Maranoa Regional Council Annual Report 2008-2009 · Welcome to the 2008/2009 Maranoa Regional...

Maranoa Regional Council

Annual Report 2008-2009

Maranoa Regional Council

Annual Report 2008-2009

Maranoa Regional Council Annual Report 2008/09

WELCOME TO THE MARANOA REGIONAL DISTRICT Welcome to the 2008/2009 Maranoa Regional Council Annual Report. This year‟s report is very special as it is the inaugural report following the amalgamation of Roma Town Council and the surrounding Shire Councils of Bendemere, Booringa, Bungil and Warroo, which occurred on 15 March 2008. This report is designed to be a snapshot of the 2008/09 year, the challenges this fledging organisation faced and how the organisation has been able to triumph over adversity. The report also demonstrates how Council has been able to set the strategic direction and to implement the processes and systems necessary to guide the organisation into the future. The Maranoa region is located in south west Queensland approximately 480 kilometres west of the state capital of Brisbane. Covering an area of 58,830 square kilometres and home for approximately 13,000 people, the region maintains a proud and productive rural industry, which in more recent years has been complemented with industrial expansion in the energy and tourism sectors. The town of Roma, with an approximate population of 6,950 is the major urban centre and acts as the region‟s primary hub for commerce, education, health, transport, government, retail and financial services. Located also in the region are the towns of Mitchell, Injune, Surat, Wallumbilla and Yuleba, which act as important community and retail centres that service the immediate needs of residents located in their close proximity. In addition, the region also has several smaller towns and locations that provide community and social points for residents. With 91 percent of its population Australia born, the region has maintained many years a stable population base with minimal growth that is centred predominately on the rural sector. Unemployment rates are traditionally low when compared with state averages. Approximately 7.4 percent of residents also identify themselves as indigenous. Following the amalgamation of the five Councils, the new Council was identified as the Roma Regional Council. At Council‟s General Meeting held on 19 June 2008, Council resolved to hold a public consultation process to determine community sentiment in regard to the name this regional Council area would carry. Following a non-compulsory survey of all electors in the Roma Regional Council area to confirm the level of support in the community for a name change a 51 percent response rate was received with 72.4 percent of respondents indicating a preference for a name change to Maranoa Regional Council. In recognition of the result Council made a formal submission to the Minister for Local Government advising the preferred name for this local government area was Maranoa Regional Council and requested the Minister to refer the matter to the Electoral and Boundaries Review Commission for determination and implementation.


Following the Commission‟s final determination on 1 May 2009 to approve the name change from Roma Regional Council to Maranoa Regional Council, the Governor in Council implemented the Commission‟s determination by regulation notified in the Queensland Government Gazette on 26 June 2009.


CONTENTS 05 2008/09 Highlights and Financial Performance

06 Our Region

07 Our Regional Achievers

08 Our Vision, Mission Statement and Values

10 Mayor‟s Report

12 Chief Executive Officers Comment

13 Our Strategic Planning Process

14 Our Mayor and Elected Representatives

20 Corporate Governance

24 Our People

28 Key Portfolios

30 Portfolio 1 - Corporate Services

34 Portfolio 2 - Operations

37 Portfolio 3 - Planning and Environment

42 Portfolio 4 - Community Services

49 Statutory Information

64 Community Financial Report

70 Financial Statements

120 Readers Survey


2008/09: HIGHLIGHTS AND PERFORMANCE

Development of the 2009-2013 Corporate Plan following community consultation and workshops with representatives of key community organisations from throughout the region.

Development of Council‟s Corporate Structure into four core areas – Corporate Services; Operations; Planning and Environment and Community Services.

Transition of staff into new organisational roles so as to ensure a consistent high level of service to all customers.

Introduction of systems to ensure compliance with the Cultural Heritage Act 2003 including training for all operational staff.

Implementation of Council‟s Customer Service Call Centre across the region.

Implementation and successful „roll-out‟ of an Electronic Document Records Management System.

Design and adoption of Council‟s Logo.

Visit by the Minister for Local Government and Main Roads, Hon Warren Pitt MP, to allow the Minister to detail his expectations for the first term of the new Council and for Council to discuss matters of common interest with the Minister.

Development of regional tourism marketing and branding promoting the Maranoa Regional as a visitor destination.

Hosting of visit by the Deputy Premier, Minister Paul Lucas.

Official opening of the Roma Community Arts Centre.

Official opening of the restored Surat Shire Hall.

Hosting of regional 2009 Australia Day Awards.

Formation of Councillor Portfolios.

Hosting of regional Meet and Greets welcoming all new-comers to their respective towns within the Maranoa region.

Official name change from Roma Regional Council to Maranoa Regional Council.

Development and hosting of Youth Holiday Program throughout the Maranoa region.

Development and coordination of Young Endeavour Scholarship Youth Leadership Program.

Coordination of the 2008 Santos Food & Fire Festival.

Establishment of Cultural Hubs throughout the Maranoa region and regional uniformity of service provision.

Accreditation of the Maranoa Retirement Village.

Construction of 60 new selling pens at the Roma Saleyards Complex.

Roma Saleyards maintained as the top store cattle selling centre in Australia.

Ongoing development of the Roma Quarry.


OUR REGION Region Statistics Location: South-West Queensland Climate: Sub-tropical Area: 58,830 sq km Population: 12,650 approximately Average annual growth rate (2003-2008)**: 0.6% People of indigenous Origin**: 911 (7.4%) Birthplace of respondents: 91.0% Australian born English as only language spoken at home: 82% Unemployment rate**: 2.4% Towns: Roma, Injune, Mitchell, Mungallala, Muckadilla, Amby, Surat, Yuleba, Wallumbilla and Jackson Average annual rainfall*: Roma – 577.3 mm

Injune – 632.6 mm Mitchell – 565.0 mm Surat - 575.5 mm

Average annual daily

Maximum temperature*: Roma – 27.1 C

Injune – 27.6 C

Mitchell – 27.6 C

Surat - 27.2 C Average annual daily

Minimum temperature*: Roma – 12.8 C

Injune – 11.5 C

Mitchell – 11.7 C

Surat - 12.9 C Industries: Rural

(Beef, sheep, wool and hard grains) Oil and Gas Timber Tourism Total Council Expenditure: $54 million approx Council Employees: 456 * Source: Bureau of Meteorology ** Source: Queensland Regional Profiles – Roma Regional council


OUR REGIONAL ACHIEVERS

2009 Australia Day Awards Winners Regional Citizen of the Year: Rex Smith (Yuleba) Mitchell area: Citizen of the Year Barbara Brennan Young Citizen of the Year Ken Horvath Community Event of the Year Mitchell Enviro Bag Launch Cultural Award „Dust‟ the musical – written and directed by

Leeton Shepherd Achievement Award Molly and Lucy McGilvray Injune area: Citizen of the Year Greg Caletti Community Event of the Year „Call of the Ranges‟ – Injune District

Tourism Association Cultural Award Naturally Resourceful Women Injune Achievement Award Graham Girle and Wally Peart Appreciation Award Joyce Ward Sports Award Injune Cricket Club Junior Sports Award Canberra Kids – Tylah Bonisch, Robert

Taylor, Arthaybia Taylor Surat area: Citizen of the Year Alan (Fred) White Community Event of the Year Pink Ribbon Pamper & Putt Day Cultural Award Jessica Purnell Achievement Award Surat Fishing & Restocking Club Sports Award David Ferguson Junior Sports Award Mack Mason Yuleba area: Citizen of the Year Rex Smith Achievement Award Viv Taylor Appreciation Award Brett & Annette Gallagher Junior Sports Award Harry Wathen Roma area: Citizen of the Year Jean O‟Neill Community Event of the Year Relay for Life – Cancer Council Qld Cultural Award Santos Food & Fire Fest – Roma Regional

Council, Roma Office Achievement Award The Cancer Council Qld Appreciation Award Jock Douglas Sports Award Roma Pony Club Junior Sports Award Peter David Green


OUR VISION, MISSION STATEMENT AND VALUES

OUR VISION: Our Vision is what we want the Maranoa Regional area to be in the future and sets the primary focus for the development of our Mission Statement and subsequent strategic direction. Our Vision is to be a progressive and resourceful region which embraces supports and fosters cohesion in our diverse communities whilst maintaining a relaxed and safe rural lifestyle for our residents. OUR MISSION STATEMENT: Our Mission Statement is how we intend to achieve our Vision Statement. Our Mission is to provide responsible regional leadership whilst partnering with our communities and stakeholders in a decentralised environment that encourages sustainability and equity and enriches the opportunities and lifestyles of our residents. OUR VALUES: Our values are our collective beliefs that form the basis on which we make our decisions and undertake our activities. Our values drive and influence our thinking and how we go about our day to day operations and provide guidance for our behaviour and goals. Our Values are..... Honesty & Integrity We value the importance of honesty in all of our actions, processes and decision making and acknowledge that honesty is the basis for building trust and respect between Council, our employees and our community. Accountability We not only need to be accountable to meet our legal responsibility, but also to demonstrate to our constituents that we undertake all our activities in a manner which is both ethical and reflective of our stewardship responsibilities and in the interests of good governance. Care and Respect At all times we will value and interact with all our stakeholders in a respectful and caring manner. Excellence We strive for the value of excellence knowing that we can always improve with whatever we undertake. Professionalism We value and acknowledge the need for Council to be professional and to be recognised as such. Not only will we strive to undertake all our responsibilities as elected members in a professional manner but we will also support, train and encourage our employees to undertake their duties in the pursuit of professionalism.


Consistency In the interests of fairness and equity, we must be consistent in our operational and decision making processes. Council will endeavour to enhance consistency through the adoption and implementation of appropriate governance processes and policies. Stewardship As the elected members of our Council we are its custodians and as such value the stewardship and responsibility that our positions hold.


MAYOR‟S REPORT It is a great privilege to introduce the inaugural annual report of the Maranoa Regional Council with a short message, my first from this position. This report is unique and unusual in a number of ways. It represents the summary of the first year of operations for this young Council, which was created by the amalgamation of our five constituent local governments. Roma Town Council along with the Warroo, Bungil, Bendemere and Booringa Shires and the Roma Bungil Showgrounds and Saleyards Board, ceased operating on 14 March 2008 and handed over to the new Council the following day. For that reason this report covers a financial year period of fifteen months and not the customary twelve months and anyone scrutinising aspects of this report should keep this in mind. The March 2008 elections saw a large field of candidates contesting the eight councillor positions and the mayoralty. The public backlash against the government‟s reform agenda was the major influence on the election. The elections were conducted without the assistance of electoral divisions, which I personally believe resulted in some former Council areas not getting their own local representatives which are a highly desirable asset in the first term of a large new Council. However two of our constituent Councils had disagreed with the suggestion of divisions prompting the government to decree that the undivided arrangement would remain. I am pleased the interest in the amalgamation triggered strong candidates and ultimately a strong and experienced Council to take on its job. Of course, Council has only been officially known by the Maranoa name for the last few days of the financial year. The government initially named the local government area after its major town (Roma) as happened in most of the newly amalgamated Councils. We were told the name could be changed prior to the changeover but only if all the constituent Councils agreed to the change. Again, one Council did not agree and the name Roma Regional Council was mandated. The original title was finally overturned by the government after a very frustrating process that provided an unnecessary distraction for all of us throughout the year. The first major task of the new Council was to advertise for and recruit a Chief Executive Officer. By way of background, all but one of our previous CEO‟s had terminated their employment with us in order to ensure their entitlements and rights were protected throughout the transition period. We were very fortunate to quickly attract a capable and experienced CEO in Stuart Randle. Stuart wasted little time in determining his preferred corporate structure and filling the senior executive positions, all from our existing workforce. I again congratulate the senior staff on their appointments and for their professional approach to a difficult task, both collectively and individually. I should also make special mention of Leon Love and Rex Smith who performed the roles of interim CEO and interim chair in the lead up to the amalgamation. Leon did a marvellous job in writing the plan to ensure the


transition would be a seamless one for the benefit of our staff and clients alike. I certainly think that was achieved and we should all be very grateful for that work prior to the formation of the Council. Mr Dan Philips also merits a mention for making a comeback to become our first ever CEO, albeit in an „acting‟ capacity and helping us out of a difficult spot for the first few months of this Council. Thank you all. To briefly describe the dynamics of the new area, the Maranoa now covers an area of over 58,000 square kilometres, making us the twelfth largest in area of all Queensland Councils and home to more than 13,000 people. We can boast the seventh largest road network of any Council in Australia and it is no surprise that all six of those listed with larger road networks are also amalgamated Queensland Councils. Council decided very early in the term to commit the year to advancing our planning and adapting to the new system. As a result the capital spend is largely restricted to those items already identified in constituent Councils budgets. One of the big wins of the year has come from Council‟s determination to increase the road maintenance budget to provide better and quicker solutions to our problems as they emerge and to pre-empt problems before they emerge. I am certain that the road maintenance allocation described in this report has been noticed and appreciated by most of our people, regardless of where they live. The work on equalising our rating regimes across the region was always going to be a controversial and difficult issue regardless of the principles of equity and fairness underpinning it. Council has a three year strategy to equalise the rural rates which differ massively and are the major equalisation issue. The first of those adjustments was made in the budget and the next two years will see similar adjustments before a truly equitable rating system can be achieved. The Surat Basin resource sector continues to be the main influence on the development of our community. The massive Santos and Origin LNG projects have presented a number of challenges both to Council and our community but it needs to be said that the associated development has sustained our economy though the global recession. In closing I need to extend my gratitude to all my councillors for their commitment to progressing the interests of Council and to Stuart Randle and his staff for their leadership through a difficult period of significant change. The complexities of integrating five Council hierarchies and systems into one workable cohesive unit represents a big change and that change is far from complete. I should also thank all those people who have tolerated the difficulties of the year. I would especially like to thank all the previous Mayors and Councillors who have generally been very understanding of our situation and have generally preferred to help and advise us when at times it would have been much easier to criticise. Robert Loughnan - Mayor


CHIEF EXECUTIVE OFFICERS COMMENT

This is the first annual report for the Maranoa Regional Council and as such is unique in its nature. While all of the annual reports that follow will reflect on achievements and improvements to the way we serve our customers, this report is more so about the establishment of a new organisation. The formation of the Maranoa Regional Council brought about dramatic change to the way we interact with our community and the way that the organisation functions internally. Our individual communities were accustomed to dealing with small local governments that were characterised by a high degree of personal representation and our employees were generally familiar with single site offices and small team environments where communication processes and chain of command were well understood. The new organisation is large with more than 450 full time positions and a substantially reduced level of representation through elected members. A conscious decision to sustain employment in the centres outside Roma resulted in the establishment of core administration functions in the smaller towns. This structural model is perhaps unique in Local Government in Queensland and undoubtedly introduces challenges that would not apply to a fully centralised mode of operation. These challenges in the areas of communication and decision making can and will be overcome through a positive approach and commitment to the provision of quality customer service both internally and to our community. While it is clear that we still have work to do, the initial bedding down of the organisational structure was achieved with little fuss and without significant impacts on customer service. This was the result of dedication and commitment from a committed workforce who obviously understand the relationship between Council and the community. The change process has enabled us to identify areas of weakness and address these through the allocation of specialist resources in a way that would not have been possible in the smaller component organisations. Important areas of improvement have included; allocation of resources for governance and risk management, dedicated property management capacity, streamlined planning and regulatory processes, efficiency through bulking up of plant fleet, establishing a critical mass of technical and professional officers and regionalising of community service activities. Our challenge as we move forward will be to continue to improve our community engagement processes to ensure that decisions reflect the needs and expectations of the community. thank the staff for their efforts in the past year and share their enthusiasm as we continue to build a professional organisation in 2009/10. Stuart Randle Chief Executive Officer


OUR STRATEGIC PLANNING PROCESS

Strategic Planning is a key tool in allowing Council and the community to develop what they want to achieve and what can be reasonably achieved and Maranoa Regional Council has firmly embraced this intent of the Local Government Act 1993. The corporate planning process provides Council with the vehicle to adopt strategies and take decisions to shape and secure the future of the region. The Corporate Plan is the most strategic document and is the umbrella from which all other plans, policies and programs flow. Councillors, Council officers and community members play a significant role in influencing the direction and process of corporate planning. Essential in the strategic planning process is determining the community needs. An assessment of these needs is part of the corporate planning process and provides valuable information on community problems and the level of community services required. Maranoa Regional Council has a forward thinking perspective and as part of the strategic planning process consultation is undertaken with the community. Council recognises that dialogue with the community is important so that Council‟s direction is closely aligned to the aspirations and needs of the community. The Corporate Plan sets out the broad strategies and vision for all aspects of Council‟s operations for the period. Council‟s inaugural Corporate Plan was formally adopted at Council‟s General Meeting held on 22 July 2009 and will operate for a period of four (4) years commencing 1 July 2009 and expiring 30 June 2013. The duration of this Corporate Plan will complement the next local government elections scheduled for 2012 and will allow the newly elected Council to develop the next Corporate Plan being effective 1 July 2013. Council‟s Corporate Plan is the overarching strategic blueprint and is linked to operational plans, budgets, policies and plans to ensure the ongoing development of the Maranoa region and the provision of quality services and ongoing support. Council‟s strategic planning process ensures that: - Goals and objectives are aligned with community and Council needs; A culture of continuous improvement, collective responsibility and results orientation is embraced; An accountability framework exists to monitor and report to the community on progress in achieving the goals and objectives of the Corporate Plan; Clear linkages exist from the Corporate Plan to all other plans, budgets, policies and day-to-day operations; Roles and responsibilities are clearer and understood; There is a team striving to achieve the vision for long term benefit of the Maranoa region; Staff can develop and grow in a learning environment where morale is enhanced; Council is committed to and works towards achieving the outcomes identified.


OUR MAYOR AND ELECTED MEMBERS

Maranoa Regional Council has one Mayor and eight Councillors who were elected for a four-year term, which concludes in 2012. Cr Robert Loughnan – (Mayor) Portfolio: External Relations Key issues include: Ministers; Government Departments; Local Government Association of Queensland; Agforce; Australian Petroleum Production & Exploration Association; Action Groups; Chamber of Commerce; Media; Community Engagement; Significant Stakeholders. Professional & Community Profile Robert has extensive experience with local government serving for 14 years as a Councillor in the local region. For the past 8 years, Robert was the Mayor of the former Bungil Shire Council. He is the first Mayor of the newly amalgamated Maranoa Regional Council. Robert is involved in state and local organisations including: Local Government Association of Queensland; Local Disaster Management Group; Airport Advisory Board; Gladstone LNG Project – Santos; Roma Rugby Union Club - Life Member. Cr Tom Hartley – Portfolio: Asset Management Key issues include: Best Practice Study; Culture; Training. Professional & Community Profile Tom has a strong background in local government having served 14 years as a Councillor of the former Booringa Shire Council. For the last 4 years of his

2008/09 OBLIGATIONS/STATISTICS

No. of Council and/or Committee

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Total Remuneration $90,611.60

Meeting Fees $ 7,750.00

Council Superannuation Contribution $10,873.26



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Council Superannuation Contribution $ Nil

Cr Tom Hartley –

Deputy Mayor


term with the former shire, Tom served as the Deputy Mayor. Tom is the Deputy Mayor of the new Maranoa Regional Council.

Tom is involved in state and local organisations including: Showgrounds & Saleyards Advisory Board; Tooloombilla Rodeo & Campdraft; Maranoa Race Club – President; Work Committee – Council Representative.

Cr Jill Baker

Portfolio: Community Wellbeing (People) Key issues include: Health and Welfare Programs and Participation; Queensland Health; Equity (cultural, gender and accessibility). Professional & Community Profile Jill has an extensive and varied career profile which has in turn supported her service to the community as an elected member of Council. Jill first served on the Whitsunday Shire Council in 1991 before commencing duties as Deputy Mayor with the Roma Town Council from 1997 – 2000. Jill was also elected to the Bungil Shire Council from 2000 – 2004, and most recently the Maranoa Regional Council. In recognition of her commitment to Local Government in Outback Queensland Jill received the Centenary Medal in 2001. Professionally Jill has worked within the medical industry, having trained as a General and Midwifery Nurse. She also undertook secretarial studies, utilising these skills within private enterprise and as an owner of a small business. Jill is currently a Justice of the Peace and Civil Marriage Celebrant. Jill is a fervent supporter of her local community and is involved as a member of the following organisations: Health Community Council (South West); Rural Financial Counselling Service (South West); Zonta Club of Roma; Family support member of Queensland Rural Medical Family Network (part of Health Workforce Qld); Toowoomba & Golden West Regional Tourism Association Board; Roma Tourist Association; Roma on Bungil Gallery.



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Council Superannuation Contribution $ 5,013.10


Cr Jason Bartels

Portfolio: Community Lifestyle (Places) Key issues include: Planning Scheme; Range of Services; Service Levels. Professional & Community Profile Whilst this is Jason‟s first term as an elected Councillor for local government, he has maintained a long standing relationship with the former Roma Town Council, having been employed as a member of Council‟s works team for a period of 16 years. This experience provided Jason the platform to launch his own plumbing business in 2003. This business was sold in April 2009 to allow more time for Council and to pursue an interest in the real estate industry. Jason is an active member of the local community and is involved in the following organisations: Local Disaster Management Group; Airport Advisory Committee; Roma Rural Student Hostel Inc.; Apex Club of Roma; Junior Rugby League; PCAP Music Program.

Cr Jan Chambers Portfolio: Organisational Performance Key issues include: Benchmarking; Best Practice Study; Internal and External Measurement; Reporting. Professional & Community Profile Jan has a solid background in local government as a former employee of Council from 1982 – 1986 with the Booringa Shire Council before being elected to the Booringa Shire Council from 2004 – 2008 and most recently the Maranoa Regional Council.



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Jan is passionate about her local community and has demonstrated this commitment through representation and participation in multiple community organisations over an extended period of time. Today Jan continues this commitment and is currently a member of the following groups: Maranoa Retirement Village Committee; Regional Arts Development Committee; The Maranoa Diggers Race Club; Mungallala Progress Association; Booringa Heritage Group; Property Rights; Mungallala Aerial Baiting.

Cr Joy Denton Portfolio: Tourism, Regional Development & Industry Key issues include: Major Projects; Stakeholder Relationships; Economic Development, Community Development and Tourism memberships. Professional & Community Profile Prior to being elected to the Maranoa Regional Council, Joy was a Councillor with the former Bungil Shire Council for 8 consecutive years. During her time with the Bungil Shire Council Joy held the portfolios of Tourism, Aged Care and Youth. Her professional career has extended across a variety of fields including retail, fuel distribution and the logging industry. Joy has also undertaken studies to become a qualified Justice of the Peace. Joy is a thoroughly devoted community member, giving her time, assistance and support to a wide range of community organisations across the region. These include: Great Inland Way Board; Injune & District Tourism Association; The Injune Visitor Information Centre; Injune Hospital Auxiliary; Maranoa Health Enhancement Program; Injune Ambulance Service; Mt Hutton Retirement Village; Advance Injune; Injune Youth Group; Health Advisory Group; Airport Advisory Committee, Health Community Council (Qld Health Appointment); Rural Financial Counselling Service.



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Cr Ree Price Portfolio: Disaster and Risk Management Key issues include: Best Practice Study; Disaster Management; Risk Planning; Workplace Health and Safety; Audit; Culture; Training. Professional & Community Profile Ree worked in administrative services at the Bendemere Shire mobile respite service before establishing her own business, which she directed for six successful years. Ree continues to manage the family property jointly with her husband. Ree has previously served as a Councillor for the former Bendemere Shire Council and continues to serve the region as a Councillor for the new Maranoa Regional Council. Ree is an avid supporter of local community groups and is personally involved with several organisations including: Local Disaster Management Group; Wallumbilla A & P Association; Wallumbilla Heritage Association; Wallumbilla Campdraft Association; Wallumbilla State School P & C Association; Calico Cottage Craft Club; Wallumbilla SES.

Cr Scott Wason

Portfolio: Innovation and Learning Key issues include: Best Practice Study; Research and Development; Use of Technology; Business Planning; Skills, Training and Education Systems and Institutions. Professional & Community Profile Scott has longstanding involvement in the grazing industry within the region and early in his career undertook agricultural studies in Longreach to further develop his practical and theoretical knowledge of agricultural practices. His studies provided a solid platform from which he has expanded his lifelong experiences in the grazing



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industry. Scott was a Councillor for the former Bungil Shire Council and is pleased that he can continue to serve the region as Councillor for the new Maranoa Regional Council. Scott is involved in state and local organisations including: Showgrounds & Saleyards Advisory Board; Roma Rural Student Hostel Inc.

Cr Jeff Watson Portfolio: Environment & Climate Change Key issues include: Catchment Management; Weeds; Energy Efficiency; Recycling; Carbon Footprint; Water Use. Professional & Community Profile Jeff is professionally qualified with a Business Degree majoring in Local Government and Accounting. Building upon his studies, Jeff has an extensive career in local government both as a Councillor and as Chief Executive Officer for the former Booringa Shire. His career totals 32 years in duration, including 16 years as CEO. Of his many achievements as a CEO the most notable include the elimination of shire debt, the formulation of several community organisations and facilities and unchanging rate tariffs from 1992 through to 2004. Demonstrating Jeff‟s active involvement in the community, Jeff is associated with several local organisations including: Maranoa Retirement Village Committee; Voice of Warroo; Mitchell RSL & Combined Sports Club; Booringa Action Group.



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CORPORATE GOVERNANCE Corporate Governance involves the control and management of an organisation to achieve its objectives, it encompasses decision making and implementation, optimisation of performance and how the organisation is directed, reviewed and held to account. Corporate governance is the fabric that holds an organisation together in pursuit of its objectives. The aim of corporate governance is to ensure the highest level of governance and community leadership. Good governance underpins the Australian democratic system of which local governments are the first level and focuses around the issues of accountability, transparency, fairness, stewardship, responsibility, mandate, consultation and balance. Put simply it is about ensuring the organisation is run properly, goals are achieved and public monies are managed with high standards of propriety and probity. Corporate governance is a framework that enhances planning and reporting practices, assists leadership and management and drives improved performance moving beyond compliance to focus on meeting strategic objectives and operational goals. Council operations are governed through three themes. Firstly, elected representatives of the community are responsible for developing the vision and policy direction of Council. Secondly, participative democracy is promoted by encouraging an active and engaging community and thirdly, administrative arrangements, structures and processes that facilitate the implementation of Council‟s decision making. Role of Councillors The Local Government Act 1993 establishes the framework for Council‟s operations. Local Government has the jurisdiction to make laws for, and otherwise ensure, the good rule and government of its territorial unit. Under the Act Councillors have a responsibility for representing the overall public interest of the area. They also participate in deciding the facilities, services and enterprises that are appropriate for an area; formulate, adopt and review corporate and operational plans and the policies and goals of Council as well as participating in the decision making process for the achievement of goals and implementation of policies. In the office of Mayor, additional responsibility is given for presiding at Council meetings and the orderly conduct of such meetings, ensuring local government decisions are implemented, and representing the local government at civic or ceremonial functions. Role of Chief Executive Officer Under the Local Government Act 1993 the Chief Executive Officer is given responsibility for the day to day management of the local government‟s affairs and for implementing the local government‟s policies and decisions.


Corporate Planning Corporate planning is an ongoing process. Council is required to adopt a Corporate Plan. This document establishes the guiding framework and identifies the goals, objectives and strategies to be pursued by Council to meet the needs and aspirations of the community. Considerable effort was put into establishing the 2009 – 2013 Corporate Plan. This key document is a flexible document and may be revised at any time during the life of the plan to ensure plans are relevant and to accommodate any significant changes in direction. To execute the Corporate Plan, operational plans are created each year. These plans specify key performance indicators to measure successful completion of objectives. The activities identified in the Operational Plan provide the framework for the preparation of Council‟s Annual Budget. Directors are responsible for the production of portfolio budgets derived from operational activities. These are collated into the whole of Council budget for consideration. The Executive Management Team is responsible for reviewing all budgets, the services to be provided to the community and the impact of the budgets upon Council‟s financial position. Performance Monitoring and Reporting Internal An internal framework has been established for internal reporting and accountability. Reports are provided to Council on a fortnightly basis to ensure cost efficient and effective services are being provided to the community. These reports include progress reports on the implementation of Council‟s Corporate and Operational Plans and financial reporting of budget performance. External The primary tool for external accountability is the Annual Report. An annual report is prepared annually to show the community and interested users how successful Council has been in achieving the strategic goals and objectives outlined in the Corporate Plan. The report contains detailed financial and non-financial information about Council‟s activities and performance. Performance Management A Staff Performance Review and Development Program has been developed and implemented. This system is designed to ensure that an officer‟s operational objectives are linked to the strategic and program objectives of Council. Not only does the system link performance of officers to the strategic and operational direction and initiatives of Council, but also encourages effective on the job performance, assists work areas to achieve operational goals, enables regular, detailed and objective feedback on work performance and ensures continued development of officers through the identification of


training, education and career development needs. The Staff Performance and Review and Development Program Policy encourages the effective delivery of services by a competent and well managed workforce. Ethical Framework – Code of Conduct A Councillor Code of Conduct and an Employee Code of Conduct have been adopted by Council. These codes provide a framework for behaviour, actions and decisions, and promotes five ethical principles (identified in the Public Sectors Act 1994): respect for persons, respect for the law and system of government, integrity, diligence, and economy and efficiency. The code applies to all employees, consultants and sub-contractors. Continuous Improvement Council has a strong commitment to the continuous improvement of financial and management practices and administrative processes through the implementation of best practices. Operations are subject to ongoing review and opportunities are provided to staff to raise their awareness and knowledge of trends through appropriate mechanism. Risk Management Risk management establishes a process for identifying, analysing and mitigating risks that could prevent us from effectively achieving our business objectives, priorities and outcomes. Effective risk management has gained prominence in recent years and is recognised as a key tool in good governance. Risk management is incorporated into day-to-day operations. It is important for staff to be trained in the principles of risk management to analyse potential risk and to minimise costs. Council is committed to ensuring that risk management structures and strategies are embedded into the fabric of management activities so that we can improve our ability to apply sound business risk management. Quality Assurance System Quality assurance can be defined as the planned and systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirements for quality. As a requirement to undertake Main Roads works, Council must have a quality plan system in place to a „second party accreditation‟ standard. Audit Committee In the 2008/09 Revenue Statement Council adopted the policy that the implementation of an Audit Committee would not be required by Council however, this would be reviewed in the current financial year.


Internal Audit In the 2008/09 Revenue Statement Council adopted the policy that the position of Internal Auditor would not be required by Council however, this would be reviewed in the current financial year. External Audit Each year Council‟s operations including the financial statements are subject to an external review by the Auditor-General of Queensland. Regional Consultation The Mayor, Councillors and senior management participate in external organisations and regional forums to promote and foster cooperation. Community Engagement Policy Council is committed to the development of a culture within the organisation to ensure appropriate community participation in its decision making processes. During 2008/09 Council implemented a Community Engagement Policy. Community engagement is defined as a planned process of communication, participation and relationship building by involving the community in decision making processes to address issues affecting their quality of life and well-being. Community engagement is an important principle in the planning, policy development and decision making process of Local Government. Council believes that quality community engagement is essential to the foundation of good governance and to enhance the relationship between the community and Council. Informing Our Community During 2008/09 Council has progressively developed its new website www.maranoa.qld.gov.au with the website being updated on a continual basis so that the most current up-to-date information is available for the community to access.

Council also informs the community of its day-to-day activities by issuing media releases, publication of brochures and the distribution of a monthly Council newsletter. Members of the community are welcome to attend Council meetings.

http://www.maranoa.qld.gov.au/


OUR PEOPLE

Ultimately, we are enabling our people to maximise their personal and professional contribution to the Council and to the Community.

The over-arching goal of Human Resources (HR) is to ensure Maranoa Regional Council‟s (Council) employees are fully engaged and aligned behind the vision and strategy as outlined in the Corporate Plan. In 2008–2009, HR strove to achieve this by implementing better policies, processes and systems, through improving communication across the Council, by developing stronger and more consistent leadership, and by providing a more stimulating and enjoyable work environment. This will continue to be our focus in the coming year.


AMALGAMATION Maranoa Regional Council was formed from Council amalgamations in 2008 and comprises of Roma Town, Bungil Shire, Bendemere Shire, Warroo Shire and Booringa Shire Councils, all of which had a range of different various organisational structures. Council appointed a Chief Executive Officer in late June 2008 and upon appointment by the end of July Council had agreed with a Decentralised Structure. A Decentralised Structure assists in ensuring offices in the smaller satellite towns remain active customer service points. To meet the challenges of a Decentralised Structure it was necessary to establish an Extensive Front Line Management team in addition to Senior Managers. Commencing in the middle of November the recruitment process was completed in line with the Local Government Workforce Transition Code of Practice 2007 resulting in a number of employees being given the opportunity to take on the Front Line Management roles. WORKPLACE HEALTH & SAFETY (WH&S) HR oversees Maranoa Regional Council's compliance with the Workplace Health & Safety Act 1995, Workplace Health & Safety Regulations 2008, Workers‟ Compensation and Rehabilitation Act 2003, Workers‟ Compensation and Rehabilitation Regulation 2003, relevant Australian Standards and Codes of Practice and provides regular reports to the Executive Team, WH&S Committee and Council. Council‟s WH&S is managed through an extensive WH&S policy framework based on the Safe Plan 2 Safety Management System which has been developed in accordance with statutory requirements, particularly the Workplace Health & Safety Act 1995, and by assigning specific responsibilities to senior management, employees, contractors and visitors. To assist in creating awareness of safety culture all Council employees are required to attend and actively participate in Take 5 training sessions outlining safety responsibilities. POLICIES Maranoa Regional Council has over the previous 12 months developed and implemented a number of employee policies to guide the Council in its work. Council incorporates whole-of-council policy and legislative initiatives in its human resource management practices. CODE OF CONDUCT Maranoa Regional Council employees are guided by an Employee Code of Conduct, which outlines the ethical principles, values and behaviours expected of our employees. The Employee Code of Conduct articulates the way Council employees should interact with each other, Council‟s customers and Councillors. All employees were trained in the policy and new employees are trained in and given Council's code of conduct on appointment at Induction Training.


EMPLOYEE ENGAGEMENT During the year HR undertook a survey of all Council employees through the Staff Survey 2009. This took the form of a comprehensive survey covering the job the employee was doing, the employee‟s work area and how Council as an organisation is managed from a corporate and departmental level. From analysis of the results of the survey the Executive Team and the Senior Management Team have commenced addressing those top-of-mind issues which directly contribute to employee engagement. WORKFORCE COMPOSITION As at the end of June 2009 Maranoa Regional Council directly employed 456 people and indirectly employed a further 14 trainees and apprentices. Of those employed directly and indirectly by Council 59.1% were male and 40.9% female. As Figure 1 shows Council employs 352 people on a full-time basis, this represents 74.9% of Council‟s total workforce. Employees engaged on a part-time basis account for 5.1% (24) of Council‟s workforce with 20.0% (74) of Council‟s workforce engaged on a casual basis. Maranoa Regional Council recognises the benefits of workplace diversity and will over the coming year demonstrate a continued commitment to furthering these principles with the development and implementation of an Equal Employment Opportunity Management Plan.

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Full Time Part Time Casual

MALE 245 19 14

FEMALE 107 5 80

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Number, Gender & Employment Status of People Employed by CouncilFigure 1

INDUSTRIAL RELATIONS Maranoa Regional Council‟s employees are employed under a number of various Awards with the majority of staff employed under the Queensland Local Government Officers‟ Award and the Local Government Employees‟ Award. During the year Council engaged in negotiations for a new Enterprise Bargaining Agreement (EBA) to replace the various agreements in place prior to amalgamation; it is expected that new EBAs will be voted on by Council employees during August/September 2009. TRAINING AND DEVELOPMENT Due to the dynamic environment and variety of activities undertaken by the Council, training is considered on an ongoing basis throughout the year. Development of employees' skills is a high priority and Council attempts to make training not only relevant to the needs of the organisation but of personal benefit to the employee. Organisational and employee development is supported through the provision of training and staff development days. During 2008/09, employees were involved in a range of skill renewal, development and knowledge-based activities that included: CPR Refresher; First Aid Training; Email Etiquette; Working at Heights; Trenching & Excavating; Confined Space; Elevated Work Platform; and Fire Extinguisher Training. In response to feedback on leadership from the Staff Survey 2009, Council has also embarked on a Leadership Development Program. Training is currently being identified during staff performance reviews. Council will during the next 12 months undertake a Training Needs Analysis and Skills Audit with the view of developing and implementing a Training & Development Plan.


KEY PORTFOLIOS

Portfolio Overview

Executive Services Executive Services is the nerve centre of Council‟s operations coordinating Council meetings and providing support to the Mayor and Councillors to allow them to effectively perform their duties. Other responsibilities are human resource management, industrial relations, payroll, workplace health safety, internal and external communications, media management, website development. Portfolio 1. Corporate Services The Corporate Services portfolio is responsible for implementing corporate governance, policy development and management, local laws, cultural heritage and native title, land property management and providing support in the areas of customer services, records management, information technology, accounts payable, accounts receivable, collection and levy of rates and financial services. Portfolio 2. Operations The Operations Portfolio is responsible for the planning and management of Council‟s key infrastructure and services including roads, water and sewerage. The Operations Portfolio manages the physical assets of Council in a way that maximises the utilisation of existing assists, provides for long term improvement of essential services delivery and encompasses sound asset management practice. Responsibilities includes water, sewerage, road construction and maintenance, private works, fleet management, parks and gardens, general operations, inventory, Bungil Quarry and Roma Saleyards. Portfolio 3. Planning and Environment The Planning and Environment Portfolio is responsible for ensuring Council meets its legislated and Council adopted responsibilities in regard to planning and environmental management. This portfolio includes dog control, stock routes, pest plant and animal control, food licensing, local laws enforcement, building and planning approvals and Council planning scheme. Portfolio 4. Community Services The Community Services portfolio strives to enhance community wellbeing and capacity by working in partnership with the community to achieve goals that maximise community welfare and lifestyle. This program area also encourages business growth and development within our region and actively supports the exploration of new initiatives and innovations with optimism. Through the establishment of positive industry and


business partnerships and shared visions and a proactive and forward thinking approach our community will continue to be positively shaped. Key responsibilities include the Maranoa Retirement Village, Neighbourhood Centre and associated programs, HACC services, youth, community development, economic development, arts and culture, museums, libraries, art galleries, community grants and tourism.


PORTFOLIO 1 CORPORATE SERVICES

2008/09 Achievements Corporate Governance

Development of the inaugural Maranoa Regional Corporate Plan for 2009-2013.

Introduction of systems to ensure compliance with the Cultural Heritage Act 2003 including training for all operational staff.

Planning and introduction of a Governance Management System within the organization.

Establishment of a facility review and maintenance system.

Formalising existing tenancy arrangements with users of Council facilities.

Finance Services

The merger of Council‟s accounting program from six databases to one.

Adoption of 2008/09 budget on 27 August 2008.

The revaluation and merger of Council‟s Assets.

The establishment of dedicated finance teams in different centres.

Consolidation of Council‟s banking arrangements to one operating bank account.

Adoption of polices including the Purchasing and Rate & Debt Recovery Policy.

Information Management

Implementation of the Maranoa Regional Council‟s Customer Service Call Centre across the region.

Migration of all information technology hardware, software and data onto the regional network.

Installation of Helpdesk software enabling the Information Technology division to monitor faults.

Recabling a large majority of the buildings within the region to the latest cabling standard.

Implementation and successful „roll-out‟ of an Electronic Document Records Management System – KnowledgeOne.

Archival of all the business records from the previous Councils.

Implementation of a functional based classification scheme for the management of Council‟s business records.


2008/09 Performance Highlights Compliance with the Cultural Heritage Act 2003 It was identified that Council had no formal systems in place to ensure employees undertaking works complied with the duty of care provisions of the Cultural Heritage Act 2003. Two staff members from the Governance Unit participated in training with Main Roads, which provided staff with the knowledge to undertake assessments prior to work commencing. Cultural Heritage training was also delivered to all employees by the Department of Natural Resources and Water Cultural Heritage Coordination Unit. Cultural Heritage Training is also now provided to all employees at induction. Formation of Dedicated Finance Teams

Under the new organisational structure for Maranoa Regional Council, dedicated finance teams were established at different centre‟s around the region. Surat - Rates team Yuleba - Debtors team Roma - Creditors team Mitchell - Finance team, also supported by staff in Surat and Roma The establishment of the dedicated finance teams has lead to specialised staff that are able to provide quality customer service both externally and internally to our customers. It has also resulted in more employees in the corporate services area for the Yuleba and Surat Offices than prior to amalgamation.

Adoption of Polices

The adoption of two major polices has also been a highlight for the Finance Division. The purpose of the Purchasing Policy is to:

Facilitate the procurement of goods and services for Council in the most timely and cost effective manner;

Ensure that all procurement activities are within Council‟s legal and statutory obligations; and

Ensure that all procurement activities are carried out in a professional manner and that all Council officers responsible for purchasing goods and services have a clear understanding of the procurement process as well as to their meaning and intent.

The purpose of the Rate & Debt Recovery Policy is to:

Ensure a fair, consistent and accountable approach to Council‟s debt management and collection decisions and practices; and

Assist in the efficient management of Council assets through the timely collection of outstanding monies.


Maranoa Regional Council‟s Customer Service

Upon the formation of Maranoa Regional Council it was decided that a Customer Service Centre would be established to handle all enquiries to Council. The Customer Service Centre receives and processes all the incoming calls to Council with the centre being manned by a staff of six who are located remotely of each other in the offices of Roma, Surat, Mitchell, Yuleba and Injune. Customers are able to contact the Customer Service Centre by dialing a 1300 number free of charge to seek information, make a payment or to speak to an officer of Council. The Customer Service Centre has been well received with staff handling on average about two hundred calls per day.

Implementation of an Electronic Document Records Management

System

A major achievement for the Information Service‟s Department was the successful implementation across the region of Knowledge One, the electronic document records management system that will be used in all areas of Council. This system will enable the Records Management department to manage all the business records of Council in accordance with legislation and the policies of Council and will ensure that our recordkeeping practices are totally compliant and meet industry best practice. Challenges for 2008/09

Promoting good governance practice within the organization.

Determining the location and condition of Council assets and providing an appropriate maintenance response.

Employees were required to use six financial databases to process data for eleven months of the fifteen month year, and showed great patience and dedication through this challenging time.

The merger of our accounting databases was a major accomplishment; it was also very challenging and required a great deal of staff resources.

Increasing the profile of records management within the organization.

Unreliability of our information technology network.

The lack of a fully compliant long term storage facility for Council‟s business records.

The ability to maintain a high level of customer service owing to a high turnover of Customer Service staff.


Future Initiatives

Formalising tenancy arrangements for all occupiers of Council facilities.

Adoption of Local Laws and Subordinate Local Laws.

The implementation of a new accounting system „Authority‟, will lift Council‟s financial operations to a new level. Some of the advantages expected to be gained by the implementation are:

o Increased productivity gains by providing an integrated common view of business data across all of Council;

o Increased integration of third party systems; o Real time data distributed by web based technology; o Simplified system administration.

Included with the implementation of Authority will be an Asset Infrastructure Management module, which will allow Council to keep accurate and detailed data on our assets and assist with our long-term financial plans.

To have in full operation a Customer Service database to log all enquiries that has the ability to be fully reported to internal and external clients of Council.

To secure or construct a suitable and fully compliant long term storage facility.

Undertake a Technical Architectural Blueprint to form a strategic path for Council‟s information technology network.

Develop and implement a Disaster Recovery Plan for the Information Technology Infrastructure.

To increase the profile and use of our Electronic Document Records Management System.


PORTFOLIO 2 OPERATIONS

2008/09 Achievements

Completion of Joint Arrangement Capital Upgrade of Cambridge Street Mitchell.

Construction completion and commissioning of a 3.2ML raw water storage reservoir in Bowen Street, Roma.

Completion, connection and commissioning of Bore No. 18 into the Roma Town water supply network.

Ongoing development of the Roma Quarry.

Demolition and replacement of two (2) timber bridges on the Dunkeld Road. The bridges were replaced with 2.4 metre reinforced concrete culverts.

Completion, connection and commissioning of Bore No. 2 into the Amby Town water supply network.

Upgrading a 11.5 kilometer section of the Teelba Road to a five (5) metre wide bitumen carriageway.

Upgrading a 6.8 kilometer section of the Injune - Taroom Road to a six (6) meter wide bitumen carriageway.

Completion of the Yuleba Town and Wallumbilla Town Street Reseal Program.

Completion of the Injune Second Avenue Stormwater Capital Upgrade Project.

Purchase of a new Street Sweeper.

Purchase of a second-hand Landfill Compactor.

Purchase of three (3) new motor graders.

Purchase of a new equal wheeled backhoe.

Purchase of two (2) second-hand wheel loaders.

Roma Saleyards

Record numbers of Cattle Sold for both the calendar year 2008 and the

2008/09 financial year.

Opening of the new Agent Offices.

Construction of 60 new selling pens at the Roma Saleyards Complex.

Replacement of old weighbridge.

Design and construction of new holding yards.

Completion of new body truck and trailer dump unloading ramp.

Maintaining a very high level of maintenance and general appearance of

the sale yards.


2008/09 Performance Highlights for Operations Department Roma Saleyards Roma Saleyards maintained its position as the top store cattle selling centre in Australia. Ongoing Development of the Roma Quarry Over the last twelve months Council has provided ongoing support to the continued expansion and development of the Roma Quarry. During the 2008/09 financial year the quarry has experienced a 30% increase in production from the previous year. This increase equates to a total per annum produced quantity of approximately 170,000 tonne. Another major milestone for the year was the significant work completed to ensure the site continued to stay up-to-date with the latest mining industry standards and safety requirements. Addressing these issues saw the formation of a site specific workplace health and safety committee, construction of earth bunding walls, installation of site signage, construction of a visitor car park and the installation and modification of a site office. Like 2008/09, the 2009/10 financial year is expected to be an exciting time for the Roma Quarry. Several initiatives that have commenced in 2008/09 which are expected to be finalized in 2009/10 are as follows:

In an effort to establish a long term approach for the site, Council has engaged Coffey Mining to conduct a thorough resource evaluation of the site to determine the overall material reserve remaining at the Quarry.

In order to reduce the overall operating expenses and reliance on hired machinery, Council are currently investigating the option of purchasing a new multi crushing and screen train configuration.

Roma Bore No. 18 & New Raw Water Reservoir A new 3.2ML Raw Water Reservoir, bore and associated delivery main was constructed to address increased water requirements within the town of Roma. This work provided an increase in available water and some increase in pressure in areas of Roma. The work also assisted in emergency storage for the town. Internal Design and Survey Capacity Council has committed and placed a strong focus on being able to conduct a large percentage of design and survey works “in-house”. Over the last twelve months, this capability has developed to a point where it can be utilised by all facets of Council‟s operations, especially those associated with road and water reticulation works.


The department has the capacity to develop detailed engineering plans with the ability to supplement these plans with on-site setout. The capacity to be able to undertake this work will reflect a large saving to Council with decreased dependency and utilisation of external engineering firms. Challenges during 2008/09

Operating as a unit under separate costing systems.

Attracting suitable staff to specialist positions.

Two workforces (Roma Town & Roma Rural) operating from the one depot.

Developing communication lines with internal clients.

Responding appropriately and in a timely manner to ratepayer requests.

Maintaining and improving the Roma Saleyards to be the most efficient, user friendly and safe Saleyards in Australia.

Future Initiatives

Development of an Asset Management Strategy and improving Council‟s assets.

Maintaining balance between Council, Main Roads and privately sourced construction works to ensure the expectations of all parties are met.

Efficiency gains by operating as a whole Council workforce rather than separate, isolated work crews.

Developing a consistent level of service throughout the region, in particular road maintenance, water supply and garbage collection.

To have two sets of scales working in tandem to speed up the weighing of cattle at the Roma Saleyards.

Implementation of Third Party Saleyard User‟s Induction and Accreditation.


PORTFOLIO 3 PLANNING AND ENVIRONMENT

2008/09 Achievements for Planning and Environment Continued high level assessment of development applications. Wild dog control programs – two per annum across the region. House to house inspection program for dog registration. Inspection and registration of all food premises. Inspection and registration of all Environmentally Relevant Activities. Inspection and registration of all Flammable and Combustible Liquid

Premises. Completion of Integrated Environmental Management System. Complete Local Disaster Management Plan.

2008/09 Performance Highlights for Planning and Environment Building Applications

During the past year there has been a high level of development activity within the Maranoa region. Building applications processed during the 2008/2009 financial year totaled $14,751,243.20. The total number of building approvals issued for the same period was 209. 206 building record searches were carried out by staff for the 08/09 period. Graph compared to previous financial year for total approvals for the region (include private certifier in total)

Breakdown of types of approvals eg new dwellings, additions/alterations, garages, commercial, swimming pools.

175

180

185

190

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210

Financial Year 07 / 08 Financial Year 08/09

189

209

Building Approvals


Building Work Applications Processed

New Dwelling 49

Garages, Sheds, Carports 69

Additions / Alterations 31

Commercial 46

Swimming Pools 14

Total 209

Planning Applications

78 planning development applications were received during the 2008/2009 financial year. The number of development applications has steadily increased over the past four years, indicating a continued growth in development. 6 pertaining to industrial lots and 12 residential lots were created during the period. The breakdown of planning applications for 2008/2009 is as follows: Material Change of Use 37 Reconfiguration of a Lot 33 Operational works 6


Wild Dog Scalp Comparison In the event of Council amalgamation and the reduction of remuneration for wild dog scalp fees, it is worthy to note bonus payment numbers did not reduce as can be noted from the below graph. The figures pre amalgamation has remained steady up to end of June 2009. A change has occurred in this timeframe for the sex, with pup numbers reducing and female dog numbers increasing and males being static.

Environmental Health Animal Control 08/09 Dogs registered for the financial year of 2008/2009 – 1,834 One house to house inspection was carried out over the first three months at the commencement of 2009. This program was undertaken to provide residents with an opportunity to discuss legislative issues, and or to further glean what is expected when keeping an animal within the urban precincts of this region. The house to house program identified approximately 576 dogs not registered, however this issue was rectified and provides benchmark data for future annual animal registration. The annual „dogs day out‟ event held the first weekend of August in Roma provided an outing for mans best friend and their owner. Approximately 210 dogs registered for the seven event program, with the local Veterinary practices providing sponsorship and information for pet owners. This event is proving very popular for the whole family, as both adults and children may enter their pet into an event/s. It is also pleasing to note there were no disagreements between any animals on the day.

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Wild Dog Scalps


Challenges During 2008/09

Assessing development applications against five different planning schemes, depending on the development location.

Consolidating all building and planning records into one location.

Workloads associated with Development approvals and subsequent timeframes.

Working with numerous Local Laws adopted by the five Shires now amalgamated into Maranoa Regional Council.

Maintaining knowledge and understanding of legislative requirements for equitable implementation purposes within the communities.

Providing the community with legislative change information.

Reduction of water use within the Shire.

Completion of grant projects obtained by five shires.

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Euthanased Rehomed Released Total

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Other Impound Figures

Cattle

Horses


Future Initiatives for Planning and Environment

Preparation of a new single Planning Scheme.

Review of Local Laws.

Preparation of a new Pest Management Plan.

Preparation of a new Stock Route Management Plan to integrate with the new legislation requirements.

Implementation of Laboratory for water testing purposes – training of employees to carry out laboratory processes.

Upgraded vehicle wash down facilities – Roma, Injune and Mitchell.

Commence Environmental cadet program.


PORTFOLIO 4 COMMUNITY SERVICES

2008/09 Achievements

Hosting of Council „Community Meet & Greets‟ throughout the region;

Hosting of Australia Day Celebrations throughout the region;

Coordination of „Clean Up‟ Australia Day activities throughout the region;

Development of Maranoa Regional Destination Marketing Plan;

Implementation of activities to develop Regional Sport & Recreation Plan;

Implementation of activities to develop Maranoa Regional Economic Development Strategy;

Implementation of Community Grants and Assistance Policy including assessment and processing of 153 applications in the first round of the 2009 Community Grants and Assistance Program;

Coordination of the 2008 Santos Food & Fire Festival;

Coordination of Hospitality Plus Employment Program – Roma;

Completion of the McDowall Street Furniture Project – Roma;

Official launch of When in Roma website – community partnership activity with Roma Tourism;

Coordination of Mitchell Triathlon – Youth Week Activity;

Development and hosting of Youth Holiday Program throughout the region;

Development and coordination of Young Endeavour Scholarship Youth Leadership Program;

Region youth survey conducted and data analysed;

Establishment of Cultural Hubs throughout the region and regional uniformity of service provision;

Establishment of Regional Galleries and Arts Trail network;

Development and production of 2009 Maranoa Regional Events & Cultural Calendar;

Expansion of local customer service centre at Injune;

Management and enhancement of QGAP Services in Surat and Injune;

Hosting of regional family‟s for Visitor Information volunteers and staff.

2008/09 Performance Highlights Maranoa Retirement Village Accreditation In September 2008 the Aged Care Accreditation Agency undertook a scheduled site visit (audit) at the Maranoa Retirement Village. The team has assessed the quality of care provided by the home against the Accreditation Standards and the home complies with 44 of the 44 expected outcomes of the Accreditation Standards. The home also received both announced and unannounced visits throughout the rest of the year with the standards that were assessed at each of the visits being met. The Maranoa Retirement


Village has been partially refurbished with new kitchen, floor coverings, painting, pan sanitizer, mobility aids, linen and other various items to assist with resident care. Emergency Relief Program

Commencing in February 2009 the Emergency Relief Program commenced reviewing service delivery to improve services to individuals experiencing financial hardship in the smaller areas surrounding Roma. Staff consulted business owners in the smaller centres and pre-purchased vouchers from local businesses. In May and June of 2009 Emergency Relief staff visited the towns of Wallumbilla, Surat, Injune and Mitchell and provided services to a total of 159 families. Staff also liaised with other health service providers in these areas to ensure that individuals were aware of how to access Emergency Relief Services in the future.

Working Against Abuse Services (WAAS)

In January 2009 the Working Against Abuse Service was fully staffed and operational in the Council area and also the areas of Charleville, Cunnamulla, St George and Miles. The profile of the WAAS service has continued to grow with staff displaying effective and professional service delivery. The increase in the profile is reflected in the number of clients now effectively utilizing the service. The WAAS has also liaised closely with police and other providers in across the service region. In May 2009 the WAAS promoted a candlelight ceremony to remember those individuals who have lost their lives as victims of Domestic Violence. Mayor Robert Loughnan and Councilors Jill Baker and Joy Denton participated in the street walk and awareness campaign. Employability

The Employability Program has gone from strength to strength with its focus being training, placing and supporting people with a disability in the workforce. A new Business Plan and focus has enabled staff to achieve exceptional outcomes for their consumers. This is reflected in the record number of consumers receiving assistance over the last 12 month period. Santos Food & Fire Fest The Santos Food & Fire Fest made its debut in Roma on Saturday 6 September 2008 and was a huge success with the community response to the festival far exceeding expectations! Food, Fire & Fun, the catch phrase of the festival came alive with a dazzling display of fire art depicting the history of Roma‟s famous “Great Fire of 1908”


and the significance of the oil and gas industry in the region. The performance was created by LightnUp Inc who is renowned for the Lismore Lantern Parade, and children created magic with a meandering lantern parade. New Zealand band “Fiddlesticks” expressed a fusion of folk and world music which cemented the atmosphere for a night of fun while the food celebrated the cultural diversity in the Roma community with Roma‟s own Multicultural Community Chefs serving delicious cuisine from South Africa, Mozambique, Sri Lanka, Mongolia, Netherlands, Philippines, New Zealand and traditional Aussie tucker. Objectives for the festival were to celebrate and commemorate the 100 year anniversary of the Great Fire; to increase public awareness of the history of the oil and gas industry in Roma; to celebrate and embrace the cultural diversity of the Roma community; to encourage community participation in local events; and to increase tourism to the Roma region, and all of these were achieved successfully. 2009 Australia Day in Surat – A true blue Aussie event Despite the sweltering heat, Australia Day in Surat was a huge success, with more than 120 locals and visitors turning up to take part in the celebrations. The Surat Fishing and Restocking Club started the day‟s celebrations by holding a „Take A Kid Fishing Day‟, teaching youngsters the importance of sustainable fishing and keeping the waterways clean and healthy. Councillor Jeff Watson opened the ceremony by highlighting what it means to be an Australian, before introducing Australia Day Ambassador Alison Alexander, who gave an inspirational speech before presenting the awards with Councillor Watson. Alison shared her passion about being Australian by quoting „the heroes of our country don’t have to be sporting heroes, they can be ordinary people in our local communities‟. Regional Sport & Recreation Plan Funding Maranoa Regional Council were successful in receiving a grant for $54 000 from Department of Communities (Local Government Sport and Recreation) to assist with the research and development of a Regional Sport and Recreation Plan. The amalgamation of the five (5) Shire and Town Councils presented an ideal opportunity to develop a consolidated regional plan. ROSS Planning was awarded the contract to conduct community consultation, research and development of the plan. The Regional Sport and Recreation Plan will review all existing facilities, identify shortfalls, maintenance audit and deliver a recreational trails plan for utilisation by local residents and visitors to


the region. ROSS Planning conducted meetings with Council staff and elected members and conducted extensive community consultation via community forums in each of the region‟s centres. Input was also sought from all sporting organizations regarding ideas for the future development of sporting activities and clubs throughout the region. The Plan will provide Council with a strategic platform for the next ten (10) years to meet the high level of sporting and recreational needs within the region. Maranoa Regional Events & Cultural Calendars This calendar was a fresh and innovative venture undertaken by the Community Development team, intended to inform of regional community events across the spectrum with a focus on arts and cultural activities. More importantly this calendar successfully showcased the wealth of local talent in this region and highlighted the diverse range of arts, cultural and community practices and events undertaken in the region each year. Using a local designer with assistance from local artists and displaying examples of local art throughout, background information on art galleries, public art, and an events guide, this calendar proved very popular, receiving excellent feedback. The calendars were distributed at various outlets throughout the region as well as in selected points in Southeast Queensland. Cultural Hubs Concept The Maranoa Regional Council recognises the important role of libraries in the communities and the need for a local point of contact throughout the region. It was with these values in mind that the „Cultural Hub” concept was conceived. With eight existing libraries conveniently placed throughout the region, these Hubs will become a point of contact and a local face for all Arts & Cultural Services offered by the Maranoa Regional Council such as library services, Art Galleries, Museums/Heritage, RADF program, other arts and cultural projects, and, in some centres, QGAP agencies. A team of Cultural Services Officers will provide the community with current information, disseminate the latest news and opportunities, and interact with local groups and organisations to enrich the arts and cultural lifestyles and opportunities within the Maranoa Region. Our Cultural Hubs will be presented as

LIBRARY plus – Where the community & creativity meet

Where the information flows & the learning never ends! Books but so much more…


Regional Tourism Familiarisations As part of the Regional Tourism Development, a series of regional familiarisations have been developed for the volunteers and staff of all the information centres within the region. A number of outcomes were identified prior to the hosting of the familiarisations. Apart from the obvious benefit of the educational value gained, the familiarisations were a means of motivating and rewarding volunteers for the valuable work they do in the community. Another important aim was to encourage the volunteers to network between each other and each centre. There have been three regional familiarisations held, including trips to Mitchell and „Bonus Downs‟, the Big Rig and Night Show, and a trip to the Carnarvon Gorge. In all cases, these trips were very well attended with volunteers remarking how much they have both learnt and enjoyed the experience, thereby achieving the intended outcomes. Maranoa Regional Council‟s Young Endeavour Scholarship For the first time within the Maranoa Region, Maranoa Regional Council made available to youth between the ages of 16-23 residing within the region a Youth Leader Scholarship. The scholarship provided the successful nominee with a berth on the Young Endeavour, a 44 metre tall ship. The successful nominee was Rosina Versace who set sail aboard the Young Endeavour from Airlie Beach, along with twenty-three (23) fellow crew members, along the Queensland coastline to Townsville. The Young Endeavour allows youth to engage in all aspects of sailing a square rigger, from climbing the mast, setting the sails, navigating, keeping watch, taking to helm and helping in the galley, trained by professional Navy crew who are there to ensure the highest standards of safety. It is an opportunity for youth to gain valuable life, leadership and social skills. Challenges During 2008/2009

Maintaining and recruiting qualified staff to deliver specialized services across the region.

The provision of equitable levels of service across the region.

The provision of adequate office space for staff to deliver services, especially at the Neighbourhood Centre in Roma.

Improving efficiency within some areas to improve viability.

Coordinating and delivering equitable and standardized community development activities and services throughout the Maranoa Regional Council area, which spans 58,830 square kilometre and services a dispersed population base.


Fostering of a regional approach to community development service delivery whilst respecting and maintaining the unique characteristics and aspirations of each community within the region.

Managing the corporate cultural transition from a localized service delivery structure to a broader regional focus.

Development of strategies and plans which will set the long term direction of the Community Development Division and enhance regional investment opportunities, community livability and resident wellbeing.

Future Initiatives

Reviewing systems to streamline service delivery.

One contract to include all HACC services and all CACPS services to allow for some flexibility across the region.

Increase the communities‟ awareness of what services are available and how they can access them.

Continue to consult with the community on gaps in current service delivery and client needs.

Continued review of our business operations to improve productivity.

The possible implementation of the State Government‟s Rural Housing Service Centre program integrating existing housing programs managed by Council.

Possible relocation of Employability from the Neighbourhood Centre to commercial office space in Roma.

A consolidated contract for HACC and CACPS services to enhance flexibility of service.

Promotion of available services.

Community consultation to identify client needs and gaps in service delivery.

Development and implementation of Maranoa Regional Economic Development Strategy.

Development of a suite of marketing collateral and materials to encourage regional investment.

Development and implementation of Maranoa Regional Community Development Plan.

Coordination and assessment of 2009/2010 Community Grants and Assistance Program.

Coordination of the 2009 Roma Food & Fire Festival.

Coordination of the Q150 Steam Train & Film Festival regional celebrations.

Development and implementation of Regional Townscape Beautification Project.

Development and implementation of Maranoa Regional Sport and Recreation Plan.

Development and implementation of a sport and recreation fellowship program.

Hosting a series of alternative sport and recreation „trial‟ days throughout the region.

Development of a regional recreational trails network.


Development of the regional sporting wall of fame and associated protocols and guidelines.

Development of a suite of regional tourism marketing collateral and materials to increase visitation to the region.

Implementation of business plans to stimulate and encourage competitive and sustainable business units.

Redevelopment of Injune Caravan Park to increase number of sites and enhance guest services and facilities.

Implementation of a uniform regional visitor information data collection and analysis system.

Implementation of a regional visitor feedback evaluation system.

Development of Maranoa Galleries and arts train concept and marketing plan.

Development and distribution of 2010 Regional Arts & Events Calendar.

Enhancement of regional cultural hubs concept and standardization of library service delivery.

Amalgamation of library data bases throughout the region.

Development of effective youth communication systems e.g. youth webpage.

Hosting of regional youth holiday program.

Establishment of Regional Youth Council and youth advisory committees;

Construction of shade structure and sails for Mitchell Skate Park.

Development and implementation of a program of activities to profile Youth Week throughout the region.

Coordination and facilitation of Mitchell WORK Program.


STATUTORY INFORMATION SPECIAL RATES AND CHARGES Wild Dog Control Special Charge A special Wild Dog Control charge was levied on all lands within the categories 30, 31, 32, 33 & 34 for the purpose of assisting with the control of wild dogs within the Maranoa Regional Council area. The Council is of the opinion that all lands within these categories will receive a special benefit from the implementation of this program. The levy is based on costs set out in Council‟s budget and is reviewed annually. This charge is ineligible for discount. Overall Plan – Wild Dog Control Charge Background Council is of the opinion that all rural ratepayers will specially benefit from the employment of a Dogger, a co-ordinated baiting program and payment of a wild dog bounty. The Service to be provided by the Special Charge A special charge will be levied to assist in the employment of a Dogger, a co-ordinated baiting program across the region and payment of a wild dog bounty. Council is of the opinion that each parcel of rural rateable land will specially benefit to the same extent. This special charge will be implemented and evaluated on an annual basis. During the year approximately $45,344.04 was collected. Amby Rural Fire (Mitchell Office) A special charge was levied on all rateable land in the town of Amby for the purpose of raising funds for the Amby Rural Fire Brigade. Funds collected are for the purpose of the ongoing operation and maintenance of the Amby Rural Fire Brigade. Council is of the opinion that all land within the town of Amby will receive a special benefit from those activities. The levy is based on the requirements of the Brigade and set out in its budget and agreed to annually by Council. The charge will be ineligible for discount.


Overall Plan – Amby Rural Fire Service Charge Background At the end of 2002/03 financial year the Urban Fire Levy was discontinued in view of the establishment of a Rural Fire Brigade. As Amby was no longer part of an urban brigade administered by Qld. Fire and Rescue Service, fire levies could no longer be collected from local property owners. Following correspondence and discussion with Amby Rural Fire Brigade and Rural Fire Services representatives Booringa Shire Council made a donation of $2,500 (the amount collected under the urban fire levy) and also paid the rates ($250) on the land upon which the fire service in Amby is located. The provision of a fire service is an essential and vital service for the town. Consultation with the Amby community has been undertaken in regard to the implementation of a special charge to fund the rural fire service. The Service to be provided by the Special Charge A special charge will be levied to fund the purchase of equipment and ongoing operation and maintenance of the Amby Rural Fire Brigade Service. Council is of the opinion that each parcel of rateable land identified on the map will specially benefit to the same extent. The estimated cost of funding the Brigade is estimated at $2,200 with a charge of $60.00 per property in the defined area and will be contributed to the Amby Rural Fire Service. The levy is based on the requirements of the Brigade and Council will review the level of charge on an annual basis in consultation with the Amby Rural Fire Brigade. During the year approximately $2,280.00 was collected. Maranoa Regional Council decided to continue to collect the special charge. Water Infrastructure A special charge was levied on rateable land described as lots 12, 14 and 16 on RP53700, Parish of Mitchell for the purpose of repayment of works undertaken for water infrastructure extensions. Funds collected are for the purpose of the payment of infrastructure works undertaken by Council. Council is of the opinion that the land will specially benefit from the water infrastructure extensions. The charge is based on the costs set out in its budget and agreed to annually by Council. The charge will be ineligible for discount.


Overall Plan – Water Infrastructure Background Council is of the opinion that each parcel of rateable land described as lots 12 and 14 on RP53700, Parish of Mitchell, will specially benefit to the same extent from the extension of the reticulated water supply to service the above mentioned parcels of land. The cost of works is $12,048.40 including GST. The owners of lot 16 on RP53700 have indicated that they will pay their share of costs as a private works agreement with Council. The owners of lots 12 and 14 have requested a time payment of three years with instalments to be paid monthly. The Service to be provided by the Special Charge Council will extend the reticulated water supply to service lots 12, 14 and 16 on RP53700, Parish of Mitchell. The service to be funded by this Special Charge is the costs associated with extending the reticulated town water to lots 12 and 14 and does not include the cost of individual water service connections to the allotments. The cost of providing these services is $8,032.27. The special charge equivalent to 2/3 of the cost of works will be applied across lots 12 and 14 on RP53700, Parish of Mitchell over a three year period. This special charge was implemented from 1 July 2007 and will continue for a period of 3 years. During the year $2,249.98 was collected. TENDERS All purchasing is conducted in accordance with Part 3 of Chapter 6 of the Local Government Act. The following one (1) action was taken under Section 488(2) of the Local Government Act during 2008/09: - Tender No: OP1.09 Tender Description: Provision of a Domestic Waste and Dead

Animal Collection & Removal Service Number of Amendments: 2 Reason for Amendments: Minor change to collection area. Change to tender submission location. Method of Notifying Applicants: Written correspondence provided to all

applicants.


Resolutions made during the year under Section 489(1), short listing after calling for Expressions of Interest – Nil. REGISTERS AND PUBLIC DOCUMENTS The following material is available for inspection by contacting Council‟s Customer Service Section – REGISTERS Delegations by Council (S472) Delegations by the Chief Executive Officer (S1201) Register of Enterprise Powers (S501) Local Laws and Subordinate Local Laws Register (S895) Register of Roads (S921) Register of Lands (S995) Register of Charges (S975) Register of local government business entities to which competitive neutrality principles apply (S759) Registers accessible from the Executive Branch – Register of Interest of each Local Government Councillor (S247) Register of Disclosure of Electoral Gifts and Loans (S433)

PUBLIC DOCUMENTS Corporate Plan Operational Plan Annual Report Meeting Minutes Statement of Affairs Code of Conduct List of Fees and Charges Rate & Debt Recovery Policy Revenue Policy Revenue Statement Council Policies REBATES AND CONCESSIONS Pensioner Remission Council provided an annual concession of $507.00 of the general rate up to a maximum of $180.00 to all eligible pensioners in accordance with the Section 1031 of the Local Government Act 1993. The total amount of remission paid was $100,231.98


Heritage Remission Council provided a remission on rates levied on a land owner in respect of the preservation, restoration or maintenance of structures or places of cultural, environmental, historic, heritage of scientific significance to Council in accord to Section 1035a of the Local Government Act 1993. The total amount of remission paid was $500.00 for the Tooloombilla Cemetery. COUNCILLOR REMUNERATION Basis of Remuneration The remuneration component (excluding the Amalgamation Loading) has been set to a percentage of the allowance paid to State Government Members of the Legislative Assembly. The current percentage as set by the Local government Tribunal, the current percentages are:

Mayor – 55% to 70%

Deputy Mayor – 30% to 42%

Councillor – 25% to 35% The remuneration for all Councillors including the Mayor and Deputy Mayor to increase by the same percentage at the same time that allowances paid to State Government Legislative Assembly increase. The remuneration for the Mayor, Deputy Mayor and councillors is to account for the responsibilities and associated costs in servicing the electorate I the following ways: Attendance at:

Ordinary (General Meetings, Special Meetings and Committee Meetings of Council

Regional Meetings

Inspections

Community Group Meetings

Community Consultation Meetings

Annual General Meetings, Handovers and Community Events

Civic Receptions

Community and Developer Delegations/Deputations Mayor‟s Remuneration The salary for the period 21 January 2009 to 30 June 2009 is set at $96,180.00 per annum, which includes payment of an Amalgamation Loading. Deputy Mayor‟s Remuneration


The salary for the period 21 January 2009 to 30 June 2009 is set at $58,380.00 per annum, which includes payment of an Amalgamation Loading. Councillor‟s Remuneration The salary for the period 21 January 2009 to 30 June 2009 is set at $48,100.00 per annum, which includes payment of an Amalgamation Loading. Expenses Council will pay member‟s accommodation costs including meals. Other out of pocket expenses (ie. Cab fares etc) will be reimbursed upon production of receipts. Superannuation As per Section 238 of the Local Government Act, Councillors are provided the opportunity to enter into an arrangement with Council under which the Councillor agrees to forgo a percentage (12%) of the Councillors remuneration entitlement for the purpose of superannuation. Any Councillor who had elected not to be a PAYE employee cannot enter into an arrangement with Council for the purpose of superannuation. Method of Payment Salary is paid in fortnightly instalments. EQUAL EMPLOYMENT OPPORTUNITY Council adopted an Interim Equal Employment Opportunity Governance Policy effective as from 16 April 2008. This Interim Policy was developed in support of equal opportunity in employment for all existing and future employees whilst an Equal Employment Opportunity Management Plan is developed. The Maranoa Regional Council is committed to the objectives of Equal Employment Opportunity and acknowledges that its employees are its most important asset, and ensures that employees are recognised for their skills and potential in appointing them to positions in Council that will contribute to organisational efficiency and help Council to better serve its community.

BORROWINGS POLICY Under the Local Government Act 1993 Section 525 and the Local Government Finance Standard 1994 Part 2 – Financial Management Section 3(d), 7, 44, Council is required to adopt a Borrowings Policy.


Council currently has loans with Queensland Treasury Corporation and may need to seek loans in future years, therefore Council will consider the following prior to making any commitments: - In order to provide a better service to ratepayers, Council will restrict the purpose of loans to asset acquisition and expenditure of a capital nature only. The service that will be provided will benefit present and future generations therefore it is the opinion of Council that the cost should be shared between present and future generations.

The appropriate mix of debt to internal funding used is intended to provide the lowest long term level of rates which does not over commit the future and which provides adequate flexibility of funding in the short term. The total debt will depend on the future outlook for growth in the region. The term of the debt will relate to the life of the asset created but will not exceed 20 years for any individual asset. Council did not enter into any new borrowings for the 2008/09 year. It is not expected that Council will enter into any new borrowings for the 2009/10, 2010/11, 2011/12 and 2012/13 years. REVENUE POLICY Introduction Under the Local Government Act 1993 Council is required to review and adopt its Revenue Policy prior to the end of each financial year. The Revenue Policy is intended to be a strategic document. Its adoption, in advance of setting the budget, allows Council to set out the principles that it will use to set its budget and to identify in broad terms the general strategy to be used for raising revenue. This Revenue Policy will be of interest to ratepayers, federal and state departments, community groups and other interested parties seeking to understand the revenue policies and practices of Council. Purpose The purpose of the policy is to identify the planning framework within which Council operates and to set out the principles used by Council for: Making of rates and charges; Levying of rates; Recovery of rates and charges; and Concessions for rates and charges. Planning Framework The Local Government Act 1993 sets a general planning framework within which Council must operate. There are a number of elements to the planning


framework including the preparation and adoption of a Corporate Plan and Operational Plan. Section 520(1) of the Act also requires each local government to adopt a Revenue Policy as part of its annual budget.


PRINCIPLES Making of rates and charges In general Council will be guided by the principal of user pays in the making of rates and charges so as to minimise the impact of rating on the efficiency of the local economy. Council will also have regards to the principles of:

Transparency in the making of rates and charges

Having in place a rating regime that is simple and inexpensive to administer

Equity by taking account of the different levels of capacity to pay with the local community

Responsibility in achieving the objectives, actions and strategies in Council‟s Corporate and Operational Plans

Flexibility to take account of changes in the local economic, adverse seasonal conditions, extraordinary circumstances and impacts that different industries may have on Council infrastructure

Maintaining services to an appropriate standard

Meeting the needs and expectations of the general community

Assessing availability of other revenue sources. Levy of rates In levying rates Council will apply the principles of:

Making clear what is the Council‟s and each ratepayer‟s responsibility to the rating system

Making the levying system simple and inexpensive to administer

Timing the levy of rates to take into account the financial cycle of local economic activity in order to assist smooth running of the local economy

Equity through flexible payment arrangements for ratepayers with a lower capacity to pay.

Recovery of rates and charges Council will exercise its rate recovery powers in order to reduce the overall rate burden on ratepayers. It will be guided by the principles of:

Transparency by making clear the obligations of ratepayers and the processes used by Council in assisting them meet their financial obligations

Making the processes used to recover outstanding rates and charges clear, simple to administer and cost effective

Capacity to pay in determining appropriate arrangements for different sectors of the community

Equity by having regard to providing the same treatment for ratepayers with similar circumstances

Flexibility by responding where necessary to changes in the local economy


Adherence to the debt collection guidelines developed by the Australian Competition and Consumer Commission.

Concessions for rates and charges In considering the application of concessions, Council will be guiding by the principles of:

Equity by having regarding to the difference levels of capacity to pay within the local community

The same treatment for ratepayers with similar circumstances

Transparency by making clear the requirements necessary to receive concessions

Flexibility to allow Council to respond to local economic issues, adverse seasonal conditions and extraordinary circumstance

Fairness in considering the provision of community service concessions. RATE & DEBT RECOVERY POLICY To ensure the process of rate recovery is transparent, fair and equitable, Council has a Rate Recovery Policy. Council will implement a vigilant rate recovery process to recover overdue rates and charges however, Council will give emphasis to negotiating a successful outcome for those property owners experiencing extreme financial hardship. While maintaining the appropriate amount of compassion for those property owners in genuine financial difficulty Council will seek to ensure maximum efficiency is achieved in the rate recovery process. Failure by property owners to honour arrangements will lead to the instigation of legal action. In accordance with Council‟s Revenue Policy Council will exercise its rate recovery powers in order to reduce the overall rate burden on ratepayers. It will be guided by the principles of:

Transparency by making clear the obligations of ratepayers and the processes used by Council in assisting them meet their financial obligations

Making the processes used to recover outstanding rates and charges clear, simple to administer and cost effective

Capacity to pay in determining appropriate arrangements for different sectors of the community

Equity by having regard to providing the same treatment for ratepayers with similar circumstances

Flexibility by responding where necessary to changes in the local economy.

The key objectives of the Rate and Debt Recovery Policy are:

Ensure consistency so that all debtors are treated in a consistent manner

Clarity so that there is no doubt as to the next action that will be pusued

Timeliness in communication with all debtors

Provides a high level of accountability and transparency


Ensure the processes used to recover outstanding rates and charges are clear simple to administer and cost effective

Increased collection of rates

Reduction in the level of overdue rates. A full listing of the Rate Recovery Policy can be found on Council‟s website www.maranoa.qld.gov.au. STATEMENT OF AFFAIRS A Statement of Affairs is published annually in accordance with Section 18(1) of the Freedom of Information Act. The purpose of the Statement of Affairs is to present in a consolidated, user-friendly form a comprehensive overview of Council‟s organisation, its relationship to the community and the various avenues for public access to Council‟s administrative and political processes. Whilst Council acknowledges its statutory obligations under Section 18 (1) of the Queensland Freedom of Information Act 1992 to provide a Statement of Affairs, which sets out certain minimum requirements, this document goes beyond that to provide relevant information to the public concerning Council‟s operations. CODE OF CONDUCT As required by the Public Sector Ethics Act 1994, Maranoa Regional Council developed and implemented a Code of Conduct. The Code of Conduct provides common guiding principles and standards of ethical behaviour and conduct expected of employees and elected representatives as they perform their official duties. Contractors and consultants are also bound by this code whilst undertaking work for Council. The Code of Conduct has strong links to customer service, professionalism and good management practices and will positively shape the culture and reputation of the region. It promotes core public sector values, i.e. respect for the law and system of government, respect for persons, integrity, diligence and economy and efficiency. EXPENDITURE ON CONSULTANTS During the year $114,150.85 was expended on the following categories for consultancy services: - Consultant – KnowledgeOne Corporation

$18,150.00 - Records Management Consultant - Sims – Business Improvement Consultant

$5,119.00 - Redevelopment Plan & Business Plan for Injune Caravan Park – Review of Injune Caravan Park operations and business activities and research and preparation of redevelopment plan and business plan for Injune Caravan Park.

http://www.maranoa.qld.gov.au/


$7,500.00 - Great Artesian Spa – Review of Business Operations - Review of Great Artesian Spa operations and business unit viability / sustainability and research and preparation of Review of Business Operations Report.

$21,000.00 – Employability Roma Neighbourhood Centre – Review of current practices and implementation of Business Plan, which was adopted by Council including KPI‟s over next three year period.

$6,800.00 – Roma Town Council Gas Review – Review of the Roma gas network operations and business unit viability / sustainability and research and preparation of a business operational review.

Consultant - AEC Group

$13,168.10 – Progress payment for the Maranoa Regional Economic Development Strategy – Business, industry and community consultation, research and preparation of Maranoa Regional Economic Development Strategy.

$20,913.75- Development of 2009-2013 Corporate Plan.

Consultant – Peter Janetzki – Aged Care Consulting

$10,000.00 – Maranoa Retirement Village – Implementation of quality system including Maintenance, Policies, Working Action Plan and support for Accreditation visit September 2008.

Consultant - Cardno (QLD) Pty Ltd

$24,370.00 - Roma Town Water Model Update - To undertake an update to the Water Network Model for Roma Town based on current water infrastructure layouts and provide information to Council on current theoretical operation and performance of the water assets based on current demand loadings and usage patterns within the town.

EXPENDITURE ON ENTERTAINMENT AND HOSPITALITY SERVICES During the year $16,400 was expended on entertainment and hospitality services. This amount was based on 45 Scheduled Meetings and five (5) Civic whole of Council meetings.

EXPENDITURE ON ADVERTISING During the year $242,903.78 was expended on statutory advertising, which included statutory meeting dates and tenders. Employment vacancy advertisements accounted for approximately 75% of this total. EXPENDITURE ON GRANTS AND INKIND SUPPORT TO COMMUNITY ORGANISATIONS During the year $70,546.70 was expended on grants to community organisations Begonia Golf and Sports Club Inc $10,000.00


Rotary Club of Mitchell $ 5,250.00 Voice of Warroo $ 1,750.00 Teelba Gun Club Inc $ 3,617.60 Yuleba Development Group $ 3,500.00 Muckadilla Community Assn Inc $ 5,000.00 Cultural Heritage Injune Preservation - $ 7,440.00 Sub-Committee Advance Injune Inc Roma Bush Gardens Assn $10,000.00 Hodgson Soldiers Memorial Hall & $ 2,000.00 Recreation Association Inc Yuleba District Bowls Club Inc $ 2,532.00 Surat & District Development Assn Inc $ 3,000.00 Wallumbilla Hack & Pony Club $ 1,694.00 Wallumbilla / Surat Red Bulls RLFC $ 1,659.00 Wallumbilla School of Arts Hall Committee $ 2,000.00 Rotary Club of Roma Inc $10,000.00 Injune Pony Club $ 250.00 Injune & District Tourism Assn Inc $ 854.10 During the year $22,687.00 was approved as inkind support to community organisations. Rotary Club of Mitchell $ 160.00 Voice of Warroo $ 1,025.00 Roma Bush Gardens Assn $20,000.00 Queensland Cancer Fund $ 752.00 Teelba State School P&C Assn $ 750.00 During the year $50,665.20 was expended on ongoing grants to community organisations. RSL Sub-Branch Injune $ 200.00 Injune Meals on Wheels Inc $ 1,081.20 Injune Kindergarten & Children‟s Centre $12,000.00 Amby Progress Assn $ 250.00 Mitchell Forum $ 50.00 Art Show Committee (Mitchell) $ 500.00 Mungallala Aerial Baiting Group $ 1,200.00 Muckadilla Community Assn Inc $ 2,000.00 Scout Assn of Australia Qld Branch $ 1,000.00 Roma Group Committee Hodgsons Soldiers Memorial Hall & $ 2,000.00 Recreation Assn Inc Meals of Wheels – Roma Inc $ 3,000.00 Pinaroo Roma Inc $ 3,000.00 The Lake Recreation Assn $10,000.00 Surat Bowls Club Inc $ 100.00 Teelba Gun Club Inc $ 100.00 Surat Golf Club Inc $ 250.00 Surat Fishing & Restocking Club Inc $ 850.00


Surat Meals on Wheels $ 584.00 Voice of Warroo $ 1,000.00 Surat & District Development Assn Inc $ 1,000.00 Yuleba Memorial Hall Assn Inc $ 500.00 Wallumbilla P&C Assn $10,000.00 During the year $12,350.00 was granted ongoing inkind support to community organisations. Injune Kindergarten & Children‟s Centre $ 5,500.00 Mitchell Forum $ 110.00 Art Show Committee (Mitchell) $ 345.00 The Lake Recreation Assn $ 5,364.00 Surat Fishing & Restocking Club Inc $ 531.00 Voice of Warroo $ 500.00 LAND AND RESERVES Maranoa Regional Council has control of approximately 15,897ha of reserves. BREACHES AND COMPLAINTS OF COUNCILLOR CODE OF CONDUCT Number of breaches of the Code of Conduct – Nil Number of complaints referred to the Conduct Review Panel – One (1) Number of recommendations by Conduct Review Panel that were adopted by Council – Three (3) Number of recommendations by Conduct Review Panel that were not adopted by Council – Four (4) COMPLAINTS RESOLVED UNDER GENERAL COMPLAINTS PROCESS Number of complaints resolved under General Complaints process – One (1) Number of complaints resolved under General Complaints process and relating to an alleged breach of the Code of Conduct – One (1) NUMBER OF COMPLAINTS MADE TO OMBUDSMAN AND NOTIFIED TO COUNCIL Number of complaints made to the Ombudsman and notified to Council during the year about decisions made by the Local Government in relation to enforcement of its Code of Conduct - Nil COMPLAINTS AND INVESTIGATIONS INTO BUSINESS ACTIVITIES During the year Council received Nil complaints in relation to its nominated business activities.


BUSINESS ACTIVITIES The principle of competitive neutrality is based on the concept of a „level playing field‟ between persons competing in a market place, particularly between the private and public sector. Essentially the principle is that government business should operate without net competitive advantages over other businesses as a result of public ownership. The process involves full costing activities and accounting for the advantages and disadvantages of public ownership. In accordance with Section 765 of the Local Government Act, Council conducted a review of its operations to identify any business activities. Council adopted the Competition Policy 2008/09 in relation to the application of the Code of Competitive Conduct to its business activities. Historically, business activities were: Yuleba Office: Plant, Other Roads Mitchell Office: Roads, Other Roads, Plant, Water, Sewerage, Maranoa Retirement Village & Great Artesian Spa Bungil Office: Plant, Other Roads, Quarry Roma Office: Plant & Equipment, Other Roads and Drainage, Water Supply, Sewerage, Gas, Garbage Collection and Disposal Surat Office: Water, Sewerage, Other Roads COUNCIL MEETINGS AND MINUTES General Meetings of Council are held on the second and fourth Wednesdays of each month unless otherwise advertised. Council meetings are held throughout the region on a rotational basis, locations are made available from Council‟s reception areas and on Council‟s website. Unconfirmed minutes are available for inspection no later than ten (10) days after each meeting and copies of confirmed minutes are available for purchase at applicable photocopying charges. Council minutes may also be accessed via Council‟s website.


COMMUNITY FINANCIAL REPORT “The Community Financial Report gives a snapshot of the Council‟s financial performance and position for the 2008-09 Fiscal Year, its aim is to summarise the financial data in a user friendly format.” Council‟s major financial targets for the year were achieved - to meet all day- to-day financial commitments, maintain debt at a manageable level, maximise earnings from excess funds while ensuring that Council‟s capital budget is adequately funded. As a result of the Council Amalgamation on March 14th 2008, the financial report covers a 15½ month financial period from March 15th 2008 to June 30th 2009

Operating data at a glance

Revenue Summary - What we earned $000

Rates (net of discounts)

14,020

Grants (Operational)

18,039

Grants (Project Based)

15,681

Interest rec'd (investments & rates)

1,684

Contract works

13,881

Fees & Charges - General

3,872

Fees & Charges - Saleyards

3,973

Rent Income

526

Revenue-Other

227

Total Revenue

$71,903


Expense Summary – What we spent $000

Employee costs

20,518

Materials, Services & Other expenses

34,472

Depreciation

24,568

Loss on asset disposal

133

Borrowing costs

863

Total Expenses

$80,554

Surplus/(Deficit)

(8,651)

What were Council‟s sources of revenue?

(refer Financial Performance Notes 3-5)

Council‟s operational revenue is sourced from rates, fees & charges, private works and Government grants. Some grants however, are linked to specific capital projects or social service programs (referred to as constrained funds).

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1

Grants - FAGs

Private Works

Rates-General

Grants - State

Grants - Federal

Saleyards Revenue

Fees & Charges

Quarry Sales

Rates-Water

Interest earned

Rates-Sewerage

Other contributions

Rates-Waste

Rent

Other revenue

Revenue Sources 15/3/08 to 30/6/09

$'000


Maranoa Regional Council received $18 mil in Federal Assistance Grants in the 15 months of this financial period and this includes an early payment of $3.2 mil for the September Quarter 2009-10 contribution. It also needs to be noted that all rate revenue for the second half of the 2007-08 financial year was included in the pre amalgamated Council‟s financial data, this means that approximately $3.9 mil of that rate revenue would normally have been applied to the period March 15 to June 30 2008 of the amalgamated Council. Council maintained a healthy cashflow throughout 2008-09 with interest income contributing $1.6 mil. This was due to some capital projects being put on hold while the amalgamation process was being put into place, thereby releasing surplus funds for investment.

How were Council’s funds utilised? (refer Financial Performance Notes 6 -9)

The graph above shows the breakdown of Council‟s employee and materials & services expenses across Council‟s service centres. (Depreciation is excluded from the above summary). During this financial year a revaluation was conducted of all the assets of the merged Council. This resulted in the depreciation expense increasing from a total of $10 mil for all Councils pre merger to $24.6 mil for this 15½ month financial period.

14,499

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1

Roads

Private Works

Plant

Social Services

Admin & Other

Saleyards

Water

Waste

Health & Env

Parks & Gdns

Aged Care

Comm/Econ Dev

Sewerage

Recreation

Housing

Expenditure by Cost Centre 15/3/08 to 30/6/09$'000


What were the major sources of cash in and out? (refer Statement of Cashflows)

Major sources of Cash In and Cash Out

2008-09

$000

Cash at beginning of period

26,490

Cash received from operating activities

35,967

Grants

33,726

Interest from investments

1,651

Cash paid to suppliers and employees

(55,575)

Interest paid on loans

(821)

Net cash received from operations

$14,948

Purchases of assets

(22,084)

Proceeds from asset sales

1,122

Repayment of debt

(1,324)

Cash at end of reporting period

$19,152

The Statement of Cash Flows quantifies the inflows and outflows of cash throughout the organisation during the financial year, as opposed to the accrual-based data provided in the financial statements from which the surplus/(deficit) is derived. Council ended the year with $19,152,393 in cash assets including $9,740,714 invested with Queensland Treasury. There were no new borrowings during this financial year. The Statement of Cash Flow summarises cash transactions into three types of activities-:

Operating activities – the day to day functions of the Council-

- Operating Revenue - includes receipts from rates, fees and charges, private works unconstrained government grants and interest from investments.

- Operating Expenses - includes payments to employees, materials & services and interest on borrowings.


Investing activities – payments for property, plant and equipment, roadworks, water/sewerage/gas infrastructure and buildings and the proceeds from the sale of assets.

Financial activities – the repayments of existing loans and the inflows from any new loans.

What is the value of community assets under Council’s care?

(refer Financial Position Note 16)

During 2008-09 the amalgamated assets of the new Council were revalued, this was to comply with best practice asset management and to ensure that the Council staff would have consistent up to date data for evaluating the capital works and maintenance programs. Council assets have a written down value (after depreciation) of $501.3 Mil, Council spent $21.8M this year replacing and upgrading assets. Depreciation refers to the estimated devaluation in the value of an asset due to wear and tear, or becoming outdated through advancing technology. How much does Council owe in loans for purchases of assets? (refer Financial Position Note 19) Local Governments in general have a very high level of assets under their control but limited revenue raising opportunities. This means that the majority of Councils have to rely on borrowings to fund major capital works, while utilising their general revenue

22.2

89.1

39.4

346.6

59.0

33.222.0

0.0

15.1 16.9

47.2

15.1 10.3 5.6

-

50

100

150

200

250

300

350

400

Land Buildings Plant Roads Water Sewerage Other assets

Value $mil

Asset Class

Council Assets at 30 Jun 2009 -Gross Values and Accumulated Depreciation

Gross Cost

Accum Dep'n


(e.g. rates, fees & charges) to maintain community assets. To decide on an appropriate level of debt Council must consider:

(i) The productive value and expected life of its assets, (ii) Council‟s ability to meet repayments of interest and principal and (iii) Any increase in operational costs associated with the new or

replacement assets. Maranoa Regional Council has a total debt owing to the Queensland Treasury Corporation at 30 June 2009 of $9,870,144. Council‟s Debt Service Ratio is 3.5%, i.e. for every $100 of revenue earned, Council needs $3.50 to repay it‟s current debt, this shows that Council is well placed financially to service these loans.


FINANCIAL STATEMENTS For the period 15 March 2008 to 30 June 2009 Table of Contents Note Page no.

Income Statement 70 Balance Sheet 71

Statement of Changes in Equity 72 Statement of Cash Flows 73

Notes to the Financial Statements 1 Summary of Significant Accounting Policies 74 – 86 2 Analysis of results by function 87 – 90 3 Revenue analysis 91 4 Grants, subsidies, contributions and donations 92 5 Capital income 92 6 Employee benefits 93 7 Materials and services 93 8 Finance costs 94 9 Depreciation and Amortisation 94

10 Gain on restructure of local government 95 – 97 11 Cash and cash equivalents 98 12 Trade and other receivables 98 13 Inventories 99 14 Other financial assets 99 15 Non-current assets classified as held for sale 99 16 Property, plant and equipment 100, 101 17 Capital work in progress 102 18 Trade and other payables 102 19 Borrowings 102 20 Provisions 103 21 Asset revaluation reserve 104 22 Retained surplus 105 23 Capital and other reserves 105,106 24 Commitments for expenditure 107 25 Contingent liabilities 107 26 Events after balance date 107 27 Superannuation 108 28 Trust funds 108

29 Reconciliation of result from ordinary activities to net cash inflow (outflow) 109

30 Financial Risk Management 110 - 113 31 National Competition Policy 113 – 115

Management Certificate 116 Independent Audit Report 117, 118


Income Statement For the period 15 March 2008 to 30 June 2009 2009 Note $ Income

Revenue Recurrent Revenue

Net rate and utility charges 3(a) 14,020,235 Fees and Charges 3(b) 7,845,372 Rental income 3(c) 526,382 Interest received 3(d) 1,684,149 Sales - Contract, recoverable works and quarry 3(e) 13,881,072 Other recurrent income 3(f) 219,915 Grants, subsidies, contributions and donations 4(a) 26,194,325 Total recurrent revenue 64,371,450

Capital revenue Grants, subsidies, contributions and donations 4(b) 7,531,728

Total revenue 71,903,178

Capital Income

Gain/(loss) on disposal of non-current assets 5 (132,902)

Gain on restructure of local government

Assets and liabilities transferred from abolished Councils 10 355,635,427 Adjustments due to accounting policy alignment 10 (5,088,227) 350,547,200

Total income 422,317,476 Expenses

Employee benefits 6 (20,518,332) Materials and services 7 (34,472,289) Finance costs 8 (862,788) Depreciation and amortisation 9 (24,568,270) Total recurrent expenses (80,421,679)

Capital expenses

Impairment losses - Provision for restoration of land - Revaluation decrements -

Total expenses (80,421,679) Net result attributable to Council 341,895,797

The above statement should be read in conjunction with the accompanying notes and

Summary of Significant Accounting Policies.


Balance Sheet As at 30 June 2009 2009 Note $ ASSETS

Current Assets Cash and cash equivalents 11 19,152,393 Trade and other receivables 12 7,984,852 Inventories 13 1,807,256 Other financial assets 14 290,086

29,234,587 Non-current assets classified as held for sale 15 30,400

Total current assets 29,264,987 Non-current Assets

Property, plant and equipment 16 501,288,203 Capital works in progress 17 27,733,542

Total non-current assets 529,021,745 TOTAL ASSETS 558,286,732

Liabilities Current liabilities

Trade and other payables 18 3,489,153 Borrowings 19 1,168,605 Provisions 20 161,519

Total current liabilities 4,819,277 Non-current liabilities

Trade and other payables 18 286,879 Borrowings 19 8,701,539 Provisions 20 1,181,815

Total non-current liabilities 10,170,233 TOTAL LIABILITIES 14,989,510

NET COMMUNITY ASSETS 543,297,222 Community Equity

Asset revaluation reserve 21 201,401,425 Retained surplus/(deficiency) 22 325,848,850 Other reserves 23 16,046,947

TOTAL COMMUNITY EQUITY 543,297,222

The above statement should be read in conjunction with the accompanying notes and Summary of Significant Accounting Policies.


Statement of Changes in Equity For the period 15 March 2008 to 30 June 2009

Asset revaluation

reserve

Retained surplus

Capital and Other

Reserves

Total

Notes 21 22 23 $ $ $ $ Period 15 March 2008 to 30 June 2009

Opening Balance -

-

-

-

Revaluations of Property, Plant and Equipment

201,401,425

Impairment Losses

-

Net income recognised directly in equity

201,401,425

-

-

Net result for the period

341,895,797

Total recognised income and expense

201,401,425

341,895,797

-

543,297,222

Transfers to and from reserves Transfers to/(from) capital and other reserves

(16,046,947)

16,046,947

Total transfers to and from reserves

-

(16,046,947)

16,046,947

-

Balance at 30 June 2009

201,401,425

325,848,850

16,046,947

543,297,222



Cash Flow Statement For the period 15 March 2008 to 30 June 2009 2009

Cash flows from operating activities : Note $ Receipts from customers 35,406,916 Payments to suppliers and employees (55,574,585)

(20,167,669) Interest received 1,684,149 Rental income 526,382 Non capital grants and contributions 26,194,325 Borrowing costs (820,617)

Net cash inflow (outflow) from operating activities 7,416,570

Cash flows from investing activities:

Payments for property, plant and equipment (22,083,554) Proceeds from sale of property plant and equipment 1,121,611 Capital grants, subsidies, contributions and donations 7,531,728

Net cash inflow (outflow) from investing activities (13,430,215)

Cash flows from financing activities:

Proceeds from borrowings - Repayment of borrowings (1,324,270)

Net cash inflow (outflow) from financing activities (1,324,270)

Net increase (decrease) in cash held (7,337,915)

Cash at beginning of reporting period - Cash flow arising from restructure of local government 10 26,490,308

Cash at end of reporting period 11 19,152,393



Note 1 Summary of Significant Accounting Policies For the period 15 March 2008 to 30 June 2009 1 (a) Basis of Preparation This general purpose financial report has been prepared in accordance with Australian Accounting Standards and complies with the requirements of the Local Government Act 1993, the Local Government Reform Implementation Regulation 2008 and the Local Government Finance Standard 2005. The Local Government Reform Commission report to the Minister for Local Government, Planning and Sport on 27 July 2007 recommended that the former Bendemere, Booringa, Bungil and Warroo Shire Councils the Roma Town Council and the Roma Bungil Showgrounds and Saleyards Board be amalgamated to form the Maranoa Regional Council. Pursuant to Part 1B of the Local Government Act 1993 and in accordance with the Local Government Reform Implementation Regulation 2008, the Roma Regional Council was formed on 15 March 2008. Roma Regional Council was subsequently renamed Maranoa Regional Council on June 26th 2009 The Local Government Reform Implementation Regulation 2008 and the Local Government Reform Implementation (Transferring Areas) Amendment Regulation (No.1) 2008 transferred the assets and liabilities of the former Bendemere, Booringa, Bungil and Warroo Shire Councils, the Roma Town Council and the Roma Bungil Showgrounds and Saleyards Board to the Roma Regional Council as at changeover date. Pursuant to section 159YQ of the Local Government Act 1993 and sections 26 and 35 of the Local Government Reform Implementation Regulation 2008, financial statements have been prepared for the period starting on 15 March 2008 and ending on 30 June 2009. Future periods will be for twelve month periods starting 1 July and ending on 30 June. Assets and liabilities of the former Councils have been recognised by Maranoa Regional Council on 15 March 2008 at the previous book values of the transferor local governments. This is shown as income in the Income Statement and details are disclosed in note 10. Maranoa Regional Council adopted consistent accounting policies from its commencement date of 15 March 2008. In some cases, this resulted in adjustments to the measurement of assets and liabilities transferred from former Councils as at 15 March 2008. These accounting policy alignment adjustments are shown in the Income Statement and details are disclosed in note 10. This financial report has been prepared under the historical cost convention except for the revaluation of certain non-current assets.


1 (b) Statement of Compliance Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). Because the Council is a not-for-profit entity and the Australian Accounting Standards include requirements for not-for-profit entities which are inconsistent with International Financial Reporting Standards (IFRS), to the extent these inconsistencies are applied, this Report does not comply with IFRS. The main impact is in:

The offsetting of revaluation and impairment gains and losses within a class of assets

The recognition of assets and liabilities of the former Councils at the amounts at which they were recognised by the transferor local governments.

1 (c) Adoption of new Accounting Standards. The following Australian Accounting Standards, issued on the dates shown, are not mandatory for the period ending 30 June 2009 but, as permitted, have been applied in preparing this report where applicable: AASB 1004 Contributions (December 2007) AASB 1051 Land Under Roads (December 2007) AASB 1052 Disaggregated Disclosures (December 2007) AASB 2007-9 Amendments to Australian Accounting Standards arising from the Review of AASs 27, 29 and 31 AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities. The following Australian Accounting Standards, issued on the dates shown, are not mandatory for the period ending 30 June 2009 and have not been applied. AASB8 Operating Segments (Feb 2007) AASB101 Presentation of Financial Statements (September 2007) AASB123 Borrowing Costs (June 2007) AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB8 (February 2007) AASB2007-6 Amendments to Australian Accounting Standards arising from AASB123 (June 2007) AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB101 (September 2007) AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 AASB2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project (July 2008) AASB2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project


AASB 2008-9 Amendments to AASB 1049 for Consistency with AASB 101(September 2008) AASB 2008-11 Amendments to Australian Accounting Standard – Business Combinations Among Not-for-Profit Entities [AASB 3] (November 2008) It is not expected that the new standards would have made a substantial difference to the results if they had applied to this accounting period. Most of the changes are matters of presentation. 1 (d) Critical accounting estimates The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Council's accounting policies. Estimates and judgements are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Council and that are believed to be reasonable under the circumstances. The estimates and assumptions that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year are referred to in the appropriate notes to the financial statements. 1 (e) Currency The Council uses the Australian Dollar as its functional currency and its presentation currency. 1 (f) Constitution The Maranoa Regional Council is constituted under the Queensland Local Government Act 1993 and is domiciled in Australia. 1 (g) Date of authorisation The financial report was authorised for issue on the date it was submitted to the Auditors for final signature. This is the date the management certificate is signed The Local Government has the power to amend the Financial Report after it is authorised for issue until the adoption of the report by the Local Government as part of the Annual Report.


1 (h) Changes to Accounting Policies, Estimates and Errors Unless otherwise stated, accounting policies have been consistently applied throughout the period. 1 (i) Rates, Grants and Other Revenue Rates, Grants and Other Revenue are recognised as revenue on receipt of funds or earlier unconditional entitlement to the funds. (i) Rates Where rate monies are received prior to the commencement of the rating period, the amount is recognised as revenue in the period in which they are received. (ii) Grants and Subsidies Where the Council has an obligation to use a grant or subsidy in a particular manner the amount is recognised as revenue on receipt. An equivalent amount is placed in the constrained works reserve until the obligation is satisfied. (iii) Non-Cash Contributions Non-cash contributions with a value in excess of the recognition thresholds set out in note 1 (p) are recognised as revenue and as non- current assets. Non-cash contributions below the thresholds are recorded as revenue and expenses. (iv) Other Revenue Including Contributions Other Revenue is recognised as a receivable when it is probable that it will be received and the amount is known, otherwise the amount is recognised upon receipt. 1 (j) Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not banked at the year end, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities 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. 1 (k) Receivables Trade receivables are recognised initially at fair value due at the time of sale or service delivery and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Settlement of these amounts is required within 30 days from invoice date.


The collectability of receivables is assessed periodically and, if there is objective evidence that Council will not be able to collect all amounts due, the carrying amount is reduced with provision being made for impairment. The loss is recognised in other expenses. The amount of the provision is the difference between the asset‟s carrying amount and the present value of the estimated cash flows, discounted at the effective interest rate. Increases in the provision for impairment are based on loss events. All known bad debts were written-off against the provision for impairment at 30 June. Subsequent recoveries of amounts previously written off are credited against other expense in the income statement. 1(l) Other Financial Assets Other Financial Assets are recognised at cost. 1 (m) Financial Assets and Financial Liabilities Categorisation Maranoa Regional Council has categorised the financial assets and financial liabilities held at balance date as follows:

Financial Assets Categorisation

Cash

Receivables Receivables (at amortised cost)

Financial Liabilities

Payables Financial liability (at cost)

Borrowings Financial liability (at amortised cost)

Financial assets and financial liabilities are presented separately from each other, offsetting has not been applied. The fair value of financial assets and liabilities must be estimated for recognition and measurement and for disclosure purposes. The fair value of financial assets and liabilities is determined as follows: The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying amounts and are not disclosed separately.


The fair value of borrowings, as disclosed in note 19 to the accounts, is determined by reference to pricing models and valuation techniques. It reflects the value of the debt if the Council repaid it in full at balance date. As it is the intention of the Council to hold its borrowings for their full term, no adjustment provision is made in these accounts. The fair value of trade receivables and payables are assumed to approximate their nominal value less estimated credit adjustments. 1 (n) Inventories Inventories held for distribution are: • goods to be supplied at no, or nominal, charge, and • goods to be used for the provision of services at no, or nominal, charge. These goods are valued at cost, adjusted, when applicable, for any loss of service potential. 1 (o) Land Held for Resale Land held for resale, (with or without further development) is classified as inventory. As inventory, this land is valued at the lower of cost or net realisable value. Inventory items are always treated as current assets. Profit arising upon sale of land is recognised in the Income Statement on the signing of a valid unconditional contract of sale. 1 (p) Property, Plant and Equipment Each class of property, plant and equipment is stated at cost or fair value less, where applicable, any accumulated depreciation and accumulated impairment loss. Items of plant and equipment with a total value of less than $1,000, and infrastructure assets, and buildings with a total value of less than $10,000 are treated as an expense in the year of acquisition. All other items of property, plant and equipment are capitalised. The classes of property, plant and equipment recognised by the Council are: Land and improvements Buildings Plant and Equipment Road, drainage and bridge network Water Sewerage Other infrastructure assets (i) Acquisition of Assets Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the


acquisition, including freight in, architect's fees and engineering design fees and all other establishment costs. Non-monetary assets, including property, plant and equipment, received in the form of contributions are recognised as assets and revenues at fair value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Assets transferred from the former Bendemere, Booringa, Bungil and Warroo Shire Councils, the Roma Town Council and the Roma Bungil Showgrounds and Saleyards Board, as a result of a Government restructure, were initially recognised at the amount at which they were recognised by the former Councils as at the changeover day as disclosed in Note 1.A and Note 10. (ii) Capital and operating expenditure Wage and materials expenditure incurred for the acquisition or construction of assets are treated as capital expenditure. Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major component of an asset to maintain its service potential is capitalised. (iii) Valuation Land and improvements, buildings, major plant and equipment and all infrastructure assets are measured on the revaluation basis, at fair value, in accordance with AASB116 Property, Plant and Equipment and the Local Government Finance Standard 2005. Other plant and equipment is measured at cost. Non-current physical assets measured at fair value are revalued where required so that the carrying amount of each class of asset does not materially differ from its fair value at the reporting date. This is achieved by comprehensively revaluing these assets at least once every five years with interim valuations, using a suitable index, being otherwise performed on an annual basis where there has been a material variation in the index. Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation reserve of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation reserve relating to that asset class. On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life. Separately identified components of assets are measured on the same basis as the assets to which they relate.


Details of valuers and methods of valuations are disclosed in Note 16 (a). (iv) Depreciation Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to the Council. Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and commissioned ready for use. Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the Council. Major spares purchased specifically for particular assets that are above the asset recognition threshold are capitalised and depreciated on the same basis as the asset to which they relate. The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated useful lives of the improvements to the Council or the unexpired period of the lease, whichever is the shorter. The estimated useful lives of property, plant and equipment are reviewed annually. Details of the range of useful lives for each class of asset are shown in note 16. (v) Unfunded Depreciation Maranoa Regional Council has elected not to fund depreciation expenses for assets that will not be replaced or where external funding sources other than loans will be obtained to fund their replacement. Depreciation is funded to the extent necessary to meet future replacement capital works. (vi) Land Under Roads The Maranoa Regional Council does not control any land under roads. All land under the road network within the Council area has been dedicated and opened for public use under the Land Act 1994 or the Land Title Act 1994 and is not controlled by Council but is controlled by the State pursuant to the relevant legislation. Therefore this land is not recognised in these financial statements. 1 (q) Capital Work in Progress


The cost of property, plant and equipment being constructed by the Council includes the cost of purchased services, materials, direct labour and an appropriate proportion of labour overheads. 1 (r) Impairment of Non Current Assets Each non-current physical and intangible asset and group of assets is assessed for indicators of impairment annually. If an indicator of possible impairment exists, the Council determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost. An impairment loss is recognised immediately in the Income Statement, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve of the relevant class to the extent available. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. 1 (s) Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are unsecured and are generally settled on 30 day terms. 1 (t) Liabilities - Employee Benefits Liabilities are recognised for employee benefits such as wages and salaries, annual leave and long service leave in respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are assessed at each reporting date. Where it is expected that the leave will be taken in the next twelve months the liability is treated as a current liability. Otherwise the liability is treated as non-current. (i) Salaries and Wages A liability for salaries and wages is recognised and measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date. This liability represents an accrued expense and is reported in Note 18 as a payable.


(ii) Annual Leave A liability for annual leave is recognised. The current portion (based on the expected payment date) is calculated on current wage and salary levels and includes related employee on-costs. The non current portion is calculated on projected future wage and salary levels and related employee on-costs, discounted to present values. This liability represents an accrued expense and is reported in Note 18 as a payable. (iii) Superannuation The superannuation expense for the reporting period is the amount of the contribution the local government makes to the superannuation plan which provides benefits to its employees. Details of those arrangements are set out in Note 27. (iv) Long Service Leave A liability for long service leave is measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. The value of the liability is calculated using current pay rates and projected future increases in those rates and includes related employee on-costs. The estimates are adjusted for the probability of the employee remaining in the Council's employment or other associated employment which would result in the Council being required to meet the liability. Adjustments are then made to allow for the proportion of the benefit earned to date, and the result is discounted to present value. The interest rates attaching to Commonwealth Government guaranteed securities at the reporting date are used to discount the estimated future cash outflows to their present value. This liability is reported in Note 20 as a provision. 1 (u) Borrowings Loans payable are measured at amortised cost using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument. Borrowing costs, which includes interest calculated using the effective interest method and administration fees, are expensed in the period in which they arise. Costs that are not settled in the period in which they arise are added to the carrying amount of the borrowing. Borrowing costs are treated as an expense, as assets constructed by the Council are generally completed within one year and therefore are not considered to be qualifying assets. Gains and losses on the early redemption of borrowings are recorded in other revenue / expense.


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 balance sheet date.


1 (v) Restoration Provision A provision is made for the cost of restoration of assets and other future restoration costs where it is probable the Council will be liable, or required, to incur such a cost on the cessation of use of the facility. This liability is provided in respect of Depots and Sawmills. The provision is measured at the expected cost of the work required discounted to current day values using an appropriate rate. The current QTC lending rate is considered an appropriate rate. Depots and Sawmills are on land wholly owned by Council. The cost of the restoration provision is therefore be added to the cost of the land as an improvement and amortised over the expected useful life of the pit. Changes in the provision not arising from the passing of time are added to or deducted from the asset revaluation reserve for land. If there is no available reserve increases in the provision are treated as an expense and recovered out of future decreases if any. This liability is reported in note 18 as a provision. Changes to the provision resulting from the passing of time (the unwinding of the discount) are treated as a finance cost. 1 (w) Asset Revaluation Reserve The asset revaluation reserve comprises adjustments relating to changes in value of property, plant and equipment that do not result from the use of those assets. Net incremental changes in the carrying value of classes of non-current assets since their initial recognition are accumulated in this reserve. Increases and decreases on revaluation are offset within a class of assets. Where a class of assets is decreased on revaluation, that decrease is offset first against the amount remaining in the asset revaluation reserve in respect of that class. Any excess is treated as an expense. When an asset is disposed of the amount in the reserve in respect of that asset is retained in the reserve. 1 (x) Reserves The following reserves are cash backed reserves and represent funds that are accumulated within the Council to meet anticipated future needs. In each case the amount relates to a perceived future requirement which is not currently a liability. (i) Future Capital Works Reserve This reserve represents amounts set aside for the future replacement of the Council's capital assets. (ii) Asset Replacement Reserve


This reserve represents contributions set aside for replacement of infrastructure assets. (iii) Capital Grants Reserve This reserve represents contributions received for capital works where the required works have not yet been carried out. 1 (y) Retained Surplus This represents the amount of Council's net funds not set aside in reserves to meet specific future needs. 1 (z) National Competition Policy The Council has reviewed its activities and has identified six activities that are business activities. Details of these activities can be found in Note 31. 1 (aa) Rounding and Comparatives Amounts included in the financial statements have been rounded to the nearest $1. Comparative figures have not been provided as Maranoa Regional Council commenced operation on 15 March 2008 and the financial statements cover the period from 15 March 2008 to 30 June 2009. 1 (ab) Financial Risk Management The Council minimises its exposure to financial risk in the following ways: Investments in financial assets are only made where those assets are with a bank or other financial institution in Australia and are for a period of less than one year. The Council does not invest in derivatives or other high risk investments. When the Council borrows, it borrows from the Queensland Treasury Corporation. Borrowing by the Council is constrained by the provisions of the Statutory Bodies Financial Arrangements Act 1982. Details of financial instruments and the associated risks are shown at note 30. 1 (ac) Judgements and Assumptions The Council has made no judgements or assessments which may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.


1 (ad) Trust Funds Held for Outside Parties Funds held in the Trust Account on behalf of outside parties include, deposits for the contracted sale of land, security deposits lodged to guarantee performance and unclaimed monies (e.g. wages) paid into the Trust Account by the Council. The Council performs only a custodian role in respect of these monies and because the monies cannot be used for Council purposes, they are not considered revenue nor brought to account in the financial statements. The monies are disclosed in the notes to the financial statements for information purposes only. For details see note 28. 1 (ae) Taxation Income of local authorities and public authorities is exempt from Commonwealth taxation except for Fringe Benefits Tax and Goods and Services Tax („GST‟). The net amount of GST recoverable from the ATO or payable to the ATO is shown as an asset or liability respectively.

Note 2 Analysis of results by function Income and expenses defined between recurring and capital are attributed to the following functions: (a) Period ended 30 June 2009

Functions

Gross program income

Elimination of inter-function

transactions

Total

Income

Total

Expenses


transactions

Total expenses

Net result from

recurring operations

Net result attributable to council

Assets

Recurring

Capital

2009 2009 2009 2009 2009 2009 2009 2009 2009 2009

$ $ $ $ $ $ $ $ $ $

Corporate Governance

11,519,926

16,935,719

28,455,645

(8,849,969)

(8,849,969)

19,605,676

19,605,676

22,310,638

Corporate Services

2,931,138 -

2,931,138

(2,188,189)

(2,188,189)

742,949

742,949

48,357,022

Community Services

2,555,435

3,424,768

5,980,203

(13,189,037)

(13,189,037)

(7,208,834)

(7,208,834)

46,072,730

Planning & Development

700,859 -

700,859

(2,578,926)

(2,578,926)

(1,878,067)

(1,878,067)

388,383

Transport Infrastructure

20,976,467

7,398,826

28,375,293

(44,480,347)

(44,480,347)

(16,105,054)

(16,105,054)

312,466,937

Waste Management

939,242 -

939,242

(2,115,834)

(2,115,834)

(1,176,592)

(1,176,592)

253,044

Water Infrastructure

2,822,574 -

2,822,574

(5,121,212)

(5,121,212)

(2,298,638)

(2,298,638)

48,298,853

Sewerage Infrastructure

1,565,322 -

1,565,322

(1,898,165)

(1,898,165)

(332,843)

(332,843)

23,140,596

Total consolidated

44,010,963

27,759,313

-

71,770,276

(80,421,679)

-

(80,421,679)

(8,651,403)

(8,651,403)

501,288,203


Functions

Gross program income Elimination

of inter-function

transactions

Total income

Gross program expenses Recurring


transactions

Total expenses

Net result from



Assets

Recurring

Capital

2008 2008 2008 2008 2008 2008 2008 2008 2008 2008

$ $ $ $ $ $ $ $ $ $


1,173,713 -

-

1,173,713

(1,452,470)

-

(1,452,470)

(278,757)

(278,757)

Finance & Information

2,056,368 -

-

2,056,368

(941,567)

-

(941,567)

1,114,801

1,114,801

Community Services

1,419,753 -

-

1,419,753

(3,249,479)

-

(3,249,479)

(1,193,111)

(1,829,726)

Planning & Development 104,621 -

-

104,621

(530,477)

-

(530,477)

889,276

(425,856)


4,451,836 -

-

4,451,836

(7,788,906)

-

(7,788,906)

(3,337,070)

(3,337,070)

Waste Management

20,709 -

-

20,709

(466,840)

-

(466,840)

(446,131)

(446,131)


(146,253) -

-

(146,253)

(445,883)

-

(445,883)

(592,136)

(592,136)


817 -

-

817

(39,718)

-

(39,718)

(38,901)

(38,901)

Total consolidated

9,081,564 -

-

9,081,564

(14,915,340)

-

(14,915,340)

(3,882,029)

(5,833,776)

-


Functions

Gross program income

Elimination of

inter-function

transactions

Total income

Gross program expenses

Recurring

Elimination of

inter-function

transactions

Total expenses

Net result from



Assets Recurring

Capital

2009 2009 2009 2009 2009 2009 2009 2009 2009 2009

$ $ $ $ $ $ $ $ $ $


10,346,213

16,935,719

27,281,932

(7,397,499)

(7,397,499)

2,948,714

19,884,433

22,310,638

Finance & Information

874,770

874,770

(1,246,622)

(1,246,622)

(371,852)

(371,852)

48,357,022

Community Services

1,135,682

3,424,768

4,560,450

(9,939,558)

(9,939,558)

(8,803,876)

(5,379,108)

46,072,730

Planning & Development

596,238

596,238

(2,048,449)

(2,048,449)

(1,452,211)

(1,452,211)

388,383


16,524,631

7,398,826

23,923,457

(36,691,441)

(36,691,441)

(20,166,810)

(12,767,984)

312,466,937

Waste Management

918,533

918,533

(1,648,994)

(1,648,994)

(730,461)

(730,461)

253,044


2,968,827

2,968,827

(4,675,329)

(4,675,329)

(1,706,502)

(1,706,502)

48,298,853


1,564,505

1,564,505

(1,858,447)

(1,858,447)

(293,942)

(293,942)

23,140,596

Total consolidated

34,929,399

27,759,313

-

62,688,712

(65,506,339)

-

(65,506,339)

(30,576,940)

(2,817,627)

501,288,203

Note 2 Cont. (b) Components of Council functions The activities relating to the Council's components reported on in Note 2(a) and 2(b) are as follows : Corporate Governance This comprises the support functions for the Mayor and Councillors, Council and committee meetings and statutory requirements. Corporate Services The support functions of Management of the Council's finance, information technology, customer service and administration. Community Services Community services and facilities including cultural, health, welfare, environmental and recreational services. This function includes: Libraries Entertainment venues Environmental licences and approvals Planning and Development Management of the approval processes for development and building applications within the Council boundaries. Transport Infrastructure Providing and maintaining roads and drainage. Waste Management Providing refuse collection and disposal services. Water Infrastructure Providing water supply services. Sewerage Infrastructure Providing sewerage services.


Note 3 Revenue Analysis 2009 Note $ Revenue analysis Rates and charges General rates 11,112,719 Separate rates 48,344 Water 2,290,072 Water consumption, rental and sundries 24,000 Sewerage 1,527,301 Waste management (902) Garbage charges 837,318 Total rates and utility charge revenue 15,838,852 Less: Discounts (1,718,360) Less: Pensioner remissions (100,257) Net rates and utility charges 14,020,235 Fees and charges Fees and charges - General 3,871,930 Fees and charges - Saleyards 3,973,442 7,845,372 Rental income Council property rentals 526,382 526,382 Interest received Interest received from cash investments 1,651,267 Other sources 1,244 Interest from overdue rates and utility charges 31,638 1,684,149 Sales - Contract and recoverable works Sales - Contract and recoverable works 13,881,072 13,881,072 The amount recognised as revenue for contract revenue during the period is the amount receivable in respect of invoices issued during the period. The contract work carried out is not subject to retentions. Other recurrent income Other Income 219,915 219,915


Note 4 Grants, subsidies, contributions and donations Recurrent grants and subsidies, other contributions and donations are analysed as follows: General purpose grants 18,039,285 State Government subsidies & grants 6,401,225 Federal Government subsidies & grants 1,307,938 Donations 8,556 Contributions 437,321

Total recurrent revenue 26,194,325

Capital government grants and subsidies, and other contributions are analysed as follows: State Government subsidies & grants 1,574,828 Federal Governement subsidies & grants 5,440,061 Contributions 516,839

Total capital revenue 7,531,728

Note 5 Capital income Gain on the disposal of non-current assets Note Proceeds from the sale of plant & equipment 647,831 Less: Book value of property, plant & equipment disposed of

16 (614,513)

Gain on sale of plant and equipment 33,318

Proceeds from sale of land and improvements

473,780

Less: Book value of land sold 16 (640,000)

(Loss) on sale of land and improvements (166,220)

Total capital income (132,902)


Note 6 Employee benefits Note Total staff wages and salaries 14,133,300 Councillors' remuneration 512,913 Annual, sick and long service leave entitlements

3,308,930

Superannuation 27 2,423,494

20,378,637

Other employee related expenses 139,695

20,518,332

Less : Capitalised employee expenses 20,518,332

Councillors' remuneration represents salary, and other allowances paid in respect of carrying out their duties Total Council employees at the reporting date: 2009 Elected members 9 Administration staff 120 Social Service Staff 86 Depot and outdoors staff 249

Total full time equivalent employees 464

Note 7 Materials and services Advertising and marketing 203,814 Administration supplies and consumables 508,200 Audit services 211,040 Communications and IT 1,763,164 Consultants 227,534 Contractors 4,832,777 Donations 213,532 Insurance (General and P/Liab) 536,259 Power 1,034,237 Repairs and maintenance 17,418,907 Rentals - Operating leases 972,659 Subscriptions and registrations 123,185 Travel 83,998 Other material and services 6,342,983

34,472,289


Note 8 Financial Costs Finance costs charged by the Queensland Treasury Corporation

820,617

Bank charges 42,171 Other costs

862,788

Note 9 Depreciation and Amortisation (a) Depreciation of non-current assets 16 Land Improvements 3,213 Buildings 2,848,546 Major plant 2,964,228 Road, Drainage and Bridge Network 14,145,584 Water 2,248,106 Sewerage 1,273,116 Other Infrastructure Assets 1,085,477

Total depreciation of non current assets 24,568,270

(b) Accumulated Unfunded Depreciation The accumulated un-funded depreciation represents the accumulated shortfall in funding being provided from operating revenue to replace the assets at some future time. It is anticipated external borrowings will be required as the assets are replaced resulting in higher future operating costs. Recognition of un-funded depreciation represents a decline in the capital value of the Council. Net adjusted unfunded depreciation is calculated by taking the gross unfunded depreciation and deducting the amount of depreciation that will not require funding due to either non-replacement of the asset, contributions becoming available for funding the replacement, the replacement asset will cost less than the existing asset, or the engineers assessment of depreciation funding is less than the depreciation expense in the period. The gross and net unfunded depreciation are yet to be determined.

Note 10 Gain on restructure of local government The Local Government Reform Commission report to the Minister for Local Government, Planning and Sport on 27 July 2007 recommended that the former Bendemere, Booringa, Bungil and Warroo Shire Councils, the Roma Town Council and the Roma Bungil Saleyards and Showgrounds Board be amalgamated to form the Roma Regional Council (subsequently renamed Maranoa Regional Council). Pursuant to Part 1B of the Local Government Act 1993 and in accordance with the Local Government Reform Implementation Regulation 2008 the amalgamation was effective from the changeover date of 15 March 2008. The Local Government Reform Implementation Regulation 2008 and the Local Government Reform Implementation (Transferring Areas) Amendment Regulation (No.1) 2008 transferred the assets and liabilities of the former Bendemere, Booringa, Bungil and Warroo Shire Councils, the Roma Town Council and the Roma Bungil Saleyards and Showgrounds Board to the Maranoa Regional Council as at changeover date. The assets and liabilities of the former Councils have been recognised at the amounts at which the they were recognised by the transferor local governments as at the changeover day. Maranoa Regional Council adopted consistent accounting policies from its commencement date of 15 March 2008. In some cases, this resulted in adjustments to the measurement of assets and liabilities transferred from former Councils as at 15 March 2008. Details are as follows:

Roma Town Council

Bungil Shire Council

Booringa Shire Council

Bendemere Shire Council

Warroo Shire

Council

Roma Bungil Saleyards and Showgrounds

Board

Total assets and liabilities

recognised by Maranoa Regional

Council

Adjustments due to

accounting policy

alignment Gain on restructure of local

government 14 March

2008 14 March

2008 14 March 2008 14 March

2008 14 March

2008 14 March 2008 15 March 2008 2009 2009

ASSETS $ $ $ $ $ $ Current Assets

Cash and cash equivalents 4,717,818

4,718,239

4,332,660 8,567,942

3,133,325 1,020,324

26,490,308

- 26,490,308

Trade and other receivables 1,942,423

4,256,271

1,071,885 345,416

483,421 197,380

8,296,796

8,296,796

Inventories 244,903

419,408

276,543 31,105

72,402 48,593

1,092,954

- 1,092,954

Other financial assets -

50,665

84,199 -

- -

134,864

- 134,864

5,765,287 1,266,297 36,014,922


6,905,144 9,444,583 8,944,463 3,689,148 36,014,922 - Non-current assets classified

as held for sale

-

- -

Total current assets 6,905,144

9,444,583

5,765,287 8,944,463

3,689,148 1,266,297

36,014,922

- 36,014,922

Non-current Assets Receivables

- -

- -

136,875

- 136,875

- 136,875

Non current assets held for sale

-

-

30,400 -

-

- 30,400

- 30,400

Property, plant and equipment 68,304,816

79,928,164

94,696,764 32,178,825

39,357,141

9,207,284 323,672,994

(5,088,227) 318,584,767

Capital works in progress 7,237,889

3,252,729

950,694 -

1,181,781

151,680 12,774,773

12,774,773

Total non-current assets 75,542,705

83,180,893

95,677,858 32,178,825

40,675,797

9,358,964 336,615,042

(5,088,227) 331,526,815

TOTAL ASSETS 82,447,849

92,625,476

101,443,145 41,123,288

44,364,945

10,625,261 372,629,964

(5,088,227) 367,541,737

LIABILITIES Current Liabilities

Trade and other payables 1,203,941

920,848

830,999 454,334

886,546

45,666 4,342,334

- 4,342,334

Borrowings 584,725

292,078

- -

-

16,701 893,504

- 893,504

Provisions -

-

- -

-

- -

- -

Other -

2,517

- -

-

- 2,517

-

2,517

Total current liabilities 1,788,666

1,215,443

830,999 454,334

886,546

62,367 5,238,355

-

5,238,355

Non-current Liabilities Trade and other payables

152,983 72,948

87,087 -

-

- 313,018

-

313,018

Borrowings 8,148,909

1,882,479

- -

-

269,522 10,300,910

-

10,300,910

Provisions 349,045

322,596

331,160 75,944

51,663

11,846 1,142,254

-

1,142,254

Total non-current liabilities 8,650,937

2,278,023

418,247 75,944

51,663

281,368 11,756,182

-

11,756,182

TOTAL LIABILITIES 10,439,603

3,493,466

1,249,246 530,278

938,209

343,735 16,994,537

-

16,994,537

NET ASSETS TRANSFERRED FROM ABOLISHED COUNCILS

72,008,246 89,132,010 100,193,899

40,593,010

43,426,736 10,281,526 355,635,427

(5,088,227) 350,547,200

Note 10 Cont. Adjustments due to accounting policy alignment 2009 $ Property, plant and equipment was adjusted for a revaluation indexation adopted by a former Council not taken up by the valuers in the subsequent revaluation. (5,088,227)

(5,088,227)

Net result attributable to Council before net assets transferred from abolished Councils Net result attributable to Council 341,895,797 Gain on restructure of local government (350,547,200)

Net result attributable to Council before Gain on restructure of local government (8,651,403)


Note 11 Cash and cash equivalents 2009 Note $

Cash at bank and on hand

10,054

Deposits at call

3,534,262

Term Deposits

15,608,077

Balance per cash flow statement

19,152,393

Externally imposed expenditure restrictions at the reporting date relate to the following cash assets:

Unspent government capital grants and subsidies 23 a (iii)

1,304,973

Unspent developer contributions

-

Total unspent restricted cash for capital projects

1,304,973

Note 12 Trade and other receivables Current

Rateable revenue and utility charges

2,962,834

Water charges not yet levied

200,000

Other debtors

4,822,018

7,984,852

Less provision for doubtful debts

-

7,984,852

Interest is charged on outstanding rates at a rate of 11% per annum. No interest is charged on other debtors. There is no concentration of credit risk for rates and utility charges, fees and other debtors receivable.


Note 13 Inventories Current Inventories held for distribution: Quarry, road materials and plant and equipment stores

1,807,256

Total inventories for distribution 1,807,256

Valued at cost, adjusted when applicable for any loss of service potential

Note 14 Other financial assets Current 290,086

290,086

Note 15 Non-current assets classified as held for sale Land which was previously used for the old depot. 30,400

30,400

The land is valued at the lower of cost or net re-saleable value.

Note 16 Property, plant and equipment

Land and

Improvements Buildings Plant &

equipment Road, Drainage and

Bridge Network Water Sewerage

Other Infrastructure

Assets Total Basis of measurement Revaluation Revaluation Revaluation Revaluation Revaluation Revaluation Revaluation 2009 2009 2009 2009 2009 2009 2009 2009 Asset Values $ $ $ $ $ $ $ $ Opening net value transferred from abolished Councils

318,943,946

8,664,233

48,914,187

23,436,092 203,492,661

16,782,623

8,044,952 9,609,198

Additions at cost

6,765,614

502,217

457,310

2,630,391 1,756,761

478,985

12,705 927,245

Disposals

(2,016,138)

(640,000) -

(1,376,138) - - - - Revaluation adjustment to the ARR

287,865,394

13,675,448

39,713,670

14,682,571 141,372,716

41,752,107

25,163,779 11,505,103

Internal transfers

- - - - - - - -

Closing gross value

611,558,816

22,201,898

89,085,167

39,372,916 346,622,138

59,013,715

33,221,436 22,041,546 Accumulated Depreciation and Impairment Depreciation provided in period

24,568,270

3,213

2,848,546

2,964,228 14,145,584

2,248,106

1,273,116 1,085,477

Depreciation on disposals

(761,626) - -

(761,626) - - - - Revaluation adjustment to the ARR

86,463,969

21,050

12,267,250

14,682,571 33,032,324

12,843,922

9,075,417 4,541,435

Internal transfers - - - - - - - - Accumulated depreciation at period end

110,270,613

24,263

15,115,796

16,885,173 47,177,908

15,092,028

10,348,533 5,626,912

Total written down value at period end

501,288,203

22,177,635

73,969,371

22,487,743 299,444,230

43,921,687

22,872,903 16,414,634

Range of estimated useful life in years

Land: Not depreciated Improvements: 31 40 - 100 10 - 15 10 - 100 20 - 80 20 - 80 20 - 60

Note 16 Cont. (a) Property, plant and equipment valuations were determined by reference to the following: Land and Improvements Land has been included at current market value as at 30 June 2008 as determined by Lachlan Black B.Bus, RV 2913 and Benjamin Kingsberry B.App, Sc, RV 3042 of Australian Pacific Valuers P/L of 379 Queen St Brisbane. Land under infrastructure and reserve land does not have a value for the purpose of the Maranoa Regional Council's financial statements. Buildings Buildings have been included at current market value as at 30 June 2008 as determined by Lachlan Black B.Bus, RV 2913 and Benjamin Kingsberry B.App, Sc, RV 3042 of Australian Pacific Valuers P/L of 379 Queen St Brisbane. Other Plant and Equipment Other plant and equipment is measured at original cost less accumulated depreciation. Infrastructure Water and Sewerage Infrastructure Included at the written down current replacement cost as at 30 June 2008 as determined by John Deac B Eng, of Australian Pacific Valuers P/L of 379 Queen St Brisbane. Road and Drainage and other Infrastructure Included at the written down current replacement cost as at 30 June 2008 as determined by John Deac B Eng, of Australian Pacific Valuers P/L of 379 Queen St Brisbane.


NOTE 17 Capital work in progress

Capital work in progress 27,733,542

27,733,542

NOTE 18 Trade and other payables

Current

Creditors and accruals

1,569,165

Annual leave

1,425,513 Other entitlements/payables 494,475

3,489,153

Non Current

Annual leave

251,850 Other Provisions - Depot and sawmill restoration

35,029

286,879

NOTE 19 Borrowings

Current Loans QTC 0 1,168,605

1,168,605

Non-Current

Loans QTC 0 8,701,539

8,701,539


NOTE 19 Cont. Details of movements in borrowings:

Queensland Treasury Corporation

Transferred from Roma Town Council, Bungil Shire Council and Roma Bungil Showgrounds and Saleyards Board as part of the Government restructure. 1.A, 10

11,194,414

Loans raised -

Principal repayments (1,324,270)

Book value at period end 9,870,144

Classified as :

Current 1,168,605

Non-current 8,701,539

9,870,144

The loan market value at the reporting date was $9,942,288 This represents the value of the debt if the Council repaid it at that date. As it is the intention of the Council to hold the debt for its term, no provision is required to be made in these accounts. NOTE 20 Provisions

Current Long Service Leave 161,519

161,519

Non-Current

Long Service Leave 1,181,815

1,181,815

Details of movements in provisions: Long Service Leave

Transferred from Roma Town Council, Bungil, Booringa, Bendemere, Warroo Shire Councils and Roma Bungil Saleyards and Showgrounds Board 1.A, 10

1,103,942

Long service leave entitlement arising 297,066 Long Service entitlement book adjustment 32,684 Long Service entitlement paid (90,368)

Balance at the end of period 1,343,324

Classified as : Current 161,509 Non-current 1,181,815

Balance at the end of period 1,343,324


NOTE 21 Asset revaluation reserve (a) Movements in the asset revaluation reserve were as follows:

Balance at beginning of period -

Net adjustment to non-current assets at end of period to reflect a change in current fair value:

Land and improvements

13,654,398

Buildings

27,446,420

Roads & drainage

108,340,392

Water infrastructure

28,908,185

Sewerage infrastructure

16,088,362

Other infrastructure assets

6,963,668

Sub-total adjustment

201,401,425

Balance at end of period

201,401,425

(b) Asset revaluation reserve analysis

The closing balance of the asset revaluation reserve is comprised of the following asset . categories:

Land and improvements

13,654,398

Buildings

27,446,420

Roads & Drainage

108,340,392

Water infrastructure

28,908,185

Sewerage infrastructure

16,088,362

Other Infrastructure Assets

6,963,668

201,401,425


NOTE 22 Retained surplus Movements in the retained surplus were as follows: Retained surplus/(deficit) at the beginning of financial year

-

Change in Net Assets resulting from operations after gain on restructuring

341,895,797

Transfers (to) from capital reserves for future capital project funding, or from reserves funds that have been expended:

Future capital works reserve 23 c (i)

(4,896,246)

Asset replacement reserve 23 c (ii)

(9,845,728)

Constrained public contributions reserve 23 c (iii)

(1,304,973)

Transfers (to) recurrent reserves for future project funding, or from reserves funds that have been expended:

Non capital grants reserve 23 d (i)

-

Retained surplus at the end of the financial year

325,848,850

NOTE 23 Capital and other reserves (a) Summary of reserves held for funding future capital expenditure:

(i) Future capital works reserve 4,896,246

(ii) Asset replacement reserve 9,845,728

(iii) Capital grants reserve 1,304,973

16,046,947

(b) Summary of reserves held for funding future recurrent expenditure:

(i) Non Capital grants reserve -

Total reserves 16,046,947


NOTE 23 Cont. (c) Movements in capital reserves are analysed as follows:

(i) Future capital works reserve

Balance at the beginning of period

- Transfer from retained earnings for future expenditure 22

4,896,246

Transfer (to) retained earnings/capital funds expended in the period

-

Balance at the end of period

4,896,246

(ii) Asset replacement reserve



9,845,728


-


9,845,728

(iii) Capital grants reserve



1,304,973


-


1,304,973

(d) Movements in recurrent reserves are analysed as follows:

(i) Non capital grants reserve -

Balance at the beginning of period -

Transfer from retained earnings for future expenditure 22

-

Transfer (to) retained earnings

Balance at the end of period -


NOTE 24 Commitments for expenditure

Contractual Commitments

Contractual commitments at balance date but not recognised in the financial statements are as follows:

Garbage collection contract expires 30 June 2014

276,000

276,000

NOTE 25 Contingent liabilities Details and estimates of maximum amounts of contingent liabilities are as follows: Local Government Mutual The Maranoa Regional Council is a member of the local government mutual liability self-insurance pool, LGM Queensland. In the event of the pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules provide that any accumulated deficit will be met by the individual pool members in the same proportion as their contribution is to the total pool contributions in respect to any year that a deficit arises. As at 30 June 2008 the financial statements reported an accumulated surplus and it is not anticipated any liability will arise. Local Government Workcare The Maranoa Regional Council is a member of the Queensland local government worker's compensation self-insurance scheme, Local Government Workcare. Under this scheme the Council has provided an indemnity towards a bank guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was insufficient funds available to cover outstanding liabilities. Only the Queensland Government‟s workers compensation authority may call on any part of the guarantee should the above circumstances arise. The Council's maximum exposure to the bank guarantee is $120,000. NOTE 26 Events after balance date There were no material adjusting events after the balance date.


NOTE 27 Superannuation The Maranoa Regional Council contributes to the local government superannuation scheme (the scheme). The scheme has two elements referred to as the defined benefits scheme and the accumulation scheme. Both these schemes are defined contribution schemes as defined in the Australian Accounting Standard AASB119 Employee benefits. Council has no liability to or interest in the scheme other than the payment of the statutory contributions. Any amount by which either scheme is over or under funded would only affect future benefits and is not an asset or liability of the council. Accordingly there is no recognition in the financial statements of any over- or under-funding of the scheme. The audited general purpose financial report of the scheme as at 30 June 2008 (the most recent available) which was not subject to any audit qualification, indicates that the assets of the scheme are sufficient to meet the accrued benefits. The general purpose financial statements disclose that the most recent actuarial assessment of the scheme was undertaken as at 30 June 2008. The actuary indicated that without improvements to benefit conditions, or other unanticipated events, current contribution rates would be sufficient to meet members benefits as they accrue. The Queensland Local Government Superannuation Board, the trustee of the scheme, advised that the local government superannuation scheme was a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry (Supervision) legislation. The amount of superannuation contributions paid by Maranoa Regional Council to the superannuation scheme in this period for the benefit of employees was:

6

2,423,494 NOTE 28 Trust funds

Monies collected or held on behalf of other entities yet to be paid out to or on behalf of those entities

107,641

Security deposits

104,670

Bonds - Planning, building

212,120

424,431 The Maranoa Regional Council performs only a custodial role in respect of these monies. As these funds cannot be used by the Council, they are not brought to account in these financial statements.


NOTE 29 Reconciliation of result from ordinary activities to net cash inflow (outflow) from operating activities

Result from ordinary activities

341,895,797 Non-cash operating items:

Depreciation and amortisation

24,568,270

Gain on restructure

(350,547,200)

(325,978,930) Investing activities :

Net (profit) loss on disposal of non current assets

132,902

Capital grants and contributions

(7,531,728)

(7,398,826) Financing Activities

- Changes in operating assets and liabilities :

Decrease / (increase) in receivables

448,820

(Increase) / decrease in inventories

(714,302) (Increase) / decrease in other operating assets

(155,222)

(Decrease) / increase in payables

(881,837)

Increase / (decrease) in other provisions

201,070

(1,101,471)

Net cash inflow from operating activities

7,416,570


NOTE 30 Financial Risk Management Maranoa Regional Council‟s activities expose it to a variety of financial risks including credit risk, liquidity risk and interest rate risk. Exposure to financial risks is managed in accordance with Council approved policies on financial risk management. These policies focus on managing the volatility of financial markets and seek to minimise potential adverse effects on the financial performance of the Council. Maranoa Regional Council measures risk exposure using a variety of methods as follows:

Risk exposure Measurement method

Credit risk Ageing analysis

Liquidity risk Maturity analysis

Interest rate risk Sensitivity analysis

(i) Credit Risk Credit risk exposure refers to the situation where the Council may incur financial loss as a result of another party to a financial instrument failing to discharge their obligations. In the case of rate receivables, the Council has the power to sell the property to recover any defaulted amounts. In effect this power protects the Council against credit risk in the case of these debts. In other cases, the Council assesses the credit risk before providing goods or services and applies normal business credit protection procedures to minimise the risk. The Council is exposed to credit risk through its investments with the Queensland Treasury Corporation (QTC) and deposits held with National Australia Bank (NAB). The QTC Cash Fund is an asset management portfolio that invests with a wide variety of high credit rating counterparties. Deposits are capital guaranteed. Other investments are held with the NAB and whilst not capital guaranteed, the likelihood of a credit failure is remote. By the nature of the Council's operations, there is a geographical concentration of risk in the Council's area. Because the area is largely agricultural/mining, there is also a concentration in these sectors. The maximum exposure to credit risk at balance date in relation to each class of recognized financial asset is the gross carrying amount of those assets inclusive of any provisions for impairment. No collateral is held as security relating to the financial assets held by the Council.


NOTE 30 Cont. The following table represents the Council's maximum exposure to credit risk:

2009

Financial Assets $

Cash and cash equivalents - QTC

15,608,077

Cash and cash equivalents – bank (NAB)

3,534,262

Receivables - rates

2,962,834

Receivables - other

4,822,018

Total 26,927,191

Past due or impaired No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated. The following table represents an analysis of the age of the Council's financial assets that are either fully performing, past due or impaired:

Fully Performing

Past due Impaired Total

Less than 30 days

30-60 days

61-90 days

$ $ $ $ $ $

2,962,834

3,698,119 143,140 980,759 Nil 7,784,852 Receivables

(ii) Liquidity Risk Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations associated with financial liabilities. The Council is exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland Treasury Corporation for capital works. The Corporation manages its exposure to liquidity risk by maintaining sufficient undrawn facilities, both short and long term, to cater for unexpected volatility in cash flows. These facilities are disclosed in the Borrowings note 19.


NOTE 30 Cont. The following table sets out the liquidity risk of financial liabilities held by the Council in a format as it might be provided to management. The amounts disclosed in the maturity analysis represent the contractual undiscounted cash flows at balance date: Financial Liabilities-Maturity analysis 0 to 1 year 1 to 5 years Over 5

years Total

$ $ $ $

2009 0 2,517,269 7,352,875 9,870,144

Financing Arrangements Unrestricted access was available at balance date to the lines of credit listed below:

2009 $

Bank Overdraft facility Nil

(iii) Interest Rate Risk The Council is exposed to interest rate risk through its borrowings from the Queensland Treasury Corporation and investments held with financial institutions. The risk in borrowing is effectively managed by borrowing only from the Queensland Treasury Corporation and having access to a mix of floating and fixed funding sources such that the desired interest rate risk exposure can be constructed. Interest rate risk in other areas is minimal. The Council does not undertake any hedging of interest rate risk.


Interest Rate Sensitivity Analysis The following sensitivity analysis is based on a report similar to that which would be provided to management, depicting the outcome to profit and loss should there be a 1% increase in market interest rates. The calculations assume that the rate would be held constant over the next financial year, with the change occurring at the beginning of that year. It is assumed that interest rates on overdue rates would not change. If the rates decreased by 1% the impact would be equal in amount in the reverse direction.

Net carrying amount

Profit Equity

2009 2009 2009

$ $ $

Financial Assets 0 20,000 20,000

Financial Liabilities (10,000) (10,000) (10,000)

Net (10,000) 10,000 10,000

NOTE 31 National Competition Policy (a) Activities to which the code of competitive conduct is applied A "business activity" of a local government is divided into two categories : (a) Roads business activity: (i) the construction or maintenance of State controlled roads for which the local government submits an offer to carry out work in response to a tender invitation, other than through a sole supplier arrangement. (ii) submission of a competitive tender for construction or road maintenance on the local government's roads which the local government has put out to tender, or called for by another local government. (b) Other business activity, referred to as type three activities, means the following: (i) trading in goods and services to clients in competition with the private sector, or (ii) the submission of a competitive tender in the local government's own tendering process in competition with others for the provision of goods and services to its self. Excluded activities are (a) library services, and (b) an activity or part thereof prescribed by legislation.


NOTE 31 Cont. Local government may elect to apply a Code of Competitive Conduct (CCC) to their identified business activities. This requires the application of full cost pricing, identifying the cost of community service obligations (CSO) and eliminating the advantages and disadvantages of public ownership within that activity. The application of the CCC to the roads business activity is compulsory. The CSO value is determined by Council, and represents any activities cost(s) which would not be incurred if the activities primary objective was to make a profit. The Council provides funding from general revenue to the business activity to cover the cost of providing non-commercial community services or costs deemed to be CSO's by the Council.

Quarry

Saleyards

Roadworks

Water & Sewerage

Waste Management

Gas (b) Financial performance of activities subject to competition reforms:

Water & Waste Quarry Saleyards Road works Sewerage Management Gas 2009 2009 2009 2009 2009 2009 $ $ $ $ $ $ Revenue for services provided to the Council

1,106,268

Revenue for services provided to external clients

1,556,263

3,047,710

8,624,987

4,535,480

985,716

350,606

Community service obligations

2,662,531

3,047,710

8,624,987

4,535,480

985,716

350,606 Less : Expenditure

(2,301,587)

(2,717,895)

(7,586,657)

(6,460,417)

(1,716,176)

(426,113)

Surplus (deficiency)

360,944

329,815

1,038,330

(1,924,937)

(730,460)

(75,507)

(c) Description of CSO's provided to business activities:

Activities CSO description Actual $ Water and sewerage

For providing free services to public areas 90,000


MANAGEMENT CERTIFICATE

For the period 15 March 2008 to 30 July 2009

This general purpose financial report has been prepared pursuant to Section 532 of the Local Government Act 1993,Section 35 of the Local Government Reform Implementation Regulation 2008, the Local Government Finance Standard 2005 ( the Standard ) and other prescribed requirements. In accordance with Section 48 of the Standard we certify that:- (i) the relevant recording and reporting procedures have been complied with in the preparation of the financial statements; and (ii) the financial statements for the period from 15 March 2008 to 30 June 2009 and supporting notes as set out on pages 1 to 34 present the Council's income, equity, balances and cash flows as required by the Local Government Act 1993. ___________________________ ____________________________ Mayor Chief Executive Officer Date: ____ / ____ / ____ Date: ____/____/____


INDEPENDENT AUDITOR‟S REPORT

To the Mayor of the Maranoa Regional Council Report on the Financial Report I have audited the accompanying financial report of the Maranoa Regional Council, whish comprises the balance sheet as at 30 June 2009, and the income statement, statement of changes in equity and cash flow statement for the financial period from 15 March 2008 to 30 June 2009, a summary of significant accounting policies other explanatory notes and certificates given by the Mayor and the Chief Executive Officer. The Council’s Responsibility for the Financial Report The Council is responsible for the preparation and fair presentation of the financial report in accordance with the Local Government Act 1993, Local Government Finance Standard 2005 and the Local Government Reform Implementation Regulation 2008 including compliance with applicable Australian Accounting Standards (including the Australian Accounting Interpretations). This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making account estimates that are reasonable in the circumstances. Auditor’s Responsibility My responsibility to express an opinion in the financial report based on the audit is prescribed in the Auditor-General Act 2009. This Act, including transitional provisions, came into operation on 1 July 2009 and replaces the previous requirements contained in the Financial Administration and Audit Act 1977. The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor‟s judgement, including the assessment of risks of material misstatement in the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity‟s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity‟s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluation the appropriateness of accounting policies and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.


Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and QAO authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can only be removed by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matter which in the Auditor-General‟s opinion are significant. Auditor’s Opinion In accordance with s.40 of the Auditor-General Act 2009- (a) I have received all the information and explanations which I have required; and (b) in my opinion- (i) the prescribed requirements in respect of the establishment and keeping of accounts have been compiled with in all material respects; and (ii) The financial report has been drawn up so as to present a true and fair view, in accordance with the prescribed accounting standards, of the financial performance and cash flows of the Maranoa Regional Council, for the financial period 15 March 2008 to 30 June 2009 and the financial position as at 30 June 2009. W.J. Dingle FCA As Delegate of the Auditor –General of Queensland


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Chief Executive Officer Maranoa Regional Council PO Box 42 MITCHELL Q 4465

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