the norwood sa 5067 30 aug 2013 financial... · eastern health authority cash flow statement for...

Our Ref: AF13/36

29 August 2013

Mr Paul Di killoChief Exec tive OfficerCity of Cam belltownP 0 Box 1CAMPBELLJTOWN SA 5074

Dear Paul

THE CITY OF CAMPBELLTOWN

30 AUG 2013

RECEIVED

RE: Eas1ern Health Authority Audited Financial Statementsfor Year ending 30 June 2013

BaZC

eastern health authority

49 George StreetNorwood SA 5067PO Box 275Stepney SA 5069Phone 088132 3600Fax 088132 %73Email [email protected] 52 535 526 439

Please find enclosed a copy of the Eastern Health Authority General PurposeFinancial Reports for the year ended 30 June 2013. The reports have been auditedby the Authority's Auditor, Dean Newbery and Partners.

The statements were considered by the Authority's Audit Committee at its meeting on14 August 2013.

The statements were adopted by the Authority's Board of Management at its meetingon 28 AuguSt 2013.

If you need any more information or would like to discuss this further, please contactme on telephone 8132 3611.

Yours sincerely•••

Michael LivOriChief Executive Officer

Endl

c−ounc−ils workin5. 1−05.ofhr Frei−cc:I− the hcalth

CCCSEPCCCSEP

EASTERN HEALTH AUTHORITY

General Purpose Financial Reportsfor the year ended 30 June 2013

TABLE OF CONTENTSPaae

Principal inancial StatementsState ent of Comprehensive Income 2Balanc Sheet 3State ent of Changes in Equity 4Cash FIow Statement 5

Notes to, and forming part of, the Principal Financial Statements

Note 1 − Significant Accounting Policies 6Note 2 − Income 10Note 3 − Expenses 12Note 4 − Gain or Loss on Disposal of Assets 14Note 5 − Current Assets 15Note 6 − Property, Plant & Equipment 16Note 7 − Liabilities 18Note 8 − Reserves 19Note 9 − Reconciliation of Cash Flow Statement 20Note 10 − Financial Instruments 21Note 11 − Expenditure Commitments 23Note 12 − Uniform Presentation of Finances 24Note 13 − Operating Leases 25Note 14 − Superannuation 26

Auditor's ReportCertification of Auditor IndependenceAuditor's Declaration of IndependenceStatement by Chief Executive Officer and Adoption Statement


STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 2013

INCOMECouncil ContributionsStatutory chargesUser chargesGrants, subsidies and contributionsInvestment incomeReimbursementsOther incomeTotal Income

EXPENSESEmployee costsMaterials, contracts & other expensesDepreciation, amortisation & impairmentFinance costsTotal Expenses

OPERATING SURPLUS! (DEFICIT)

Asset disposal & fair value adjustmentsNET SURPLUS / (DEFICIT)

transferred to Equity Statement

Other Comprehensive IncomeTOTAL COMPREHENSIVE INCOME

This Statement is to be read in conjunction with the attached Notes.

Notes2013 2012

$ $

2 1,469,100 1,323,4482 149,155 95,1562 398,337 380,9302 149,012 132,3142 23,729 22,6262 36,8272 2 2 , 3 0 3 5,367

2,211,636 1,996,668

3 1,376,2653 611,4323 106,5393 14,725

.....—.−−Z108,9614

102,675

1.187

103,862

1,472,336526,17814,509

2,013,021(16,353)

2,632

(13,721)

103,862 (13,721)


BALANCE SHEETas at 30 June 2013

2013

itsas

2012ASSETS Notes $ $Current etsCash and h equivalents 5 510,711 396,526Trade & ot er receivables 5 175,594 103,192

Total Current Assets 686,305 499,718

Non−curre t Assetsinfrastructu e, property, plant & equipment 6

Total Non−current AssetsTotal Assets

598,698 44,01944,019

543,737

LIABILITIESCurrent Li bilitlesTrade & ot er payables 7 254,461 220,609Borrowings 7 50,921Provisions 7 8 7 , 6 7 3 87,108

Total Current Liabilities 3 9 3 , 0 5 6 307,717

Non−current LiabilitiesBorrowings 7 544,501Provisions 7 52,203 4 4 , 6 3 8Total

Non−current Liabilities 5 9 6 , 7 0 4 44,638TotalLiabilities 989.759 352,355NET

ASSETS 295,244 191,382

110

EQUITYAccumulated Surplus 295,244 191,382TOTAL EQUITY 295,244 191,382

1 1 1 1 1 1 1 • 1 1 0 1 1 1 1 1 1 1 1 ■ ■11■11111■101

This Statement is to be read in conjunction with the attached Notes.

EASTERN HEALTH AUTHORITYSTATEMENT OF CHANGES IN EQUITY

for the year ended 30 June 2013

Accumulated Other TOTALSurplus Reserves EQUITY

2013 Notes $ $ $

Balance at end of previous reporting period 191,382 − 191,382Net Surplus / (Deficit) for Year 103,862 − 103,862Balance at end of period 295,244 − 295,244

2012

Balance at end of previous reporting period 86,503 118,600 205,103Net Surplus /(Deficit) for Year (13,721) − (13,721)Other Comprehensive IncomeTransfers between reserves 118,600 (118,600) −Balance at end of period 191,382 − 191,382

This Statement is to be read in conjunction with the attached Notes


CASH FLOW STATEMENTfor the year ended 30 June 2013

CASH FLOWS FROM OPERATING ACTIVITIESReceipts

Council Cont *butionsFees & other chargesUser chargeInvestment r−ceiptsGrants utilis. • for operating purposesReimbursem ntsOther revenu − s

PaymentsEmployeeco ts

Materials, co tracts & other expensesFinance pa ents

Net Cash prov dad by (or used in) Operating Activities

Notes2013 2012

1,616,010 1,455,793161,087 97,059341,949 355,64939,923 10,621

159,443 141,57640,510

(1,351,724) (1,459,093)(773,169) (559,141)(14,725)178,794

82,974

CASH FLOWS FROM INVESTING ACTIVITIESReceiptsSale

of surpl s assets 1,187PaymentsExpenditure

n renewal/replacement of assets (146,675) (20,680)Expenditure n new/upgraded assets (514,543) (18,505)

Net Cash prov ded by (or used in) Investing Activities (660,031) (39,185)

CASH FLOWS FROM FINANCING ACTIVITIESReceiptsProceeds

fro borrowings 620,000PaymentsRepayments

f borrowings (24,578)Net

Cash prov ded by (or used in) Financing Activities 595,422

Net Increase (Decrease) in cash held 114,185 43,789

Cash & cash Ouivalents at beginning of period 9 3 9 6 , 5 2 6 352,737Cash & cash eguivalents at end of period 9 5 1 0 , 7 1 1 396,526

This Statement is to be read In conjunction with the attached Notes

EASTERN HEALTH AUTHORITYNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS


Note 1 − SIGNIFICANT ACCOUNTING POLICIES

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.

1 Basis of Preparation1.1 Compliance with Australian Accounting StandardsThis general purpose financial report has been prepared in accordance with Australian AccountingStandards as they apply to not−for−profit entities, other authoritative pronouncements of the AustralianAccounting Standards Board, Interpretations and relevant South Australian legislation.

The financial report was authorised for issue by certificate under regulation 14 of the Local Government(Financial Management) Regulations 2011.

1.2 Historical Cost ConventionExcept as stated below, these financial statements have been prepared in accordance with the historicalcost convention.

1.3 Critical Accounting EstimatesThe preparation of financial statements in conformity with Australian Accounting Standards requires theuse of certain critical accounting estimates, and requires management to exercise its judgement inapplying the Subsidiary's accounting policies. The areas involving a higher degree of judgement orcomplexity, or areas where assumptions and estimates are significant to the financial statements arespecifically referred to in the relevant sections of this Note.

1.4 RoundingAll amounts in the financial statements have been rounded to the dollar ($).

2 The Local Government Reporting EntityEastern Health Authority is a Regional Subsidiary incorporated under the SA Local Government Act 1999and has its principal place of business at 101 Payneham Road, St Peters SA 5069. These financialstatements include the Subsidiary's direct operations and all entities through which the Subsidiary controlsresources to carry on its functions. In the process of reporting on the Subsidiary as a single unit, alltransactions and balances between activity areas and controlled entities have been eliminated.

3 income recognitionIncome is measured at the fair value of the consideration received or receivable. Income is recognisedwhen the Subsidiary obtains control over the assets comprising the income, or when the amount dueconstitutes an enforceable debt, whichever first occurs.

Where grants, contributions and donations recognised as incomes during the reporting period wereobtained 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 amounts subject to thoseundischarged conditions are disclosed in these notes. Also disclosed is the amount of grants,contributions and receivables recognised as incomes in a previous reporting period which were obtainedin respect of the Subsidiary's operations for the current reporting period.

EASTERN

NOTES TO Afor the year en

Note 1 − Signi

4 Cash, ICash Assetsinsignificant ri

Receivables fdetermined irunsecured an

All receivablereceipt of whir

All financial inaccounting po

Props

5.1 Initial IAll assets areis determined

All non−currerdepreciated a:given as consdesign fees aincludes the cproportion of v

5.2 MateriaAssets with aexceeds mateannually revielExamples of c

5.3 DeprecProperty, plana straight−linepotential em E:

Depreciation

Major depreciinfrastructureappropriate rshould be use

5.4 ImpaIrrAssets that acircumstancesrecognised forthe higher of tl

EALTH AUTHORITY

'D FORMING PART OF THE FINANCIAL STATEMENTSed 30 June 2013

icant Accounting Policies (cant)

;ash Equivalents and other Financial Instrumentsinclude all amounts readily convertible to cash on hand at Subsidiary's option with an

of changes in value with a maturity of three months or less from the date of acquisition.

r rates and annual charges are secured over the subject land, and bear interest at ratesaccordance with the Local Government Act 1999. Other receivables are generallydo not bear interest.

are reviewed as at the reporting date and adequate allowance made for amounts theis considered doubtful.

;truments are recognised at fair value at the date of recognition. A detailed statement of theicies applied to financial instruments forms part of Note 10.

, Plant & Equipment

ecog nitionnitially recognised at cost. For assets acquired at no cost or for nominal consideration, cost35 fair value at the date of acquisition.

it assets purchased or constructed are capitalised as the expenditure is incurred and; soon as the asset is held "ready for use". Cost is determined as the fair value of the assetsideration plus costs incidental to the acquisition, including architects' fees and engineeringid all other costs incurred. The cost of non−current assets constructed by the Subsidiaryost of all materials used in construction, direct labour on the project and an appropriateariable and fixed overhead.2

lityeconomic life in excess of one year are only capitalised where the cost of acquisition

riality thresholds established by Subsidiary for each type of asset. In determining (and inving) such thresholds, regard is had to the nature of the asset and its estimated service life.apitalisation thresholds applied during the year are given in Note 6.

ation of Non−Current Assetsand equipment assets recognised are systematically depreciated over their useful lives on

basis which, in the opinion of the Subsidiary, best reflects the consumption of the servicedied in those assets.

Office Furniture & EquipmentBuilding & Other Structures

3−10 years10 years

ethods, useful lives and residual values of classes of assets are reviewed annually.

ation periods for each class of asset are shown in Note 6. Depreciation periods forassets have been estimated based on the best information available to the Subsidiary, butcords covering the entire life cycle of these assets are not available, and extreme care

in interpreting financial information based on these estimates.

lente subject to depreciation are reviewed for impairment whenever events or changes inindicate that the carrying amount may not be recoverable. An impairment loss is

the amount by which the asset's carrying amount exceeds its recoverable amount (which ise present value of future cash outflows or value in use).


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2013

Note 1 − Significant Accounting Policies (cont)

For assets whose future economic benefits are not dependent on the ability to generate cash flows, andwhere the future economic benefits would be replaced if the Subsidiary were deprived thereof, the value inuse is the depreciated replacement cost. In assessing impairment for these assets, a rebuttableassumption is made that the current replacement cost exceeds the original cost of acquisition.

Where an asset that has been revalued is subsequently impaired, the impairment is first offset againstsuch amount as stands to the credit of that class of assets in Asset Revaluation Reserve, any excessbeing recognised as an expense.

6 Payables6.1 Goods & ServicesCreditors are amounts due to external parties for the supply of goods and services and are recognised asliabilities when the goods and services are received. Creditors are normally paid 30 days after the monthof invoice. No interest is payable on these amounts.

6.2 Payments Received in Advance & DepositsAmounts received from external parties in advance of service delivery, and security deposits held againstpossible damage to Subsidiary assets, are recognised as liabilities until the service is delivered or damagereinstated, or the amount is refunded as the case may be.

7 BorrowingsLoans are carried at their principal amounts which represent the present value of future cash flowsassociated with servicing the debt. Interest is accrued over the period to which it relates, and is recordedas part of "Payables'. Interest free loans are carried at their nominal amounts; interest revenues foregoneby the lender effectively being a reduction of interest expense in the period to which it relates.

8 Employee Benefits8.1 Salaries, Wages & Compensated AbsencesLiabilities for employees' entitlements to salaries, wages and compensated absences expected to be paidor settled within 12 months of reporting date are accrued at nominal amounts (including payroll basedoncosts) measured in accordance with AASB 119.

Liabilities for employee benefits not expected to be paid or settled within 12 months are measured as thepresent value of the estimated future cash outflows (including payroll based oncosts) to be made inrespect of services provided by employees up to the reporting date. Present values are calculated usinggovernment guaranteed securities rates with similar maturity terms.

No accrual is made for sick leave as the Subsidiary experience indicates that, on average, sick leavetaken in each reporting period is less than the entitlement accruing in that period, and this experience isexpected to recur in future reporting periods. The Subsidiary does not make payment for untaken sickleave.

8.2 Su perann ElationThe Subsidiary makes employer superannuation contributions in respect of its employees to the LocalGovernment Superannuation Scheme. The Scheme has two types of membership, each of which isfunded differently. No changes in accounting policy have occurred during either the current or previousreporting periods. Details of the accounting policies applied and Subsidiary's involvement with theschemes are reported in Note 15.


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year tattled 30 June 2013

Note 1 − Significant Accounting Policies (cont)

9 LeasesLease arrangements have been accounted for in accordance with Australian Accounting Standard AASB117.

iIn respect of finance leases, where the Subsidiary substantially carries all of the risks incident toownership, th leased items are initially recognised as assets and liabilities equal in amount to the presentvalue of the inimum lease payments. The assets are disclosed within the appropriate asset class, andare amortised to expense over the period during which the Subsidiary is expected to benefit from the useof the leased ssets. Lease payments are allocated between interest expense and reduction of the leaseliability, according to the interest rate implicit in the lease.

In respect of operating leases, where the lessor substantially retains all of the risks and benefits incident toownership of the leased items, lease payments are charged to expense over the lease term.

10 GST ImplicationsIn accordance with UIG Abstract 1031 "Accounting for the Goods & Services Tax"

Receivables and Creditors include GST receivable and payable.20 Except in relation to input taxed activities, revenues and operating expenditures exclude

GST receivable and payable.'ps Non−current assets and capital expenditures include GST net of any recoupment.jo Amounts induded in the Statement of Cash Flows are disclosed on a gross basis.

11 Pendin. Accounting StandardsCertain new a counting standards and UIG interpretations have been published that are not mandatory forthe 30 June 2013 reporting period and have not been used in preparing these reports.

AASB 7 Financial Instruments — DisclosuresAASB 9 Financial instrumentsAASB 10 Consolidated Financial StatementsAASB 11 Joint ArrangementsAASB 12 Disclosure of Interests in Other EntitiesAASB 13 Fair Value MeasurementAASB 119 Employee BenefitsAASB 127 Separate Financial StatementsAASB 128 Investments in Associates and Joint VenturesAASB 132 Financial Instruments: Presentation

Stand rds containing consequential amendments to other Standards and interpretations arising from theabove − AASB 2010−7, AASB 2011−7,AASB 2011−8, AASB 2011−10, AASB 2012−2, AASB 2012−3,AASB 2012−5, AASB 2012−6 and AASB 2012−10.

( tandards not affecting local government have been excluded from the above list)

4The Subsidia is of the view that none of the above new standards or interpretations will affect any of theamounts rec nised in the financial statements, but that they may impact certain information otherwisedisclosed.

3The Australia Accounting Standards Board is currently reviewing AASB 1004 Contributions. It isanticipated th t the changes resulting from this review may have a material effect on the timing of therecognition of rants and contributions, but the financial consequences cannot be estimated until a revisedaccounting s ndard is issued.

•



Note 2 − INCOME

2013 2012Notes $

COUNCIL CONTRIBUTIONSCity of Burnside 370,176 332,216City of Cam pbelltown 345,220 312,751City of Norwood Payneham & St Peters 464,376 422,248City of Prospect 197,927 172,948Town of Walkerville 91,401 83,285

1,469,100 1,323,448

STATUTORY CHARGESSRF Licences 5,242 6,103Food Inspection 51,120 53,416Legionella Registration and inspection 21,693 11,664Fines, penalties & expiations 71,100 23,300Other licences, fees, & fines 673

149,155 95,156Human ResourcesUSER CHARGES

Immunisation Fee for Service 78,858 78,403Immunisation Worksites 100,256 87,416Food Safety Training 5,375 4,341Food Auditing 37,859 41,339City of Unley 99,983 101,747City of Adelaide 76,006 67,684

398,337 380,930

INVESTMENT INCOMEInterest on investments

Local Government Finance Authority 23,729 22,62623,729 22,626

EASTERN HEALTH AUTHORITYN O 7 S TO AND FORMING PART OF THE FINANCIAL STATEMENTS


NOTE 2 − INCOME (continued)2013 2012

Notes $ $

REIMBURSEMENTS− I gal costs − 36,827

− 36,827

OTHER NCOMEMo or Vehicle Reimbursements 6,440 2,495Su dry 15,863 2,872

22,303 5,367

GRANT, SUBSIDIES, CONTRIBUTIONSImriunisation Fees − Schools 103,304 87,422Ch Id Immunisation Register 45 708

. _ — . . . . . −44,892

149,012 132,314The func ions to which these grants relate are shown in Note 2.

Sources of grantsState government 149,012 132,314

149,012 132,314



Note 3− EXPENSES

2013 2012Notes $ $

EMPLOYEE COSTSSalaries and Wages 1,183,771 1,260,563Employee leave expense 45,019 43,819Superannuation − defined contribution plan contributions 15 84,536 78,643Superannuation − defined benefit plan contributions 15 22,574 34,836Workers Compensation Insurance 14,501 14,000Other 25,864 40,475Total Operating Employee Costs 1,376,265 1,472,336

Total Number of Employees 19 19(Full time equivalent at end o f reporting period)

MATERIALS, CONTRACTS & OTHER EXPENSESPrescribed ExpensesAuditor's

Remuneration− Auditing the financial reports 6,500 6,700

Board of Management expenses 16,991 10,844Operating Lease Rentals − non−cancellable leases 14

− minimum lease payments 56,121 78,985Subtotal − Prescribed Expenses 79,612 96529

Other Materials. Contracts & ExpensesContractorsand Services 32,656 21,067

Energy 10,920 8,541Records Management Project 1,643 13,930Fringe Benefits Tax 18,170 19,260Human Resources 9,565 −Insurance 24,683 22,478Legal Expenses 47,010 56,087Motor Vehicle Expenses 15,873 16,331It Licencing and Support 108,108 18,275Parts, accessories & consumables 84,189 94,734Printing & Stationery 20,489 14,554Telephone 15,105 17,720Health Promotion 73 5,757Rent 61,258 44,816Staff Training 38,566 22,920Sundry 43,512 53,177Subtotal − Other Materials, Contracts & Expenses 531,820 429,647

611,432 526,176



Note 3− EXPENSES (cont)2013 2012

NotesliDDEPRECIATI N, AMORTISATION & IMPAIRMENT

DepreciationBuildings & her Structures 46,475Office Fumitu e & Software 60,064

106,539

FINANCE cpsirsInterest on Loans 14,725

14,725

14,50914,509



Note 4− ASSET DISPOSAL & FAIR VALUE ADJUSTMENTS

Notes

INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

Assets surplus to requirementsProceeds from disposalLess: Carrying amount of assets soldGain (Loss) on disposal

NET GAIN (LOSS) ON DISPOSAL OR REVALUATIONOF ASSETS

2013 2012$ $

1,187 3,075L.. 443

_1,187 2,632

1,187 2,632MOMMIIIMMIN■



I'T

Note 5− CURRENT ASSETS2013 2012

CASH & EQUIVALE ASSETS Notes $ $Cash on Hand and t Bank 39,930 59,060Short Term Deposit & Bills, etc 470,781 337,466

510,711 396,526

TRADE & OTHER RECEIVABLESAccrued Revenues 4,880 21,074Debtors − general 171,044 82,789GST Recoupment 915 574Total 176,839 104,437

Less: Allowance for Ooubtful Debts 1,245 1,245175,594 103,192

IN



Note 6− INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

Buildings & Other StructuresOffice Furniture & Software

TOTAL PROPERTY, PLANT &EQUIPMENT

Comparatives

2012$

2013$

AT FAIRVALUE

−

AT COST

18,50573,094

ACCUMDEP'N

−(47,580)

CARRYINGAMOUNT

18,50525,514

AT FAIRVALUE

−

AT COST

464,760288,066

ACCUMDEP'N

(46,475)(107,643)

CARRYINGAMOUNT

418,275180,423

91,599 (47,580) 44,019 − 762,816,

(154,118) 598,698

− 62,506 (39,645) 22,861 − 91,599 (47,580) 44,019This Note continues on the following pages.



Note 6− INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT

Buildings & Other StructuresOffice Furniture & Software

TOTAL INFRASTRUCTURE,PROPERTY, PLANT &EQUIPMENT

Comparatives

2012$

CARRYING AMOUNT MOVEMENTS DURING YEAR$

2013$

CARRYINGAMOUNT

18,50525,514

Additions Disposals

_

Depreciation(46,475)

(60,064)

CARRYINGAMOUNT

418,275180,423

New/Upgrade

446,24568,298

Renewals

−146,675

44,019 514,543 146,675 (106,539) 598,698

22,861 18,505 17,605 (443) (14,509) 44,019This Note continues on the following pages.



Note 7− LIABILITIES2013 2012

$ $TRADE & OTHER PAYABLES Notes Current Non−current Current Non−currentGoods & Services 86,010 − 69,117Accrued expenses − employee entitlements 115,800 − 100,901 −Accrued expenses − other 52,651 − 50,591 −

254,461 − 220,609 −

BORROWINGSLoans

PROVISIONSEmployee entitlements (including oncosts)

50,921 544,50150,921 544,501

87,673 62,203 87,108 44,63887,673 52,203 87,108 44,638

NOTE

EASTERN HEALTH AUTHORITYS TO AND FORMING PART OF THE FINANCIAL STATEMENTS


OTHER RESERVES

Committed ExpeeditureTOTAL OTHER I RESERVES

Note 8− RESERVES

Comparatives

Transfers to Transfers from1/7/2012 30/612013Reserve Reserve

118,600 (118,600)



Note 9− RECONCILIATION TO CASH FLOW STATEMENT

(a) Reconciliation of CashCash Assets comprise highly liquid investments with short periods to maturity subject to insignificantrisk of changes of value. Cash at the end of the reporting period as shown in the Cash FlowStatement is reconciled to the related items in the Balance Sheet as follows:

Total cash & equivalent assetsBalances per Cash Flow Statement

2013 2012Notes

5 5 1 0 , 7 1 1 396,526510,711 396,526

(b) Reconciliation of Change in Net Assets to Cashfrom Operating Activities

Net Surplus (Deficit) 103,862 (13,721)Non−cash items in Income Statement

Depreciation, amortisation & impairment 108,539 14,509Net increase (decrease) in unpaid employee benefits 23,029 17,127Net (Gain) Loss on Disposals (1,187) (2,632)

232,243 15,283Add (Less): Changes in Net Current Assets

Net (increase) decrease in receivables (72,402) 48,407Net increase (decrease) in trade & other payables 18,953 19,284Net

Cash provided by (or used in) operations 178,794 82,974HumanResources



Note 10− FINANCIAL INSTRUMENTS

All financial instru •nts are categorised as loans and receivables.

Accounting Pond − Recognised Financial InstrumentsBank, Deposits atDeposits

Call, Short Term Accounting Policy: Carried at lower of cost and net realiseabie value: Interest isrecognised when earned.Terms & conditions: Deposits are returning fixed interest rates between 4% and 5%(2012:5%).

Carrying amount: approximates fair value due to the short term to maturity.Receivables − Fees& other charges Accounting Policy: Carried at nominal values less any allowance for doubtful debts. An

allowance for doubtful debts is recognised (and re−assessed annually) when collection infull is no longer probable.Terms & conditions: Unsecured, and do not bear interest Although the Subsidiary isnot materially exposed to any individual debtor, credit risk exposure is concentrated withinthe Council's boundaries.Carrying amount: approximates fair value (after deduction of any allowance).

Liabilities − Creditorsand Accruals Accounting Policy: Liabilities are recognised for amounts to be paid in the future forgoods and services received, whether or not billed to the Subsidiary.Terms & conditions: Liabilities are normally settled on 30 day terms.Carrying amount: approximates fair value.

Liabilities − InterestBorrowings

Bearing Accounting Policy: Carried at the principal amounts. Interest is charged as an expenseas it accrues.Terms & conditions: secured over future revenues, borrowings are repayable in sixmonthly installments; interest is charged at a fixed rate of 4.75%.

Carrying amount: approximates fair value.



Note 10 (cant) − FINANCIAL INSTRUMENTSLiquidity Analysis

TotalDue > 1 year;2013 Due < 1 year Due > 5 years Contractual CarryingValues< 6 years Cash Flows

Financial Assets $ $ $ $ $Cash & Equivalents 510,711 − . 510,711 510,711Receivables 176,839 − − 176839 176,839

Total 6 8 7 , 5 5 0 − − 687,550 687,550Financial Liabilities

Payables 86,010 − − 86,010 86,010Current Borrowings 50,921 − − 78,606 50,921Non−Current Borrowings 2 2 9 , 3 6 5 315,136 668,154 544,501Total

136,931 229,365 315,136 832770 681,432Total

2012 Due > 1 year;Due < 1 year < 5 yearsDue > 5 years Contractual Carrying

ValuesCash FlowsFinancial Assets $ $ $ $ $

Cash & Equivalents 396,526 − − 396,526 396,526Receivables 104,437 − − 104,437 104,437

Total 5 0 0 , 9 6 3 − − 500,963 500,963Financial LiabilitiesPayables

69,117 − − 69,117 69,117Total 6 9 , 1 1 7 − − 69,117 69,117

The following interest rates were applicable to the Subsidiary's borrowings at balance date:30 June 2013 30 June 2012

Weighted WeightedAverage Interest Carrying Value Average Interest Carrying Value

Rate Rate

Fixed Interest Rates 4.75 5 9 5 , 4 2 2595,422

Net Fair ValueAll carrying values approximate fair value for all recognised financial instruments. There is no recognised marketfor the financial assets of the Subsidiary.

Risk ExposuresCreditRisk represents the loss that would be recognised if counterparties fail to perform as contacted. The

maximum credit risk on finandal assets of the Subsidiary is the carrying amount, net of any allowance for doubtfuldebts. All Subsidiary investments are made with the SA Local Government Finance Authority and are guaranteedby the SA Government. Except as detailed in Notes 5 & 6 in relation to individual classes of receivables, exposureis concentrated within the Council's boundaries, and there is no material exposure to any individual debtor.

Market Risk is the risk that fair values of financial assets will fluctuate as a result of changes in market prices. Allof Subsidiary's financial assets are denominated in Australian dollars and are not traded on any market, and henceneither market risk nor currency risk apply.

Liquidity Risk is the risk that the Subsidiary will encounter difficulty in meeting obligations with financial liabilities.In accordance with the model Treasury Management Policy (LGA Information Paper 15), liabilities have a range ofmaturity dates. The Subsidiary also has available a range of bank overdraft and standby borrowing facilities that itcan access.

Interest Rate Risk is the risk that future cash flows will fluctuate because of changes in market interest rates. TheSubsidiary has a balance of both fixed and variable interest rate borrowings and investments. Cash flowfluctuations are managed holistically in seeking to minimise interest costs over the longer term in a risk aversemanner.


NOTES T r AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2013

Note 11 − COMMITMENTS FOR EXPENDITURE

2013 2012Nates $ $

Capital Comm Km antsCapital expenditure committed for at the reporting date but not recognised in the financialstatements as liabilities:

Buildings

These expenditures are payable:Not later than one year

111.

WO

WY

520,000520,000

520,000520,000



Note 12 − UNIFORM PRESENTATION OF FINANCES

The following is a high level summary of both operating and capital investment activities of the Subsidiaryprepared on a simplified Uniform Presentation Framework basis.

All Subsidiaries in South Australia have agreed to summarise annual budgets and long−term financial planson the same basis.

The arrangements ensure that all Subsidiaries provide a common 'core' of financial information, whichenables meaningful comparisons of each Subsidaries finances.

2013 2012$ $

Income 2,211,636 1,996,668less Expenses 2,108,961 2,013,021Operating

Surplus! (Deficit) 102,675 (16,353)

less Net Outlays on Existing AssetsCapital Expenditure on renewal and replacement of 146,675 20,680Existing Assetsless Depreciation, Amortisation and Impairment 106,539 14,509

40,136 6,171

less Net Outlays on New and Upgraded AssetsCapital Expenditure on New and Upgraded Assets(including investment property & real estate developments)less Proceeds from Sale of Surplus Assets(including investment property and real estate developments)

514,543 18,505

1,187513,356 18,505

Net Lending I (Borrowing) for Financial Year (450,817) (41,029)



Note 13 − OPERATING LEASES

ILease payment mmitments of the Subsidiary

The Subsidiary h s entered into non−cancellable operating leases for motor vehiclesand a photocopieNo lease impose any additional restrictions on the Subsidiary in relation to additionaldebt or further lea ing.Leases in relation to motor vehicles and a photocopier permit the Subsidiary, at expiryof the lease, to el ct to re−lease, return or acquire the equipment leased.

•No lease contains any escalation clause.Commitments un er non−cancellable operating leases that have not been recognised inthe financial state ents are as follows:

Not later than one yearLater than one year and not later than 5 years

2013 2012

66,296 35,85119,944 50,65676,240 86,507


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2013

Note 14 — SUPERANNUATION

The Subsidiary makes employer superannuation contributions in respect of itsemployees to Statewide Super (formerly Local Government Superannuation Scheme).There are two types of membership, each of which is funded differently. Permanentand contract employees of the South Australian Local Government sector withSalarylink benefits prior to 24 November 2009 have the option to contribute toMarketlink and/or Salarylink. All other employees (including casuals) have allcontributions allocated to Marketlink.

Marketlink (Accumulation Fund) MembersMarketlink receives both employer and employee contributions on a progressive basis.Employer contributions are based on a fixed percentage of employee earnings inaccordance with superannuation guarantee legislation (9% in 2012/13; 9% in 2011/12).No further liability accrues to the Subsidiary as the superannuation benefits accruing toemployees are represented by their share of the net assets of the Fund.

Salarylink (Defined Benefit Fund) MembersSalarylink is a defined benefit scheme where the benefit payable is based on a formuladetermined by the member's contribution rate, number of years and level ofcontribution and final average salary. The Subsidiary makes employer contributions toSalarylink as determined by the Trustee based on advice from the appointed Actuary.The rate is currently 6.3% (6.3% in 2011/12) of usuperannuation" salary.

In addition, the Subsidiary makes a separate contribution of 3% of salary for Salarylinkmembers to their Marketlink account. Employees also make member contributions tothe Fund. As such, assets accumulate in the Fund to meet the member's benefits, asdefined in the Trust Deed, as they accrue.

The Salarylink section is a multi−employer sponsored plan. As the Fund's assets andliabilities are pooled and are not allocated by each employer, the Actuary is unable toallocate benefit liabilities, assets and costs between employers. As provided by AASB119.32(b), the Subsidiary does not use defined benefit accounting for thesecontributions.

The most recent actuarial investigation was conducted by the Scheme's actuary, A CMiller, FIAA, of Russell Employee Benefits Pty Ltd as at 30 June 2011. The Trusteehas determined that the current funding arrangements are adequate for the expectedSalarylink liabilities. However, future financial and economic circumstances mayrequire changes to the Subsidiary's contribution rates at some future time.

Contributions to Other Superannuation SchemesThe Subsidiary also makes contributions to other superannuation schemes selectedby employees under the "choice of fund ° legislation. All such schemes are of theaccumulation type, where the superannuation benefits accruing to the employee arerepresented by their share of the net assets of the scheme, and no further liabilityattaches to the Subsidiary.

• D e a n NCHARTERED

INDEPENDENT AU

Report on the FinanWe have audited thicomprises the balanchanges in equity, dpolicies, other explarl

Chief Executive 0The Chief Executive

l

report in accordanceand the Local Goysresponsibility includepresentation of the fluand applying approicircumstances.

Auditor's responsiiOur responsibility isaccordance with Au:ethical requirementswhether the financial

An audit involves perThe procedures selemisstatement of the Iconsiders internal codesign audit procedopinion on the effectof accounting policieas well as evaluating

We believe that theopinion.

IndependenceIn conducting our auand Local Govemm(required by the Lodhas been provided tc

wbery & PartnersCCOUNTANTS ABN 30 164 612 890

ITOR'S REPORT TO THE MEMBERS OF THE EASTERN HEALTH AUTHORITY INC

'dal Reporta accompanying financial report of the Eastern Health Authority Inc ('the Authority') whichce sheet as at 30 June 2013, and the statement of comprehensive income, statement of3sh flow statement for the year ended on that date, a summary of the significant accountingiatory notes and the Chief Executive Officer's Statement.

Auditor's OpinionIn our opinion financ1999 and Local Gov((a) giving a trueits performance for ttcomplying with Austr(c) complyingRegulations 2011; ar(d) in accordan4the Local Govemme

DEAN NEWBERYCI:17/rERED ACC

IM KEOGHARTNER

!cer's Responsibility for the Financial ReportOfficer of the Authority is responsible for the preparation and fair presentation of the financialwith Australian Accounting Standards (including the Austra)ian'Accounting Interpretations)

rnment Act 1999 and Local Government (Financial Management) Regulations 2013. Thiss designing, implementing and maintaining internal control relevant to the preparation and fairnancial report that is free from material misstatement, whether due to fraud or error; selectingxiate accounting policies; and making accounting estimates that are reasonable in the

ilftyto express an opinion on the financial report based on our audit. We conducted our audit in&alien Auditing Standards. These Auditing Standards require that we comply with relevantrelating to audit engagements and plan and perform the audit to obtain reasonable assurancereport is free from material misstatement.

forming procedures to obtain audit evidence about the amounts and disclosures in the report.scted depend on the auditor's judgement, including the assessment of the risks of materialinancial report, whether due to fraud and error. In making those risk assessments, the auditorntrol relevant to the entity's preparation and fair presentation of the financial report in order toures that are appropriate in the circumstances, but not for the purpose of expressing aniveness of the entity's internal control. An audit also includes evaluating the appropriatenesss used and the reasonableness of accounting estimates made by the Chief Executive Officer,the overall presentation of the financial report.

udit evidence we have obtained is sufficient and appropriate to provide a basis for an audit

fit, we have complied with the independence requirements of the Local Government Act 1999nt (Financial Management) Regulations 2011. We confirm that the independence declaration11 Government Act 1999 and Local Government (Financial Management) Regulations 2011,the Chief Executive Officer on 20 August 2013.

al report of the Eastern Health Authority Inc is in accordance with the Local Government Actrnment (Financial Management) Regulations 2011 including:and fair view of the Eastern Health Authority Inc financial position as at 30 June 2013 and ofe year ended on that date; andalien Accounting Standards (including the Australian Accounting Interpretations); andwith Local Government Act 1999 and the Local Government (Financial Management)

:e with the provisions relating to Regional Subsidiaries of the Local Government Act 1999 andit (Financial Management) Regulations 2011.

PARTNERSUNTANTS

Signed on the 22nd day of August 2013,at 214 Melbourne Street, North Adelaide, South Australia 5006.

Office:214 Melbourne StreetNorth Adelaide SA 5006

All Correspondence:PO Box 755North Adelaide SA 5006

Liability limited by a scheme approved under Professional Standards Legislation

T: (08) 8267 4777F: (08) 8239 0895

E: [email protected]


ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 June 2013

CERTIFICATION OF AUDITOR INDEPENDENCE

To the best of our knowledge and belief, we confirm that, for the purpose of theaudit of Eastern Health Authority for the year ended 30 June 2013, EHA's Auditor,Dean Newbery & Partners Chartered Accountants, has maintained itsindependence in accordance with the requirements of the Local Government Act1999 and the Local Government (Financial Management) Regulations 2011 madeunder that Act.

This statement is prepared in accordance with the requirements of Regulation 22(3)Local Government (Financial Management) Regulations 2011.

Michael LivoriCHIEF EXECUTIVE OFFICER

Date: iv/g/IgV Lisa Scinto

PRESIDING MEMBERAUDIT COMMITTEE

Dean I'sCHARTERED

vviciry & PartnersCCOUNTANTS ABN 30 154 812 BOO

Auditor's Independence Declaration under Section 22

of the Local Government (Financial Management) Regulations 2011

to the Eastern Health Authority Inc.

I confirm that, fcfor the year endthe requirementpublished by thethe Local GaveRegulations 201

This statement IGovernment (Fin

DEA,7EWBER

.dMKEOGH

PARTNER

Dated this 24th

r the audit of the financial statements of the Eastern Health Authority Inc.!cl 30 June 2013, I have maintained my independence In accordance withof APES 110 —Code of Ethics for Professional Accountants, Section 290,

Accounting Professional and Ethical Standards Board, in accordance withment Act 1999 and the Laval Government (Financial Management)made under that Act.

prepared in accordance with the requirements of Regulation 22 (5) Localndal Management) Regulations 2011.

& PARTNERS

of July 2013

Moot214 Melbourne StreetNorth Adelaide SA 5006

All Canso:ponders=PO Box 755North Adelaide SA 5006

!lability limited by a scheme approved under Professional Standards Legislation

T: (08) 8287 4777F; (08) 8239 0895

E: adminadsannawbery.com.au

eastern health authorityLocal covoe.ili workirter logeker

r u t t a lir− health of file. comonoirili

Annual Financial Statementsfor the Year Ended 30 June 2013

Statement by Chief Executive Officer

I, Michael Livori, the person for the time being occupying the position of ChiefExecutive Officer of the Eastern Health Authority, do herby state that theFinancial Statements of the Authority for the year ended 30 June 2013 are tothe best of my knowledge presented fairly, and in accordance with accountingprocedures which have been maintained in accordance with the LocalGovernment Act 1999 and the Local Government (Financial Management)Regulations 1999 made under that Act.

Michael LivoriChief Executive OfficerDated this 8 day of August 2013

Adoption Statement

Laid before the Board of Management of the Eastern Health Authorityand adopted on the 28 day of August 2013

Cr S WhitingtonChair

the norwood sa 5067 30 aug 2013 financial... · eastern health authority cash flow statement for...

Documents