Gawler 2013-14 Annual Report - page 169

Town of GawlerAnnual Report 2013/14
Page169
introduction • summary • strategic directions •
statutory information
• index
GawlerRiver FloodplainManagement Authority
Notes to theFinancial Statements for the year ended30
th
June2014
1
1
Statement of SignificantAccountingPolicies
a)
The LocalGovernmentReportingEntity
This general purpose financial report hasbeenprepared inaccordancewithAustralianAccounting
Standards as theyapply tonot-for-profit entities, other authoritativepronouncementsof the
AustralianAccountingStandardsBoard, Interpretations and relevant SouthAustralian legislation.
TheGawler River FloodplainManagementAuthority isaRegional Subsidiaryunder Section43and
Schedule2of the Local GovernmentAct 1999. TheConstituent Councils are theAdelaideHills
Council, TheBarossaCouncil, TownofGawler, Light Regional Council,District Council ofMallalaand
TheCityof Playford.
All funds receivedandexpendedby theAuthorityhavebeen included in the financial statements
formingpart of this financial report.
b)
BasisofAccounting
This financial report hasbeenpreparedonanaccrual basis and isbasedonhistorical costs anddoes
not take intoaccount changingmoneyvalues, or exceptwhere specifically stated, current valuation
of non-current assets.
c)
Employees
TheAssociationhasnoemployees.
d)
Investments
Investments arevaluedat cost. Interest revenues are recognisedas theyaccrue.
e)
Cash
For purposesof the statement of cash flows, cash includes cashdepositswhichare readily
convertible to cashonhandandwhichareused in the cashmanagement functiononaday today
basis, net of outstandingbankoverdraft.
f)
Infrastructure
TheBruceEastickNorthParaFloodMitigationDamwas constructed in2007. The valuation includes
allmaterials, contractor’s costsplus costs incidental to theacquisition, includingengineeringdesign
and supervision fees andall other costs incurred.
g)
Land
Thedam land includes the landonwhich thedam is constructed, rightsofwayaccess to the land
and ‘right to flood’ easements over the landupstream from thedam thatwill be inundatedbydam
waters for short periodsof timeduringa floodevent. TheBoardvaluationwasundertakenat 30th
June2011.
h)
Revaluation
TheBoardhas sought an independent valuationon the29thMay2014, tobeappliedas at 30
th
June
2014, of theBruceEastickNorthParaFloodMitigationDam. TheBoard recognises that thedam isa
unique infrastructure. TheBoard sought theadviceof Entura (HydroTasmania),whoprovideda
replacement cost valuationbasedon theactual construction contract costs, including some 'owner's
costs'whichwouldbe incurred in theevent of a replacement beingnecessary. Theestimateof the
replacement costwas$18.497millionat June2014. InaccordancewithAccountingStandard
(AASB)13FairValueMeasurement, it is tobenoted that valuationhasbeenunder level 3valuation.
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