Annual Report2014/15

Southern Tasmanian Councils Authority

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The STCA Board conducting a media event to highlight the importance of the new Bridgewater Bridge

A clip from the successful Whatever the Weather, Weʼre Ready project

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Contents

Contents! ! ! ! ! ! ! ! 3

About ! ! ! ! ! ! ! ! 4

Chairmanʼs Report - 2014/15! ! ! ! 6

Chief Executive Officerʼs Report - 2014/15! ! 7

Board Members!! ! ! ! ! ! 8

Key Results! ! ! ! ! ! ! 9

Financial Statements! ! ! ! ! ! 15

Chairmanʼs Declaration! ! ! ! ! 27

Auditorʼs Report!! ! ! ! ! ! 28

Comptrollerʼs Report! ! ! ! ! ! 30

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About the STCAThe STCAThe Southern Tasmanian Councils Authority is a regional organisation of Councils created by the twelve Southern Councils to facilitate cooperative working partnerships and to improve the ability of Councils to take joint action to address regional development issues and progress sustainable economic, environmental and social outcomes for Southern Tasmania, its local communities and the State.

!Member Councils

• Brighton Council• Central Highlands Council• Clarence City Council• Derwent Valley Council• Glamorgan Spring Bay Council• Glenorchy City Council• Hobart City Council• Huon Valley Council• Kingborough Council• Sorell Council• Southern Midlands Council• Tasman Council

The STCA Board conducting a media event at the Sorell causeway to highlight the infrastructure challenges in the south east region

The BoardThe STC Board comprises the Mayors of the 12 Councils and is chaired by the Lord Mayor of Hobart. The 12 Council General Managers also attend Board meetings. 

The Board is supported by its Chief Executive Officer – Brenton West.

ActivitiesAs part of the development of the new 2015 - 19 Strategic Plan the Board members of STCA have resolved that there are a number of core areas that are priorities in respect to regional development.

These areas fall broadly into the following strategic themes:

■ Improved Physical Infrastructure■ Enhanced Economic Development■ Improved Environmental Performance■ Enhanced Social well-being■ Improved Inter-regional Cooperation and Local Government

Sustainability■ Good Organisational Governance

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Central Highlands Council

MINUTES ORDINARY MEETING 17TH SEPTEMBER 2013

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Minutes of an Ordinary Meeting of Central Highlands Council held at Hamilton Council Chambers, on Tuesday 17th September 2013, commencing at 9am.

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Mayor D E Flint opened the meeting at 9am.

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Mayor D E Flint, Deputy Mayor A J Downie, Clr J R Allwright, Clr A W Bailey, Clr R G Bowden, Clr G L Herbert, Clr T H Jacka ,Clr I V McMichael, Clr L M Triffitt

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In accordance with Regulation 8 of the Local Government (Meeting Procedures) Regulations 2005, the Mayor requests Councillors to indicate whether they or a close associate have, or are likely to have a pecuniary interest (any pecuniary or pecuniary detriment) in any item of the Agenda.

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Regulation 15 of the Local Government (Meeting Procedures) regulations 2005 provides that Council may consider certain sensitive matters is Closed Agenda which relate to:

Personnel matters, including complaints against an employee of the Council; Industrial matters relating to a person; Contracts for the supply and purchase of goods and services; The security of property of the Council Proposals for the Council to acquire land or an interest in the land or for the disposal of

land; Information provided to the Council on the condition it is kept confidential; Trade secrets of private bodies; Matters relating to actual or possible litigations taken by or involving the Council or an

employee of the Council; Applications by Councillors for leave of absence; The personal affairs of any person.

The decision to move in Closed Council requires an absolute majority of Council.

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Chairʼs Report - 2014/15

Alderman Sue Hickey

I am pleased to present the 2014/15 Annual Report for the Southern Tasmanian Councils Authority (STCA).

2014/15 marks my first year as Chair of the STCA and I thank my fellow Board members for the opportunity to Chair this Authority. I am a firm believer that through working together and staying united the STCA can be influential in advocating and delivering projects which benefit the region. I also believe that this organisation can strengthen friendships between us and a greater solidarity as we understand each councilʼs particular issues.

Moving forward I will continue to adopt this approach and I look forward to working closely, not only with my colleagues on the Board, but the entire membership of STCA councils. 2014/15 was another successful year for the STCA with the Board endorsing a new five year strategic plan, this will play an important role in the development of key objectives that the Authority will focus on in the coming years.

Throughout the year the STCA continued to work on activities that will improve efficiencies across the region and deliver benefits to member councils. We finalised Stage 1 of a data sharing arrangement with TasWater, this partnership will see TasWater share all of their water infrastructure data with councils through GIS via TheList. The Authority is currently working on Stage 2 of this arrangement will ensure better cooperation around capital asset management plans and works on associated infrastructure. Also. importantly, the STCA played an active role in the southern regional planning project and the lodgement of the 12 southern interim planning schemes, as well as working with the State Government on their planning reform process to implement a single statewide planning scheme.

The STCA continued to play an active role in advocacy and engagement with government. We hosted a number of elected and departmental staff at our board meetings including Will Hodgman MP, Premier of Tasmania, Peter Gutwein MP, Minister for Local Government and Planning and senior departmental staff such as Kim Evans, Secretary of the Department of State Growth, Allan Garcia, CEO of Infrastructure Tasmania and John Perry, the Coordinator General. The Authority used these and other opportunities to engage with the government on key priorities for the region and how we can forge cooperative working relationships to deliver results for Southern Tasmania.

We also continued to hold Board meetings across the region, these meetings presented an excellent opportunity for the Board to conduct media events to highlight significant local issues and priorities. This year media events at the Sorell Causeway and at the Bridgewater Bridge were excellent opportunities to generate positive exposure for the projects and also the Authority. In closing, I want to acknowledge the work of the STCA Board, including our Committee Chairs, as well as former board members including the previous Chair Alderman Damon Thomas. I believe that we can achieve more as a collective with united agenda. As we look to the future I believe there are great opportunities for the 12 southern councils to continue to work positively together through the STCA to ensure the entire region grows and prospers.

Alderman Sue HickeyChairSouthern Tasmanian Councils Authority

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Chief Executive Officerʼs Report - 2014/15

Brenton West

Once again it gives me great pleasure to present my report for the 2014/15 financial year for the Southern Tasmanian Councils Authority (STCA). This is my second year in the role and I believe the STCA has taken great strides to develop into an influential and important body for Southern Tasmania.

This year the Authority continued its strong presence in developing its public profile and corporate brand. We successfully highlighted key priorities and projects from across the region as part of a campaign to increase the governmentʼs focus on Southern Tasmania. In particular, the opportunity to hold our meetings across the region proved a valuable exercise for the Board to view local infrastructure needs of the respective municipalities but it also presented excellent opportunities for media events which generated positive exposure for the Authority and the associated project.

The STCA had major advocacy success with the Liberal Government funding and implementing a number of the commitments sought by the Authority in their first budget. It was pleasing to see key road projects that have long been advocated for by the STCA receive funding and start construction in this financial year. Also of significant note was the establishment of Infrastructure Tasmania, this was a body we strongly pushed for prior to the 2014 State Election, it is hoped that Infrastructure Tasmania will take the politics out of infrastructure funding and start to develop long term infrastructure project plans based on need. We look forward to forging a strong working relationship with Infrastructure Tasmania in the future.

2014/15 saw the Authority continue to work together on a range of regional projects that provided benefit to member councils. This included the continuation of our joint stationery procurement project as well as the completion of the regional planning project with the lodgement of the 12 southern interim planning schemes. The Authority also completed its highly successful Whatever the Weather, Weʼre Ready project with a launch generating positive exposure for the STCA.

I would like to thank all of the staff who have been a part of the STCA workforce over the past twelve months, their passion for their individual projects has ensured that the STCA project work is always completed to the highest standard whilst delivering significant results.

I would also like to acknowledge and thank the entire STCA Board which includes the General Managersʼ, as well as the previous board members who served up until the local government elections in 2014, in particular former Chair Alderman Damon Thomas. Without the tireless work and support of the Board the STCA wouldnʼt be able to deliver the key results for Southern Tasmania.

Iʼm looking forward to the next twelve months as the new Board continues to work together to deliver the best results for member councils and the whole of Southern Tasmania.

Brenton WestChief Executive Officer Southern Tasmanian Councils Authority

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Lord Mayor Sue Hickey - ChairHobart City Council

Mayor Tony Bisdee - Deputy Chairman

Southern Midlands Council

Mayor Doug Chipman - Chair Governance and Audit Committee

Clarence City Council

Mayor Deirdre Flint - Chair Infrastructure CommitteeCentral Highlands Council

Mayor Peter CoadHuon Valley Council

Mayor Martyn Evans - Chair Economic Development Committee

Derwent Valley Council

Mayor Steve WassKingborough Council

Mayor Kristie JohnstonGlenorchy City Council

Mayor Michael KentGlamorgan Spring Bay Council

Mayor Roseanne HeywardTasman Council

Board MembersAs at 30 June 2015

Mayor Kerry VincentSorell Council

Mayor Tony Foster AM OAM JPBrighton Council

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Good Organisational Governance

Main priorities

• Prepare an Annual Plan for the 2014/15 year and appropriate corresponding budget

• Develop a new five year Strategic Plan for the Authority

• Prepare the Annual Report for the 2013/14 financial year

• Prepare quarterly financial and activity reports for member councils

• Develop a Board induction process for next board members

• Complete new policies that help with the effective operations of the Auhority

Key Results

• The STCA meeting schedule was maintained including Board, Committee and an open AGM

• A new five year 2015 - 19 STCA Strategic Plan was developed and endorsed by the Board

• Quarterly reports have been completed and circulated to member councils

• The 2013/14 Annual Plan and budget was approved by the Board and implemented by the Chief Executive Officer

• A Board induction process and associated documents were developed and distributed to new members

• An anti-fraud policy and a social media accounts policy for the Authorityʼs social media accounts were developed

• A number of portfolio policies were developed by the Board and appropriate spokespersons allocated to the speak on behalf of the Authority on these issues

• A performance review process was undertaken on the CEO

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Key Results 2014/15

Physical Infrastructure

Main priorities

• Continue to promote the need for increased road funding across the region

• Respond to legislative and policy issues as they arise

• Lobby for the implementation of items contained in the State Election Priority Document

• Continue to negotiate with the State Government for the ongoing support of regional planning as per the Regional Planning Project MOU

• Conduct a Southern Regional Economic Development Forum

• Arrange for the Board to meet with politicians and key departmental staff to discuss the regionʼs infrastructure priorities

Key Results

• Advocated for the need for greater road infrastructure funding across southern Tasmania through ongoing meetings with the Department of State Growth and politicians including the Secretary of the Department, CEO of Infrastructure Tasmania, the Premier and the Treasurer

• Undertook media events promoting road funding opportunities that were contained as part of the State Election Priority Document including regional road funding and the establishment of Infrastructure Tasmania

• Continued to facilitate the STCA Infrastructure Committee

• Started work on developing a new Infrastructure Priority Document in the lead up to the 2016 State Budget and 2016 Federal Election

• Worked with the Department of State Growth and State Roads on the Southern Regional Integrated Transport Plan and ensuring it remains up to date

• Advocated and worked with key infrastructure providers such as NBN Co. and Taswater on the provision of their services throughout southern Tasmania

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Environment

Main priorities

• Continue to support the Regional Climate Change Initiative (RCCI)

• Work with the RCCI group on the implementation of the new Terms of Reference and Action Plan

• Continue work on the climate change adaption plan for the northern and north west councils and the associated regions

• Complete the Whatever the Weather, Weʼre Ready project

• Continue to work with NRM South on natural resource management issues

• Develop Terms of Reference and Governance arrangements to facilitate the integration of the regional waste group in to the STCA

Key Results

• The Regional Climate Change Initiative continued to meet and deliver productive outcomes

• The new RCCI Terms of Reference and Action Plan were started to be implemented by the group

• Completed work on the Whatever the Weather, Weʼre Ready project and arranged

for a launch of the innovative video clips at RedJelly by the Chair of the STCA, Lord Mayor Hickey which obtained good media coverage

• Continued to work closely with NRM South to deliver positive natural environment outcomes across southern Tasmania, in particular with the CEO acting as part of the NRM Board selection panel

• Worked closely with the Tasmanian Climate Change Office and other State Government Departments on key regional environmental issues such as the State Coastal policy and Bushfire Code

• Developed Terms of Reference and a Governance Paper to facilitate the integration of the regional waste group, Southern Waste Strategy Authority (SWSSA) into the STCA. Given the complex nature of this process, this work remains ongoing and a Regional Waste Group has been facilitated by the STCA to assist with the development of key documents to hopefully see the marrying of these two organisations in 2015/16

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Social

Main priorities

• Advocate for increased data and understanding of the likely demographic changes to occur in southern Tasmania over the coming decades

• Continue to advocate and promote greater investment in public transport

• Finalise the regional model planning scheme for submission and declaration by the State Government

• Work with the Tasmanian Planning Commission and the 12 southern councils on to ensure the lodgement, assessment and declaration on their interim planning schemes

• Advocate for the introduction of medicinal cannabis trials and an expanded industrial hemp industry in Tasmania

• Continue to work with the State Government and the Planning Reform Taskforce on the Single Statewide Planning Scheme

• Lobbied for appropriate funding and support from the State Government to review the Southern Tasmanian Regional Land Use Strategy

Key Results

• Attended State Government consultations on the Stateʼs population strategy as well as conducting media events on the need for greater demographic planning and modeling

• Promoted increased investment in public transport

• The 12 southern councils completed their interim planning schemes with the utilisation of the regional model provisions

• Maintained and actively participated on the Planning Coordation Group with the Tasmanian Planning Commission and other southern councils

• Completed a submission to the Tasmanian Parliamentʼs Upper House Inquiry into medicinal cannabis, also appeared at this inquiry as a witness to give evidence

• Engaged in consultation and feedback sessions with the Minister and the Planning Reform Taskforce on the development of the Single Statewide Planning Scheme

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Intra- Regional Cooperation and Sustainability

Main priorities

• Continue to maintain the regional stationery purchasing contract

• Engage in a data sharing arrangement with TasWater

• Work collectively with a range of stakeholders to undertake further LIDAR and GIS mapping work of southern Tasmania

• Conduct STCA Board meetings around the southern Tasmanian region

• Form closer working relationships with LGAT and the other regional bodies

• Share ideas and opportunities for collaboration and efficiencies amongst member councils

• Work on a report regarding opportunities for better regional cooperation on dog management

• Prepare a proposal for member councils to see the roles and responsibilities of SWSA transferred to the STCA

• Advocate for a review of the Local Government Act 1993

Key Results

• Continued to maintain the regional stationery purchasing contract, including the receipt of a rebate for the Authority based on the total amount of purchases

• Completed State 1 of a data sharing arrangement with TasWater that ensures that local councils have access, via the List, to all of TasWaterʼs GIS water infrastructure data

• Began working on Stage 2 of the data sharing arrangement with TasWater to ensure better cooperation and management of capital works programs

• Engaged in discussions with the State Government and member councils on further opportunities to undertake joint LiDAR and GIS mapping

• Started formal quarterly meetings with LGAT and the other regional bodies to begin working on joint projects and ensure strong cooperation

• Prepared an interim report into regional dog management issues

• Completed a proposal for the transfer of SWSAʼs roles and responsibilities to the STCA

• Advocated for a review of the Local Government Act 1993

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Economic Development

Main priorities

• Work with the Hobart International Airport on enhanced passenger and freight opportunities

• Participate as board members of Destination Southern Tasmania

• Promote the economic benefits of a medicinal cannabis trial and an expanded industrial hemp industry in Tasmania

• Arrange for opportunities for the Board and member councils to engage with government on economic development issues

• Start to develop economic development priority issues and projects for the next election cycle

• Work with the Economic Development Committee on identifying economic development opportunities across the region

• Lobby and advocate for enhanced economic development projects in southern Tasmania such as the Copping C Cell and increased defence manufacturing

Key Results

• Actively participated on the Hobart International Airport Coordination Forum as well as arranging for direct engagement between the airport and the STCA Board

• The CEO and Mayor Johnston actively participated as members of the Destination Southern Tasmania Board advocating the interests of local government in regards to the regional tourism industry

• Completed submission and appeared at the Legislative Council Inquiry into medicinal cannabis as well as conducting media appearances on the issue

• Started to develop and identify key economic development priority projects that could be included as part of a campaign in the lead up to the federal election

• Held two economic development forums with member councils and representatives from the State and Federal Governments as well as arranged for key departmental and political representatives to attend STCA Board meetings

• Continued to advocate and promote the STCAʼs support for the Copping C Cell and increased defence manufacturing through the establishment of a defence manufacturing precinct in southern Tasmania

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2014/15 Financial Statements

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SOUTHERN TASMANIAN COUNCILS AUTHORITY

Notes to and forming part of the Financial Report for the year ended 30 June 2015

1. Objective The objective of the Southern Tasmanian Councils Authority (the Authority) is to enable members to work together to facilitate and coordinate agreed regional development strategies and actions to achieve sustainable economic, environmental and social outcomes for the southern region of Tasmania. 2. Legislative Framework The Authority was incorporated on 1 July 2006 under Division 4 of the Local Government Act 1993 (as amended). 3. Summary of significant accounting policies a) Basis of Accounting The financial report is a general purpose financial report and has been prepared in accordance with Australian Accounting Standards issued by the Australian Accounting Standards Board. Compliance with the Australian Accounting Standards may not result in compliance with International Financial Reporting Standards (IFRS), as the Australian Accounting Standards include requirements and options available to not-for-profit organisations that are inconsistent with IFRS. The Authority has analysed its purpose, objectives, and operating philosophy and determined that it does not have profit generation as a prime objective. Consequently, where appropriate, the Authority has elected to apply options and exemptions within Accounting Standards that are applicable to not-for-profit entities. The Authority has adopted the following new and revised Accounting Standards and Interpretations issued by the Australian Accounting Standards Board which are relevant to its operations and effective for the current reporting period: - AASB 2009-12 Amendments to Australian Accounting Standards - The Standard makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of IFRSs by the IASB. There is no financial impact. AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project - This Standard amends a range of Australian Accounting Standards and Interpretations as a consequence of the annual improvements project. There is no financial impact. AASB 2010-5 Amendments to Australian Accounting Standards – This Standard introduces terminology changes, as well as presentation changes. There is no financial impact. AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets – This Standard introduces additional disclosure relating to transfers of financial assets in AASB 7. An entity shall disclose all transferred financial assets that are not

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derecognised and any continuing involvement in a transferred asset, existing at the reporting date, irrespective of when the related transfer transaction occurred. There is no financial impact. AASB 1054 Australian Additional Disclosures - This Standard sets out the specific disclosures for entities that have adopted Australian Accounting Standards that are additional to the requirements under International Reporting Standards, including disclosures relating to the nature of the financial report, audit fees and the reconciliation of net operating cash flows to net result. There is no financial impact. AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project - This Standard, in conjunction with AASB 1054, removes disclosure requirements from other Standards and incorporates them into a single Standard to achieve convergence between Australian and New Zealand Accounting Standards. There is no financial impact. AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities [AASB 132] (effective 1 January 2014) This standard adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement. The adoption of this standard will not change the reported financial position and performance of Council AASB 2015-6 Extending Related Party Disclosures .The objective of this Standard is to extend the scope of AASB 124 Related Party Disclosures to include not-for-profit public sector entities. This Standard also makes related amendments to AASB 10 Consolidated Financial Statements and AASB 1049 Whole of Government and General Government Sector Financial Reporting, and an editorial correction to AASB 124. As this Standard applies to annual reporting periods beginning on or after 1 July 2016 it will be reconsidered in 2016. Certain new accounting standards and amendments were available for early adoption but have not been applied by the Authority in the current reporting period. The Authority is of the view that the new accounting standards and amendments will have no material impact on the amounts recognised in the financial report. The financial report has been prepared on the accrual basis under the convention of historical cost accounting and does not take into account changing money values. The financial report is presented in Australian dollars. b) Revenue Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Authority, and the revenue can be reliably measured. c) Expenses Expenses are recognised when a decrease in future economic benefit related to either a decrease in an asset or an increase in a liability has arisen that can be measured reliably.

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d) Cash Cash consists of funds held in an at call account at the Tasmanian Public Finance Corporation in the name of the Hobart City Council on behalf of the Authority. Interest is credited to revenue as it accrues. e) Receivables Receivables are recorded at amortised cost less impairment. The collectability of debts is assessed at year-end and an allowance is made for impairment. Receivables are generally in the form of government grants not received and contributions from owner councils. f) Plant and Equipment Plant and equipment is valued at cost and consists mainly of computer equipment. This equipment has been estimated to have a useful life of three years, with no residual value at the end of that period. Useful lives are reviewed annually, and depreciation is calculated using the straight-line method. g) Employee Benefits The provision for employee benefits represents the amount which the Authority has a present obligation to pay resulting from employees’ services provided up to the reporting date in respect of salaries and annual leave. The provision has been calculated at nominal amounts based on expected salary rates. h) Comparative Figures Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures. i) Taxation The Authority is exempt from all forms of taxation except Fringe Benefits Tax, Payroll Tax and Goods and Services Tax (GST). Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. j) Rounding Unless otherwise indicated, amounts in the financial statements have been rounded to the nearest whole dollar.

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4. Cash Flow Reconciliation

a) Composition of Cash Cash is comprised of the following: -

2014/15 $

2013/14 $

Cash at bank 220.409 220,790 Cash includes grant monies received and unspent at 30 June. Refer to Note 8.

b) Reconciliation of ‘Net Cash Provided by Operating Activities’ to ‘Operating Surplus’

2014/15 $

2013/14 $

Operating Surplus (15,939) (132,959) Add back Depreciation - 1,293 (Increase) / Decrease in Receivables 4,381 223 Increase / (Decrease) in Employee Benefits 7,259 (11,166) Increase / (Decrease) in Payables 1,918 (8,291) Net Cash from Operating Activities (2,381) (150,900)

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5. Receivables Reconciliation

Receivables! 2014/15 $!

2013/14 $!

GST 2,248 6,177 Commission 6,508 6,960 Total Operational Grants! 8,756 13,137

6 Plant and Equipment

!2014/15

$!2013/14

$!At Cost 30,166 30,166 Less Impairment Losses - - Less Accumulated Depreciation (30,166) (30,166) Total Operational Grants! - -

7. Activities of the Authority Some of the key activities undertaken by the Authority during the reporting period were: -

- Finalised work on the Regional Planning Project through the completion of the regional model scheme provisions which enabled the submission of 12 southern interim planning schemes

- Continued to improve the governance arrangements of the Authority through the development of a board induction program, anti fraud policy and a social media policy

- Worked with Taswater on the development of a joint data sharing arrangement - Completed a tender process to award a joint stationery procurement contract for all of the

12 southern councils. - Conducted significantly increased advocacy and profile building activities, including

appearing at a Legislative Council Inquiry, engaging in meetings with senior government representatives and undertaking media events

- Undertook project work on communications activities for climate change. - Worked on a project complete climate change adaption plans for northern councils.

8. Grants

Operational Grants! 2014/15 $!

2013/14 $!

Regional Planning Initiative - 30,000 Local Government Structures - - Climate Change 19,980 19,980 Climate Change Communications 1,500 13,500 SMART Forms - 6,000 Total Operational Grants! 21,480 69,480

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At 30 June 2015, a total of $69,033 (2014, $105,927) of grants received remained unspent. This amount consists of the following: -

2014/15 $

2013/14 $

Regional Planning Initiative 1,859 2,363 Industrial Land Study 1,664 4,972 Local Government Structures 5,587 5,587 Tourism Project 10,460 10,460 Climate Change Adaption Project 37,464 36,146 Climate Change Communications 9,090 43,490 SMART Forms Project 2,909 2,909 Total 69,033 105,927

All grants disclosed in this note are conditional. 9. Council Contributions

Contributions received from Local Councils! 2015/14 $!

2013/14 $!

Operational activities 186,114 181,045 Regional Planning Initiative - - Southern Weeds Strategy dev & implementation - -

Total Council Contributions! 186,114 181,045 10. Financial Instruments a) Financial Risk Management The Authority’s financial instruments consist of deposits with banks, accounts receivable and payable. Credit Risk Credit risk is the risk of financial loss to the Authority if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The maximum exposure to credit risk is the carrying amount of recognised financial assets as disclosed in the statement of financial position. The Authority does not have any material credit risk exposure because amounts are owed by owner Councils and Government agencies. Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The primary market risk that the Authority is exposed to is interest rate risk. All cash is subject to variable interest rates. Remaining financial assets and all financial liabilities are non-interest bearing. The Authority’s exposure to interest rate risk in relation to cash held at bank is considered to be minimal. An increase in variable rates of 100 basis points at the reporting date would result in a profit and an increase to equity of $2,204 (2014; $2,228). A decrease in variable rates of 100 basis points at the reporting date would result in a loss and a decrease to equity of $2,204 (2014; $2,228). This analysis assumes all other variables remain constant. The analysis was

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performed on the same basis for 2014. Liquidity Risk Liquidity risk is the risk that the Authority will not be able to meet its financial obligations as they fall due. The Authority manages liquidity risk by monitoring cash flows. Exposure to liquidity risk is considered to be minimal. b) Net Fair Value The Authority considers that the carrying amount of its financial assets and liabilities approximate their fair value. 11. Commitments

Operating Lease commitments at the reporting date not recognised in liabilities!

2014/15 $!

2013/14 $!

Not longer than one year 8,009 8,009 Longer than one year and not longer than two years 2,002 8,009 Longer than two years and not longer than five years - 2,002 Longer than five years

! 10,011 18,020

The authority’s operating lease commitment relate to a car lease. 12. Events Subsequent to Balance Date No events have occurred subsequent to the reporting date that would require adjustment to, or disclosure in, the financial report. 13. Leasing Commitments There were no material leasing commitments at the reporting date. 14. Contingent Assets and Liabilities There were no material contingent assets or contingent liabilities at the reporting date. 15. Interests of Key Management Personnel The totals of remuneration paid to key management personnel of the Southern Tasmanian Councils Authority (STCA) during the year are as follows. The key management personnel are classified as the CEO Brenton West. None of the Board members receive remuneration.

!2014/15

$!2013/14

$!Short-term employee benefits 137,115 143,337 Post-employment benefits - -

! 137,115 143,337

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16. Related Party Transactions

(a) Each member council of STCA appoints a councillor to represent it on the Authority and vote on its behalf at general meetings of the Authority, and so hold positions that result in them having an influence over the operating policies of Councils with which STCA may conduct transactions. Name Term Commenced Brighton Council - Mayor Tony Foster 11/2014 Central Highlands - Mayor Deirdre Flint 11/2014 Clarence City Council - Mayor Doug Chipman 11/2014 Derwent Valley Council - Mayor Martyn Evans 11/2014 Glamorgan/Spring Bay Council - Mayor Michael Kent 11/2014 Glenorchy City Council - Mayor Kristie Johnson 11/2014 Hobart City Council - Lord Mayor Sue Hickey (STCA Chair) 11/2014 Huon Valley Council - Mayor Peter Coad 11/2014 Kingborough Council - Mayor Steve Wass 11/2014 Sorell Council - Mayor Kerry Vincent 11/2014 Southern Midlands Council - Mayor Tony Bisdee (STCA Deputy Chair) 11/2014 Tasman Council - Mayor Roseanne Heyward 11/2014 Brenton West – Chief Executive Officer 7/13 - current

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9Auditorʼs Report

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9Auditorʼs Report

29

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9Comptrollerʼs Report

30

9

31

The Southern Tasmanian Councils Authority (STCA) kindly acknowledges the use of photos taken by Brenton West that are featured in this publication.

Matthew Groom MP, Tasmanian Minister for State Growth addressing the STCAʼs regional economic development forum