Gawler 2012-13 Annual Report - page 164

Town of Gawler Annual Report 2012/13
Page 164
introduction • summary • strategic directions •
statutory information
• index
Gawler River Floodplain Management Authority
Notes to the Financial Statements for the year ended 30
th
June 2013
1 Statement of Significant Accounting Policies
(a) The Local Government Reporting Entity
This general purpose financial report has been prepared in accordance with Australian Accounting
Standards as they apply to not-for-profit entities, other authoritative pronouncements of the Australian
Accounting Standards Board, Interpretations and relevant South Australian legislation.
The Gawler River Floodplain Management Authority is a Regional Subsidiary under Section 43 and
Schedule 2 of the Local Government Act 1999. The Constituent Councils are the Adelaide Hills Council,
The Barossa Council, Town of Gawler, Light Regional Council, District Council of Mallala and The City of
Playford.
All funds received and expended by the Authority have been included in the financial statements forming
part of this financial report.
(b) Basis of Accounting
This financial report has been prepared on an accrual basis and is based on historical costs and does not
take into account changing money values, or except where specifically stated, current valuation of non
current assets.
(c) Employees
The Association has no employees.
(d) Investments
Investments are valued at cost. Interest revenues are recognised as they accrue.
(e) Cash
For purposes of the statement of cash flows, cash includes cash deposits which are readily convertible to
cash on hand and which are used in the cash management function on a day to day basis, net of
outstanding bank overdraft.
(f) Infrastructure
The Bruce Eastick North Para Flood Control Dam was constructed in 2007. The valuation includes all
materials, contractor’s costs plus costs incidental to the acquisition, including engineering design and
supervision fees and all other costs incurred.
(g) Land
The dam land includes the land on which the dam is constructed, rights of way access to the land and
‘right to flood’ easements over the land upstream from the dam that will be inundated by dam waters for
short periods of time during a flood event. The Board valuation was undertaken at 30
th
June 2011.
(h) Revaluation
The Bruce Eastick North Para Flood Control Dam has previously been brought to account as a historical
cost. The Board has not sought an independent valuation. The Board recognises that the dam is a unique
infrastructure and in absence of market based evidence of fair value because of the specialized nature of
the asset, the Board have used the depreciated cost approach. The Board sought the advice of the dam
designers, URS Australia Pty Ltd, who advised that the building price increase index outlined in
Rawlinson’s Australian Construction handbook would be a suitable basis for the escalation of the original
construction cost for the purpose of revaluation. The index was applied to the contract cost to construct
the dam infrastructure. The Board has resolved to have the Dam revalued by an independent engineer
during the 2013-2014 financial year.
(i) Depreciation
The depreciation period for the Bruce Eastick North Para Flood Control Dam is based on the best
information available to the Board advised to be 80 years. Depreciation has been applied from 1
st
July
2011.
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