HORSHAM RURAL CITY COUNCIL
NOTES TO THE FINANCIAL STATEMENTS (Cont.) FOR THE YEAR ENDED 30th JUNE, 2014
1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(l) Trust Funds and Other Deposits Horsham Rural City Council has received monies as agent for the following: Art Gallery Trust Fund, Mack Jost Trust Fund, Con Kroker Trust Fund, Wimmera Regional Library Corporation, Wimmera Development Association, Horsham Cemetery Trust, Grampians Regional Waste Management Group and Desert Fringe Regional Waste Management Group. As Horsham Rural City Council performs only a custodial role in respect of these monies, and the monies cannot be used for council purposes, they are not brought to account in the financial statements.
(m) Employee Benefits The calculation of employee benefits includes all relevant on-costs and are calculated as follows at reporting date.
(i) Wages and salaries, and annual leave Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be wholly settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of the employee services up to the reporting date, classified as current liabilities and measured at their nominal values. Liabilities that are not expected to be wholly settled within 12 months of the reporting date are recognised in the provision for the employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.
(ii) Long Service Leave Liability for long service leave (LSL) is recognised in the provision for employee benefits. Current Liability - unconditional LSL representing 7 years is disclosed as a current liability even when the council does not expert to settle the liability within 12 months because it will not have the unconditional right to defer settlement of the entitlement should an employee take leave within 12 months.
The components of this current liability are measured at: - present value - component that is not expected to be settled within 12 months. - nominal value - component that is expected to be settled within 12 months. Non-current - conditional LSL representing less that 7 year is disclosed as a non - current liability. There is an unconditional right to defer settlement of the entitlement until the employee has completed the requisite years of service.
This non - current LSL liability is measured at present value. Gain or loss following revaluation of the present value of non - current LSL liability due to changes in bond interest rates is recognised as an other economic flow.
(iii) Superannuation The amount charged to the Comprehensive Operating Statement in respect of superannuation represents contributions made or due by Council to the relevant superannuation plans in respect to the services of Horsham Rural City Council's staff (both past and present). Superannuation contributions are made to the plans based on the relevant rules of each plan and any relevant compulsory superannuation requirements that council is required to comply with.
Annual Report 2013-2014 q Page 13
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