40 / 48
40
40
NOTES
Notes
2016
2015
Inflows
(Outflows)
Inflows
(Outflows)
Cash Flows from Operating Activities
Receipts from Subsidies, Donations and Rent
3,319,402
1,847,037
Payments to Suppliers and Employees
(3,137,783)
(2,830,869)
Dividends Received
465,448
525,730
Interest Received
126,894
137,022
NET CASH USED IN OPERATING ACTIVITIES
10(b)
773,961
(321,079)
Cash Flows from Investing Activities
Property, Plant and Equipment
(126,081)
(343,412)
Investments
351,904
(20,818)
NET CASH USED IN INVESTING ACTIVITIES
225,823
(364,230)
Net increase/(decrease) in cash held
999,784
(685,309)
Cash at beginning of the financial year
10(a)
3,296,297
3,981,606
Cash at end of the financial year
10(a)
4,296,081
3,296,297
The above Statement of Cash Flows is to be read in conjunction with the attached Notes
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED 30 JUNE 2016
1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the
Scheme’s constitution and relevant legislation. The council has determined that the entity is not a reporting entity. The financial
report has been prepared on an accruals basis and is based on historic costs and does not take into account changing money values
or, unless where specifically stated, current valuations of non-current assets. The following significant accounting policies, which are
consistent with the previous period unless otherwise stated, have been adopted in the preparation of this financial report.
Income Tax
No income tax liability exists, as the Scheme is exempt from income tax in accordance with Section 50-5 of the Income Tax Assessment
Act 1997.
Property, Plant and Equipment
Plant and equipment is depreciated so that the assets are written off over their estimated useful lives using reducing or straight line
methods as appropriate. Land is carried at council valuation which is in accordance with the State Valuation Service annual valua-
tion as at 30 June 2016. Buildings, Motor Vehicles & Plant and Equipment are carried at cost less any accumulated depreciation and
impairment losses.
Employee Entitlements
Provision is made for the entity’s liability for employee benefits arising from services rendered by employees to the end of the report-
ing period. Employee benefits have been measured at the amounts expected to be paid when the liability is settled. Provision for
Long Service Leave is made after five years service.
Provisions
Provision as recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that
an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured at the best estimate
of the amounts required to settle the obligation at the end of the reporting period.
Goods and Services Tax
Revenues, expenses and assets are recognised net of the mount of goods and services tax (GST). The net amount of GST recoverable
from, or payable to, the taxation authority is included as part of the payables.
Revenue and Other Income
During the year, significant revenue was obtained from government grants. At the date of this report, the council has no reason to
believe that this funding will not continue. Interest revenue is recognised using the effective interest rate method which for floating
rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has
been established. Grant and donation income is recognised when the entity obtains control over the funds which is generally at the
time of receipt. All revenue is stated net of the amount of GST.
Investments
Investments held are initially recognised at cost, which includes transaction costs. They are subsequently measured at fair value
which is equivalent to their market bid price at the end of the reporting period. Movements in fair value are recognised through an
asset revaluation reserve.
STATEMENT OF CASH FLOWS