed, including shade, toilets and WIFI. The Town is working with PRC to deliver infrastructure to coastal areas and highway rest stops. Shade is being installed at 6 Mile and FMG Rail Lookout. 11 wayfinding signs were installed in the West End. • Waste management The Waste Management strategy was adopted by Council including the investigation of a new landfill site. An agreement has been signed with New Energy Corporation supporting a waste to energy solution for the Pilbara, thereby reducing waste to landfill and providing an alternative energy source. • Community Open Space and Infrastructure Master Plan The Town received funding from BHP Billiton and the Department of Sport and Recreation to undertake the Community Open Space and Infrastructure Master Plan. In May 2014 the tender for this project was awarded to @Leisure Planners. The Town is now working with the consultants to complete the project by March 2015. • Marie Marland Reserve lights upgrade Light towers at Marie Marland Reserve were upgraded in June 2014. • Solar Farm Proposal Request for Proposal advertised and an information session was held with up to 50 attendees, demonstrating the high interest in investment in Port Hedland. Further discussions will be held with prospective proponents and the proposal finalised by end of 2014/15.
  • 26. Local Leadership We are leaders in the community, with a structured commitment to transforming Port Hedland 26
  • 27. 27 • Integrated planning and reporting framework The Town developed a 4 year budget to align with the Strategic Community Plan. The 2014/15 Budget was adopted at the 25 June 2014 Ordinary Council Meeting. The 4 year Budget is in line with the Long Term Financial Plan that is being developed as part of the suite of planning documents required for the Integrated Planning and Reporting Framework. A review of the Strategic Community Plan and Corporate Business Plan also commenced and will be presented to Council at the end of 2014. • Asset management Draft asset management plans for roads and buildings have been prepared, with the Town complying with regulations to determine fair value of its assets. Improved asset management initiatives are included in the 2014/15 budget. • Local Law Review Council resolved to make a Repeal Local Law in January 2014. A draft Standing Orders Local Law was adopted by Council. All remaining Local Laws will be reviewed in 2014/15. • Rating strategy A rating strategy was being developed to establish a minimum rate yield with stable price path for future years. The strategy will be presented to Council by the end of 2014. • HR initiatives New Corporate Induction program developed and rolled out in March 2014. New organisational culture “Our Team Our Way” workshops conducted in 2014 with all staff. An OH&S external audit was completed in March 2014 with a Rectification Action Plan being developed to roll-out improvements across organisation for 2014-2015. • Aboriginal Consultation Forums The Town continued to host the forums throughout the financial year, with increasing attendance from the local Indigenous community and key stakeholders. The forums have become an important two way communication tool between local government and the community. These will continue on a bi-monthly basis in 2014/15. • South Hedland CBD Forums Regular meetings with community, business representatives and stakeholders have commenced and will continue in 2014/15. They are well-attended and provide valuable input towards the continued revitalisation of the South Hedland Town Centre. • IT upgrades Number of audits and consolidation of licence agreements saving hundreds of thousands of dollars. Upgraded radio network from analog to digital for Triple J and ABC radio. Upgrades to printers and associated infrastructure to ultimately reduce printing costs. Commenced Business Continuity Planning.
  • 28. Financial Statements 2013-2014 28
  • 29. Town of Port Hedland GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2014 "a nationally significant, friendly city, where people want to live and are proud to call home."
  • 30. Financial Statements 2014 page 1 Town of Port Hedland General Purpose Financial Statements for the year ended 30 June 2014 Contents 1. Statement by Chief Executive Officer 2. Primary Financial Statements: - Statement of Comprehensive Income (by Nature or Type) - Statement of Comprehensive Income (by Program) - Statement of Financial Position - Statement of Changes in Equity - Statement of Cash Flows - Rate Setting Statement 3. Notes to the Financial Statements 4. Independent Auditor's Report Overview (i) These financial statements are General Purpose Financial Statements and cover the consolidated operations for Town of Port Hedland. (ii) All figures presented in these financial statements are presented in Australian Currency. (iii) These financial statements were authorised for issue by the Council on 09/10/14. Council has the power to amend and reissue the financial statements. 84 Page 5 6 3 7 10 2 4 8
  • 31. Financial Statements 2014 page 2 Town of Port Hedland General Purpose Financial Statements for the year ended 30 June 2014 Local Government Act 1995 Local Government (Financial Management) Regulations 1996 Statement by Chief Executive Officer The attached financial report of the Town of Port Hedland being the annual financial report and supporting notes and other information for the financial year ended 30 June 2014 are in my opinion properly drawn up to present fairly the financial position of the Town of Port Hedland at 30 June 2014 and the results of the operations for the financial year then ended in accordance with the Australian Accounting Standards and comply with the provisions of the Local Government Act 1995 and the regulations under that Act. Signed on the 9th day of October Mal Osborne CHIEF EXECUTIVE OFFICER 2014
  • 32. Financial Statements 2014 This statement should be read in conjunction with the accompanying notes. page 3 Town of Port Hedland Statement of Comprehensive Income (by Nature or Type) for the year ended 30 June 2014 $ '000 Revenue Rates Operating Grants, Subsidies & Contributions Fees & Charges Interest Earnings Other Revenue Expenses Employee Costs Materials & Contracts Utilities Depreciation Interest Expenses Insurance Other Expenditure Operating Result from Continuing Operations Non-Operating Grants, Subsidies & Contributions Profit on Asset Disposals Loss on Asset Disposal Net Result - Surplus (Deficit) Other Comprehensive Income Changes on revaluation of non-current assets Total Other Comprehensive Income Total Comprehensive Income Notes Actual 24(a) (25,512) 33 (20,605) 4,193 30 (3,572) (5,216) 32,547 31,943 2(a) 3,297 2,355 2,792 29 36,124 12,191 76,370 100,427 4,356 21 17 3,204 29,684 49 57,462 59,426 89,410 - (635) 2(a) (1,491) (280)21 (1,309) (69,709) 6,661 (25,711) 1,060 (11,091) 70,870 71,858 (69,259) 2(a) 30 13 (3,153) (20,980) (16,517) (1,662) (6,048) (1,778) (1,228) 29,343 32,547 - (1,252) 2014 Budget 2014 2013 Actual 22,522 22,558 18,858 97 4,539 (156) (635) 60,061 89,410 11,017 (22,552) (1,217) (14,828) 35,593 (9,740) 10,234 9,304 6,074 (11,172) (358) 2,599 57,569 (67,666)
  • 33. Financial Statements 2014 This statement should be read in conjunction with the accompanying notes. page 4 Town of Port Hedland Statement of Comprehensive Income (by Program) for the year ended 30 June 2014 $ '000 Revenue Governance General Purpose Funding Law, Order, Public Safety Health Education & Welfare Housing Community Amenities Recreation & Culture Transport Economic Services Other Property & Services Expenses Governance General Purpose Funding Law, Order, Public Safety Health Education & Welfare Housing Community Amenities Recreation & Culture Transport Economic Services Other Property & Services Finance Costs Governance Law, Order, Public Safety Education & Welfare Housing Community Amenities Recreation & Culture Transport Economic Services Other Property & Services Non-Operating Grants, Subsidies, Contributions Recreation & Culture Transport Economic Services Profit/(Loss) on Disposal of Assets Housing Community Amenities Transport Net Result Changes on revaluation of non-current assets Total Comprehensive Income (107) (19,858) - 11,017 (68,006) 57,569 (125) - (1,122) (15,042) (1,985) (20,629) 10,941 (16,618) (2,149) Actual 2014 70,869 414 158 82 14,648 48 3,405 (1,931) 19,087 (555) 71,857 Notes 1,023 57 633 252 Actual Budget 27,810 409 307 238 17,750 (3,043) (10,197) (1,269) (709) (2,103) (3,798) (750) (1,394) 24,391 108 (3,404) (432) (1,781) (1,118) 2014 (68,219) (2,080) (26,577) (2) (66,024) (25,565) 1,093 2013 309 (3,303) 76,371 7,163 (1,364) (1,808) 29,809 3,403 21,833 (589) 103 81 (756) (635) 32,547 59,426 259 (2,815) (1,641) (1,252) (9,621) 351 5,266 3,063 60,061 - 557 13 89,410 7,408 (18,977) - 100,427 32,547 (76) (78) 17,731 (13) (260) (255) (31) (261) (13) (14) 49 4,539 (263) 21 (107) (4) 1,982 2,271 30 - 2,557 (3) 2,242 (122) (183) (341) (1,491) (110) - (78) (96) - - - 33,752 21,57527,413 29,684 2(a) - (1,033) (872)(1,026) (15) (16) (3) - (93) (95)
  • 34. Financial Statements 2014 This statement should be read in conjunction with the accompanying notes. page 5 Town of Port Hedland Statement of Financial Position as at 30 June 2014 $ '000 ASSETS Current Assets Cash and Cash Equivalents Investments Trade and Other Receivables Inventories Total Current Assets Non-Current Assets Trade and Other Receivables Property, Plant and Equipment Infrastructure Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and Other Payables Borrowings Provisions Total Current Liabilities Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities TOTAL LIABILITIES Net Assets EQUITY Retained Surplus Reserves - Cash/Investment Backed Reserves - Asset Revaluation Total Equity 9 439,174 27,463 13 853 11,837 2,289 1,278 15,43110,366 2,632 1,305 25,359 341,637 233,166 3 19 12 300,693 131,142 187,636 25,513 401,120 5 ActualNotes 4 108,471 6 11,262 7 1,224 101,201 8 823 2013 76,243 - 10 Actual 74,559 154 40,944 68,409 7,000 32,216 86,681 163,633 352,493 225,281 67,132 2014 5 243,725 12 90,263 300,693 10 11 11 225 27,688 401,120 38,054 10 6,456
  • 35. Financial Statements 2014 This statement should be read in conjunction with the accompanying notes. page 6 Town of Port Hedland Statement of Changes in Equity for the year ended 30 June 2014 $ '000 Balance as at 1 July 2012 Changes in Accounting Policy Restated Balance Net Result Total OCI / Asset Revaluation Reserve Transfers Balance as at 30 June 2013 Net Result Total OCI / Asset Revaluation Reserve Transfers Balance as at 30 June 2014 13 12 Notes 41 12 Retained Surplus 67,132 202,881 - 202,881 60,061 (635) (37,026) 225,281 11,017 - 7,427 243,725 Cash / Investment Backed 37,533 - 37,533 - - 37,026 74,559 - Asset Revaluation Reserve 853 - 853 - - - 853 - 300,693 11,017 89,410 - 401,120 89,410 - 90,263 - (7,427) Reserves Total Equity 241,267 - 241,267 60,061 (635) -
  • 36. Financial Statements 2014 This statement should be read in conjunction with the accompanying notes. page 7 Town of Port Hedland Statement of Cash Flows for the year ended 30 June 2014 $ '000 Cash Flows from Operating Activities Receipts: Rates Operating Grants, Subsidies and Contributions Fees and Charges Interest Earnings Goods and Services Tax Other Revenue Payments: Employee Costs Materials and Contracts Utilities Insurance Interest Goods and Services Tax Other Expenditure Net Cash provided (or used in) Operating Activities Cash Flows from Investing Activities Receipts: Non-Operating Grants, Subsidies and Contributions Proceeds from Sale of Assets Payments: Payments for Purchase of Property, Plant & Equipment Payments for Construction of Infrastructure Advances to Community Groups Payments for Purchase of Investments Net Cash provided (or used in) Investing Activities Cash Flows from Financing Activities Receipts: Proceeds from Self Supporting Loans Proceeds from New Debentures Payments: Repayment of Debentures Net Cash provided (or used in) Investing Activities Net Increase/(Decrease) in Cash & Cash Equivalents Cash at the beginning of the year Cash & Cash Equivalents - End of the Year Additional Information: plus: Investments on hand - end of year Total Cash, Cash Equivalents & Investments 29,684 (104,919) 14,234 (20,265) - (16,982) 37,648 (7,834) (1,305) 2,145 32,840 Actual 2,791 5,837 5,155 (8,268) (11,198) Actual (43,833) - 2013 3,382 (10,863) 3,297 4,596 (42,860) 1,039 (3,247) 23(a) (1,662) (1,828) - (5,498) 23(b) (52,085) 466 32,627 2,355 (1,426) 21,881 (876) 8,174 (31,998) 6,100 6,945 197 64 76,714 39,256 Budget 6,074 (1,391) (4,955) (16,784) (1,491) (21,619)(25,628) (58,235) 66,275 (1,229) 12,193 18,504 20142014 (1,217) 22,866 Notes 9,304 - 3,812 - (1,190) (1,228) (20,191) (9,852) (3,153) 84,655 4 14(a) 68,409 78,478 77,119 75,409 78,478 (6,786) (1,009) 76,243 (7,715) 7,000 -- 89,34176,243 4,539 (500) (7,000) 819 33,854 76,243 3 30 21 20 20 14(b) 14,190 8,373 (33,976) (33,111) 354 68 - (29,037)
  • 37. Financial Statements 2014 This statement should be read in conjunction with the accompanying notes. page 8 Town of Port Hedland Rate Setting Statement (by Program) for the year ended 30 June 2014 $ '000 Revenue Governance General Purpose Funding (Excl Rates) Law, Order, Public Safety Health Education and Welfare Housing Community Amenities Recreation and Culture Transport Economic Services Other Property and Services Expenses Governance General Purpose Funding Law, Order, Public Safety Health Education and Welfare Housing Community Amenities Recreation and Culture Transport Economic Services Other Property and Services Net Result Excluding Rates Adjustment for Cash Budget Requirements: Non-Cash Expenditure & Revenue (Profit)/Loss on Asset Disposal Movement in Non-Current Deferred Pensioner Rates Movement in Other Non Current Assets / Liabilities Movement in Non-Current Employee Benefit Provisions Loss in Revaluation Surplus Depreciation on Assets Net Non-Cash Expenditure & Revenue Capital Expenditure Purchase Land and Buildings Purchase Infrastructure Assets Purchase Plant and Equipment Purchase Furniture and Equipment Work in Progress Advances to Community Groups Repayment of Debentures Net Capital Expenditure Capital Revenue Proceeds from Disposal of Assets Proceeds from New Debentures Self-Supporting Loan Principal Income Net Capital Revenue 2014 2014 2013 Notes Actual Budget Actual 158 82 82 414 409 108 7,287 5,252 5,534 307 238 252 48 57 103 7,163 7,408 36,815 1,023 557 633 5,386 7,536 5,645 21,740 45,175 39,355 309 351 259 14,648 10,946 21,833 (709) (756) (750) (1,378) (2,119) (1,425) (589) (432) (555) (1,821) (1,794) (3,419) 58,483 78,011 110,619 (1,934) (1,394) (2,149) (3,801) (1,989) (2,080) 1,093 (1,122) (27,602) (26,598) (21,501) (16,742) (19,164) (15,909) (3,414) (3,075) (1,373) (10,414) (9,983) (19,858) - - 635 11,091 9,740 13 - - 71 - (36) - - 50 2(a) 11,172 (24,994) (11,634) 11,439 11,432 10,496 - - 20 (945) - - 20 (3,808) (5,552) (3,179) 20 (410) (20) (69,989) (68,023) (70,050) 21 183 341 107 (11,506) 9,988 40,569 (3,306) (33,976) (41,389) (6,786) (500) 23(a) (1,305) (1,426) (982) (2,169) 20 (2,552) 23(b) 3,382 (24,750) 21 819 466 354 8,175 6,100 4,269 8,838 6,518 23(a) 68 197 64 (43,496) (73,381)
  • 38. Financial Statements 2014 This statement should be read in conjunction with the accompanying notes. page 9 Town of Port Hedland Rate Setting Statement (by Program) (continued) for the year ended 30 June 2014 $ '000 Transfers Transfers to Reserves (Restricted Assets) Transfers from Reserves (Restricted Assets) Transfer (to) / from Unspent Grants Transfer (to) / from Unspent Loans Transfer (to) / from Restricted Receivables Net Transfers Surplus/(Deficit) July 1 B/Fwd Surplus/(Deficit) June 30 C/Fwd Amount Raised from Rates Actual (49,693) (808) 3,229 24(a) (22,522) (22,558) (18,858) 24(b) (2,506) 3,263 (33,586) (41,381) (83,050) - (2,438) 12 41,013 58,683 46,024 - (4,436) 24(b) 817 20,095 17,302 4,025 12 (310) - 13,786 - (19,921) 2014 2014 2013 Notes Actual Budget
  • 39. Financial Statements 2014 page 10 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Contents of the Notes accompanying the Financial Statements Details Significant Accounting Policies Revenues and Expenses Cash and Cash Equivalents Investments Trade and Other Receivables Inventories Property, Plant and Equipment Infrastructure Trade and Other Payables Long Term Borrowings Provisions Reserves - Cash/Investment Backed Reserves - Asset Revaluation Notes to the Statement of Cash Flows Contingent Liabilities and Contingent Assets Capital and Leasing Commitments Controlled Entities, Associated Entities & Interests in Joint Ventures Trust Funds Total Assets by Function and Activity Acquisition of Assets Disposal of Assets Financial Ratios Information on Borrowings Rating Information Specified Area Rate Service Charges Discounts, Incentives, Concessions and Write-offs Interest Charges and Installments Fees and Charges Grants, Subsidies and Contributions Employee Numbers Councillor Remuneration Employee Costs Major Land Transactions Trading Undertakings and Major Trading Undertakings Financial Risk Management Fair Value Measurements "Held for Sale" Non Current Assets & Disposal Groups Investment Properties Intangible Assets Equity - Retained Earnings and Reserves Adjustments Discontinued Operations Events occurring after the Reporting Period 66 82 75 67 74 82 83 82 79 82 83 47 65 61 64 59 65 65 64 62 61 53 51 50 52 50 26 28 27 38 33 29 39 42 41 31 32 30 36 40 34 35 43 37 Page 1 Note 7 4 3 29 29 30 5 11 6 9 14 17 37 2 20 28 8 35 30 11 13 46 48 15 16 3710 12 25 19 21 20 23 24 18 22 38 39 45 56 45
  • 40. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies page 11 The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of preparation The financial report is a general purpose financial statement which has been prepared in accordance with Australian Accounting Standards (as they apply to local governments and not-for-profit entities), other authoritative pronouncements of the Australian Standards Board, Local Government Act 1995 and accompanying regulations. The report has also been prepared on the accrual basis under the convention of historical cost accounting modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and liabilities. Critical Accounting Estimates The preparation of a financial report in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. The results of this experience and other factors combine to form the basis of making judgements about carrying values of assets and liabilities not readily apparent from other sources. Actual results may differ from these estimates. (b) The Local Government Reporting Entity All Funds through which the Council controls resources to carry on its functions have been included in the financial statements forming part of this financial report. In the process of reporting on the local government as a single unit, all transactions and balances between those funds (for example, loans and transfers between Funds) have been eliminated. All monies held in the Trust Fund are excluded from the financial statements, but a separate statement of those monies appears at Note 18 to this financial report. (c) Goods and Services Tax In accordance with recommended practice, revenues, expenses and assets capitalised are stated net of any GST recoverable. Receivables and payables in the Statement of Financial Position are stated inclusive of applicable GST. (d) Cash and Cash Equivalents Cash and cash equivalents in the Statement of Financial Position comprise cash at bank and on hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts are included as short- term borrowings in current liabilities on the Statement of Financial Position. (e) Trade and Other Receivables Collectability of trade and other receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that they will not be collectible. (f) Inventories (i) Raw materials and stores, work in progress and finished goods Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Net realisable value is the established selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
  • 41. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies (continued) page 12 (ii) Land Held for resale/capitalisation of borrowing costs Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specific identification and includes the cost of acquisition, and development and borrowing costs during development. When development is completed borrowing costs and other holding charges are expensed as incurred. Borrowing costs included in the cost of land held for resale are those costs that would have been avoided if the expenditure on the acquisition and development of the land had not been made. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses. Revenue arising from the sale of property is recognised in the operating statement as at the time of signing a binding contract of sale. Land held for resale is classified as current except where it is held as non-current based on the Council's intentions to release for sale. (g) Fixed Assets Initial Recognition All assets are initially recognised at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets constructed includes the cost of all materials, direct labour and variable and fixed overheads. Revaluation Certain asset classes may be revalued on a regular basis such that the carrying values are not materially different from fair value. For infrastructure and other asset classes where no active market exists, fair value is determined to be the current replacement cost of an asset less, where applicable, accumulated depreciation calculated on a basis to reflect the already consumed or expired future economic benefits of the asset. Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the statement of comprehensive income. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Those assets carried at a revalue amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and accumulated impairment losses, are to be revalue with sufficient regularity to ensure the carrying amount does not differ significantly from that determined using fair value at reporting date. Land under Roads In Western Australia, all land under roads is Crown land, the responsibility for managing which, is vested in the local government. Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired on or before 30 June 2008. This accords with the treatment available in Australian Accounting Standard AASB 1051 Land Under Roads and the fact that Local Government (Financial Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset. Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government (Financial Management) Regulation 4(2) provides that, in the event of such an inconsistency, the Local Government (Financial Management) Regulations prevail. Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the Council. (h) Depreciation of Non-Current Assets All non-current assets having a limited useful life are separately and systematically depreciated over their useful lives in a manner which reflects the consumption of the future economic benefits embodied in those assets. Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time the asset is completed and held ready for use.
  • 42. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies (continued) page 13 Expenditure on items of equipment under $2,000 are not capitalised but are placed on an "Attractive Items" list for reference and maintenance. Depreciation is recognised on a straight-line basis, using rates which are reviewed each reporting period. Major depreciation periods are: Buildings 30 to 50 years Furniture & Equipment 4 to 10 years Plant & Equipment 5 to 15 years Sealed Roads & Streets - Formation Not Depreciated - Pavement 50 years - Seal: Bituminous Seals 20 years Asphalt Surfaces 25 years Gravel Roads - Formation Not Depreciated - Pavement 50 years - Gravel Sheet 12 years Formed Roads (unsealed) - Formation Not Depreciated - Pavement 50 years Footpaths - Slab 20 years Sewerage Piping 100 years Water Supply Piping & Drainage Systems 75 years The assets residual value and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the Statement of Comprehensive Income. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings. (i) Financial Instruments Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the Council becomes a part to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Council commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified 'at fair value through profit or loss', in which case transaction costs are expensed to profit or loss immediately. Classification and Subsequent Measurement Financial instruments are subsequently measured at amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in a active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as: (a) the amount is which the financial asset or financial liability is measured at initial recognition; (b) less principal repayments; (c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest rate method; and (d) less any reduction for impairment. The effective interest method used is to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums of discounts) through the expected life (or when this cannot be reliably predicted, the contractual term of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.
  • 43. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies (continued) page 14 (i) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Assets in this category are classified as current assets. (ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the Statement of Financial Position date which are classified as non- current assets. Loans and receivables are included in trade and other receivables in the Statement of Financial Position. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Council's management has the positive intention and ability to hold to maturity. If Council were to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and reclassified as available-for-sale. Held-to-maturity financial assets are included in non-current assets, except for those with maturities less than 12 months from the reporting date, which are classified as current assets. (iv) Available-for-sale financial assets Available-for-sale financial assets, comprising principally marketable equity securities, are non- derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intents to dispose of the investment within 12 months of the Statement of Financial Position date. Investments are designated as available-for-sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term. (v) Financial Liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Impairment At the end of each reporting period, the Council assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses recognised in the Statement of Comprehensive Income. (j) Fair Value Estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets is determined using valuation techniques. Council uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Council for similar financial instruments. (k) Provisions Provisions are recognised when the Council has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the
  • 44. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies (continued) page 15 likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. (l) Leases Leases of property, plant and equipment where the Council has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease's inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other long term payables. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The interest element of the finance cost is charged to the Statement of Comprehensive Income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the asset's useful life and the lease term. Lease payments under operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. (m) Impairment In accordance with Australian Accounting Standards the Council's assets, other than inventories, are tested annually for impairment. Where such an indication exists, an estimate of the recoverable amount of the asset is made in accordance with AASB 136 Impairment of Assets and appropriate adjustments made. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. Impairment losses are recognised in the Statement of Comprehensive Income. For non-cash generating assets of the Council such as roads, drains, public buildings and the like, value in use is represented by the asset's written down replacement cost. (n) Trade and Other Payables Trade and other payables are carried at amortised cost. They represent liabilities for goods and services provided to the Municipality prior to the end of the financial year that are unpaid and arise when the Municipality becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. (o) Interest-bearing Loans and Borrowings All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Fees paid of the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings. Borrowings are classified as current liabilities unless the Council has an unconditional right to defer settlement of the liability for at least 12 months after the Statement of Financial Position date. Borrowing costs are recognised as an expense when incurred except where they are directly attributable to the acquisition, construction or production of a qualifying asset. Where this is the case, they are capitalised as part of the cost of the particular asset. (p) Employee Benefits The provisions for employee benefits relates to amounts expected to be paid for long service leave, annual leave, wages and salaries and are calculated as follows:
  • 45. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies (continued) page 16 Wages, Salaries, Annual Leave and Long Service Leave (Short-term Benefits) The provision for employees' benefits wages, salaries, annual leave and long service leave expected to be settled within 12 months represents the amount the Council has a present obligation to pay resulting from employee’s services provided to balance date. The provision has been calculated at nominal amounts based on remuneration rates the Council expects to pay and includes related on- costs. Long Service Leave (Long-term Benefits) The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match as closely as possible, the estimated future cash outflows. Where Council does not have the unconditional right to defer settlement beyond 12 months, the liability is recognised as a current liability. (q) Superannuation The Council contributes to a number of Superannuation Funds on behalf of their employees. Contributions to defined contribution plans are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. (r) Joint Venture The municipality's interest in a joint venture has been recognised in the financial statements by including its share of any assets, liabilities, revenues and expenses of the joint venture within the relevant items reported in the Statement of Financial Position and Statement of Comprehensive Income. Information about the joint venture is set out in Note 17. (s) Rates, Grants, Donations and Other Contributions Rates, grants, donations and other contributions are recognised as revenues when the local government obtains control over the assets comprising the contributions. Control over assets acquired from rates is obtained at the commencement of the rating period or, where earlier, upon receipt of the rates. Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged conditions are disclosed at Note 2(d). That note also discloses the amount of contributions recognised as revenues in a previous reporting period which were obtained in respect of the local government's operation for the current reporting period. (t) Current and Non-Current Classification In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council's operation cycle. In the case of liabilities where the Council does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not expected to be realised in the next 12 months except for land held for resale where it is held as non-current based on the Council's intentions to release for sale. (u) Rounding Off Figures All figures shown in this annual financial report , other than a rate in the dollar, are rounded to the nearest thousand dollars.
  • 46. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies (continued) page 17 (v) Comparative Figures Where required, comparative figures have been adjusted to conform with changes in presentation for the current financial year. When the Council applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statement, a statement of financial position as at the beginning of the earliest period will be disclosed. (w) Budget Comparative Figures Unless otherwise stated, the budget comparative figures shown in this annual financial report relate to the original budget estimate for the relevant item of disclosure. (x) Investment Property Investment property, principally comprising freehold office buildings, is held for long-term rental yields. Investment property is carried at fair value, representing open-market value determined annually by external users. (y) Non-Current Assets (or Disposal Groups) “Held for Sale” & Discontinued Operations Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of either (i) their carrying amount and (ii) fair value less costs to sell, if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. The exception to this is plant and motor vehicles which are turned over on a regular basis. Plant and motor vehicles are retained in Non Current Assets under the classification of Property, Plant and Equipment - unless the assets are to be traded in after 30 June and the replacement assets were already purchased and accounted for as at 30 June. For any assets or disposal groups classified as Non- Current Assets “held for sale”, an impairment loss is recognised at any time when the assets carrying value is greater than its fair value less costs to sell. Non-current assets “held for sale” are not depreciated or amortised while they are classified as “held for sale”. Non-current assets classified as “held for sale” are presented separately from the other assets in the balance sheet. A Discontinued Operation is a component of Council that has been disposed of or is classified as “held for sale” and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately on the face of the income statement. (z) Intangible Assets Council has not classified any assets as Intangible. (aa) New Accounting Standards and Interpretations for Application in Future Periods Certain new (or amended) accounting standards and interpretations have been published that are not mandatory for reporting period ending 30 June 2014. Council has not adopted any of these standards early. Council’s assessment of the impact of these new standards and interpretations is set out below. Applicable to Local Government with implications: AASB 9 Financial Instruments, associated standards, AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2012-6 Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and transitional disclosures and AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments (effective from 1 January 2017)
  • 47. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies (continued) page 18 AASB 9 Financial Instruments addresses the classification, measurement and de-recognition of financial assets and financial liabilities. The standard is not applicable until 1 January 2015 but is available for early adoption. When adopted, the standard will affect in particular Council’s accounting for its available-for-sale financial assets, since AASB 9 only permits the recognition of fair value gains and losses in other comprehensive income if they relate to equity investments that are not held for trading. Fair value gains and losses on available-for-sale debt investments, for example, will therefore have to be recognised directly in profit or loss although there is currently a proposal by the IASB to introduce a Fair value through Other Comprehensive Income category for debt instruments. There will be no impact on Council’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and Council does not have any such liabilities. The de-recognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The Council has not yet fully assessed the impact on the reporting financial position and performance on adoption of AASB 9. Applicable to Local Government but no implications for Council; AASB 2013-3 Amendments to AASB 136 Recoverable Amount Disclosures for Non- Financial Assets (effective for 30 June 2015 Financial Statements) There are no changes to reported financial position or performance from AASB 2013 – 3, however additional disclosures may be required. Applicable to Local Government but not relevant to Council at this stage; AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, revised AASB 127 Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures and AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (effective for 30 June 2015 Financial Statements for not-for-profit entities) This suite of five new and amended standards address the accounting for joint arrangements, consolidated financial statements and associated disclosures. AASB 10 replaces all of the guidance on control and consolidation in AASB 127 Consolidated and Separate Financial Statements, and Interpretation 12 Consolidation – Special Purpose Entities. The core principle that a consolidated entity presents a parent and its subsidiaries as if they are a single economic entity remains unchanged, as do the mechanics of consolidation. However, the standard introduces a single definition of control that applies to all entities. It focuses on the need to have both power and rights or exposure to variable returns. Power is the current ability to direct the activities that significantly influence returns. Returns must vary and can be positive, negative or both. Control exists when the investor can use its power to affect the amount of its returns. There is also new guidance on participating and protective rights and on agent/principal relationships. Council does not expect the new standard to have a significant impact on its composition. AASB 11 introduces a principles based approach to accounting for joint arrangements. The focus is no longer on the legal structure of joint arrangements, but rather on how rights and obligations are shared by the parties to the joint arrangement. Based on the assessment of rights and obligations, a joint arrangement will be classified as either a joint operation or a joint venture.
  • 48. Financial Statements 2014 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies (continued) page 19 Joint ventures are accounted for using the equity method, and the choice to proportionately consolidate will no longer be permitted. Parties to a joint operation will account their share of revenues, expenses, assets and liabilities in much the same way as under the previous standard. AASB 11 also provides guidance for parties that participate in joint arrangements but do not share joint control. Council's investment in the joint venture partnership will be classified as a joint venture under the new rules. As Council already applies the equity method in accounting for this investment, AASB 11 will not have any impact on the amounts recognised in its financial statements. AASB 12 sets out the required disclosures for entities reporting under the two new standards, AASB 10 and AASB 11, and replaces the disclosure requirements currently found in AASB 127 and AASB 128. Application of this standard by Council will not affect any of the amounts recognised in the financial statements, but will impact the type of information disclosed in relation to Council's investments. Amendments to AASB 128 provide clarification that an entity continues to apply the equity method and does not remeasure its retained interest as part of ownership changes where a joint venture becomes an associate, and vice versa. The amendments also introduce a “partial disposal” concept. Council is still assessing the impact of these amendments. Council does not expect to adopt the new standards before their operative date. They would therefore be first applied in the financial statements for the annual reporting period ending 30 June 2015. Not applicable to Local Government per se; There are no other standards that are “not yet effective” and expected to have a material impact on Council in the current or future reporting periods and on foreseeable future transactions. (ab) Comparative Figures To ensure comparability with the current reporting period’s figures, some comparative period line items and amounts may have been reclassified or individually reported for the first time within these financial statements and/or the notes. (ac) Disclaimer Nothing contained within these statements may be taken to be an admission of any liability to any person under any circumstance.
  • 49. Financial Statements 2014 page 20 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 2. Operating Revenues and Expenses $ '000 (a) Net Result The Result includes: (i) Charging as an Expense: Auditors Remuneration - Audit of the Financial Report - Financial Management Review - Assistance with the finalisation of the annual financial report - Other Services - Disbursements and Grant Acquittals Bad & Doubtful Debts Rates General Debtors Depreciation Property, Plant & Equipment - Buildings - Furniture and Equipment - Plant and Equipment Infrastructure - Roads - Drainage - Bridges - Footpaths - Parks & Ovals - Airports - Bus Shelters - Depot - Other Interest Expenses (Finance Costs) Debentures Other Rental Charges - Operating Leases (ii) Crediting as Revenue: Interest Earnings Investments - Reserve Funds Investments - Other Funds Other Interest Revenue 34 1,433 1,491 - 173 9 5,572 461 338 - 11,091 - 694 2,569 1,792 2,355 60 18128 146 916 1,604 2,792 1,512 503 1,252 199 320 1,491 23(a) 1,099 295 - 2014 219 131 825 141 - 11,172 2,52480 1,662 1,218 9,740 - 1,662 6 - - 20 20132014 - Notes Actual Budget Actual 22 28 219 27(b) - - 8 - 5 - - - 2,044 2,191 2,670 1,071 776 27(b) 8 - 1,532 -- 20 131 50 2,208 29 78 51 41 199 - 141 - 2,266 320 2,856 3,297 21
  • 50. Financial Statements 2014 page 21 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 2. Operating Revenues and Expenses (continued) (b) Statement of Objectives, Reporting Programs and Nature or Type REPORTING PROGRAM DESCRIPTIONS Council operations that are disclosed encompass the following service orientated activities/programs: COMMUNITY VISION GOVERNANCE Objective: To provide a decision making process for the efficient allocation of scarce resources. GENERAL PURPOSE FUNDING Objective: To collect revenue to allow for the provision of services. Activities: Rates, general purpose government grants, and interest revenue. LAW, ORDER, PUBLIC SAFETY Objective: To provide services to help ensure a safer community. Activities: Supervision and enforcement of various local laws relating to fire prevention, animal control and protection of the environment and other aspects of public safety including emergency services. HEALTH Objective: To provide an operational framework for good community health. Activities: Food quality and pest control, and Aboriginal Environment health EDUCATION AND WELFARE Objective: To meet the needs of the community in these areas. In order to discharge its responsibilities to the community, Council has developed a set of operational and financial objectives. These objectives have been established both on an overall basis and for each of its broad activities/programs. The Town of Port Hedland's vision is to create "a nationally significant, friendly city, where people want to live and are proud to call home." Activities: Administration and operation of facilities and services to members of council; other costs that relate to the tasks of assisting elected members and ratepayers on matters which do not concern specific council Activities: Operation of senior and frail citizens' centres, day care centres and theatre; and assistance to play groups aged care and other voluntary services.
  • 51. Financial Statements 2014 page 22 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 2. Operating Revenues and Expenses (continued) (b) Statement of Objectives, Reporting Programs and Nature or Type (continued) HOUSING Objective: Help ensure adequate housing. Activities: Maintenance of staff and community housing. COMMUNITY AMENITIES Objective: To provide services required by the community. Activities: Rubbish collection services, operation of rubbish disposal sites, litter control, construction and maintenance of urban storm water drains, protection of the environment and administration of town planning schemes, cemeteries and public conveniences. RECREATION AND CULTURE Objective: To establish and effectively manage infrastructure and resources which will help the social wellbeing of the community. Activities: Maintenance of public halls, civic centre, aquatic centre, beaches, recreation centres and various sporting facilities. Provision and maintenance of parks, gardens and playgrounds. Operation of library, museum and other cultural facilities. TRANSPORT Objective: To provide safe, effective and efficient transport services to the community. Activities: Airport operations; construciton and maintenance of streets, roads, bridges; cleaning and lighting of streets ECONOMIC SERVICES Objective: To help promote the Town and its economic wellbeing. Activities: The regulation and provision of tourism, area promotion, building control and cattleyards. OTHER PROPERTY & SERVICES Objective: To help maintain the Town's assets and carry out repairs and maintenance Activities: Private works operation, plant repairs and operation costs.
  • 52. Financial Statements 2014 page 23 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 2. Operating Revenues and Expenses (continued) (c) Nature or Type Classifications REVENUE Rates All rates levied under the Local Government Act 1995. Includes general, differential, specific area rates, minimum rates, interim rates, back rates, ex-gratia rates, less discounts offered. Excludes administration fees, interest on instalments, interest on arrears, service charges and waste and sewerage rates. Operating Grants, Subsidies and Contributions Refer to all amounts received as grants, subsidies and contributions that are not non-operating grants. Non-Operating Grants, Subsidies and Contributions Amounts received specifically for the acquisition, construction of new or the upgrading of non-current assets paid to a local government, irrespective of whether these amounts are received as capital grants, subsidies, contributions or donations. Profit on Asset Disposal Profit on the disposal of assets including gains on the disposal of long term investments. Losses are disclosed under the expenditure classifications. Fees and Charges Revenue (other than service charges) from the use of facilities and charges made for local government services, sewerage rates, rentals, hire charges, fee for service, photocopying charges, licences, sale of goods or information, fines, penalties and administration fees. Service Charges Service charges imposed under Division 6 of Part 6 of the Local Government Act 1995. Regulation 54 of the Local Government (Financial Management) Regulations identifies the charges which can be raised. These are television and radio rebroadcasting, underground electricity, property surveillance and security and water services. Excludes rubbish removal and charges for the provision of waste services. Interest Earnings Interest and other items of a similar nature received from bank and investment accounts, interest on rate instalments, interest on rate arrears and interest on debtors. Other Revenue Other revenue, which cannot be classified under the above headings, includes dividends, discounts, rebates, etc. Town of Port Hedland is required by the Australian Accounting Standards to disclose revenue and expenditure according to its nature or type classification. The following nature or function descriptions are also required by State Government regulations.
  • 53. Financial Statements 2014 page 24 Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 2. Operating Revenues and Expenses (continued) (c) Nature or Type Classifications (continued) EXPENDITURE Employee Costs All costs associated with the employment of persons such as salaries, wages, allowances, benefits such as vehicle and housing, superannuation, employment expenses, removal expenses, relocation expenses, worker's compensation insurance, training costs, conferences, safety expenses, medical examinations, fringe benefits tax etc. Material and Contracts All expenditure on materials, supplies and contracts not classified under other headings. These include supply of goods and materials, legal expenses, consultancy, maintenance agreements, communication expenses, advertising expenses, membership, periodicals, publications, hire expenses, rental, leases, postage and freight etc Utilities (Gas, Electricity, Water, etc.) Expenditures made to respective agencies for the provision of power, gas or water. Excludes expenditure incurred for the re-instatement of road works on behalf of these agencies. Depreciation on Non-Current Assets Depreciation and amortisation expense raised on all classes of assets. Loss on Asset Disposal Loss on the disposal of fixed assets. Interest Expenses Interest and other costs of finance paid, including costs of finance for loan debentures, overdraft accommodation and re-financing expenses. Insurance All insurance other than worker's compensation and health benefit insurance included as a cost of employment. Other Expenditure Statutory fees, taxes, provision of bad debts. Donations and subsidies made to community groups.
  • 54. Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 2. Operating Revenues and Expenses (continued) $ '000 (d) Conditions Over Grants, Subsidies & Contributions Grant/Subsidy/Contribution Law, Order & Public Safety Environment Health - Dog Health Programme - 09/10 (*) Aware Grant - SEMC - Update Emergency Risk Management Health Environment Help - Pilbara Regions Aboriginal Health Workshop (*) Environmental Health - Prepare EH Plan for Yandeyarra (*) Department of Health - Port Hedland CLAG - FIMMWA 13/14 Community Amenities Country Local Government Funding Round 12/13 - Drainage etc Building Safety (Fire) Grant (*) Recreation & Culture LandCorp - Skate Park/Youth Space (*) Government of WA - NPP - Foreshore Master Plan (*) Atlas Iron - Trails Master Plan (*) PH Enhancement Scheme - Foreshore Park Royalities for Regions - Sth Hedland Library &Community Centre Royalities for Regions - South Hedland Bowls and Tennis Club Pilbara Development Commission - South Hedland Bowls and Tennis Club Community Contribution - Bicycle Plan (continued on next page) page25 FinancialStatements2014 4 -- - (6) 2 - 350 (500) - 16 - 32 (373) 292 (15) - (58) (17) - 500 - 500 250 665 665 32 - - Pilbara Development Commission -Wayfinding Signage (Formally Coastal Access Managed Camped) 33 250 (11) - 11 1,500 (2,000) 30 10 - - - - 808 - 35 (35) - 8 - - 15 - 350 - 15 250 44 - - (8) - Balance 1 BalanceExpended 3 Opening 201430-Jun-132013 Received 2 Balance 1 30-Jun-14 Closing Received 2 Expended 3 Closing 1-Jul-12 2013 2014 8 4 - - - 36 14 (41) 9 10 - (10) - - - 12 12 - -32 (50) 758 8 45 17
  • 55. Town of Port Hedland Notes to the Financial Statements for the year ended 30 June 2014 Note 2. Operating Revenues and Expenses (continued) $ '000 (d) Conditions Over Grants, Subsidies & Contributions (continued) Recreation & Culture (continued) Dept of Sport and Rec - CSRFF Grant Master Planning Atlas Iron - In term Swimming WA Police Service - The Slam Creating Communities - The Slam Dept of Corrective Services - The Slam Atlas Iron "Catch for your thought" music at JD Hardie Dept of Sport and Rec - Hedland Junior Basketball Program FMG - Helping others Community Grant - School Series Kidsport Grant Children Book Council of Aust Contributions 705330 - Foreshore Rehabiltation Australian Red Cross - The Slam Port Hedland Chamber of Commerce - In Term Swimming Program Dept of Sport and Recreation - Marie Marland Overhead Lighting Transport Roads to Recovery Regional Roads Group Blackspot Funding BHP - Wallwork Bridge Federal Aboriginal Road Grant page26 FinancialStatements2014 Closing Balance 1 Received 2 Expended 3 Balance 1-Jul-12 2013 2013 30-Jun-13 2014 2014 30-Jun-14 Opening Closing (6) - - - - 201 - 12 10 9 6 5 5 5 3 2 1 - 1 - - - (6) - - 4 (232) 14 - 22 5 536 44 - - 44 444 2 20 - - (44) - (444) 5 5 - Expended 3 Balance 1 Received 2 - 60 (3) 57 10 25 5 12 10 - - - - - - - - - 363 469 (631) 446 - (2) - 883 (674) 410 (3) 4 4 - 232 -25 25 (62) (4) 17 - (14) - - - - 27 - 27 Garnduwa Amboorny Wirnan Grant Indigenous Sport Program - The Slam and Port Bound Atlas Iron - "Through our eyes" - Oral history of Aboriginal people of Port Hedland 890 (354) 4 4 (4) 9 12

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