Gannawarra Annual Report 2011 - Gannawarra Shire Council

GANNAWARRA SHIRE COUNCIL ANNUAL REPORT2011 GANNAWARRA 

SHIRE COUNCIL

COUNCIL’S VISION 

Gannawarra Shire: a vibrant, caring and 

prosperous community that offers social, 

economic and environmental 

sustainability for all. 

COUNCIL’S MISSION 

In partnership with the community, 

Council will offer the services and facilities 

needed to benefit residents and foster the 

social, economic and environmental 

sustainability of the municipality. 

COUNCIL’S VALUES 

Councillors and Council staff value: 

Integrity • 

Reliability • 

Respectfulness • 

Openness • 

Responsiveness • 

Fairness • 

Enjoyment •

The list of values and what they represent are explained in more detail 

below, along with ‘I statements’ (in italics) the behaviour that Councillors 

and Council staff commit to. 

INTEGRITY: Councillors and staff will exhibit sound moral principles and 

character, and will be consistently honest and trustworthy in their 

dealings with each other and the community. 

I will behave ethically. 

I am sincere in my interaction with people. 

RELIABILITY: Councillors and staff will be reliable and consistent in their 

approach to service delivery so that community members can depend 

on Councillors and staff to do what they say they will do. 

I can be depended upon to do what I say I will do. 

RESPECT: Councillors and staff will treat others with respect and 

understanding. They will value difference and diversity, and will deal 

with others as they would like to be dealt with. 

I will treat others as I would like to be treated. 

I will be open to a range of ideas and opinions, and accept the rights of 

others to hold different views. 

OPENNESS: Councillors and staff will actively promote the free flow of 

information and ideas; and will be clear, open and direct in all their 

communication with each other and the community. 

I will encourage others to communicate with me and ask questions. 

RESPONSIVENESS: Councillors and staff will seek to engage with 

residents and ratepayers to determine community needs. They will be 

proactive in seeking lawful ways in which to cater for these needs, 

and will respond to customer requests in a timely manner. If it is not 

possible to comply with a request, they will provide a clear 

explanation. 

I will seek ways to do, rather than not to do. 

I will be proactive and take the initiative. 

FAIRNESS: Councillors and staff will be free of bias, prejudice and 

injustice, and will endeavour to deal with everyone on an equal basis. 

I will make judgments free from discrimination. 

I will serve the community with openness and impartiality. 

ENJOYMENT: Councillors and staff will employ a positive attitude to 

work and will use a balance of efficiency, communication and humour 

to create job satisfaction. 

I will employ a positive attitude to work and the delivery of services to the 

community. 

I will look for opportunities to make work enjoyable for others. 

CONTENTS 

Our Shire ........................................................2 

Year in Review ..................................................4 

Councillors and Wards......................................6 

Mayor’s Message............................................10 

Chief Executive Officer’s Message...................12 

Annual Results at a Glance..............................14 

OUR ORGANISATION 

Our Organisation ...........................................16 

Our Executive Team .......................................17 

Our Workplace ...............................................18 

Governance Framework..................................20 

2011 Community Satisfaction Survey .............23 

Financial Snapshot .........................................25 

PERFORMANCE REPORT 

Leadership and Governance ...........................30 

Our Environment ...........................................32 

Economic Prosperity.......................................34 

Sustainable Communities ...............................36 

Assets and Infrastructure.................................42 

Best Value Statement......................................45 

Statutory Information.....................................46 

National Competition Compliance .................48 

ANNUAL FINANCIAL REPORT 2010-2011 

Contents ........................................................50 

Understanding the Financial Report................51 

Comprehensive Income Statement.................53 

Balance Sheet.................................................54 

Statement of Changes in Equity .....................55 

Cash Flow Statement......................................56 

Notes to the Financial Report .........................57 

Certification of the Financial Report................94 

Standard Statements ......................................95 

Independent Auditor’s Report – 

Financial Report and Standard Statements....107 

Performance Statements ..............................109 


Performance Statements ..............................113 

Glossary .......................................................115 

Abbreviations and Acronyms .......................117 

Index............................................................118 

Calendar of Events .......................................119

Swan Hill 

Gannawarra 

Shire 

KERANG 

NEW SOUTH WALES 

COHUNA 

VICTORIA 

Deniliquin 

Echuca 

NEW SOUTH WALES 

VICTORIA 

OUR SHIRE 

Gannawarra Shire is located beside 

the Murray River, in the Loddon 

Murray region of the northwest of 

Victoria, three hours’ drive from 

Melbourne. The municipality spreads 

over 3,736 square kilometres. More 

than 11,000 people call Gannawarra 

Shire home. 

The main population centres within 

the Shire are Kerang and Cohuna, 

with townships of Koondrook, Lake 

Charm, Lalbert, Leitchville, Macorna, 

Murrabit, Mystic Park, and 

Quambatook. 

The climate and landscape of 

Gannawarra is ideal for a wide range 

of agricultural, industrial and 

recreational activities. 

Gannawarra Shire has a diverse range 

of agriculture within its borders. 

Agricultural activities include 

cropping, dairying, grazing, 

horticulture and viticulture. 

The economic base of the Shire is 

primarily agricultural, supported by 

important concentrations of 

manufacturing industries. The 

potential for new industries, such as 

large scale solar energy, is an exciting 

part of the future of the region. 

The Loddon River flows through the 

Shire and feeds into the Murray River. 

Both local people and visitors to our 

Shire enjoy our water wonderlands for 

fishing, bird watching and an exciting 

array of water sports. 

Gannawarra is an ideal place to live, 

work and to bring up a family. The 

combination of lifestyle, opportunity 

and affordable land, supported by 

services and a strong sense of 

community, make Gannawarra a place 

of first choice in our state and beyond.

A SNAPSHOT OF 

SHIRE STATISTICS* 

• Population at the last Census 

(8 August 2006): 11,296 

• Current Estimated Resident Population 

as at 30 June 2011: 11,617 # 

• Area: 3,736 km 2 

• Population 17 years of age and under: 

24.1% 

• Population 18 to 64 years: 55.1% 

• Percentage of labour force employed: 

95.8% 

• Gannawarra residents born in 

Australia: 89.7% 

• Percentage of those 15 years and over 

who did voluntary work for an 

organisation or group: 31.8% 

• Number of rateable properties 

30 June 2011: 6,695 

* Source: Australian Bureau of Statistics, Census of 

Population and Housing, 2006, and the Gannawarra Shire 

Community Profile results from the 2006, 2001, 1996, and 

1991 Censuses of Population and Housing. 

# Notes: Estimated Resident Population (ERP) – The most 

comprehensive population count available in Australia is 

derived from the Population and Household Census 

conducted by the Australian Bureau of Statistics every five 

years. However, the Census count is not the official 

population of an area. To provide a more accurate 

population figure which is updated more frequently than 

every five years, the Australian Bureau of Statistics also 

produces "Estimated Resident Population" (ERP) numbers. 

Based on population estimates as at 30 June, ERPs take into 

account people who missed the count on Census night, 

including people who were temporarily overseas, plus an 

undercount adjustment for those who did not complete a 

Census form, and an overcount adjustment for anyone who 

was double counted. Top: An aerial view of Kerang isolated by flood water in 

January 2011. 

Centre: Mayor Cr Max Fehring congratulates 2011 Australia 

Day Citizen of the Year award recipient Bill Hastie of Kerang. 

Bottom: The 2011 Gannawarra Youth Council members with 

Shire Council representatives, left to right, Cr Oscar Aertssen, 

Mayor Cr Max Fehring and CEO Rosanne Kava. 

3

4 

YEAR IN REVIEW 

JULY 2010 

• Additional funding is announced 

under the Regional and Local 

Community Infrastructure 

Program and funding is sought for 

Shire projects to the value of 

$175,000. 

AUGUST 2010 

• Gannawarra Aged and Disability 

Network changes its name to the 

Gannawarra Health and Wellbeing 

network, including a Mental 

Health focus. 

• Children’s Book Week sees 

more than 670 children visit 

Gannawarra libraries. 

SEPTEMBER 2010 

• Wireless internet is connected to 

the Gannawarra Library Service. 

• Gannawarra Shire experiences 

the first of three flood events in 

2010/2011. The Murray, Loddon 

and Avoca Rivers are running at 

various stages of near and above 

capacity. The latter two have 

caused flooding and some road 

closures. 

• Information packs are prepared 

and distributed to each child 

attending local kindergartens to 

reinforce the need for 

immunisation at 4 years of age. 

OCTOBER 2010 

• Council secures more than 

$264,000 Tracks and Trails 

funding from the State 

Government for the development 

of walking trails as part of a 

$350,000 walking trails project 

throughout the Shire. 

• Volunteers celebrate 40 years of 

delivering Meals on Wheels in 

Kerang. 

GANNAWARRA SHIRE COUNCIL ANNUAL REPORT 2011 

• The Shire is granted a new 

licence from the Department of 

Early Education and Community 

Development to operate a Family 

Day Care Service. 

• Gannawarra partners with the 

Murray River Group of Councils 

(MRGC) and Greater Shepparton 

Council to prepare a structured 

and co-ordinated response to the 

Guide to the Murray-Darling Basin 

Plan. The focus of the campaign is 

that while the health of the 

environment is a valid concern, 

the Federal Government must 

ensure that the futures of farmers, 

families and communities are 

genuinely considered. 

• Ongoing flooding causes an 

increase in mosquito breeding 

as the Department of Health 

recommends that Council 

commences its annual mosquito 

monitoring and control program 

a month earlier than usual. 

Surveillance and control of 

mosquito breeding commences 

over an area of 600 hectares of 

inundated swamplands and 

stagnant pools of water left by 

rising rivers and local rainfall. 

Messages to the community 

commence around the need to 

protect themselves from being 

bitten by mosquitoes and to 

reduce mosquito breeding around 

private properties. 

NOVEMBER 2010 

• The first anniversary of cooking 

classes conducted in partnership 

between the GSC Community 

Care Service and Kerang 

Aboriginal Community Centre is 

celebrated. 

• Council continues to work with 

lead agency DPI, MAV consultants 

and other municipalities as 

Australian plague locusts start to 

band in the Quambatook area. 

Council has 141 reports of plague 

locusts on roadsides. The 

Department of Primary Industries 

(DPI) is advising that the plague 

will be the worst in 75 years. 

• The second flood event of 2010 

hits the Shire, bigger than the first 

in September. 

• Council adopts the updated 

version of the Municipal 

Emergency Management Plan. 

• Preparations for the unsealed road 

trials progress. Scientific advice is 

provided by the ARRB Group 

(formerly the Australian Road 

Research Board). 

• An interactive display on Council’s 

mosquito monitoring and control 

program is provided as part of the 

Council Open Day held on 

November 5, 2010. The display 

and presentation includes detail 

on the lifecycle of a mosquito 

using real life specimens along 

with explanation of the potential 

for mosquitoes to transmit of a 

range of diseases to humans. 

DECEMBER 2010 

• Gannawarra Shire Youth Strategy 

2010 – 2014 is adopted by 

Council. 

• Results from a survey of 100 clients 

attending Council immunisation 

sessions over a three month period 

reveal 100 percent satisfaction with 

the service provided. 

• Submissions are made on the 

Guide to the Murray-Darling Basin 

Plan to the Federal House of 

Representatives Inquiry on the 

Impact of Murray-Darling Basin 

Plan in Regional Australia, and to 

the Senate Inquiry into the 

Management of the Murray- 

Darling Basin.

JANUARY 2011 

• Portable showers and toilets are 

placed at Quambatook in response 

to septic tank systems failing after 

300mm of rain falls on the town. 

• An extraordinary flood event 

sweeps through the Shire covering 

50 percent of the Shires’ land 

mass and impacting 75 percent of 

the Shire. Staff work in 

cooperation with agencies and 

community to provide relief, 

recovery and support services. 

• Council puts in place the 

Gannawarra Shire Continuity 

Plan in response to the flood 

emergency. 

• On 19 January Kerang is 

evacuated. Many are evacuated to 

Barham as a temporary stopover. 

A relief centre is set up in Cohuna. 

The main office of Gannawarra 

Shire is moved to Council’s 

Cohuna office. 

• The Municipal Emergency 

Coordination Centre (MECC) that 

has been operating 24 hours 

through the flood emergency is 

moved from the Kerang Council 

Chambers to the board room at 

Kerang District Health. 

FEBRUARY 2011 

• Council shifts back to the Kerang 

office from Cohuna. The MECC 

relocates to the Kerang Council 

Chambers. 

• Council writes open letters via local 

newspapers to thank communities, 

organisations, clubs and individuals 

for their effort, generous support 

and assistance during the flood 

crisis. 

• Council writes to the State 

Government acknowledging 

support received and seeking 

additional support, as well as 

seeking urgent resolution on rural 

Left: HRH Prince William with Deputy Leader of the Nationals Peter Walsh (left) pictured here with Janine, 

Carmen, John and Aaron Baulch during the Royal visit to residents and communities affected by the floods 

in Gannawarra Shire. 

Right: Benjeroop Public Hall surrounded by flood water after the January flood event. 

levee ownership, maintenance and 

reinstatement arrangements. 

• Economic Development Strategy is 

adopted by Council. 

MARCH 2011 

• Sunshine Energy Harvest presents 

its large scale solar power proposal 

to Council, City of Greater Bendigo 

and Loddon Shire representatives. 

• A visit by HRH Prince William to 

Gannawarra Shire, with stops in 

Kerang, Murrabit and Benjeroop 

provides a morale boost for 

residents and communities 

affected by the floods. 

• Gannawarra Shire and other 

agencies transition from the flood 

response phase to the flood 

recovery phase, including the 

development of the Transition 

Strategy and Water Management 

Plan. 

• The Gannawarra Flood Recovery 

Committee is formed and 

membership is soon extended to 

include community members from 

the affected flood areas of Lake 

Meran/Wandella, Benjeroop, 

Murrabit, West of Loddon River, 

Quambatook, Macorna/Tragowel, 

Koroop/Mead, Kerang, and Lakes 

areas. 

APRIL 2011 

• The 15-year Gannawarra 

community vision and strategy 

plan Gannawarra 2025 is adopted 

by Council. 

• The Kerang Children’s Centre 

celebrates one successful year of 

Council management with near 

full capacity numbers. 

• Leadership amongst local youth 

was fostered with the swearing 

in of the Gannawarra Youth 

Council, comprising of over 20 

representatives from four local 

high schools. 

• Council hosts several large scale 

solar power companies seeking to 

develop projects in Kerang. 

MAY 2011 

• More than 440 people attend the 

Courage to Care exhibition 

brought to Kerang by Council and 

displayed at the Sir John Gorton 

Library. 

• Governor-General Quentin 

Bryce and Mr Bryce visit Kerang, 

Benjeroop and district to meet with 

locals recovering from the floods. 

JUNE 2011 

• Gannawarra Shire Municipal Early 

Years Plan 2011 – 2014 is adopted 

by Council. 

• Recommendations for the review 

of Community Planning processes 

are adopted by Council. 

• The Mayor and CEO attend the 

National General Assembly of 

Local Government in Canberra 

and meet with Federal ministers, 

members of Parliament and 

advisers on key issues. 

• The Council Plan and the 

2011/2012 back-to-basics budget 

are adopted by Council. 


5 

consolidating our future

6 

Lalbert 


COUNCILLORS AND WARDS 

The Gannawarra municipality is one of 79 municipalities in 

Victoria. The people of Gannawarra have elected seven 

representatives from four wards onto the Gannawarra Shire 

Council: Cr Max Fehring (Patchell Ward), Cr Glenn Hall 

(Yarran Ward), Cr Oscar Aertssen (Murray Ward), Cr Lui 

Basile (Patchell Ward), Cr Keith den Houting (Patchell 

Ward), Cr Neil Gannon (Avoca Ward) and Cr Neville 

Goulding (Yarran Ward). 

AVOCA WARD 

Quambatook 

Mystic Park 

Lake Charm 

Murrabit 

As is appropriate under the Local 

Government Act 1989 Councillors elect 

a Mayor in December each year. 

Cr Keith den Houting served as Mayor 

and Cr Neville Goulding as Deputy 

Mayor from June to December 2010. 

Cr Max Fehring was elected Mayor 

and Cr Glenn Hall was elected Deputy 

Mayor in December 2010. 

Council elections are held every four 

years. Elections were conducted in 

November 2008 and the next election 

will be held in October 2012. 

MURRAY 

WARD 

KERANG 

Koondrook 

PATCHELL WARD 

Macorna 

YARRAN WARD 

COHUNA 

Leitchville

Gannawarra Shire is divided into four 

‘wards’ or areas. Each ward has 

different numbers of people living in it 

and differing levels of infrastructure. 

Avoca Ward includes Lake Charm, 

Lalbert, Mystic Park and Quambatook; 

Murray Ward includes Koondrook and 

Murrabit; Patchell Ward includes 

Kerang and Macorna; and Yarran Ward 

includes Cohuna and Leitchville. Avoca 

and Murray Wards are each represented 

by one Councillor, Yarran Ward by two 

Councillors, and Patchell Ward by three 

Councillors. 

Council holds its ordinary monthly 

meeting at 7.00pm on the third 

Wednesday of each month at the 

Council Chambers in Victoria Street, 

Kerang, or in one of the towns and 

communities spread throughout the 

Shire. The schedule of meetings and 

venues, together with the agenda for 

each meeting, is available on the 

Council website or from Council’s 

Customer Service offices in Kerang and 

Cohuna (contact details back cover of 

this report). 

Following is an introduction to each of 

the Councillors now serving on 

Gannawarra Shire Council. 

CR MAX FEHRING 

MAYOR 

Patchell Ward 

First elected: 2003 

(Mayor: December 2010 – current) 

Portfolios (up to December 2010): 

• Assets and Infrastructure Portfolio 

– Wakool/Gannawarra Planning 

Resources Committee 

– Asset Naming Committee 

– Mystic Park Cemetery Trust 

• Sustainability Portfolio 

• Finance and Corporate Portfolio 

– Internal Audit Committee 

Council delegate (from December 

2010): 

• Municipal Association of Victoria 

(MAV) 

• Murray River Group of Councils 

(MRGC) 

• MAV Loddon Campaspe Mayor 

and Chief Executive Officer Forum 

• MAV Rural Councils Victoria 

Cr Max Fehring was elected Mayor in 

December 2010. He and his wife 

Denise are dairy farmers and have four 

sons. A Churchill Fellow and a 

Centenary Medal recipient for 

Community Service, Cr Fehring is a 

strong advocate for his community 

and for transparent and consultative 

water reform. He is a former United 

Dairy Farmers of Victoria President, 

and former board member of both 

the Geoffrey Gardiner Dairy 

Foundation and Grampians Wimmera 

Mallee Water. 

CR GLENN HALL 

DEPUTY MAYOR 

Yarran Ward 


(Deputy Mayor: December 2010 – 

current) 

Portfolio/Council delegate: 


– Leitchville Pool Committee 



• Community Portfolio 

– Cohuna ECA Centre 

Committee of Management 

– Cohuna Recreation Reserve 

Committee of Management 

• Economic Prosperity Portfolio 

– Tourism Advisory Committee 

Chair (from December 2010) 

– Gateway to Gannawarra 

Education, Cultural and 

Heritage Centre Reference 

Group 

• Flood Recovery Committee Chair 

Although he grew up in Melbourne, 

Cr Glenn Hall has spent all of his 

working life in rural Victoria, except 

for twelve months of National Service 

in Papua New Guinea. Cr Hall chose 

secondary school teaching as a career, 

teaching mainly Mathematics and 

Science. He was appointed Principal of 

Cohuna Secondary College in 1991, 

and held this position for sixteen 

years. He now works part-time as a 

University Colleague for Victoria 

University working with pre-service 

teachers in school placements 

between Swan Hill and Kyabram. 


7 


8 

CR OSCAR AERTSSEN 

Murray Ward 







and Resources Committee 


– Youth Council Mentor 

– Municipal Fire Prevention 

Committee 



– Municipal Association of Victoria 

(MAV) 

Cr Oscar Aertssen served as a 

member of the Victoria Police Force 

for 37 years before retiring in 2009. 

He is dedicated to developing and 

empowering communities to reach 

their potential. He is active in the 

community and is a graduate of the 

Loddon Murray Community 

Leadership Program. Cr Aertssen 

was elected as Deputy Mayor 

in 2007 and 2008. 


CR LUI BASILE 

Patchell Ward 








– businessKERANG (as observer) 


– Treasurer, Murray-Darling 

Association 

– Member, Region 3, Murray- 

Darling Association 

– MAV Environment Advisory 

Group 


– Council’s Internal Audit 

Committee 

– Municipal Association of 

Victoria (MAV) Northwest 

Municipalities Association 

Cr Lui Basile served Gannawarra Shire 

for three terms as Mayor before 

deciding in December 2006 not to 

stand for a fourth term. He has 

extensive local government 

experience, having previously served 

eleven years on the former Borough of 

Kerang Council. Cr Basile is a 

practising solicitor and has held Board 

positions with Lower Murray Water 

and the former Kerang Water Board 

and Sewerage Authority. He continues 

to be a very active and dedicated 

member of Council. 

CR NEIL GANNON 

Avoca Ward 







and Resources Committee 

– Rail Alliance Committee 


– Municipal Association of 

Victoria (MAV) Northwest 

Municipalities Association 

– Internal Audit Committee 

Cr Neil Gannon served his 

apprenticeship as a motor mechanic 

specialising in diesel engineering. On 

completing his apprenticeship he was 

employed by Massey Ferguson as a 

Specialist Tractor Service 

Representative. After a number of 

years with Massey Ferguson Cr 

Gannon left the company to establish 

his own successful specialised diesel 

engineering business. He later sold 

this business and entered the hotel 

industry, an industry in which he was 

involved for 20 years, the last fourteen 

of them at the Mystic Park Hotel. Cr 

Gannon then sold the hotel and 

bought into a packaged ice 

manufacturing and distribution 

business in Swan Hill, a business he 

operated until his retirement in 2003. 

In that same year, Cr Gannon was 

invited to take up the post as 

Executive Officer for the Packaged Ice 

Association of Australasia Inc, a 

position he continues to hold. Cr 

Gannon is also a member of New 

South Wales Food Authority Steering 

Group.

CR NEVILLE GOULDING 

Yarran Ward 


(Deputy Mayor: June – December 2010) 






– Tourism Advisory Committee 

– Leitchville Recreation Reserve 

Advisory Committee 

– Leitchville Pool Committee of 

Management 

– Cohuna ECA Centre 

Committee 

– Cohuna Recreation Reserve 

Neighbourhood House 

Committee 


– Central Murray Regional Waste 

Management Group - Chair 

• Planning Portfolio 

Cr Goulding is a local dairy farmer 

working in partnership with his 

brother and nephew. He was an 

inaugural member of the Barr Creek 

Salinity Plan and then Chairman of the 

Torrumbarry East of Loddon Land and 

Water Plan for ten years. Cr Goulding 

is Chair of the Association of Victorian 

Regional Waste Management Groups. 

CR KEITH DEN HOUTING 

Patchell Ward 


(Mayor: June – December 2010) 

Portfolios (from December 2010): 





Council delegate (to December 2010): 

• Municipal Association of Victoria 

(MAV) 

• Murray River Group of Councils 

(MRGC) 

• MAV Loddon Campaspe Mayor 

and Chief Executive Officer Forum 

• MAV Rural Councils Victoria 

Cr Keith den Houting was elected 

Mayor in November 2006, was reelected 

in 2007 and re-elected again 

in 2008. He is a man of the land, 

having spent 18 years as a dairy 

farmer and 16 years as a supervisor 

with the then Department of 

Agriculture. Cr den Houting has 

strong community ties and works hard 

to protect the quality of life of those 

who live in Gannawarra Shire. All Cr 

den Houting’s extended family 

continue to live and work in and 

around Gannawarra Shire. 

TABLE 1: Mayoral and Councillor 

meetings attended 

Number of Number of Number of 

Councillor Councillor Briefing Ordinary Meetings Special Meetings 

Sessions attended attended (11 held) attended (6 held) 

Cr Aertssen 11 11 6 

Cr Basile 8 11 6 

Cr den Houting 11 11 5 

Cr Fehring 10 11 5 

Cr Gannon 10 9 5 

Cr Hall 10 11 6 

Cr Goulding 4 9 3 

9

10 

MAYOR’S MESSAGE 

‘Consolidating our Future’ is a 

good theme for this year’s 

annual report. At the beginning 

of the year we were still in 

drought but with the end in 

sight, looking forward to things 

getting better. However the 

power of nature went from the 

positive to the point of disaster 

with a record flood upon us. 

The January flood left us with a huge 

challenge. Our community met that 

challenge equally if not better than 

any before it, dealing well with the 

September and November events. 

When January came the Gannawarra 

community had an extraordinary 

battle on its hands. Community 

fortitude and spirit was the key to our 

ability to get through this record flood 

event – not only a record in the flood 

heights but in the duration of the 

event. 

Council and the Councillors took a 

lead role in communicating with 

communities and working in 

conjunction with the lead agencies to 

be able to marshal resources to meet 

challenges as they arose. All should 

be commended in the highest degree. 

As a result of being diligent and 

resourceful Council has been able to 

secure funding to repair damaged 

assets and achieve cooperation from 

the State and Federal Governments in 

the flood relief and recovery process. 

Through excellent planning by our 

staff and strong support from our 

Councillors this process is well 

underway. We are already starting to 

deliver fully reconstructed roads and 

facilities.

We also received great support from 

fellow councils, and community 

organisations within and beyond our 

Shire boundaries during the flood 

event and to help us rebuild our 

homes, farms and businesses. On 

behalf of Council I thank you all for 

your support. 

Thank you also to the Turkish and 

Cambodian communities and the City 

of Greater Dandenong for coming to 

our aid with their generous donations 

and support. 

Beyond the flood events we have 

managed to achieve a great deal in 

the past year and build on last year’s 

annual report theme of Pathways to 

Progress. Our community planning 

groups have had great progress in a 

variety of projects including the Apex 

Park and Maternal Child Health 

Project in Koondrook, and the 

Gateway to Gannawarra project in 

Cohuna which will be finished by 

Christmas 2011. This project in 

particular will enhance our ability to 

promote our Shire to visitors and to 

the community itself. 

Our continual challenge as a Council 

is getting the right mix of improving 

assets and improving quality of life 

through such things as rehabilitating 

open spaces and recreations reserves. 

A lot has been completed but a lot of 

implementation is to take place in the 

next two years. Walking tracks and 

trails have also been planned as part 

of this plan and are now in the 

process of being implemented. 

As always we take time to recognise 

the important volunteer efforts of our 

community members who help those 

who need it, by providing services 

such as Meals on Wheels and many 

others. 

Nothing could be done without our 

executive staff led by Rosanne Kava 

and the teams in various parts of the 

organisation that deliver the end 

results of Council decisions and I 

recognise their work. 

I recognise the dedication of my 

fellow Councillors and the past Mayor 

Cr Keith den Houting for his four years 

as Mayor. We see this as a privilege to 

be able to serve our community with 

commitment and deliver the best 

decisions we can for everyone. 

We are looking forward to a good 

season across the entire Gannawarra 

Shire which hopefully comes to 

fruition. 

Many challenges lie ahead. I leave 

you with this positive outlook: 

“Looking back is interesting, Looking 

forward is essential.” 

Cr Max Fehring 

Mayor 

Mayor Cr Max Fehring and Minister Simon Crean during a tour 

of damaged infrastructure following the 2010-2011 floods in 

Gannawarra Shire. 


11 


12 

CHIEF EXECUTIVE OFFICER’S MESSAGE 

The events of the past year 

highlight the versatility of our 

Council in being able to mobilise 

resources and to execute our 

emergency management plans to 

meet unimagined disaster 

scenarios with success. 

Gannawarra Shire began the financial 

year in drought. Council was also well 

prepared for what was forewarned as 

an unprecedented locust plague, 

working in partnership with the 

Department of Primary Industries as 

the lead agency. 

This was followed by the floods events 

of 2010/2011. Council responded in 

the preparation, response and 

recovery phases and worked well with 

and for the community at all levels. 

The Shire Council Chambers in the 

Kerang office were the location for the 

Municipal Emergency Coordination 

Centre and many of our staff were 

involved in key roles at the centre with 

the various emergency agencies, as 

well as in lead and support roles across 

the Shire throughout the event. When 

Kerang was evacuated the Council 

office was closed and it continued to 

operate from our Cohuna Office 

building. This represented a logistical 

challenge but Council was able to 

continue operating most services then 

and on return to Kerang a week later, 

following the re-opening of the 

Loddon Valley Highway. 

In the emergency stages Council 

supported the evacuation of more 

than 1,000 people from Kerang to a 

temporary meeting point in Barham, 

thanks to the cooperation of Wakool 

Shire Council, cluBarham, the people

of the Barham community and 

agencies in NSW. Council also 

operated the Flood Relief Centres in 

Lake Boga and Cohuna to 

accommodate, feed, inform and 

support evacuees in cooperation with 

lead agencies such as Red Cross, the 

Department of Human Services and 

many others. 

The opening of the Flood Recovery 

Centre in Kerang commenced a 

coordinated and sustained approach 

to flood recovery throughout the 

Shire. This has been greatly assisted 

by working closely with State and 

Federal agencies, service clubs, charity 

organisations and community 

members who have worked together 

effectively through the Flood Recovery 

Committee, chaired by Deputy Mayor 

Glen Hall. 

The damage to infrastructure and the 

impact on Council resources as a 

result of the flood events has been 

significant with road repairs alone 

estimated at around $25 million. 

Council has responded flexibly by 

rescheduling planned road works, 

allocating resources to securing grants 

funding and recouping Council costs 

resulting from the flood emergency, 

and the rescheduling of some of our 

activities under various plans and 

strategies. Council has been vigilant in 

its preparation for the coming season 

including by extending networks with 

fellow Councils and emergency 

services. 

However, Council has also achieved 

significant progress across the five Key 

Result Areas of the Council Plan: 

Leadership and Governance; Our 

Environment; Economic Prosperity; 

Sustainable Communities; and Assets 

and Infrastructure. 

Highlights include the adoption of the 

overarching strategy for our 

community, Gannawarra 2025, and 

the Gannawarra elements of the 

Loddon Mallee Northern Regional 

Strategic Plan will provide the best 

opportunity to access funding across a 

whole range of areas within the Shire. 

Council has adopted a different 

business model in the aftermath of the 

floods by using external contractors to 

progress the necessary works and 

meet funding requirements of $1 

million per month to June 2013 on 

roads and other infrastructure. 

In the area of community services 

Council has progressed from strength 

to strength. The Long Day Care 

service has been operated by Council 

for one year and is now at almost 

peak capacity; this has been an 

extension of Council services strongly 

supported by the community. Green 

Corps has also been an effective 

adjunct to Council services, with 

participants completing great works 

on a range of projects that do not fall 

traditionally within the scope of 

Council operations but nonetheless 

are appreciated by communities and 

extend the experience and skills of 

participants. 

Council has been very active in an 

advocacy role on behalf of the 

Gannawarra community making 

submissions and representations on 

the Murray-Darling Basin Plan, a 

number of flood enquiries and others. 

Feedback from the community on 

Council operations for the past year in 

the annual Community Satisfaction 

Survey was the second highest 

recorded score in Victoria, of the 79 

Councils who participated. This result 

will only encourage us to do more. 

Thank you to Mayor Cr Max Fehring 

and the Councillors for their 

leadership, the Executive team 

members past and present for their 

support, and to the staff of 

Gannawarra Shire Council for their 

effort and achievements in what has 

been an extremely difficult year. 

And most of all thank you to the 

Gannawarra community individuals, 

groups and service organisations for 

the cooperation, feedback and energy 

you have given to supporting the 

wider community and Council in 

achieving our vision for the Shire. 

Rosanne Kava 

Chief Executive Officer 


13 


14 

ANNUAL RESULTS AT A GLANCE 

LEADERSHIP AND 

GOVERNANCE 

Highlights 

• In the past year Council has advocated on 

behalf of the Gannawarra community to 

Ministers and Senior Government officials 

and in the form of submissions on the 

declaration of the Australian locust plague 

in Victoria to be declared a natural disaster 

or emergency of National significance, 

primary health care, water policy, key 

transport routes, additional recurrent 

funding for smaller rural shires, levee banks, 

flood warnings and response, flood relief 

and flood recovery. 

• Council has endorsed the Loddon Mallee 

Regional Strategic Plan (Northern), as 

representing the aspirations and key 

strategic directions required for a 

prosperous, liveable and sustainable region 

and commits to ongoing involvement in 

the implementation and ongoing future 

refinement of the Plan and the planning 

process. 

• Council has endorsed the principles of the 

Victorian Local Government Women’s 

Charter in the Year of Women in Local 

Government. Council has also endorsed 

the intention to act on the Charter with 

support from the funded project and the 

Women’s Participation in Local Government 

Coalition partners. 

Results 

Community satisfaction with 

overall performance of Council 

80 

70 

60 

50 

40 

30 

20 

10 

0 

2007 2008 2009 2010 2011 0 

OUR ENVIRONMENT 

Highlights 

• A review of the Gannawarra Planning 

Scheme was completed in August and 

advice provided to the Minister for 

Planning. 

• 2206 tonne was deposited in landfill for the 

year from kerbside collection. This was a 

decrease of 171 tonne on 2009/2010. 

• Total recycling for 2010/2011 was 1,389 

tonne, which is an increase of 48 tonne 

more than 2009/2010. This is almost a 4 

percent increase in kerbside amounts 

recycled. 

• Council approves the Waste Management 

Strategy 2011-2015 for implementation. 

• Council's Environmental Health Officers 

provided advice to flood-affected residents 

in the latter half of the year. Residents 

sought help on a number of matters, 

including securing a supply of safe drinking 

water, how to deal with mould growth, 

disposal of flood damaged goods, and 

advice on how to repair or replace 

damaged domestic wastewater systems. 

• Each Living Green in Gannawarra and 

Surrounds sustainability workshop had an 

average attendance of 30, with 74 

participants attending all three workshops 

in their locality. 

Results 


waste management 

80 

70 

60 

50 

40 

30 

20 

10 

2007 2008 2009 2010 2011

ECONOMIC PROSPERITY SUSTAINABLE COMMUNITIES 

Highlights 

• Council endorses the establishment of the 

Murray Regional Tourism Board, signs a 

Memorandum of Understanding outlining 

the partnership between local government, 

Tourism Victoria and Tourism NSW in 

relation to the operation of the new Board 

and commits to contributing for three years 

commencing in 2010/2011. 

• Continued development of industrial estates 

in Kerang and Cohuna provides new 

business opportunities. 

• Significant marketing programs were 

implemented to assist business recovery 

after the major flood event including 

television, radio and newspaper advertising 

in rural and regional centres. 

• The $1.2 million Gateway to Gannawarra 

Education, Cultural and Heritage Centre 

project which will provide an exciting new 

service for visitors and residents is underway 

and on schedule. 

• Murray Sound residential development 

opens in Cohuna. 

• Council hosts large scale solar power 

companies seeking development 

opportunities in Kerang. 

Results 


economic development 

80 

70 

60 

50 

2007 2008 2009 2010 2011 

Highlights 

• 474 children from 324 families registered 

using the Gannawarra Shire Council’s Long 

Day Care and Family Day Care services. 

• During the 2010/2011 year Community 

Planning Groups used $96,156 of 

Community Planning project funds made 

available by Council. These funds were able 

to lever an amount of $244,828 in grants 

and other external funding as well as 

$76,265 of in-kind support. $4,966 was 

used to support events across the Shire 

this year. 

• Flood response and recovery includes 

establishment of relief centres, coordination 

of Government-funded Flood Recovery 

Officer and Rural Coordination Officer 

positions, a Recovery Centre set up to assist 

the flood-affected, and a Taskforce 

consisting of local and state representatives 

put in place to develop a Flood Transition 

Plan for the Gannawarra Shire. 

• Youth engagement is supported through 

the Gannawarra Youth Council which 

amongst other achievements provided 

input into the Gannawarra Shire Youth 

Strategy. 

• 96.8 percent of children under five years of 

age residing in Gannawarra were fully 

immunised, above the state average of 92 

percent. 2,175 vaccinations were 

administered to 1,584 people at 51 

immunisation sessions during the 2010/2011 

year, the highest number on record. 

• 670 children visited Gannawarra libraries in 

Children’s Book Week in August/September 

2010. 

Results 


health and human services 

80 

79 

78 

77 

76 

75 

74 

73 

72 

71 

70 

2007 2008 2009 2010 2011 

ASSETS AND 

INFRASTRUCTURE 

Highlights 

• 1,376km of gravel roads were graded 

(including 231km of flood works by outside 

contractors), 2417m of footpath replaced, 

77.5 km of roads resheeted and 5.5km 

shoulders resheeted. 

• Council launches a program of repairs to an 

estimated $25 million of damaged 

infrastructure following the flood events 

within the Shire. Three contractors 

successfully tendered for repair works. State 

and Federal Government funding of $15 

million is successfully secured, with works to 

be completed by June 2013. 

• Council adopts the 10-year Capital Works 

Plan for forward planning and 2011/12 

budgeting purposes. 

• Insurance Audit Results show improvement 

in audit scores for all three audits: MAV 

Fidelity Risk Management Survey – February 

2009, JMAPP (Property) – February 2009 

and CMP Public Liability and Professional 

Indemnity – 27 January 2010. 

Results 


local roads and footpaths 

60 

58 

56 

54 

52 

50 

48 

46 

44 

42 

40 

2007 2008 2009 2010 2011 


15 


Director Community Services 

Community Planning 

Community Care 

Grants and Environment 

Maternal and Child Health 

Children’s Services 

Environmental Health 

our organisation 

Chief Executive Officer 

Director Corporate and 

Customer Services 

Communications and 

Customer Services 

Human Resources 

Planning and Regulatory 

Services 

Operational Services 

Information Management Design and Assets 

Finance 

Risk Management and 

Occupational Health and Safety 

Library, Arts and Culture 

Economic Development 

Director Infrastructure Planning 

and Regulatory Services 

Waste Management

OUR EXECUTIVE TEAM 

The daily operations of Gannawarra Shire Council are performed by 184 dedicated full-time, parttime 

and casual employees. Council’s executive management team is led by Chief Executive Officer, 

Ms Rosanne Kava. Other members of the executive managment team are Director Infrastructure, 

Planning and Regulatory Services Geoff Rollinson, Director Corporate and Customer Services Robyn 

Rudge and Director Community Services Jason Russell. 

Ms Rosanne Kava 

Chief Executive Officer (CEO) 

Rosanne commenced as Chief Executive 

Officer at Gannawarra Shire Council in 

March 2006 following several years as 

Deputy CEO and General Manager 

Infrastructure and Environment at Swan 

Hill Rural City Council. She has worked 

as a senior manager in the Federal 

Government including with the 

Department of Primary Industries and Energy and the 

Department of Transport and Regional Services. She also 

served Australia for three years as the Counsellor, Agriculture 

and Minerals, at the Australian embassy in Rome. Through 

her career she has served on a number of Boards both locally 

and interstate. Rosanne has a Bachelor and Masters degree in 

chemical engineering, and extensive strategic management 

and leadership experience. Rosanne is a Fellow of the 

Australian Rural Leadership Foundation and a Graduate of 

the Australian Institute of Company Directors. Rosanne has a 

strong commitment to improving Council’s service delivery 

across the board, and to continuing to achieve a high level 

of community engagement in local planning. 

Ms Robyn Rudge 

Director Corporate and Customer Services 

Robyn joined Council in October 2009. 

She holds a Bachelor of Commerce and 

is a qualified CPA. She has over ten 

years of experience in sound financial 

management, corporate governance, 

business planning and auditing within 

the public sector. She has previously 

held positions with SA Water 

Corporation, the South Australian Auditor-General's 

Department and is a former member of the South Australian 

CPA Public Sector Committee. Robyn's role is to lead 

Council’s finance, communications, customer services, 

human resources, risk management, occupational health and 

safety, libraries, arts and culture, and information 

management functions. Robyn is committed to working 

with the community to achieve results. 

Mr Geoff Rollinson 

Director Infrastructure, Planning and Regulatory Services 

Geoff has worked for both the former 

Borough and Shire of Kerang prior to 

amalgamation. 

He has held the position of Works 

Engineer and Manager of Operational 

Services since 1995 and has a Diploma 

in Civil Engineering. As the Director of 

Infrastructure, Planning and Regulatory Services, Geoff's role 

is to lead Council's engineering, operational, planning, 

building, local laws and asset management functions. 

Mr Jason Russell 

Director Community Services 


consolidating our future 

Jason started with the Gannawarra Shire 

Council in July 2009. Prior to joining 

Council, Jason was the Executive Officer 

of the Central Murray Area Consultative 

Committee, a Federal Government 

funded regional development body, 

which worked closely with ten Councils 

each side of the Murray River, including 

the Gannawarra Shire. 

Jason worked for over 12 years in the Funds Management 

industry at ANZ Funds Management and Allianz Global 

Investors, where he held senior roles in Client Relations, 

Marketing and Investment Portfolio Management. He holds 

a Bachelor of Economics. 

In his role as Director Community Services, Jason is 

responsible for Community Care Services, Children’s 

Services, Maternal and Child Health, Immunisation, 

Environmental Health, Health Promotion, Grants, 

Community Planning and Environment, Youth, Community 

Transport, Indigenous Affairs and the Mystic Park Cemetery. 


17

18 

OUR WORKPLACE 

Gannawarra Shire Council employs 184 people in the fields of administration, operational 

works, engineering, planning, family day care, parks and gardens, records management, 

community services, information technology, executive management, libraries, human 

resources, communication, customer service, risk management, occupational health and 

safety, maternal child health, asset management, environmental health, local laws, child 

care, finance, and community development. 

TABLE 1: Examples of training courses 

attended and numbers of attendees in 

2010/2011 

Participants in Community Services 

Training Courses 

First Aid Level 2 25 

Dementia 23 

Manual Handling 27 

Managing Tricky Behaviours 5 

What Can we say about food? 4 

Mental Health First Aid 6 

Certificate III in Children’s Services 6 

Diploma of Children’s Services 8 

Bachelor of Training (early Childhood) 1 

Health Coaching 3 

Motivational Interviewing 

Flinders Chronic Condition 

4 

Management - Aboriginal Health. 1 

Veteran’s Home Care VIEW training 1 

Implementing a Care Plan 1 

Person Centred Care 

Cognitive impairment and Psychosis 

1 

in Dementia 1 

Participants in Library Training Courses 

First Aid Training renewed 2 

RSA 2 

New GSC Website Maintenance 

Certificate III Library & 

1 

Information Services 

Diploma of Business 

1 (first year) 

Management 1 (final unit) 

Diploma of Management 

Impact Leadership 1 (first year) 


Council operates under the provisions 

of the Local Government Award and 

the Gannawarra Shire Council 

Enterprise Bargaining Agreement 2010, 

and has a strong commitment to the 

application of the equal employment 

opportunity, occupational health and 

safety, and risk management principles 

and directives. Our goal is to provide a 

safe, healthy and pleasant workplace 

where our skilled and professional 

workforce is recognised and diligent in 

the ethical performance of their roles. 

New team members at Gannawarra 

are introduced to the organisation 

through a comprehensive induction 

process including information on the 

workplace, terms and conditions of 

employment and details of the 

organisation’s operations, policies, 

Chief Executive Officer Directives and 

procedures. The process was reviewed 

and enhanced in 2010/2011 as part of 

the organisation’s continuous 

improvement program according to 

the principles of Business Excellence. 

Council strives to be an employer of 

first choice and therefore continues to 

seek new ways to develop its people 

and improve the organisation. For 

examples of staff training see Table 1. 

SCHOLARSHIPS AND WORK 

EXPERIENCE 

Skills and workforce shortage is a 

challenge for any rural community. 

Gannawarra has sought to address this 

skills shortage and encourage local 

people to work locally by supporting 

the provision of scholarships and work 

experience at the Shire. 

During 2010/2011 a third scholarship 

was advertised and a recipient chosen 

from a range of worthy applicants. 

The scholarship entitles the successful 

applicant to study books and travel 

subsidies, and work placement 

experience at Council. 

Gannawarra Shire Council also hosted 

work experience students in the past 

financial year. Work experience 

students from Kerang Technical High 

School and Cohuna Secondary College 

spent their week of work experience in 

the Infrastructure, Planning and 

Regulatory Services directorate and the 

busy Customer Service unit of the 

organisation. Council’s Children’s 

Centre provided support for Early 

Childhood students on work 

placements from Charles Sturt 

University, BRiT, Ballarat University, 

Sunraysia TAFE, MADEC and the 

Victorian Training Group. The centre 

also welcomed work experience 

students from Boort Secondary College 

and Kerang Technical High School. 

Maternal Child Health and 

Community Care also provided 

placements for medical students. 

OCCUPATIONAL HEALTH 

AND SAFETY 

Council is committed to providing its 

employees, volunteers, contractors 

and visitors with a healthy and safe 

work environment. Council objectives 

are to:

• Prevent work related accidents 

and illness 

• Safeguard all employees, 

volunteers, contractors and visitors 

against injury 

• Promote welfare and preservation 

of health 

• Provide written procedures and 

instructions to ensure safe systems 

of work 

• Ensure compliance with legislative 

requirements and current industry 

standards 

• Provide information, training, 

instruction and supervision to 

employees, volunteers, contractors 

and visitors to ensure their safety. 

The implementation of the 

Gannawarra Shire Council 


Management System together with 

recognition of corporate accountability 

under the Victorian Occupational 

Health and Safety Act 2004 and other 

relevant legislation are key drivers for 

achievement of these objectives. 

Council has established direct links 

between staff on Occupational Health 

and Safety matters through the 


Committee comprised of 

representatives from designated work 

groups throughout the organisation. 

During 2010/2011 the Occupational 

Health and Safety Committee 

commenced a review of designated 

work groups and Committee structure 

to ensure continued even flow of 


information and feedback across the 

organisation. The Committee also 

reviewed the procedure for notifying 

and investigating accidents and/or 

incidents and near misses. This 

included streamlining documentation 

and increasing supervisor and 

manager involvement in the 

investigation process. 

There were eight WorkCover claims at 

Gannawarra Shire Council in 2010-11, 

resulting in 1,742 lost time hours. Of 

these claims, five were minor and 

three major. 

TABLE 2: Gannawarra Shire employees: 

Number of employees in each department 

as at 30 June 2011 

Department/Area Male Female Total 

Administration 

Commercial 

3 19 22 

and Tourism 1 2 3 

Community 3 59 62 

Engineering 12 4 16 

Finance 3 6 9 

Governance 0 3 3 

Heritage and Culture 0 11 11 

Law and Order 3 0 3 

Recreation 3 0 3 

Transport 40 12 52 

TABLE 3: Number of full-time employees at 

30 June 2011 compared to previous five 

years 

Year Male Female Total 

2010-11 61 28 89 

2009-10 61 29 90 

2008-09 63 22 85 

2007-08 64 21 85 

2006-07 59 27 86 

2005-06 67 22 89 

TABLE 4: Number of part-time employees at 

30 June 2011 compared to previous five 

years 

Year Male Female Total 

2010-11 7 88 95* 

2009-10 7 83 90 

2008-09 8 81 89 

2007-08 7 80 87 

2006-07 6 72 78 

2005-06 8 70 78 

* Increase due to Council commencing new 

business (Long Day Care Centre) 



GANNAWARRA VOLUNTEERS 

Each year hundreds of volunteers 

make an extraordinary contribution to 

our community by regularly donating 

an hour of their time to deliver Meals 

on Wheels. Volunteering is good for 

everybody. The community benefits 

and individuals, groups or business 

benefit – by helping others, meeting 

new people or just by feeling good 

about contributing to the community 

in which they live. 

Volunteers delivered over 20,000 

meals across the Shire during 

2010/2011, and are a vital link 

between clients and the community. 

Over 200 volunteers past and present 

celebrated Kerang’s milestone of 40 

years of delivering Meals on Wheels 

on Thursday 14 October 2010 with a 

gala lunch. 

Cohuna Meals on Wheels will be 

celebrating their 40th anniversary in 

October 2011, when Ambassador for 

Ageing Noelene Brown will be the 

special guest. 

Gannawarra Shire staff member Shane Conlan, 

outdoor worker. 


19

20 

GOVERNANCE FRAMEWORK 

Gannawarra Shire Council supports effective and democratic corporate governance and 

leadership through commitment to and observance of democratic processes and legislative 

requirements. 

The community has many 

opportunities to provide input into 

Council’s decision making processes 

by participating in community 

consultation, in community planning 

groups, in public forums, in Council 

Question Time, talking to their local 

Councillors, by taking up the 

opportunity to make submissions to 

Council, completing feedback forms 

and providing comments to customer 

service. In the future use of social 

media as a component of Council’s 

Communication Strategy 2011 – 2014 

will be implemented to provide a 

further opportunity for community 

input. 

In accepting office the Mayor and 

Councillors accept certain duties and 

responsibilities. This is signified by 

subscribing to the declaration of office 

which requires Councillors to give a 

solemn undertaking that they will fulfil 

the duties of office faithfully and 

impartially, to the best of their ability 

and judgement. 

Council’s authority is exercised as a 

collective when sitting as a Council; 

individual Councillors do not have 

power to make decisions. 

In carrying out the responsibilities of 

public office the Mayor and 

Councillors are bound by the Local 

Government Act 1989 and the 

principles of good governance. In 

addition to providing guidance to the 

Mayor and Councillors, the Act 

provides mechanisms in the form of 

penalties, ranging from a written 

reprimand to disqualification from 

office, that assist in circumstances 

where misuse of power and authority 


might occur. The community also 

contributes to good democratic 

governance by participating in 

Council elections, being involved in 

community consultation programs 

and community planning groups, and 

informing Councillors of issues in their 

wards requiring Council’s attention. 

In order to represent the community 

effectively, Councillors are required to 

attend meetings regularly and to vote 

on all matters which require a 

decision. The Local Government Act 

1989 clearly sets out the roles of 

Councillors and the additional roles of 

the Mayor, including responsibility for 

the orderly conduct of meetings of 

the Council, decision making and for 

exercising powers and duties given by 

the Council. 

Ordinary Council meetings are held 

on the third Wednesday of each 

month. Community members are 

welcome to attend the meetings and 

put forward questions in the 

designated Question Time. Local 

media is also welcome to attend the 

meetings for the purposes of reporting 

on proceedings. Chief Executive 

Officer Rosanne Kava presents a 

regular segment on local radio station 

3SH the morning following each 

ordinary Council meeting to make the 

information from the meetings known 

to the Gannawarra community. 

Council also distributes on average 

more than one media release per 

week on Council activities and liaises 

with local, regional and state media to 

facilitate interviews and coverage of 

events and projects within the 

Gannawarra Shire. During the January 

2011 flood event this extended to 

liaison with international media to 

obtain coverage for the Gannawarra 

communities impacted by the floods 

and in order to disseminate key Shire 

messages on flood relief and recovery. 

RISK MANAGEMENT 

Risk management is the process of 

planning, organising, directing and 

controlling the resources and activities 

of an organisation in order to 

minimise the adverse affects of 

accidental losses on the organisation 

at the least possible cost. 

Gannawarra Shire Council is actively 

committed to the minimisation and 

treatment of risks, the development of 

risk management opportunities within 

its sphere of operations, and the 

provision of a safe living environment 

for the entire community. Council’s 

commitment to this policy means the 

adoption of the following measures: 

• Ensuring there are adequate 

resources allocated to risk 

management including one EFT 

position for a Risk Management 

Coordinator to enable the risk 

management function to be 

effectively undertaken throughout 

Council operations 

• Empowering each management 

position within Council to 

undertake risk management within 

their area of responsibility to 

ensure organisation-wide risk 

management occurs 

• Setting in place the administrative 

controls to enable effective risk 

management practices to be put 

in place

• Providing appropriate training and 

information to all employees on 

risk management and risk 

reduction techniques 

• Maintaining the necessary risk 

financing arrangements to enable 

the effective management of risks 

relating to Council’s physical 

assets. 

Risk management achievements at 

Gannawarra Shire Council in 

2010/2011 included: 

• Review of Section 86 Committees 

of Council, resulting in more 

streamlined reporting 

• MAV Fidelity Appraisal conducted 

with improved score of 83 percent 

• Review of Incident Notification 

and Investigation procedures 

resulting in less paperwork and 

increased involvement by 

managers 

• Successful implementation of 

Council’s Business Continuity Plan 

to relocate the main office from 

Kerang to Cohuna during the 

January flood event 

• Improved CMP Liability Audit 

State Ranking for the 2008-2010 

audit cycle. 

CODES OF CONDUCT 

Elected representatives and staff 

members are deemed to be public 

officers and are required to abide by 

principles of good conduct and 

standards of behaviour. They are 

bound by two separate Codes of 

Conduct and statutory requirements 

of the Local Government Act 1989 or 

any other relevant legislation. The 

two codes are the Employees Code of 

Conduct and the Elected Members 

Code of Conduct. 

The general duty of Council 

employees is to act honestly and with 

reasonable care and diligence in the 

performance and discharge of their 

functions and duties. Employees of the 

Council must not make improper use 

of the information acquired or make 

improper use of their position. 

The Employee’s Code of Conduct is 

currently undergoing review as part of 

Council’s due process. 

The role of the Council is to provide 

leadership for the good governance of 

the Gannawarra Shire. This includes: 

a. Acting as a representative 

government by taking into 

account the diverse needs of the 

local community in decision 

making 

b. Providing leadership by 

establishing strategic objectives 

and monitoring their achievement 

c. Maintaining the viability of the 

Council by ensuring that resources 

are managed in a responsible and 

accountable manner 

d. Advocating the interests of the 

local community to other 

communities and governments; 

e. Acting as a responsible partner in 

government by taking into 

account the needs of other 

communities 

f. Fostering community cohesion 

and encouraging active 

participation in civic life. 

The Elected Members’ Code of 

Conduct was reviewed in 2009 and is 

not due for review again until 2013. 

The Local Government Amendment 

(Conflicting Duties) Act 2009, which 

was assented to 8 September 2009, 

provides for the conflicting duties of 

persons who are or want to be 

Councillors and for other purposes. 



COMMUNITY ENGAGEMENT 

Community consultation is a key 

component of Council’s commitment 

to the community to achieve best 

practice in corporate governance. 

Council held community meetings on 

the revised Council Plan incorporating 

the Strategic Resource Plan and the 

proposed 2011 - 2012 Council Budget 

in each ward of the Shire to present 

information on the Council Plan and 

Budget. 

In addition Council advertised the 

revised 2009 - 2013 Council Plan and 

2010 - 2011 Budget for comment and 

requested submissions from the public 

as part of the requirements under the 

Local Government Act 1989. 

Council uses a range of other means 

to keep the community informed and 

engaged. These include media 

releases, and full page editions of the 

Gannawarra Gazette printed in local 

newspapers the Northern Times and 

the Cohuna Farmers Weekly. The 

Gazette provides an opportunity to 

provide important Council 

information, highlight Council 

activities, and focus on upcoming 

events that are of significance to the 

community such as immunisation 

clinics, cultural activities and 

community planning meetings. 

Information is also sent to ratepayers 

as an insert with their annual rates 

notices. This year the insert was a 

summary of information relevant to 

the 2011-2012 budget and to the 

range of Council services. 

Council’s website was reviewed and 

updated in 2011 to increase ease of 

use and ease of access to information. 

The website has also included two 

new information technology features 

of a livechat customer service option 

and an online customer action request 

system, enabling customers to receive 


21

22 

feedback from customer service staff 

in real time or have their requests for 

action input into Council’s action 

system immediately. Feedback has 

been positive. 

Council is also committed to the 

introduction of social media as a 

communications tool. Social media 

has been included in Council’s 

Communication Strategy 2011 – 2014 

and is scheduled to be introduced 

within the new financial year. 

The community is encouraged to 

attend Council meetings which are 

normally held at the Council 

Chambers in Kerang but are also held 

at different locations in the Shire at 

intervals throughout the year. Each 

Council meeting has a Public Question 

Time where members of the public 

can ask up to three questions each of 

their Councillors, in accordance with 

Council’s agreed protocol. 

The community is also encouraged to 

engage with Council by attending one 

of the 10 Community Planning 

Groups in the Shire. These Groups 

meet monthly and with the assistance 

of a Council facilitator actively 

establish the planning priorities of 

their respective communities. Council 

then provides assistance for these 

groups to undertake their priority 

projects and seed funding to enable 

greater funding from other sources to 

see the projects through to fruition. 

Council information is also distributed 

to planning groups as another means 

of informing and engaging the 

Gannawarra Community. 


A feedback form has also been 

included with copies of the 2011 

Annual Report and is available online 

at www.gannawarra.vic.gov.au to 

enable community input on any 

aspect of the presentation or content 

of this report. This information will be 

used for the development of the 2012 

Gannawarra Shire Council Annual 

Report. 

CONFLICT OF INTEREST 

Councillors and senior staff are 

required to declare any conflict of 

interest in any matter, and the nature 

of that interest, before a matter is 

discussed in a Council or Committee 

meeting. 

All Councillors and senior staff are 

required to complete a Form 26 

Register of Interest Primary Return 

when elected or appointed, in 

accordance with the Local 

Government Act 1989. The Pecuniary 

Interest Register is available for 

inspection at the Kerang Office of 


COUNCIL AUDIT COMMITTEE 

The role of Council’s Audit Committee 

is to independently monitor, review 

and advise the Council on matters of 

accountability and internal control 

affecting the operations of the 

Council. The Committee exists to 

assist the Council in discharging its 

responsibilities for financial reporting, 

maintaining a reliable system of 

internal controls and fostering the 

Council’s ethical environment. 

The Committee makes 

recommendations on the 

appointment of an internal auditor 

and on the adoption of the Annual 

Financial and Standard Statements as 

well as provides advice to Council and 

senior management. 

The 2010/2011 Audit Committees 

were: 

External members: 

Mr John Campbell (Chair), Mr Ian 

Taylor and Ms Kate Scarce 

Council members: 

Cr Lui Basile and Cr Gannon 

(from December 2010) 

Cr Max Fehring (to December 2010) 

Internal Audit Firm: 

Richmond, Sinnott Delahunty 

The Internal Audit Committee met 

three times during the 2010-2011 

financial year as the December 

meeting was cancelled as a result of 

flooding. 

External audit of Council’s Financial 

and Standard Statements is conducted 

by MDHC Audit Assurance Pty Ltd.

2011 COMMUNITY SATISFACTION SURVEY 

The Community Satisfaction Survey enables respondants to rate 

Council on four governance measures and in nine service areas 

(see Figure 1). 

The Community Satisfaction Survey is 

undertaken in February/March each 

year by independent market research 

consultancy Wallis Consulting Group 

for the Department of Planning and 

Community Development and local 

government. This is the fourteenth 

year that the Gannawarra Shire 

FIGURE 1: Relative Performance within LGA Group for 2011 

80 

70 

60 

Rating 

50 40 

30 

20 

10 

Gannawarra Shire 

Highest result in group 

Median result in group 

Lowest result in group 

Council has participated in the survey. 

This year 77 of the 79 Victorian 

Councils participated including inner 

and outer metropolitan councils, 

regional centres, and large and small 

shires. Over 27,000 interviews were 

conducted across Victoria, 350 in the 

Gannawarra Shire alone. 

0 

Overall Performance 

Advocacy 

Community Engagement 

Customer Contact 

Local Roads and Footpaths 

Health and Human Services 

Recreational Facilities 

Appearance of Public Areas 

Traffic Management and 

Parking Facilities 

Waste Management 

Enforcement of Local Laws 


Town Planning Policy and Approvals 



SUMMARY OF RESULTS 

Gannawarra Shire Council 

survey results for 2011 were 

exceptional. 

Council has improved in all 

areas from the 2010 survey 

results, by as much as nine 

points in the area of Advocacy 

and five points in the areas of 

Community Satisfaction with 

Overall Performance of Council, 

Community Engagement, 

Recreational Facilities, and 

Economic Development. 

Gannawarra recorded the 

highest Community Satisfaction 

with Overall Performance of 

the 21 councils of like size and 

structure. 

Gannawarra also recorded the 

second highest result for overall 

performance by any of the 77 

Victorian councils that took part 

in the survey. Figure 1 shows 

Gannawarra’s results in dark 

green at the higher end if not the 

highest for results achieved. 

23

24 

FIGURE 2: Customer Window: Key Areas for Improvement 


CUSTOMER WINDOW RESULTS 

The Customer Window provided as 

part of the survey results links 

performance in service provision with 

the relative importance of each service 

area to the community. 

These results are useful in assessing 

where resources could be best 

allocated to improve services and 

identify which services are most 

important to the community. 

The window below shows Advocacy, 

Town Planning and Community 

Engagement as service areas where 

Council performs well and where 

improvements have been made in the 

past year. Seven of the 12 areas are in 

the quadrant of Maintaining Existing 

Performance, where Council has also 

performed well. 

Both Local Roads and Footpaths, and 

Economic Development, are listed as 

areas for improvement. However, 

community satisfaction with Roads 

and Footpaths has remained steady 

compared to the previous year despite 

the difficulty of putting programs in 

place in the midst of floods when staff 

and resources are engaged in flood 

emergency, relief and recovery works. 

In addition, satisfaction with Economic 

Development has increased five points 

from 2010 and is consolidating 

toward an area of strength.

FINANCIAL SNAPSHOT 

OPERATING INCOME 

Our primary source of income at $9.4 

million is grant income, with rates and 

charges a close second at $8.9 million. 

Other key sources of income include 

user fees and changes at $1.5 million 

and contributions and reimbursements 

for works undertaken for the 

community at $1.8 million. 

OPERATING EXPENDITURE 

Operating expenditure was closely 

controlled for the 2010/2011 financial 

year. The key expenditure areas for 

Council are Employee Benefits (40%) 

and Materials and Services (35%). 

These costs are incurred for the 

provision of services in the areas of 

maintenance of Recreation areas 

(26.1%), Council, Administration and 

Engineering (25.4%) and Waste and 

Environment (13.1%). 

2011/2012 BUDGET 

A back-to-basics approach was 

adopted for the 2011/2012 Council 

Budget. The budget focused on 

supporting the recovery of our 

community by repairing infrastructure 

damaged in the 2010/2011 flood 

events, delivering key customer 

services and implementing key 

recommendations from the Strategic 

Plans developed in 2010/2011, 

including the Economic Development 

Strategy, Gannawarra 2025, the Youth 

Strategy and the Municipal Early Years 

Strategy. 

The planned Capital Works Program 

will be $7.446 million focusing on 

back-to-basic service delivery. The 

program includes $2.474 million of 

projects carried over from the 

2010/2011 year. The delays in the 

delivery of these projects were a direct 

result of the January 2011 flood event. 



The 2010/2011 financial year presented a range of challenges at Gannawarra Shire Council. 

The focus throughout the year has changed from drought, to locusts, floods and finally to 

recovery. These challenges resulted in Council having to reassess project and core service 

delivery with a focus on supporting the recovery of our community, particularly in repairing 

flood damaged infrastructure. Our income for the year was $22.4 million and our expenditure 

was $21.3 million resulting in an operating surplus for 2010/2011 of $1.2 million. 

TABLE 5: Financial Summary for year ended 30 June 2011 

Total revenue $22.4 million 

Total expenditure $21.6 million 

Surplus $0.9 million 

Total assets $140.4 million 

Total liabilities $7.9 million 

Equity $132 million 

Net cash from operating activities $7.1 million 

Working capital ratio 196.51% 

Adjusted Working Capital ratio 211.42% 

Debt commitment ratio 5.32% 

2% 

FIGURE 3: Gannawarra Shire income 

1% 

42% 

8% 

2% 

7% 

Rates and Charges 

User charges and fees 

Grants 

Contributions 

Reimbursments 

Other revenue 

FIGURE 4: Expenditure areas. 

21% 

35% 

1%1% 

40% 

40% 

Employee benefits 

Materials and services 

Contributions 

Depreciation and amortisation 

Finance costs 

Other expenses 


25

26 


Highlights of the Capital Works 

Program include: 

• $1.2 million – Gateway to 

Gannawarra Education, Cultural 

and Heritage Centre 

• $3.096 million – Continuation of 

the Local Road Network Renewal 

Program 

• $0.26 million – Continued works 

on the Building Renewal Program 

• $0.18 million – Footpath and 

Kerb Replacement Program 

• $0.15 million – Playground 

equipment. 

Council is entering the second year of 

its decision to inject a substantial 

amount of funding to improve the 

condition of its road network. 

Although the flood events of January 

2011 have resulted in an initial delay, 

the program is anticipated to be back 

on track in the coming months. 

As a result of the January 2010 flood 

event Council is also anticipated to 

undertake an estimated $25 million of 

infrastructure repair works. Although 

Council has two years to undertake 

the repair works, the majority of 

works is planned to be delivered in 

2011/2012. 

COUNCIL GRANTS 

Council seeks to support worthy 

community needs or initiatives. 

Although every need is genuine 

unfortunately not every application 

can be granted. Under stringent 

selection criteria and funding 

guidelines, the following grants were 

awarded in 2010/2011. 

INTERNAL GRANTS 

Annual Community Grants 

• 21 Applications received 

• 13 Successful applications 

• $35,000 allocated to Community 

Grants in 2010/2011 

Small Grants 

• 25 Applications received 

• 20 Successful applications 

• $8,318 allocated to Small Grants 

in 2010/2011

EXTERNAL GRANTS APPLICATIONS 

TABLE 6: External Grants Applications 



Name of Grant Grant Program Amount 

Murray to Moyne Bikers Group Community Sport & Recreation Program – FACHSIA $5,000 

M2M – Our Club, Our Future Sporting Uniform Grants 2010 DPCD $990 

Cohuna Memorial Hall Upgrade Small Towns Development Fund – RDV $180,000 

Leitchville Men’s Shed DPCD $45,455 

Trails of the Gannawarra – An Initiative to Promote Health & Tourism RDV $240,000 

Wandella Irrigation Upgrade Sustainable Sports Ground Program – DPCD $27,833 

RLCIP Rd 3 – Gannawarra Park/Street Furniture Revitalisation Dept of Infrastructure, Transport, Regional 

Development & Local Government $65,000 

RLCIP Rd 3 – Quambatook Community Playground As above $10,000 

RLCIP Rd 3 – Revitalisation of Victoria Square – Kerang As above $25,000 

RLCIP Rd 3 – Promoting our Towns and Regions As above $25,000 

RLCIP Rd 3 – Quambatook Caravan Park BBQ Facility & Trail As above $25,000 

RLCIP Rd 3 – Gunbower Creek Walking Trail As above $15,000 

RLCIP Rd 3 – Murrabit Township Approach Beautification As above $10,000 

Meals on Wheels – Gannawarra Shire calls for volunteers DPCD $5,000 

Young Professionals Cadetships Program RDV $42,500 

National Youth Week 2011 – Gannawarra through youthful eyes DPCD $2,000 

Education Week 2011 – Families, Floods & Fluvial Facts DEECD $1,488 

Local Government Clean Up Fund (Floods) – Round 1 Local Government Victoria - DPCD $100,000 

Floods Community Recovery Fund DPCD $50,000 

(variation late June for additional $’s) + $40,000 

Flood Recovery Officer RDV $120,000 

Junk Mail No More Sustainability Victoria $10,778 

Enhancing volunteer capacity during emergency situations Volunteer Management Capacity Grant – DPCD $50,000 

Kerang Riverside Park Reserve Development Country Football Netball Program – DPCD $93,450 

Flood Rural Coordination Officer DPI $60,000 

Gannawarra Emergency Management Communication Project Office of Emergency Services Commissioner $20,000 

Local Government Clean Up Fund (Floods) – Round 2 

UNSUCCESSFUL GRANTS 

Local Government Victoria - DPCD $207,062 

TOTAL $1,476,556 

Growing through Socially Inclusive Play 

GRANTS STILL UNDER CONSIDERATION 

Accessible Communities – FAHCSIA $50,000 

TOTAL $50,000 

Gannawarra Environment and Sustainability Strategy Sustainability Accord Rd 5 – Sustainability Victoria $45,000 

Gannawarra: Recovery to Discovery Regional Development Australia Fund $4,950,000 

Kerang Township Levee Upgrade Office of Emergency Services Commissioner $1,770,000 

TOTAL $6,765,000 


27

performance report



Council is committed to the ongoing improvement 

and enhancement of the liveability, productivity and 

sustainability of our municipality. 

The Council Plan 2009 – 2013 

provides long-term strategic direction 

and identifies short-term and 

medium-term activities for how the 

Council will work together with the 

community to make this vision a 

reality. 

The Plan also outlines measures of 

performance through achievements 

against strategic objectives in five Key 

Result Areas. These areas are: 

1 Leadership and 

Governance 

2 Our Environment 

3 Economic Prosperity 

4 Sustainable Communities 

5 Assets and 

Infrastructure 

The Council Plan is reviewed once 

every financial year to ensure it 

remains relevant and focused in what 

may be a changing operating 

environment. 

In 2011 Gannawarra Shire Council 

also adopted the visionary 

Gannawarra 2025 which outlines the 

Strategic Community Plan for 

Gannawarra Shire for the next 15 

years and links into the Council Plan. 

This document is a long range 

strategy plan with aspirational goals 

and a range of suggested programs as 

to how to achieve these goals. This 

document provides scope for all 

community driven groups to support 

and play a part. In 2011/2012 

Gannawarra 2025 and the Council 

Plan, will serve to integrate and 

provide guidance to all plans relating 

to the Shire, across all tiers of 

Government and across individual 

community plans. 

The following performance report 

provides a summary of the Goals, 

Objectives and Achievements in each 

of the five Key Result Areas of the 

Council Plan. 


29

30 

Goal 

To represent community 

interests and provide 

leadership in an open 

and accountable way, 

utilising resources 

effectively in the delivery 

of responsive services. 

Above: Council sought to maintain 

strong community engagement 

during the flood events during 2010- 

2011. Council chaired this flood 

update meeting at Kerang Memorial 

Hall attended by lead agencies. 

LEADERSHIP AND GOVERNANCE 

OBJECTIVES 

Effective representation of and advocacy for the community • 

Transparent and accountable decision making • 

Responsive and efficient service delivery • 

Effective communication with the community • 

Strong community partnerships • 

To be innovative, responsive and community focussed •

ACHIEVEMENTS 

√ Council demonstrated strong and 

effective leadership in its actions 

and communications in the 

preparation, response and 

recovery phases of the January 

2011 floods. Council continues 

to offer a high level of support in 

assisting the community in the 

recovery phase. 

√ Council facilitated and welcomed 

tours by a number of high profile 

visitors, including HRH Prince 

William and Governor-General 

Quentin Bryce. These visits 

assisted greatly in boosting morale 

during and following the flood. 

√ Council endorsed the principles of 

the Victorian Local Government 

Women’s Charter in the Year of 

Women in Local Government. 

Council endorses the intention to 

act on the Charter with support 

from the funded project and the 

Women’s Participation in Local 

Government Coalition partners. 

√ In the past year Council advocated 

on behalf of the Gannawarra 

community to Ministers and 

Senior Government officials and in 

the form of submissions on the 

proposed Murray-Darling Basin 

Plan, the Australian Locust plague, 

primary health care, natural gas, 

key transport routes, additional 

recurrent funding for smaller rural 

shires, levee banks, flood warnings 

and response, flood relief and 

flood recovery. 

√ Council endorsed the Loddon 

Mallee Regional Strategic Plan 

(Northern) as representing the 

aspirations and key strategic 

directions required for a 

prosperous, liveable and 

sustainable region and committed 

to ongoing involvement in the 

implementation and ongoing 

future refinement of the Plan and 

the planning process. 

√ Upgrading of the Council website 

to be more user-friendly and 

incorporating a real time on-line 

customer service facility and 

customer action request facility. 

√ Council adopted a new 

Communication Strategy 2011 – 

2014 including the 

implementation of social media. 

√ Council presented a quarterly 

financial report in addition to a 

review of the current year budget 

as at 31 December each year to 

ensure that the forecast results as 

of 30 June was achievable. 

√ Council is required by the 

Valuation of Land Act 1960 to 

carry out a General Valuation of all 

rateable land within its municipal 

district as at 01 January in every 

even calendar year and for it to be 

returned to the Council before 30 

June in that year. On 16 February 

2001 Council resolved to accept 

the tender from LG Valuation 

Services Pty Ltd to provide 

valuation services for the period 

01 January 2011 to 31 December 

2012. These services included the 

return of the 2012 General 

Valuation. 



√ Council communication 

campaigns in 2010/2011 included 

those on locusts, rates strategy, 

roads strategy, flood relief, and 

flood recovery. Mediums included 

Council website, media releases, 

Frequently Asked Questions, 

media briefings, regular radio 

segments, radio interviews, 

Gannawarra Gazette inserts, rate 

inserts, messages on hold 

information, television coverage, 

newsletters, handouts and 

advertising. 

√ Council’s 2010 Annual Report was 

recognised with a Bronze award in 

the Australasian Reporting Awards. 

√ Council continued to support a 

scholarship programme for three 

local students undertaking 

Engineering and Town Planning 

studies as an innovative approach 

to workforce retention. 

Governor-General Quentin Bryce visited the 

Municipal Emergency Coordination Centre in 

Kerang during the January 2011 floods. 


31

32 

Goal 

To protect and enhance 

the natural and built 

environment for future 

generations. 

Above: Managing the natural 

environment for the benefit and 

enjoyment of residents and visitors 

is a key Council objective. 

OUR ENVIRONMENT 

OBJECTIVES 

Minimise our footprint on the natural environment • 

Facilitate the protection of flora and fauna • 

Manage the natural and built environments responsibly • 

Acknowledge and maintain local heritage • 

Provide a safer community in which to live, work and visit •

PLANNING, BUILDING AND 

REGULATORY SERVICES 

√ Council adopts the Rural Excision 

Guidelines and Waterside 

Development Guidelines as 

Council Policy. 

√ 63 planning permits were issued 

at a value of $9,085,593. 

√ A review of the Gannawarra 

Planning Scheme was completed 

in August and advice provided to 

the Minister for Planning. 

√ 163 building permits with a value 

of $12,109,994. 

√ Council Fire Prevention Officers 

issued 312 Schedule 15 fire hazard 

removal notices and four Schedule 

13 permits to burn a total of 

approximately 80ha. 

√ The Local Laws team had 148 after 

hours callouts during 2010/2011 

for a range of reasons including 

livestock on roads and stray dogs. 

√ The fourth Neighbourhood Safer 

Places site in the Shire was 

adopted by Council in September 

2010 at Koondrook as a place of 

last resort in a bushfire. 

WASTE 

√ The ‘reduce, reuse and recycle’ 

culture continues to make a 

positive impact on our 

environment. 

√ Concerns are raised with the 

Minister for Climate Change about 

the State Government’s “Carry In – 

Carry Out” Policy and about any 

proposed siting of a trial transfer 

station other than upon land under 

the direct control of Parks Victoria, 

in line with managing natural and 

built environments responsibly. 

√ Total recycling for 2010/2011 was 

1,389 tonne, which is an increase 

of 48 tonne more than 2009/ 

2010, almost a 4 percent increase 

in kerbside amounts recycled. 

√ Council approves the Waste 

Management Strategy 2011 – 

2015 for implementation. 

√ 2206.46T was deposited in landfill 

for the year from kerbside 

collection. This was a decrease of 

171T on 2009/2010. 

√ 7,240m³ of green waste was 

accepted in 2010/2011. 7,112 m³ 

was processed in May 2011. 

HEALTH 

√ 32 septic tank permits to install 

and/or approvals to use were 

issued. 

√ Council's Environmental Health 

Officers provided advice to floodaffected 

residents in the latter half 

of the year. Residents sought help 

on issues including securing a 

supply of safe drinking water, how 

to deal with mould growth, 

disposal of flood damaged goods, 

and advice on how to repair or 

replace damaged domestic 

wastewater systems. 

WATER 

√ Total domestic potable water for 

2010/2011 was 22.4ML, compared 

to 76.0ML in 2009/2010. 

HERITAGE 

√ Stage 2 of the Gannawarra Shire 

Heritage Study is progressing to 

an amended timetable due to 

delays caused by flooding within 

the Shire. It is anticipated that the 

Study will be completed by the 

end of 2012. 

√ Stage 2 involves detailed 

assessments of places identified in 

Stage 1, which is the Thematic 

Environmental Study section of the 

Heritage Study Project. Whilst over 

1000 places have been listed as 

part of Stage 1, only one hundred 

places /properties are currently 

being assessed for Stage 2. 



√ In addition, Stage 2 incorporates 

assessment of twelve precincts of 

cultural heritage significance. 

Precincts have been identified and 

documented in the townships of 

Kerang, Cohuna, Quambatook 

and the like. 

CO2 EMISSIONS 

√ Green power is now used on 100 

percent of all street lighting and 25 

percent of all Council buildings. 

× Council's ambitious goal is to 

reduce its carbon emissions by 

30 percent from the base year of 

1999. While emissions from 

buildings have remained constant 

in 2010/2011, emissions from fuel 

have increased by approximately 

70 tonne. This is due to the 

increase in diesel usage during the 

flood events of 2010/2011 but 

particularly from December to 

March of this period. 

LIVING GREEN IN 

GANNAWARRA AND 

SURROUNDS 

√ This program, funded by the 

Department of Sustainability and 

Environment, focused on water 

saving, waste reduction and 

energy. Three workshops were 

held in the Cohuna and Kerang 

districts. The last of 15 workshops 

in the Living Green Series was held 

in Swan Hill. 

√ The sustainability workshops were 

held across the four shires of 

Gannawarra, Loddon, Buloke and 

Swan Hill. The workshops were all 

well supported with an average 

attendance of 30 per workshop, 

with 74 participants attending all 

three in their locality. 

√ Production of a Living Green 

calendar and magnet to distribute 

to all residents across the four 

shires involved. 


33

34 

Goal 

To promote sustainable 

business development 

and employment 

opportunities throughout 

the Shire to meet the 

economic and lifestyle 

needs of residents. 

Above: Council supports and 

encourages the development 

of a thriving business sector in 

the Shire. 

ECONOMIC PROSPERITY 

OBJECTIVES 

Support the development of a diverse, prosperous economy • 

Encourage new business development • 

Utilise the region’s natural advantages • 

Attract people to the Shire as a region of choice for • 

business, employment, lifestyle and living

ACHIEVEMENTS 

Industry, business development and 

marketing 

√ Council approves the Economic 

Development Strategy 2011-2015 

for implementation. 

√ Council launches the Economic 

Development Newsletter to local 

businesses and stakeholders. 

√ Murray Sound Residential Estate 

opens in Cohuna. 

√ New factories completed in Tate 

Drive industrial estate, Kerang. 

√ Planning permit for Poultry 

Quarantine facility is extended. 

TOURISM 

√ Gannawarra Shire 

Accommodation Data for 2010 

was collated from accommodation 

providers in the Shire and this 

information has provided vital 

tourism and accommodation 

information for the Shire (see 

Figure 5). 

√ Council endorses the 

establishment of the Murray 

Regional Tourism Board, signs a 

Memorandum of Understanding 

outlining the partnership between 

local government, Tourism Victoria 

and Tourism NSW in relation to 

the operation of the new Board 

and commits to contributing for 

three years commencing in 

2010/2011. 

√ The $1.2 million Gateway to 

Gannawarra Education, Cultural 

and Heritage Centre project which 

will provide an exciting new 

service for visitors and residents is 

underway and on schedule. 

√ Council supports the proposal for 

Bicycle Victoria to allow the Great 

Victorian Bike Ride to proceed 

through the Gannawarra Shire in 

November 2011. 

√ Council launches a tourism 

website offering a new online 

opportunity for up-to-date 

information on the exciting 

tourism opportunities on offer in 

the Gannawarra region. 

√ Council launches its first 

Gannawarra Visitor Guide to 

inform visitors to the area of the 

many attractions, events and 

accommodation options across 

the Shire. 

FIGURE 5 –: Gannawarra Shire Accommodation data 2010 

Number of visitors stays 

12,000 

10,000 

8,000 

6,000 

4000 

2,000 

0 



Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 


35

36 

Goal 

To enhance the overall 

health, wellbeing and 

safety of our community. 

Above: Council seeks to build 

strong community networks by 

providing a range of activities 

and services for children and 

families. 

SUSTAINABLE COMMUNITIES 

OBJECTIVES 

Engage youth in community affairs • 

Ensure adequate services for the health and wellbeing of • 

those who need extra assistance and for predicted 

changes in the demographic profile 

Develop a safer community • 

Empower our community through community • 

engagement and capacity building 

Celebrate our identity through cultural, heritage, • 

recreation and other activities

ACHIEVEMENTS 

√ Council approves the Gannawarra 

2025 Community Strategic Plan 

for implementation by Council 

and other agencies in future 

budgets, as appropriate. 

√ In response to the flood events 

Council adopts the Gannawarra 

Shire Flood Recovery Plan 2011 

√ Council adopts the Youth Strategy, 

Community Planning Review and 

Municipal Early Years Plan. 

CHILDREN’S SERVICES 

√ Council continues to provide a 

high quality Family Day Care 

Service across the Shire, with 18 

carers operating in six different 

townships. The service also 

remained operational throughout 

the 2011 floods. 

√ Council agreed to continue to 

operate the Gannawarra Shire 

Children’s Centre (Long Day Care) 

on an ongoing basis. The Long 

Day Care centre in Kerang 

officially closed in December 2009 

due to a lack of enrolments and 

financial pressures. After 

unsuccessfully trying to find 

another operator, the Gannawarra 

Shire Council agreed to apply for a 

License to operate the centre 

(renamed to Gannawarra Shire 

Children’s Centre) in March 2010, 

for an initial trial period of 3 

months and then later extended 

to the end of December 2010. The 

Shire is now a fully licensed Early 

Childhood Provider in line with 

other child care services. 

√ In 2010/2011 there were 474 

children from 324 families 

registered using the Gannawarra 

Shire Council’s Long Day Care and 

Family Day Care services. 

√ The Kerang Children’s Centre 

celebrated a successful year of 

Council management in April 

2011 with utilisation rates at the 

centre averaging 90 percent 

capacity. 

√ The Kerang Children’s Centre 

supported a number of external 

visits for the year including visits 

from two Malaysian Early 

Intervention Workers and the 

residents from Glenarm Nursing 

Home. 

√ The Children’s Centre provided 

support for Early Childhood 

students on work placements from 

Charles Sturt University, BRiT, 

Ballarat University, Sunraysia TAFE, 

MADEC and Victorian Training 

Group. The centre also welcomed 

work experience students from 

Boort Secondary College and 

Kerang Technical High School. 

√ Training was offered to all Early 

Childhood Educators in CPR, 

First Aid, Anaphylaxis, Early Years 

Learning Framework, Outdoor 

Play Space, Child Care 

Management Systems, National 

Quality Framework and Child 

Protection. 

COMMUNITY CARE 

√ Packaged Care Audit successfully 

completed. 

√ Senior’s week activities were well 

supported within the Shire. The 

Jamie Redfern concert, held in 

Cohuna, was a great success with 

over 240 people attending. 

√ A trial was commenced which 

saw Gannawarra Shire Home and 

Community Care Assessment 

staff completing Assessments for 

the Occupational Therapist at 

Northern District Community 

Health (NDCH). This trial has 

strengthened the partnership 

between Council and NDCH and 

has ensured the provision of a 

quality service to residents. 



Top: Mary Jordan with Jamie Redfern after 

his Seniors Week 2010 concert at Cohuna 

Memorial Hall. 

Below: Kate Whorwood having fun at a 

Gannawarra Library service activity during 

Book Week 2010. 


37

√ The established partnership with 

the Kerang Aboriginal Community 

Centres remains strong with the 

celebration of the one year 

anniversary of the weekly cooking 

classes and the success of the 

Indigenous Games held at the 

Kerang Primary School. Council 

were again invited to participate 

in National Aboriginal and Islander 

Day Observance Committee 

(NAIDOC) week celebrations. 

√ The rollout of the Digital TV Home 

Assistance Scheme was successful 

and of assistance to the elderly 

within the Shire. 

√ The Elder Abuse Pathway was 

adopted by the Gannawarra 

Health and Wellbeing Network. 

COMMUNITY DEVELOPMENT 

√ During the 2010/2011 year 

Community Planning Groups used 

$96,156 of Community Planning 

project funds made available by 

Council. These funds were able to 

lever an amount of $244,828 in 

grants and other external funding 

as well as $76,265 of in-kind 

support. $4,966 was used to 

support events across the Shire 

this year. 

Projects supported by 

Community Planning Groups 

this year were: 

– Men’s Sheds in Leitchville and 

Koondrook 

– Fencing at Lalbert Recreation 

Reserve 

– Recreation Reserves Master 

Plans 

– Leitchville Tennis Club fence 

– Shire wide Flood Recovery 

projects 

– Re-gravel of Macorna 

Recreation Reserve 

– Gannawarra Tracks and Trails 

project 

– Lake Meran Hall upgrade 

– Myall Hall BBQ shelter 

– New playground at 

Quambatook 

– Mead Hall upgrade 

– Lake Charm School multipurpose 

room 

– Gannawarra Tennis Club 

kitchen upgrade 

– Lakes Entry Statements 

– Cohuna Central Business 

District CCTV system 

√ The Strengthening Local 

Communities project is progressing 

well. Three Community Action 

Plans have been reviewed and 

renewed with another seven due to 

be completed by the end of 2011. 

An evaluation of the project was 

completed by consultants Local 

Logic Place in June 2011. This 

evaluation made recommendations 

and set benchmarks to allow the 

success of the project to be 

measured. A final evaluation will 

also be conducted at the 

conclusion of the project. As a 

result of the initial evaluation

Community Planning/ 

Development will be relaunched 

through workshops and 

information sessions later in 2011. 

The aim being to inform the public 

of benefits of the Community 

Planning process and how they 

can become involved. 

√ The Community Planning process 

has been well supported by 

communities across the Shire. 

Participation from Community 

members has been well rewarded 

with the implementation of 

projects in every Community 

Planning Group area. The meeting 

participation average for the year 

across all groups was eight people 

at each meeting, the highest 

attendance at a single meeting 

being 23 people. 

√ Youth engagement has been 

supported through the expansion 

of the Gannawarra Youth Council 

who meet regularly at different 

locations throughout the Shire. 

The Youth Council Mayor reports 

back to Shire Council meetings 

and the Youth Council has 

provided input into the 

development of the Gannawarra 

Shire Youth Strategy. 

√ Council has adopted the 

Gannawarra Shire Youth Strategic 

Plan (2010-2014) and promoted 

the plan widely to young people, 

service providers, other 

stakeholders and the wider 

community. 

COOKING UP A STORM 

√ Cooking Up a Storm is a 

community kitchen project being 

offered by Southern Mallee 

Primary Care Partnership to the 

three shires of Swan Hill, Buloke 

and Gannawarra. Project 

information sessions were held in 

the Gannawarra districts of Lake 

Charm, Macorna, Quambatook 

and Koondrook, with the Lakes 

District submitting the successful 

expression of interest to establish 

a community kitchen in their area. 

The project concluded with three 

community kitchens to be 

established across the three 

shires at Buloke - Sea Lake 

Neighbourhood House, Swan Hill 

– Nyah West and Gannawarra – 

Lakes District. 

FLOOD RESPONSE AND 

RECOVERY 

Gannawarra suffers from three 

significant flood events over a 

five month period. Approximately 75 

percent of residents were impacted in 

some way by the January 2011 flood 

event whether through evacuation, 

isolation, directly by floodwaters, or 

by being involved in the response and 

relief activities. 

Quambatook and Kerang are fully 

isolated. Approximately 600 rural 

properties are impacted and a large 

number of rural dwellings are fully 

isolated, some for a prolonged period 

of time. 

√ Government funded Flood 

Recovery Officer and Rural 

Coordination Officer positions 

are coordinated through 

Gannawarra Shire to support 

the recovery efforts. 

√ The Gannawarra Flood Recovery 

Centre is set up to assist the floodaffected. 

√ A Taskforce consisting of local and 

state government representatives 

is put in place to develop a Flood 

Transition Plan for the Gannawarra 

Shire. A de-watering strategy is 

developed and initiated to pump 

and drain floodwater away from 

homes and properties. 



Top: Community members sandbagging 

during the floods. 

Below: Cooking up a storm Gannawarra 

Shire Lakes District applicants, Claire Gillen 

and Vicki Watts. 

Previous page: The walking track through 

Apex Park in Koondrook is part of the 

Gannawarra Tracks and Trails Project. 

This section of the Koondrook track is 

bordered by open air exercise equipment. 


39

40 

Above: Living Green workshop 

participant Kylie Kervin with 

water wise gardener and 

presenter Kevin Walsh. 

Below: Pat Ibbotson displayed 

her POW Sketches at the Sir 

John Gorton Library in May of 

2011. 

HEALTH 

√ 96.8 percent of children under five 

years of age residing in 

Gannawarra were fully immunised, 

above the state average of 92 

percent. The increase is attributed 

to an active strategy to follow up 

children overdue for 

immunisations. 

√ 2,175 vaccinations were 

administered to 1,584 people at 

51 immunisation sessions during 

the 2010/2011 year, the highest 

number on record. 

√ Council’s 2011 seasonal Influenza 

program concluded with a record 

number of 616 doses of the 

vaccine administered. 34 

businesses participated in 

Council’s annual workplace 

immunisation program. 

√ Special Immunisation Clinics 

were conducted at Quambatook, 

Leitchville and Murrabit. These 

clinics are organised on an annual 

basis by members of these small 

communities and Council is 

pleased to be involved in 

improving access to health 

services within outlying towns. 

√ A Heart Foundation ‘Healthy by 

Design’ forum was conducted in 

Kerang for local agency staff 

which included a presentation on 

‘Planning for a Healthy Future in 

Gannawarra’. Healthy by Design 

encourages enhanced knowledge 

of how improved health and 

wellbeing for the community can 

be an important outcome for 

projects with the right 

information, planning and design. 

√ A review of Council’s Municipal 

Public Health and Wellbeing Plan 

2009 - 2013 finds that the 

document continues to be 

effective, assisting to drive health 

and wellbeing outcomes for the 

community at a local level. 

The next review is scheduled for 

November 2011. 

√ Council’s Heatwave Plan was 

reviewed, the Heat Health Alert 

system tested and an internal 

group formed to prepare to 

activate Council’s Heat Health 

systems over the summer period. 

Key community messages such as 

‘stay out of the heat, stay cool and 

drink plenty of water, look out for 

yourself and others’ were 

distributed. 

√ One outbreak of gastroenteritis in 

aged care facilities was 

investigated and controlled and 

Council officers were called to 

investigate two cases of 

communicable disease. 

√ 36 compliance checks were 

conducted under the Tobacco Act. 

17 education sessions with 

tobacco retailers, eating 

establishments and licensed 

premises were completed. 

√ Two complaints under the 

Nuisance provisions of the Public 

Health and Wellbeing Act 2008 

were received and investigated. 

√ 144 compliance inspections of 

premises registered under the 

Food Act, Public Health and 

Wellbeing Act and Residential 

Tenancies Act were conducted by 

Council officers. 

√ 167 doses of the Human 

papillomavirus vaccine were 

administered to help protect 

women from cervical cancer. 

√ 296 doses of the Boostrix vaccine 

were administered to help protect 

against whooping cough as a high 

incidence of disease continues to 

occur across Australia.

LIBRARIES, ARTS AND CULTURE 

√ The Gannawarra Library Service 

moved a large part of its collection 

held at the Sir John Gorton Library 

to prevent possible flood damage. 

Irreplaceable collections were 

moved out of the Library to secure 

premises above the expected flood 

level and all other items were 

moved to higher shelves within 

the library. The Sir John Gorton 

Library was closed for a short 

period of time, but was reopened 

as soon as access to the town was 

re-established. 

√ With the implementation of 

wireless internet service in 2010, 

patrons can now access the 

internet using their own devices. 

Public access computers are 

available at each branch and 

Seniors Internet Kiosks are 

available at Kerang and Cohuna 

branches. 

√ The Library Service offers a 

range of DVD movies and 

documentaries, audio CD’s, MP3’s 

and Playaways. In the event that 

the service does not have the item 

a patron wishes to borrow, access 

is available to over 2.5 million 

items through the Swift 

Consortium Service. 

√ Library members who find it 

difficult to get to the library have 

access to a housebound service. 

√ The Library Service offers weekly 

story time sessions, infant rhyme 

times and school holiday activities. 

School holiday activities have 

included games sessions, art and 

craft activities and live shows with 

over 660 children participating in 

holiday activities this past year. 

√ Children’s Book Week saw over 

670 children visit Gannawarra 

libraries during August/September 

2010. 

√ Exhibitions held at the Sir John 

Gorton Library over the past year 

included those by the Barham 

Koondrook Art Group, POW 

Sketches loaned by Patricia 

Ibbotson, Paul Oswin’s ‘Kerang’, 

‘Art Without Borders’, Kerang 

Camera Club, Swan Hill Art 

Gallery’s ‘Small Landscapes’ and 

‘Chairs’, and Kerryn Finch’s 

‘Something Borrowed, Something 

Blue’. 

√ The Cohuna Community Art 

Gallery presented exhibitions by 

Sonia Graham and ‘It Looks 

Different…’ by Lorrie Lambert and 

Robyn Patterson. The ‘Mayors for 

Peace’ and the Cohuna Secondary 

College exhibitions were held at 

the Cohuna Branch Library. 

√ During 2010/2011 the 

Gannawarra Library Service 

recorded: 

• Total membership of 3,983, 


• 477 new members 

• More than 3,700 new titles to 

the collection 

• 89,411 items borrowed 

• 5,374 items borrowed by 

libraries outside Gannawarra 

Shire 

• 3,744 Internet bookings. 

√ Over the past twelve months the 

Library Service has conducted 

three surveys as governance 

measures: A survey of members of 

the Gannawarra Library Service 

was conducted by SGS Economics 

and Planning as part of the State 

Library of Victoria’s Building 

Knowledge for Library Advocacy 

project; A non library patron 

survey of Council ratepayers who 

were not current members of the 

Gannawarra Library Service. Data 

was collected through the 



distribution of 200 surveys to a 

random selection of ratepayers 

from across the Shire; Library staff 

conducted a review of all 

incoming callers, external to the 

organisation. 

VOLUNTEERS 

√ Celebration of 40 years of Meals 

on Wheels in Kerang. 

√ Celebration of the National Meals 

on Wheels day. 

√ Planning began for the 

introduction of the Regional 

Medical Companion Project. 


41

42 

Goal 

To ensure Council’s assets 

and infrastructure are 

provided and managed in 

an appropriate, 

affordable and fair 

manner which meets the 

community service 

delivery needs. 

Above: Roadworks underway 

on the Kerang-Leitchville Road 

in 2010. 

ASSETS AND INFRASTRUCTURE 

OBJECTIVES 

Ensure the preservation of existing required assets and • 

maintenance of current assets at standards specified 

Identify and plan for any new assets required to meet • 

identified additional service needs

ACHIEVEMENTS 

√ Implementation of Council’s 

Footpath Asset Management Plan 

has taken place with footpath 

works being undertaken in many 

areas around the Shire including 

Carbine St, Coronation St, 

Wellington St and Wattle Ave in 

Kerang. Footpaths in Cohuna 

include Channel Street, Belmont 

St, George St. and Island Rd. 

Footpaths in Leitchville include 

Finlay Ave, King Albert St, and 

Hawkin St. 

√ The Drainage Asset Management 

Plan has been approved by 

Council and implemented. 

√ 1,376km of gravel roads were 

graded (including 231km of flood 

works by outside contractors), 

2,417m of footpath replaced, 77.5 

km of roads resheeted and 5.5km 

shoulders resheeted. 

√ Projects highlights in 2010/2011 

throughout the Shire include: 

• Gateway to Gannawarra 

Project $1.2 million – ongoing 

• Koondrook Town Centre 

Improvement Project 

$434,000 

• Leitchville Town and Pool 

Development Project 

$356,000 

• Kerang Murray Valley Highway 

Truck Parking $230,000 

• Kerang Heritage Exhibition 

Centre $100,000 

• Kerang Saleyards Project 

$65,000 

• Kerang Memorial Hall Airconditioning 

Project 

$300,000 

• Leitchville Pre-school Project 

$45,000 

• Cohuna Hall auditorium 

lighting $25,000 

• Kangaroo Lake Public 

Amenities $100,000 

• Kerang and Koondrook Pools 

pipework and filtration 

upgrades $322,000 

• Kerang Cenotaph 

Improvement Works $10,000 

(included restorations of the 

Kerang War Memorial). 

√ Council’s Waste Strategy has been 

endorsed and will be implemented 

over the next five years across the 

Shire. 

√ The final review of the 

Gannawarra Planning Scheme is 

endorsed. Review finds that the 

supply of land for fully serviced 

residential, business and industrial 

uses is sufficient at present, and no 

rezonings are needed as part of 

the Review. The town Structure 

Plans in the Planning Scheme set 

out preferred directions for 

growth. 

√ Preliminary roads are identified to 

be suitable for unsealed road trial 

test sites: 

• Benjeroop-Tresco Road 

• Tragowel Road 

√ Council took delivery of a new 

Articulated Grader. 

√ Insurance Audit Results show 

improvement in audit scores for all 

three audits: MAV Fidelity Risk 

Management Survey – February 

2009, JMAPP (Property) – February 

2009 and CMP Public Liability and 

Professional Indemnity – 27 

January 2010. 



√ Council designates 

Neighbourhood Safer Places and 

communicates the information to 

the community. 

√ Council adopts the 10-year Capital 

Works Plan for forward planning 

and 2011/12 budgeting purposes. 

√ Council supports the Integrated 

Fire Management Planning 

framework and agrees to 

contribute as a partner to the 

development and implementation 

of a Municipal Fire Management 

Plan. 

√ Council supports the Mildura Rail 

Feasibility Study in the areas that 

will generate further opportunities 

for increased levels of access to 

appropriate public transport for 

Gannawarra Shire residents and 

visitors. 

√ Council endorses the draft Master 

Plan of the Kerang Aerodrome. 

√ Council adopts the Bridge Asset 

Management Plan which is one of 

a suite of Asset Management Plans 

that are being developed as part 

of Council’s commitment to the 

Municipal Association of Victoria’s 

“STEP” asset management 

initiative. 


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44 

Council is committed 

to the principles of the 

Business Excellence 

Framework which is an 

integrated leadership and 

management system that 

describes the elements 

essential to sustainable 

organisational excellence. 

BEST VALUE STATEMENT 

The objective of Business Excellence is 

to use quality management principles 

and tools in business management 

with the goal of improving 

performance based on customer 

focus, stakeholder value and process 

management. Council has integrated 

these principles into its everyday 

organisational environment. 

Council has adopted a Council Plan 

2009 – 2013 to define the goals of 

the organisation over a four-year 

period as required by the Local 

Government Act. The Council Plan 

contains five Key Result Areas: 

Leadership and Governance, Our 

Environment, Economic Prosperity, 

Sustainable Communities, and Assets 

and Infrastructure. Each KRA has 

strategies, actions and measures. In 

keeping with the principles of Business 

Excellence, Council uses the nationally 

integrated performance management 

and reporting tool Interplan to assess 

progressive achievement of the 

SUMMARY OF RESULTS 

objectives of the Council Plan. 

Interplan provides the platform for 

employees to update their progress 

and feed in information on 

achievements against performance 

measures to generate a range of 

reports, with the added capacity to 

link directly to budgets within the 

organisation. These reports enable 

strategic, corporate, business and 

service level planning. Reports are 

presented to Council quarterly and 

summarised annually. In this way 

Council can progressively monitor 

the provision of best practice service 

against performance indicators. 

Shortfalls against these indicators 

can then be seen as areas for 

improvement. 

An integrated planning framework is 

essential to the best use of limited 

resources and some of the plans that 

have been completed or are in 

progress in 2010-2011 include: 

Target quality and cost standards achieved by the Gannawarra Shire Council 

in 2010/2011 were a reflection of Best Value performance, particularly in a 

year of challenging operating conditions. 

Council achieved higher than the target quality standards in 10 of the 11 

service areas where standards were set for 2010/2011. In Regulatory Services 

the quality standard achieved did reflect an increase from 68 to 69 from 2010 

to 2011. 

Target cost standards were achieved in all areas except Road Maintenance 

and Waste Collection,which both incurred increased expenditure due to the 

2010/2011 flood events.

• Road Management Plan and Road 

Asset Management Plan 

• Drainage Asset Management Plan 

• Recreation Reserves Asset 

Management Plan 

• Pools Strategic Plan 

• Gannawarra 2025 Community 

Plan 

• Youth Strategy 

• Economic Development Strategy 

TABLE : BEST VALUE RESULTS 

BEST VALUE REVIEW 

Council is committed to the principles 

of Best Value. The objective of Best 

Value is to ensure that the services 

Council provides meet the 

expectations of the community. It is a 

continuous improvement program 

based on measuring and monitoring 

service provision to ensure that 

Council provides services that offer 

best value in terms of cost, quality and 

benefit to the community. 



Target Quality Cost 

Quality standard Quality Target cost standard Cost 

Service standard achieved standard standard achieved standard 

Comments 2010-2011* 2010-2011* met ✗/✓ 2010-2011# 2010-2011# met ✗/✓ 

Community Care ≥78 80 ✓ $128 $116 ✓ 

Building Control No target NA NA $15 $14 ✓ 

Community Development No target NA NA $66 $44 ✓ 

Corporate Support No target NA NA $101 $97 ✓ 

Customer Service ≥72 73 ✓ $22 $21 ✓ 


& Prosperity ≥62 63 ✓ $32 $27 ✓ 

Environmental Health ≥78 80 ✓ $23 $22 ✓ 

Children’s Services Accreditation ✓ $110 $102 ✓ 

Landfill and Transfer Stations ≥74 75 ✓ $32 $30 ✓ 

Library Services No target NA NA $43 $39 ✓ 

Plant/ Maintenance/ Fleet No target NA NA $70 $66 ✓ 

Recreation ≥71 74 ✓ $51 $44 ✓ 

Regulatory Services ≥71 69 ✗ $29 $27 ✓ 

Road Maintenance ≥51 55 ✓ $380 $480^ ✗ 

Town Planning ≥63 67 ✓ $45 $38 ✓ 

Waste Collection ≥74 75 ✓ $65 $69^ ✗ 

* Quality standards are based on accreditation and the Department of Planning and Community Development 2011 Local Government 

Community Satisfaction Survey (for which indexed mean results are provided). 

# Cost standards are based on budgeted versus actual costs per head of population - 11,670 (Current Estimated Resident Population as at 30 

June 2011 – Source: Australian Bureau of Statistics). The cost standard achieved has been calculated on the basis of standard financial reporting 

procedures. 

^ Variation due to inclusion of expenditure due to flood events. 


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46 

Council is required by the 

Local Government Act 

1989 to make various 

documents and policies 

available for public 

inspection. This includes 

Council agendas and 

minutes, planning 

schemes, local laws, 

pecuniary interest register, 

town planning register, 

annual reports, corporate 

plan, yearly financial 

statements and Council 

budgets. This obligation 

rests comfortably with 

Council’s stated objectives 

of transparent and 

accountable governance 

and leadership. 

STATUTORY INFORMATION 

The public may view or copy any of 

these documents at the Council 

website www.gannawarra.vic.gov.au 

or at the main office of Gannawarra 

Shire Council located at Patchell Plaza, 

47 Victoria Street, Kerang. 

FREEDOM OF INFORMATION 

The Freedom of Information Act 1982 

provides the public the right to gain 

access to Council documents not 

exempt from the Act. Limited 

exemptions do exist for the protection 

of the public interest and the private 

and business affairs of persons from 

whom information is collected by 


The Freedom of Information Act 1982 

gives: 

√ The right to access documents 

about your personal affairs and the 

activities of government agencies 

√ The right to request that incorrect 

or misleading information held by 

an agency about you be amended 

or removed. 

All formal requests for information 

under the Act must be made in 

writing. 

There were no requests to Council in 

2010/2011 under the Act. 

Documents available for inspection 

upon request 

Council makes available for inspection 

the following documents upon 

request by any member of the public 

in accordance with the Local 

Government Act 1989: 

a) Details of current allowances fixed 

for the Mayor and Councillors 

under Section 74 or 74A of the Act 

b) Details of senior officers’ total 

salary packages for the current 

financial year and two previous 

years including gross salary, 

employer superannuation 

contributions, the value of any 

motor vehicle provided by Council 

and the total value of any other 

benefits or allowances provided by 

Council 

c) Details of overseas or interstate 

travel (with the exception of 

interstate travel by land for less 

than three days) undertaken in an 

official capacity by Councillors or 

any member of Council staff in the 

previous 12 months, including the 

names of Councillors or members 

of Council staff and the date, 

destination, purpose and total cost 

of the overseas or interstate travel 

d) Names of Council officers who 

were required to submit a return 

of interest during the financial year 

and the dates the returns were 

submitted 

e) Names of Councillors who 

submitted returns of interest 

during the financial year and the 

dates the returns were submitted 

f) Agendas for and minutes of 

ordinary and special meetings 

held in the previous 12 months 

kept under Section 93 of the Act, 

except if the minutes relate to 

parts of meetings which have 

been closed to members of the 

public under Section 89 of the Act 

g) A list of all special committees 

established by Council and the 

purpose of each committee 

h) A list of all special Council 

committees which were abolished 

or ceased to function during the 

financial year 

i) Minutes of meetings of special 

committees established under 

Section 86 of the Act and held in 

the previous 12 months, except if 

the minutes relate to parts of 

meetings which have been closed 

to members of the public under 

Section 89 of the Act

j) Applications for enrolment on the 

voters roll under Section 12 and 

13 of the Act for the immediate 

past roll and the next roll being 

prepared 

k) A register of delegations kept 

under Section 87 and 89 of the 

Act including the date on which 

the last review under Section 

98(6) of the Act took place 

l) Submissions received under 

Section 223 of the Act during the 

previous 12 months 

m) Agreements to establish regional 

libraries under Section 196 of the 

Act 

n) Details of all property, finance and 

operating leases involving land, 

buildings, plant, computer 

equipment or vehicles entered 

into by the Council as lessor or 

lessee, including the name of the 

other party to the lease and the 

terms and value of the lease 

o) A register of authorised officers 

appointed under Section 224 of 

the Act 

p) A list of donations and grants 

made by the Council during the 

financial year, including the names 

of persons or bodies which have 

received a donation or grant and 

the amount of each donation or 

grant 

q) A list of the names of the 

organisations of which the Council 

was a member during the financial 

year and the details of all 

membership fees and other 

amounts and services provided 

during that year to each 

organisation by the Council 

r) A list of contracts valued at 

$130,000 or more for goods and 

services, and $180,000 or more 

for works, which the Council 

entered into during the financial 

year without first engaging in a 

competitive process and which are 

not contracts referred to in Section 

186(5) of the Act. 

INFORMATION PRIVACY 

Gannawarra Shire Council complies 

with standards of the Victorian 

Government Information Privacy Act 

2000 for the management of personal 

information. 

In doing so Council conforms to the 

ten Information Privacy Principles 

under the Act when collecting and 

storing personal information for the 

purpose of carrying out Council 

functions under the Local Government 

Act 1989 and facilitating the operation 

of other Acts of Parliament. 

All Council staff required to manage 

personal information attended 

training organised by Council and 

presented by the Office of the 

Victorian Privacy Commissioner at the 

Kerang Memorial Hall Kerang in 

August 2010. The sessions on 

Understanding Privacy incorporated 

an overview of the Act. 

Council’s Privacy Officer and Health 

Privacy Officer is Council’s Records 

Coordinator who may take complaints 

and requests for access and correction 

of information kept by Council. 

WHISTLEBLOWERS 

PROTECTION ACT 2001 

The purpose of the Whistleblowers 

Protection Act 2001 is to encourage 

and facilitate disclosures of any 

improper conduct by public officers 

and public bodies while providing 

protection against reprisals or 

retribution for those making the 

disclosure. The Act also provides for 

the matters disclosed to be properly 

investigated and dealt with. 

As defined under the Act public 

officers include councillors and council 



staff, and public bodies include 

municipal Councils. 

Improper conduct in this context 

refers to: 

• corrupt conduct 

• substantial mismanagement of 

public resources 

• substantial risk to public health, 

safety or the environment. 

In order to be a protected disclosure, 

and for the protections under the Act 

to be available, the conduct must also 

be serious enough that, if proven, it 

would constitute a criminal offence or 

reasonable grounds for dismissal. 

Gannawarra Shire Council’s seven core 

values include integrity and openness. 

Council supports the free flow of 

information, transparency and 

accountability in its management 

practices and supports disclosures as 

defined under the Act. This support is 

defined in Council policies 107 

Whistleblowers Protection and 107 

Whistleblowers Protection – Procedures. 

There were no disclosures of improper 

conduct made to Council or the 

Ombudsman of Victoria under the 

Whistleblowers Protection Act 2001 

during 2010/2011. 


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48 

CERTIFICATION BY CHIEF EXECUTIVE OFFICER 

A. TRADE PRACTICES COMPLIANCE 

State whether the Council is compliant or non-compliant. If non-compliant, 

justify or cite actions to redress. 

B. LOCAL LAWS COMPLIANCE 

State whether the Council is compliant or non-compliant. List all local laws 

made or remade during 2010-11 which impose a restriction on competition: 

-.................................................................................................................... 

-.................................................................................................................... 

-.................................................................................................................... 

C. COMPETITIVE NEUTRALITY COMPLIANCE 

State whether the Council is compliant or non-compliant for all significant 

businesses. List any significant businesses that are non-compliant: 

-.................................................................................................................... 

-.................................................................................................................... 

-.................................................................................................................... 

NATIONAL COMPETITION POLICY 

COMPLIANCE: 2010-11 

Gannawarra Shire Council has complied with the requirements of the National 

Competition Policy (NCP) for the period 1 July 2010 to 30 June 2011, in 

accordance with the requirements outlined in National Competition Policy and 

Local Government (Revised 2011) as set out below: 

I certify that: 

Compliant/non-compliant 

(delete as applicable) 



For each local law listed, state whether the 

competition test was undertaken and 

documented as required by Schedule 8 of the 

Local Government Act 1989. If a competition 

test was not undertaken, please justify or cite 

actions to redress. 



For each non-compliant significant business 

listed, please justify or cite actions to redress. 

a) this statement has been prepared in accordance with the 2010-2011 National 

Competition Policy reporting guidelines, and 

b) this statement presents fairly the Council’s implementation of the National 

Competition Policy. 

Signed: 

29 September 2011 

(Chief Executive Officer)

financial report 2010-2011

ANNUAL FINANCIAL REPORT 

for the year ended 30 June 2011 

CONTENTS 

Financial Statements 

Comprehensive Income Statement ...................................................53 

Balance Sheet ...................................................................................54 

Statement of Changes in Equity ........................................................55 

Cash Flow Statement ........................................................................56 

Notes to the Financial Report 

Introduction......................................................................................57 

Note 1 Significant accounting policies...........................................57 

Note 2 Rates and charges..............................................................62 

Note 3 Statutory fees and fines......................................................62 

Note 4 Grants ...............................................................................63 

Note 5 Contributions ....................................................................64 

Note 6 Reimbursements ................................................................64 

Note 7 Other income ....................................................................64 

Note 8 Employee benefits .............................................................65 

Note 9 Materials and services ........................................................65 

Note 10 Contributions ....................................................................65 

Note 11 Bad and doubtful debts .....................................................65 

Note 12 Depreciation and amortisation...........................................66 

Note 13 Finance costs .....................................................................66 

Note 14 Other expenses..................................................................66 

Note 15 Cash and cash equivalents .................................................66 

Note 16 Trade and other receivables ...............................................67 

Note 17 Financial assets ..................................................................67 

Note 18 Inventories.........................................................................67 

Note 19 Assets held for sale.............................................................67 

Note 20 Other assets.......................................................................67 

Note 21 Property, infrastructure, plant and equipment....................68 

Note 22 Trade and other payables...................................................73 

Note 23 Trust funds and deposits ....................................................73 

Note 24 Provisions ..........................................................................73 

Note 25 Interest bearing loans and borrowings ...............................75 

Note 26 Reserves.............................................................................76 

Note 27 Reconciliation of cash flows from operating 

activities to surplus (deficit)................................................77 

Note 28 Financing arrangements ....................................................77 

Note 29 Restricted assets.................................................................77 

Note 30 Superannuation .................................................................78 

Note 31 Commitments ...................................................................80 

Note 32 Operating leases ................................................................81 

Note 33 Contingent liabilities and contingent assets .......................81 

Note 34 Financial instruments .........................................................82 

Note 35 Auditors' remuneration ......................................................87 

Note 36 Events occurring after balance date ...................................87 

Note 37 Related party transactions..................................................87 

Note 38 Income, expenses and assets by functions/activities ...........88 

Note 39 Financial ratios (Performance indicators) ............................90 

Note 40 Capital expenditure ...........................................................92 

Certification of the Financial Report ..................................................94

The Financial Report shows how Council performed financially during the 2010-11 

financial year and the overall position at the end (30 June 2011) of the financial year. 

Council presents its financial report 

in accordance with the Australian 

Accounting Standards. Particular 

terms required by the Standards 

may not be familiar to some readers. 

Further, Council is a “not-for-profit” 

organisation and some of the 

generally recognised terms used in 

private sector company reports are 

not appropriate to Council reports. 

Council is committed to accountability. 

It is in this context that this plain 

English guide has been developed to 

help readers understand and analyse 

the financial report. 

WHAT IS CONTAINED IN THE 

ANNUAL FINANCIAL REPORT? 

Council’s financial report has two 

main sections, namely the Report and 

the Notes. There are four Statements 

and accompanying Notes. These are 

prepared by Council staff, examined 

by the Council Audit Committee and 

by Council, and are independently 

audited by the Victorian Auditor- 

General. The four statements are 

included in the first few pages of the 

financial report. They are the 

Comprehensive Income Statement, 

Balance Sheet, Statement of Changes 

in Equity and Cash Flow Statement. 

The Notes detail Council’s accounting 

policies and the make-up of values 

contained in the Statements. 

COMPREHENSIVE INCOME 

STATEMENT 

The Comprehensive Income 

Statement is sometimes referred to as 

a ‘Profit and Loss Statement’ and 

shows: 

• The source of Council’s revenue 

under various income headings 

• The expenses incurred in running 

the Council during the year. These 

expenses relate only to the 

‘Operations’ and do not include 

the costs associated with the 

purchase or the building of assets. 

While asset purchase costs are not 

included in the Expenses, there is 

an item for ‘Depreciation’. 

The key figure to look at is the surplus 

or (deficit) for the year, which is the 

equivalent to the profit or (loss) of 

Council for the year. A surplus means 

that the revenue was greater than the 

expenses. 

BALANCE SHEET 

This one-page summary is a snapshot 

of the financial situation as at 30 June. 

It shows what Council owns as assets 

and what it owes as liabilities. The 

bottom line of this Statement is Net 

Assets. This is the net worth of 

Council, which has been built up over 

many years. The assets and liabilities 

are separated into Current and Non- 

Current. 

Current means those assets or 

liabilities that will fall due in the next 

12 months. 

The components of the Statement of 

Financial Position are described here. 

Current and Non-Current Assets 

Council’s assets are as follows: 

• Cash and cash equivalents assets 

include cash and investments, ie 

cash held in the bank, in petty 

cash and in the market value of 

Council’s investments 

• Trade and other receivables are 

monies owed to Council by 

ratepayers and others 

• Financial assets represent the value 

of long term investments held by 

Council 

• Inventories – consumables are 

stocks held for sale or 

consumption in Council’s services 

• Assets held for resale are assets 

that are in a position of being 

marketed or sold 

• Other assets represent the value of 

prepayments made by Council in 

respect to next years operations 

• Property, infrastructure, plant and 

equipment is the largest 

component of Council’s worth and 

represents the value of all the 

land, buildings, roads, vehicles, 

equipment etc, which has been 

built up by Council over many 

years. 

Current and Non-Current Liabilities 

Council’s liabilities are as follows: 

• Trade and other payables are 

those to whom Council owes 

money as at 30 June 

• Trust funds and deposits represent 

monies held in trust by Council 

• Provisions represent estimates of 

future obligations including Long 

Service Leave and Annual Leave 

• Interest-bearing loans and 

borrowings are borrowings of 


Net Assets 

This term is used to describe the 

difference between the value of Total 

Assets and the value of Total Liabilities. 

It represents the net worth of Council 

as at 30 June. 

Total Equity 

FINANCIAL REPORT 2010-2011 

UNDERSTANDING THE ANNUAL FINANCIAL REPORT 

This always equals Net Assets. It is 

made up of the following 

components: 

• Asset revaluation reserve is the 

difference between the previously 

recorded value of assets and their 

current valuations 

• Accumulated surplus is the value 

of all profit or loss accumulated 

over time. 

STATEMENT OF CHANGES 

IN EQUITY 

During the course of the year the value 

of Total Ratepayers Equity as set out in 

the Balance Sheet changes. This 

Statement shows the values of such 

changes and how these changes arose. 

The main reasons for a change in 

equity stem from: 

• The ‘profit or loss’ from 

operations, described in the 

Statement as Surplus (Deficit) for 

the year 


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52 

• Revaluation of the assets takes 

place on a regular basis to ensure 

the most up-to-date value is 

included in Council’s books. It also 

occurs when existing assets are 

taken up in the books for the first 

time. 

STATEMENT OF CASH FLOWS 

The Statement of Cash Flows 

summarises Council’s cash payments 

and cash receipts for the year. This 

Statement is presented according to a 

very specific Accounting Standard and 

needs some care in analysis. The 

values may differ from those shown in 

the Income Statement because the 

Balance Sheet is prepared on an 

accrual accounting basis. 

Cash in this Statement refers to bank 

deposits and other forms of highly 

liquid investments that can readily be 

converted to cash, such as funds 

invested with Funds Managers. 

Council’s cash arises from, and is used 

in, three main areas: 

• Cash Flows from Operating 

Activities 

- Receipts – All cash received 

into Council’s bank account 

from ratepayers and others 

who owed money to Council. 

Receipts also include the 

interest earnings from Council’s 

cash investments. It does not 

include the costs associated 

with the sale of assets 

- Payments – All cash paid by 

Council from its bank account 

to staff, creditors and other 

persons. It does not include 

the costs associated with the 

creation of assets. 

• Cash Flows from Investing 

Activities 

- This section shows the cash 

invested in the creation or 

purchase of property, 

infrastructure, plant and 

equipment assets and the cash 

received from the sale of these 

assets. 


• Cash Flows from Financing 

Activities 

- This is where the receipt and 

repayment of borrowed funds 

are recorded. 

The bottom line of the Statement of 

Cash Flows is the cash at the end of 

financial year. This shows the capacity 

of Council to meet its cash debts and 

other liabilities. 

NOTES TO THE ACCOUNTS 

The Notes are a very important and 

informative section of the report. The 

Australian Accounting Standards (AAS) 

are not prescriptive in a lot of issues. 

Therefore, to enable the reader to 

understand the basis on which the 

values shown in the Statements are 

established, it is necessary to provide 

details of Council’s accounting policies. 

These are described in Note 1. 

Apart from the accounting policies, 

the Notes also give details behind 

many of the summary figures 

contained in the Statements. The 

Note numbers are shown beside the 

relevant items in the Comprehensive 

Income Statement, Balance Sheet and 

the Cash Flow Statement. The Notes 

also include information that Council 

wishes to disclose but which cannot 

be incorporated into the Statements. 

Other Notes include: 

• the cost of the various functions 

of Council 

• the breakdown of expenses, 

revenues, reserves and other assets 

• transactions with persons related 

to Council 

• financial performance indicators. 

The Notes should be read at the same 

time as, and together with, the other 

parts of the Financial Statements to 

get a clear picture of the accounts. 

STANDARD STATEMENTS 

The Standard Statements section 

provides four statements 

(Comprehensive Income Statement, 

Balance Sheet and Cash Flow 

Statement), together with 

a further statement (Statement of 

Capital Works). 

The Statement of Capital Works sets 

out the expenditure on creating or 

buying property, infrastructure, plant 

and equipment assets by each 

category of asset. It also shows how 

much has been spent on renewing, 

upgrading, expanding or creating new 

assets of this type. These Standard 

Statements provide a comparison 

between the actual results for the year 

and the budget that was set at the 

start of the year. All major differences 

are explained in accompanying Notes. 

STATEMENTS BY PRINCIPAL 

ACCOUNTING OFFICER, CHIEF 

EXECUTIVE OFFICER (CEO) AND 

COUNCILLORS 

The Certification of the Principal 

Accounting Officer is made by the 

person responsible for the financial 

management of Council that, in her/his 

opinion, the Financial Statements have 

met all the statutory and professional 

reporting requirements. 

The Certification of the CEO and 

Councillors is made by two 

Councillors and the CEO on behalf 

of Council that, in their opinion, the 

Financial Statements are fair and not 

misleading. 

AUDITOR GENERAL’S REPORT 

The independent Audit Report 

provides the reader with an external 

and independent opinion on the 

Financial Statements. It confirms that 

the Financial Report has been 

prepared in accordance with relevant 

legislation and professional standards 

and that it represents a fair picture of 

the financial affairs of the Council.

COMPREHENSIVE INCOME STATEMENT 


INCOME 


Note 2011 2010 

$ $ 

Rates and charges 2 8,907,343 7,985,887 

Statutory fees, user fees and fines 3 1,510,952 1,418,696 

Grants - recurrent 4 8,675,458 7,518,235 

Grants - non-recurrent 4 735,821 888,064 

Contributions - cash 5 250,861 300,839 

Reimbursements 6 1,855,351 956,305 

Other income 7 456,560 465,036 

Total income 22,392,346 19,533,062 

EXPENSES 

Employee benefits 8 (8,664,981) ( 7,373,778) 

Materials and services 9 (7,530,499) ( 6,228,329) 

Contributions 10 (466,999) (360,864) 

Bad and doubtful debts 11 - - 

Depreciation and amortisation 12 (4,541,586) (4,393,815) 

Finance costs 13 (197,530) (209,081) 

Other expenses 14 (231,167) (365,066) 

Total expenses (21,632,762) (18,930,933) 

Net gain/(loss) on disposal of property, 

plant and equipment, infrastructure 109,410 55,514 

Surplus/(deficit) 868,994 657,643 

Other comprehensive income 

Net asset revaluation increment (decrement) 26 (8,140,062) - 

Comprehensive result (7,271,068) 657,643 

The above comprehensive income statement should be read in conjunction with the accompanying notes. 


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BALANCE SHEET 


ASSETS 

Note 2011 2010 

$ $ 

Current assets 

Cash and cash equivalents 15 3,983,957 3,873,439 

Trade and other receivables 16 1,284,560 998,733 

Financial assets 17 1,235,279 1,150,142 

Inventories 18 158,683 413,496 

Non-current assets classified as held for sale 19 926,689 1,023,332 

Other assets 20 155,643 88,712 

Total current assets 7,744,811 7,547,854 

Non-current assets 

Property,infrastructure, plant and equipment 21 132,687,485 138,366,884 

Total non-current assets 132,687,485 138,366,884 

Total assets 140,432,296 145,914,738 

LIABILITIES 

Current liabilities 

Trade and other payables 22 2,405,132 871,098 

Trust funds and deposits 23 237,757 293,041 

Provisions 24 987,397 864,037 

Interest-bearing loans and borrowings 25 310,915 276,784 

Total current liabilities 3,941,201 2,304,960 

Non-current liabilities 

Provisions 24 1,682,682 1,449,397 

Interest-bearing loans and borrowings 25 2,325,990 2,406,890 

Total non-current liabilities 4,008,672 3,856,287 

Total liabilities 7,949,873 6,161,247 

Net Assets 132,482,423 139,753,491 

EQUITY 

Accumulated surplus 33,193,430 32,324,436 

Reserves 26 99,288,993 107,429,055 

Total Equity 132,482,423 139,753,491 

The above balance sheet should be read in conjunction with the accompanying notes. 

GANNAWARRA SHIRE COUNCIL ANNUAL REPORT 2011

STATEMENT OF CHANGES IN EQUITY 


Asset 

Accumulated Revaluation 

Note Total Surplus Reserve 

2011 2011 2011 

2011 $ $ $ 

Balance at beginning of the financial year 139,753,491 32,324,436 107,429,056 

Comprehensive result (7,271,068) 868,994 (8,140,062) 

Balance at end of the financial year 132,482,423 33,193,430 99,288,994 

Asset 

Accumulated Revaluation 

Total Surplus Reserve 

2010 2010 2010 

2010 $ $ $ 

Balance at beginning of the financial year 139,095,848 31,666,793 107,429,056 

Comprehensive result 657,643 657,643 

Balance at end of the financial year 139,753,491 32,324,436 107,429,056 

The above statement of changes in equity should be read with the accompanying notes. 



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CASH FLOW STATEMENT 


CASH FLOWS FROM OPERATING ACTIVITIES 

2011 2010 

Inflows/ Inflows/ 

(Outflows) (Outflows) 

Note $ $ 

Rates 8,781,334 8,011,549 

User charges and other fines (inclusive of GST) 1,662,047 1,560,565 

Grants (inclusive of GST) 10,352,407 9,246,929 

Contributions (inclusive of GST) 250,861 300,839 

Reimbursements (inclusive of GST) 2,040,887 1,051,936 

Interest 253,223 245,497 

Rents (inclusive of GST) 223,671 241,493 

Net GST refund/payment 70,508 134,761 

Payments to suppliers (inclusive of GST) (7,978,644) (7,699,352) 

Payments to employees (including redundancies) (8,289,865) (7,361,494) 

Other payments (231,167) (365,066) 

Net cash provided by (used in) operating activities 27 7,135,261 5,367,657 

CASH FLOWS FROM INVESTING ACTIVITIES 

Payments for property, infrastructure, plant and equipment 40 (8,460,829) (5,886,725) 

Proceeds from sale of property, infrastructure, plant and equipment 358,020 502,439 

Proceeds from sale of other financial assets 1,322,365 461,407 

Net cash provided by (used in) investing activities (6,780,444) (4,922,879) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Finance costs (197,530) (209,050) 

Proceeds from Loans 230,000 - 

Repayment of interest bearing loans and borrowings (276,769) (296,124) 

Net cash provided by (used in) financing activities (244,299) (505,174) 

Net increase (decrease) in cash and cash equivalents 110,518 (60,396) 

Cash and cash equivalents at the beginning of the financial year 3,873,439 3,933,835 

Cash and cash equivalents at the end of the financial year 15 3,983,957 3,873,439 

The above cash flow statement should be read with the accompanying notes. 


NOTES TO THE FINANCIAL REPORT 


INTRODUCTION 

(a) The Gannawarra Shire Council was established by an 

Order of the Governor in Council on 20 January 1995 

and is a body corporate. 

The Council's main office is located at 47 Victoria 

Street, Kerang. 

(b) The purpose of the Council is to: 

– provide for the peace, order and good 

government of its municipal district; 

– to promote the social, economic and 

environmental viability and sustainability of the 

municipal district; 

– to ensure that resources are used efficiently and 

effectively and services are provided in accordance 

with the Best Value Principles to best meet the 

needs of the local community; 

– to improve the overall quality of life of people in 

the local community; 

– to promote appropriate business and employment 

opportunities; 

– to ensure that services and facilities provided by 

the Council are accessible and equitable; 

– to ensure the equitable imposition of rates and 

charges; and 

– to ensure transparency and accountability in 

Council decision making. 

The following general information is provided for the 

benefit of the reader: 

External Auditor - Auditor-General of Victoria 

Internal Auditor - Richmond Sinnott & Delahunty 

Solicitors - L. Basile & Co 

Bankers - Australian & New Zealand Banking Group 

Limited 

Website address - www.gannawarra.vic.gov.au 

This financial report is a general purpose financial 

report that consists of a Comprehensive Income 

Statement, Balance Sheet, Statement of Changes in 

Equity, Cash Flow Statement, and notes accompanying 

these financial statements. The general purpose 

financial report complies with Australian Accounting 

Standards, other authoritative pronouncements of the 

Australian Accounting Standards Board, the Local 

Government Act 1989, and the Local Government 

(Finance and Reporting) Regulations 2004. 


NOTE 1 SIGNIFICANT ACCOUNTING POLICIES 

(a) Basis of accounting 

This financial report has been prepared on the accrual 

and going concern bases. 

This financial report has been prepared under the 

historical cost convention, except where specifically 

stated in notes 1(h), 1(j), 1(l), 1(t), 1(w), and 1(x). 

Unless otherwise stated, all accounting policies are 

consistent with those applied in the prior year. Where 

appropriate, comparative figures have been amended 

to accord with current presentation, and disclosure has 

been made of any material changes to comparatives. 

All entities controlled by Council that have material 

assets or liabilities, such as Special Committees of 

Management, have been included in this financial 

report. All transactions between these entities and the 

Council have been eliminated in full. 

(b) Change in accounting policies 

No changes of policy during the reporting year. 

(c) Revenue recognition 

Rates, grants and contributions 

Rates, grants and contributions (including developer 

contributions) are recognised as revenues when the 

Council obtains control over the assets comprising 

these receipts. 

Control over assets acquired from rates is obtained at 

the commencement of the rating year as it is an 

enforceable debt linked to the rateable property or, 

where earlier, upon receipt of the rates. 

A provision for doubtful debts on rates has been 

established for specific property even though unpaid 

rates represents a charge against the rateable property 

that will be recovered when the property is next sold. 

Control over granted assets is normally obtained upon 

their receipt (or acquittal) or upon earlier notification 

that a grant has been secured, and are valued at their 

fair value at the date of transfer. 

Income is recognised when the Council obtains 

control of the contribution or the right to receive the 

contribution, it is probable that the economic benefits 

comprising the contribution will flow to the Council 

and the amount of the contribution can be measured 

reliably. 

Where grants or contributions recognised as revenues 

during the financial year were obtained on condition 

that they be expended in a particular manner or used 

over a particular period and those conditions were 

undischarged at balance date, the unused grant or 

contribution is disclosed in Note 4. The note also 

discloses the amount of unused grant or contribution 

from prior years that was expended on Council’s 

operations during the current year. 


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NOTE 1 SIGNIFICANT ACCOUNTING POLICIES continued 

A liability is recognised in respect of revenue that is 

reciprocal in nature to the extent that the requisite 

service has not been provided at balance date. 

User fees and fines 

User fees and fines (including parking fees and fines) 

are recognised as revenue when the service has been 

provided, the payment is received, or when the 

penalty has been applied, whichever first occurs. 

A provision for doubtful debts is recognised when 

collection in full is no longer probable. 

Sale of property, plant and equipment, infrastructure 

The profit or loss on sale of an asset is determined 

when control of the asset has irrevocably passed to the 

buyer. 

Interest and rents 

Interest and rents are recognised as revenue on a 

proportional basis when the payment is due, the value 

of the payment is notified, or the payment is received, 

whichever first occurs. 

Dividends 

Dividend revenue is recognised when the Council's 

right to receive payment is established. 

(d) Inventories 

Inventories held for distribution are measured at cost 

adjusted when applicable for any loss of service 

potential. Other inventories are measured at the lower 

of cost and net realisable value. 

(e) Depreciation and amortisation of property, plant 

and equipment, infrastructure, intangibles 

Buildings, land improvements, plant and equipment, 

infrastructure, heritage assets, and other assets having 

limited useful lives are systematically depreciated over 

their useful lives to the Council in a manner which 

reflects consumption of the service potential 

embodied in those assets. Estimates of remaining 

useful lives and residual values are made on a regular 

basis. Depreciation rates and methods are reviewed 

annually. 

Where infrastructure assets have separate identifiable 

components that are subject to regular replacement, 

these components are assigned distinct useful lives 

and residual values and a separate depreciation rate is 

determined for each component. 

Road earthworks are not depreciated. 

Artworks are not depreciated. 

Straight line depreciation is charged based on the 

residual useful life as determined each year. 

Major depreciation periods used are listed below and 

are consistent with the prior year unless otherwise 

stated: 


Period 

Property 

Land 

land improvements ...........................40 - 50 years 

Buildings .......................................................50 years 

Plant and Equipment 

plant, machinery and equipment ........2 - 25 years 

fixtures, fittings and furniture ..............2 - 10 years 

office equipment ................................2 - 10 years 

library books .....................................15 - 20 years 


Roads 

road pavements and seals .................15 - 25 years 

road kerb, channel and minor culverts .....80 years 

road other ...............................................80 years 

Bridges ........................................................100 years 

Other .....................................................20 - 40 years 

(f) Repairs and maintenance 

Routine maintenance, repair costs, and minor renewal 

costs are expensed as incurred. Where the repair 

relates to the replacement of a component of an asset 

and the cost exceeds the capitalisation threshold the 

cost is capitalised and depreciated. The carrying value 

of the replaced asset is expensed. 

(g) Borrowing costs 

Borrowing costs are recognised as an expense in the 

period in which they are incurred, except where they 

are capitalised as part of a qualifying asset constructed 

by Council. Except where specific borrowings are 

obtained for the purpose of specific asset acquisition, 

the weighted average interest rate applicable to 

borrowings at balance date, excluding borrowings 

associated with superannuation, is used to determine 

the borrowing costs to be capitalised. 

Borrowing costs include interest on bank overdrafts, 

interest on borrowings, and finance lease charges. 

(h) Recognition and measurement of assets 

Acquisition 

The purchase method of accounting is used for all 

acquisitions of assets, being the fair value of assets 

provided as consideration at the date of acquisition 

plus any incidental costs attributable to the 

acquisition. Fair value is the amount for which the 

asset could be exchanged between knowledgeable 

willing parties in an arm's length transaction. 

Where assets are constructed by Council, cost includes 

all materials used in construction, direct labour, 

borrowing costs incurred during construction, and an 

appropriate share of directly attributable variable and 

fixed overheads.


(h) Recognition and measurement of assets (continued) 

The following classes of assets have been recognised in 

Note 21. In accordance with Council's policy, the 

threshold limits detailed below have applied when 

recognising assets within an applicable asset class and 

unless otherwise stated are consistent with the prior 

year: 

Threshold Limit 

$ 

Property 

Land 

land .............................................................2,000 

land improvements ......................................5,000 

buildings ......................................................5,000 


plant, machinery and equipment .................2,000 

fixtures, fittings and furniture .......................2,000 

office equipment ..........................................2,000 

Other 

library books ................................................1,000 


Roads 

infrastructure except for roads and 

underground drainage ................................5,000 

infrastructure roads and underground 

drainage.....................................................10,000 

land under roads ..........................................5,000 

Revaluation 

Subsequent to the initial recognition of assets, noncurrent 

physical assets and other than plant and 

equipment, are measured at their fair value, being the 

amount for which the assets could be exchanged 

between knowledgeable willing parties in an arms 

length transaction. At balance date, the Council 

reviewed the carrying value of the individual classes of 

assets measured at fair value to ensure that each asset 

materially approximated its fair value. Where the 

carrying value materially differed from the fair value at 

balance date the class of asset was revalued. 

In addition, Council undertakes a formal revaluation of 

land, buildings, and infrastructure assets on a regular 

basis ranging from 2 to 5 years. The valuation is 

performed either by experienced Council officers or 

independent experts. 

Where the assets are revalued, the revaluation 

increments are credited directly to the asset 

revaluation reserve except to the extent that an 

increment reverses a prior year decrement for that 

class of asset that had been recognised as an expense 

in which case the increment is recognised as revenue 

up to the amount of the expense. Revaluation 

decrements are recognised as an expense except 

where prior increments are included in the asset 

revaluation surplus for that class of asset in which case 


the decrement is taken to the reserve to the extent of 

the remaining increments. Within the same class of 

assets, revaluation increments and decrements within 

the year are offset. 

Land under roads 

Land under roads acquired after 30 June 2008 is 

brought to account using the cost basis. Council does 

not recognise land under roads that it controlled prior 

to that period in its financial report. 

(i) Cash and cash equivalents 

For the purposes of the cash flow statement, cash and 

cash equivalents include cash on hand, deposits at call, 

and other highly liquid investments with original 

maturities of three months or less, net of outstanding 

bank overdrafts. 

(j) Financial assets 

Investments, other than investments in associates, are 

measured at cost. 

(k) Tender deposits 

Amounts received as tender deposits and retention 

amounts controlled by Council are recognised as Trust 

funds until they are returned or forfeited (refer to Note 

23). 

(l) Employee benefits 

Wages and salaries 

Liabilities for wages and salaries and rostered days off 

are recognised and measured as the amount unpaid at 

balance date and include appropriate on costs such as 

workers compensation and payroll costs. 

Annual leave 

Annual leave entitlements are accrued on a pro rata 

basis in respect of services provided by employees up 

to balance date. 

Annual leave expected to be paid within 12 months is 

measured at nominal value based on the amount, 

including appropriate on costs, expected to be paid 

when settled. 

Annual leave expected to be paid later than one year 

has been measured at the present value of the 

estimated future cash outflows to be made for these 

accrued entitlements. Commonwealth bond rates are 

used for discounting future cash flows. 

Long service leave 

Long service leave entitlements payable are assessed at 

balance date having regard to expected employee 

remuneration rates on settlement, employment related 

on costs and other factors including accumulated 

years of employment, on settlement, and experience 

of employee departure per year of service. 

Long service leave expected to be paid within 12 

months is measured at nominal value based on the 

amount expected to be paid when settled. 


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60 


Long service leave expected to be paid later than one 

year has been measured at the present value of the 

estimated future cash outflows to be made for these 

accrued entitlements. Commonwealth bond rates are 

used for discounting future cash flows. 

Classification of employee benefits 

An employee benefit liability is classified as a current 

liability if the Council does not have an unconditional 

right to defer settlement of the liability for at least 12 

months after the end of the period. This would include 

all annual leave and unconditional long service leave 

entitlements. 

Superannuation 

A liability is recognised in respect of Council's present 

obligation to meet the unfunded obligations of 

defined benefit superannuation schemes to which its 

employees are members. The liability is defined as the 

Council's share of the scheme's unfunded position, 

being the difference between the present value of 

employees’ accrued benefits and the net market value 

of the scheme’s assets at balance date. The liability also 

includes applicable contributions tax. 

The superannuation expense for the reporting year is 

the amount of the statutory contribution the Council 

makes to the superannuation plan which provides 

benefits to its employees together with any 

movements (favourable/unfavourable) in the position 

of any defined benefits schemes. Details of these 

arrangements are recorded in Note 30. 

(m) Leases 

Finance leases 

Leases of assets where substantially all the risks and 

rewards incidental to ownership of the asset, are 

transferred to the Council are classified as finance leases. 

Finance leases are capitalised, recording an asset and a 

liability at the lower of the fair value of the asset and the 

present value of the minimum lease payments, 

including any guaranteed residual value. Lease 

payments are allocated between the reduction of the 

lease liability and the interest expense. Leased assets are 

amortised on a straight line basis over their estimated 

useful lives to the Council where it is likely that the 

Council will obtain ownership of the asset or over the 

term of the lease, whichever is the shorter. Council has 

no leases that are classified as finance leases. 

Operating leases 

Lease payments for operating leases are recognised as 

an expense in the years in which they are incurred as 

this reflects the pattern of benefits derived by the 


(n) Allocation between current and non-current 

In the determination of whether an asset or liability is 

current or non-current, consideration is given to the time 

when each asset or liability is expected to be settled. The 

asset or liability is classified as current if it is expected to 

be settled within the next twelve months, being the 

Council's operational cycle, or if the Council does not 

have an unconditional right to defer settlement of a 

liability for at least 12 months after the reporting date. 


(o) Agreements equally proportionately unperformed 

The Council does not recognise assets and liabilities 

arising from agreements that are equally 

proportionately unperformed in the balance sheet. 

Such agreements are recognised on an 'as incurred' 

basis. 

(p) Web site costs 

Costs in relation to websites are charged as an expense 

in the period in which they are incurred. 

(q) 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 Tax 

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 the expense. Receivables and payables in 

the balance sheet are shown inclusive of GST. 

Cash flows are presented in the cash flow statement 

on a gross basis, except for the GST component of 

investing and financing activities, which are disclosed 

as operating cash flows. 

(r) Impairment of assets 

At each reporting date, the Council reviews the 

carrying value of its assets to determine whether there 

is any indication that these assets have been impaired. 

If such an indication exists, the recoverable amount of 

the asset, being the higher of the asset's fair value less 

costs to sell and value in use, is compared to the assets 

carrying value. Any excess of the assets carrying value 

over its recoverable amount is expensed to the 

comprehensive income statement. 

(s) Rounding 

Unless otherwise stated, amounts in the financial 

report have been rounded to the nearest dollar. 

Figures in the financial statements may not equate 

due to rounding. 

(t) Non-current assets held for sale 

The carrying amount of non-current assets held for 

sale are at independent market valuation. 

(u) Investment property 

Investment property, comprising freehold office 

complexes, is held to generate long-term rental yields. 

All tenant leases are on arms length basis. Investment 

property is measured initially at cost, including 

transaction costs. Costs incurred subsequent to initial 

acquisition are capitalised when it is probable that 

future economic benefit in excess of the originally 

assessed performance of the asset will flow to the 

Council. Subsequent to initial recognition at cost, 

investment property is carried at fair value, determined 

annually by independent Valuer's. Changes to fair 

value are recorded in the comprehensive income 

statement in the period that they arise. Rental income 

from the leasing of investment properties is recognised 

in the comprehensive income statement on a straight 

line basis over the lease term.

(v) Financial guarantees 

Financial guarantee contracts are recognised as a 

liability at the time the guarantee is issued. The liability 

is initially measured at fair value, and if there is 

material increase in the likelihood that the guarantee 

may have to be exercised, at the higher of the amount 

determined in accordance with AASB 137 Provisions, 

Contingent Liabilities and Contingent Assets and the 

amount initially recognised less cumulative 

amortisation, where appropriate. In the determination 

of fair value, consideration is given to factors including 

the probability of default by the guaranteed party and 

the likely loss to Council in the event of default. 

(w) Pending Accounting Standards 

The following Australian Accounting Standards have 

been issued or amended and are applicable to the 

Council but are not yet effective. 

They have not been adopted in preparation of the 

financial statements at reporting date. 

Standard/Interpretation Summary Applicable for Impact on local 

annual reporting Government financial 

periods beginning statements 

or ending on 

AASB 9 Financial Instruments This standard simplifies requirements 

for the classification and 

measurement of financial assets 

resulting from Phase 1 of the IASB’s 

project to replace IAS 39 Financial 

Instruments: Recognition and 

Measurement (AASB 139 Financial 

Instruments: Recognition and 

Measurement). 

AASB 2009-11 

Amendments to Australian 

Accounting Standards arising 

from AASB 9 [AASB 1, 3, 4, 5, 

7, 101, 102, 108, 112, 118, 

121, 127, 128, 131, 132, 

136, 139, 1023 & 1038 and 

Interpretations 10 & 12] 

AASB 2009-12 


Accounting Standards [AASBs 

5, 8, 108, 110, 112, 119, 

133, 137, 139, 1023 & 1031 

and Interpretations 2, 4, 16, 

1039 & 1052] 

AASB 2009-14 


Interpretation – Prepayments 

of a Minimum Funding 

Requirement [AASB 

Interpretation 14] 

This gives effect to consequential 

changes arising from the issuance of 

AASB 9. 

This Standard amends AASB 8 to 

require an entity to exercise 

judgement in assessing whether a 

government and entities know to 

be under the control of that 

government are considered a single 

customer for purposes of certain 

operating segment disclosures .This 

Standard also makes numerous 

editorial amendments to other AASs. 

Amendment to Interpretation 14 

arising from the issuance of 

Prepayments of a Minimum Funding 

Requirement. 

(x) Contingent assets and contingent liabilities and 

commitments 

Contingent assets and contingent liabilities are not 

recognised in the Balance Sheet, but are disclosed by 

way of a note and, if quantifiable, are measured at 

nominal value. Contingent assets and liabilities are 


Beginning 1 Jan 2013 Detail of impact is still being 

assessed. 

Beginning 1 Jan 2013 Detail of impact is still being 

assessed. 

Beginning 1 Jan 2011 AASB 8 does not apply to 

Local Government therefore 

no impact expected. 

Otherwise, only editorial 

changes arsing from 

amendments to other 

standards, no major impact. 

Impacts of editorial 

amendments are not 

expected to be significant. 

Beginning 1 Jan 2011 Expected to have no 

significant impact. 

presented inclusive of GST receivable or payable 

respectively. 

Commitments are not recognised in the Balance 

Sheet. Commitments are disclosed at their nominal 

value and inclusive of the GST payable. 


61

62 

NOTE 2 RATES AND CHARGES 

Council uses Capital Improved Value (CIV) as the basis of valuation of all properties 

within the municipal district. The CIV of a property is it’s value at which the 

unencumbered land might be expected to realise in a free sale at the time of the 

valuation. 

The valuation base used to calculate general rates for 2010/2011 was 

$1,423,492,100 million (2009/2010 $1,368,899,350 million). The 2010/2011 rate 

in the CIV dollar was 0.5067 (2009-2010, 0.4667) residential, 0.5067 (2009/2010, 

0.4667) irrigated farm > 10ha, 0.4054 (2009/2010, 0.3734) farmland (dry) and 

0.5675 (2009/2010, 0.5134) commercial/industrial. 


$ $ 

Residential 4,214,890 3,743,307 

Commercial and Industrial 631,727 568,584 

Farm/Rural 2,687,029 2,383,876 

Other 8,638 7,021 

Garbage charge 1,365,059 1,283,099 

Total rates and charges 8,907,343 7,985,887 

The date of the latest general revaluation of land for rating purposes within the 

municipal district was 1 January 2010, and the valuation was first applied in the 

rating year commencing 1 July 2010. 

The date of the next general revaluation of land for rating purposes within the 

municipal district will 1 January 2012, and the valuation will be first applied to the 

rating period commencing 1 July 2012. 

NOTE 3 STATUTORY FEES, USER FEES AND FINES 

(a) Animal control 105,648 99,289 

Aged service fees 314,551 329,970 

Child care/children's program fees 199,958 84,236 

External works 524,141 486,020 

Hall hire 15,420 12,218 

Health and preventative services 66,362 67,973 

Library fees 11,424 6,423 

Office services 14,789 31,906 

Recreation 108 8,093 

Saleyards 7,309 108,303 

Tourism 15,798 2,760 

Town planning and building control 111,076 123,728 

Waste and Environment 104,634 51,622 

Other fees and charges 19,734 6,155 

(b) Ageing analysis of contractual receivables 

Please refer to table in Note 34 for the ageing analysis of contractual receivables. 


1,510,952 1 ,418,696

NOTE 4 GRANTS 



$ $ 

Grants were received in respect of the following : 

Recurrent 

Commonwealth Government - roads to recovery 797,478 918,000 

Victoria Grants Commission - unallocated 2,906,969 2,509,018 

Victoria Grants Commission - local roads 1,839,326 1,598,010 

Rates Transition Subsidy 370,000 550,000 

State Emergency Services (SES) 11,936 11,674 

Flood Recovery 482,062 - 

Drought Relief - 147,440 

Infant Health 139,246 143,258 

Preventative Services 37,432 15,069 

Family Day Care 150,790 153,335 

Senior citizens 1,249,164 835,884 

Community Services 377,618 171,550 

Planning - 46,690 

Tourism 5,090 4,055 

Economic Development 30,000 4,700 

Library 114,107 111,209 

Recreation 26,219 55,179 

School Crossings 9,422 7,815 

Landcare 101,599 104,599 

Other 27,000 130,750 

Total recurrent 8,675,458 7,518,235 

Non-recurrent 

Regional Infrastructure 150,000 110,542 

Children and Families 10,100 45,000 

Heritage and Culture 36,497 198,681 

Recreation 539,224 533,841 

Total non-recurrent 735,821 888,064 

Total Grants 9,411,279 8,406,299 

Conditions on grants 

Grants recognised as revenue during the year that were obtained on condition 

that they be expended in a specified manner that had not occurred at balance date were: 

Victorian Grants Commission 1,194,066 1,073,198 

Children and Families 26,055 51,080 

Economic Development 33,043 236,072 

Library - 2,252 

Planning 67,812 125,498 

Tourism 59,175 167,459 


Saleyards - 66,000 

Rates Unbundling Subsidy - 459,000 

Recreation 247,387 14,277 

Drainage & Stormwater 5,000 74,599 

Public Health 10,000 5,459 

Flood Works 450,692 - 

Total 2,134,863 2,286,180 


63

64 

NOTE 4 GRANTS continued 

Grants which were recognised as revenue in prior years and were 

expended during the current year in the manner specified by the grantor were: 


$ $ 

Victorian Grants Commission 1,073,198 997,736 

Children and Families 51,080 - 

Economic Development 228,072 - 

Library 2,252 17,887 

Planning 57,687 30,000 

Tourism 108,284 25,000 


Saleyards 66,000 - 

Rates Unbundling Subsidy 459,000 - 

Recreation 14,277 203,094 

Drainage & Stormwater 74,599 - 

Public Health 5,459 23,596 

2,151,194 1,310,040 

Net increase (decrease) in restricted assets resulting from grant revenues for the year: (16,331) 976,140 

NOTE 5 CONTRIBUTIONS 

Cash 

Welfare 55,176 82,311 

Economic Development 600 9,909 

Tourism - 87,500 

Recreation 4,097 25,377 

Landcare 59,490 21,977 

Other 131,498 73,765 

Total contributions 250,861 300,839 

NOTE 6 REIMBURSEMENTS 

Welfare 666,712 680,969 

Garbage collection and recycling 160,398 173,690 

Flood recovery 910,472 - 

Other 117,769 101,646 

Total reimbursements 1,855,351 956,305 

NOTE 7 OTHER INCOME 

Interest 253,223 245,497 

Investment property rental 203,337 219,539 

Total other income 456,560 465,036 


NOTE 8 EMPLOYEE BENEFITS 


$ $ 

Wages and salaries 5,914,473 5,390,579 

Annual leave and long service leave 909,269 790,114 

Other leave 573,309 443,619 

Superannuation 641,933 612,749 

Superannuation Shortfall (refer Note 30) 375,116 - 

Workcover 201,840 122,840 

Fringe benefits tax 53,477 31,461 

Salaries capitalised (197,524) (182,599) 

Other 193,088 165,015 

Total employee benefits 8,664,981 7,373,778 

NOTE 9 MATERIALS AND SERVICES 

Council administration and engineering 1,658,613 1,701,388 

Chargeable works 204,886 172,976 

Community, public safety, law and order 208,317 177,022 

Commerce, economic development, town planning and building 324,253 349,195 

Heritage and culture 151,372 268,839 

Health, education and housing 635,085 611,283 

Recreation 864,922 579,552 

Transport 113,993 614,848 

Waste and environment 3,003,225 1,286,449 

Welfare 365,833 466,777 

Total materials and services 7,530,499 6,228,329 

NOTE 10 CONTRIBUTIONS 

Council administration and engineering 93,784 90,251 

Community, public safety, law and order 28,518 17,511 

Commerce, economic development, town planning and building 31,880 8,069 

Heritage and culture 45 14,225 

Health, education and housing 20,041 12,834 

Recreation 138,939 176,177 

Waste and environment 149,660 33,687 

Welfare 4,132 8,110 

Total contributions 466,999 360,864 

NOTE 11 BAD AND DOUBTFUL DEBTS 


Local Laws - - 

Other debtors - - 

Total bad and doubtful debts - - 


65

66 

NOTE 12 DEPRECIATION AND AMORTISATION 


$ $ 

Property 

Land 

Land improvements 194,976 187,841 

Buildings 

Buildings 714,146 712,540 


Plant and equipment 721,777 647,840 

Office furniture 14,677 8,589 

Office equipment 165,242 173,737 

Library books 49,644 43,572 


Roads 2,049,924 2,006,844 

Bridges 203,844 197,832 

Footpaths 100,524 92,712 

Drainage 150,288 146,232 

Kerb and channel 176,544 176,076 

Total depreciation and amortisation 4,541,586 4 ,393,815 

NOTE 13 FINANCE COSTS 

Bank charges 29,428 24,803 

Interest - Borrowings 168,102 184,278 

Total finance costs 197,530 209,081 

NOTE 14 OTHER EXPENSES 

Auditors' remuneration 38,290 60,590 

Councillors' allowances 166,331 190,419 

Valuations 26,546 114,057 

Total other expenses 231,167 365,066 

NOTE 15 CASH AND CASH EQUIVALENTS 

Cash on hand 1,800 1,600 

Cash at bank 1,113,014 430,704 

Money market call account 2,869,143 3,441,135 

Total cash and cash equivalents 3,983,957 3,873,439 

Users of the financial report should refer to Note 29 for details of restrictions on cash 

assets and Note 31 for details of existing Council commitments 


NOTE 16 TRADE AND OTHER RECEIVABLES 


$ $ 

Current 

Rates debtors 389,526 253,717 

Provision for doubtful debts - rates (63,057) (53,255) 

Miscellaneous deposits 2,500 2 ,500 

Other debtors 845,589 611,904 

Golflinks Estate Cohuna - Private Street Scheme - 1,004 

Accrued Income 39,494 48,102 

Net GST receivable 70,508 134,761 

Total trade and other receivables 1,284,560 998,733 

NOTE 17 FINANCIAL ASSETS 

Current 

Term deposits (Note 1(j)) 1,235,279 1,150,142 

NOTE 18 INVENTORIES 

Inventories held for distribution 158,683 413,496 

Total inventories 158,683 413,496 

NOTE 19 ASSETS HELD FOR SALE 

Land at independent valuation of fair value as at 30 June 2007 - 117,973 

At cost 1,023,332 1,141,920 

Additions - - 

Sales (96,643) (236,561) 

Total assets held for sale 926,689 1,023,332 

NOTE 20 OTHER ASSETS 


Current 

Prepayments 155,643 88,712 

Total other assets 155,643 88,712 


67

68 

NOTE 21 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT 


$ $ 

Summary 

at cost 23,571,079 19,425,574 

At independent valuation as at 1 July 2008 58,369,963 58,369,963 

At Council valuation of fair value as at 1 July 2008 19,524,978 19,524,978 

At Council valuation of fair value as at 30 June 2007 159,252,497 159,252,497 

At Council valuation of fair value as at 30 June 2006 11,324,518 11,324,518 

Works in Progress 2,928,734 558,531 

Less accumulated depreciation 134,144,222 130,089,177 

Less Council valuation of gravel roads as at 30 June 2011 – Impairment 8,140,062 - 

132,687,485 138,366,884 

Property 

Land 

at independent valuation as at 1 July 2008 8,453,180 8 ,453,180 

8,453,180 8,453,180 

Land improvements 

at cost 1,081,345 1,000,819 

at independent valuation as at 1 July 2008 13,391,115 13,391,115 


3,034,363 3,148,813 

Total Land 11,487,543 11,601,993 

Buildings 

at cost 4,052,053 2,225,314 

at independent valuation as at 1 July 2008 36,525,668 36,525,668 


17,055,996 15,943,403 

Total Property 28,543,539 27,545,396 

Valuation of land (excluding land under roads) and buildings were undertaken by Peter 

Hann, a qualified independent Valuer. The valuation of buildings is at fair value based on 

current replacement cost less accumulated depreciation at the date of valuation. The 

valuation of land is at fair value, being market value based on highest and best use 

permitted by relevant land planning provisions. All freehold land reserved for public open 

space is valued at a discount to market value based on legal precedents. 


NOTE 21 PROPERTY, INFRASTRUCTURE, PLANT AND EQUIPMENT continued 



$ $ 

Plant and equipment 

at cost 6,302,956 5,900,172 


3,056,313 3,120,214 

Office furniture and fittings 

at cost 100,250 100,250 

Less accumulated depreciation 100,250 85,573 

- 14,677 

Office Equipment 

at cost 1,087,706 1,208,480 


340,816 395,383 

Library books 

at cost 743,581 691,381 


438,661 436,105 

Total Plant and Equipment 3,835,790 3,966,379 


69

70 



$ $ 


Roads 

at cost 7,481,595 5,779,800 

at Council valuation of fair value as at 30 June 2007 138,314,705 138,314,705 


Less Council valuation of gravel roads as at 30 June 2011 – Impairment 8,140,062 - 

66,391,760 74,879,951 

Bridges 

at cost 636,871 593,357 

at Council valuation of fair value as at 1 July 2008 19,524,978 19,524,978 


12,046,250 12,206,580 

Footpaths and cycleways 

at cost 1,220,841 1,063,906 



5,051,017 4,994,606 

Drainage 

at cost 700,162 698,376 



6,345,022 6,493,524 

Kerb and channel 

at cost 163,719 163,719 



7,545,373 7,721,917 

Total Infrastructure 97,379,422 106,296,578 

Valuation of bridges as at 01/07/2008 has been determined in accordance with a Council 

valuation undertaken by Mr Scott Cavanagh, BE (Enviro) (Hons), Grad Cert T&T, GAICD. 

Other infrastructure assets valued at 30/06/2006 and 30/06/2007 had been determined in 

accordance with a Council valuation undertaken by Mr Steve Walsh, BE (Civil) (Hons), Dip 

Civil Eng, FIPWEA, FIPAust and CPEng. 

The valuation is at fair value based on replacement cost less accumulated depreciation as 

at the date of valuation. 

The valuation of gravel roads as at 30 June 2011 – Impairment, has been determined in 

accordance with a Council valuation undertaken by Brent Heitbaum and David Thompson 

taking into account the extent and nature of road damage caused by flood waters. 

Works in progress 

Works at cost 2,928,734 558,531 

Total Works in progress 2,928,734 558,531 

Total property, infrastructure, plant and equipment 132,687,485 138,366,884 




Balance at Depreciation Written down Balance at 

2011 beginning of Acquisition and value of end of 

financial year of assets Impairment amortisation disposals Transfers financial year 

(Note 26) (Note 12) 

$ $ $ $ $ $ $ 

Property 

land 8,453,180 - - - - - 8,453,180 

land improvements 3,148,813 80,526 - 194,976 - - 3 ,034,363 

Total land 11,601,993 80,526 - 194,976 - - 11,487,543 

buildings 15,943,403 1,826,739 - 714,146 - - 17,055,996 

Total buildings 15,943,403 1,826,739 - 714,146 - - 17,055,996 

Total property 27,545,396 1,907,265 - 909,122 - - 28,543,539 


plant, machinery and equipment 3,120,213 809,845 - 721,777 151,968 - 3,056,313 

office furniture and fittings 14,677 - - 14,677 - - - 

office equipment 395,383 110,675 - 165,242 - - 340,816 

library books 436,105 52,200 - 49,644 - - 438,661 

Total plant and equipment 3,966,378 972,720 - 951,340 151,968 - 3,835,790 


roads 74,879,951 1,701,795 8,140,062 2,049,924 - - 66,391,760 

bridges 12,206,580 43,514 - 203,844 - - 12,046,250 

footpaths and cycleways 4,994,606 156,935 - 100,524 - - 5,051,017 

drainage 6,493,524 1,786 - 150,288 - - 6,345,022 

kerb and channel 7,721,917 - - 176,544 - - 7,545,373 

Total infrastructure 106,296,578 1,904,030 8,140,062 2,681,124 - - 97,379,422 


works 558,531 2,370,203 - - - - 2,928,734 

Total works in progress 558,531 2,370,203 - - - - 2,928,734 

Total property, plant and 

equipment,infrastructure 138,366,883 7,154,218 8,140,062 4,541,586 151,968 - 132,687,485 


71

72 


Balance at Depreciation Written down Balance at 

2010 beginning of Acquisition and value of end of 

financial year of assets Impairment amortisation disposals Transfers financial year 

(Note 26) (Note 12) 

$ $ $ $ $ $ $ 

Property 

land 8,451,114 2,066 - - - - 8 ,453,180 

land improvements 3,051,251 285,403 - 187,841 - - 3 ,148,813 

Total land 11,502,365 287,469 - 187,841 - - 11,601,993 

buildings 15,638,571 1,017,372 - 712,540 - - 15,943,403 

Total buildings 15,638,571 1,017,372 - 712,540 - - 15,943,403 

Total property 27,140,936 1,304,841 - 900,381 - - 27,545,396 


plant, machinery and equipment 2,816,431 1,152,284 - 647,840 200,661 - 3,120,214 

office furniture and fittings 23,265 - - 8,588 - - 14,677 

office equipment 425,643 153,180 - 173,737 9,703 - 395,383 

library books 413,825 65,852 - 43,572 - - 436,105 

Total plant and equipment 3,679,164 1,371,316 - 873,737 210,364 - 3,966,379 


roads 75,788,305 1,098,490 - 2,006,844 - - 74,879,951 

bridges 11,811,237 593,175 - 197,832 - - 12,206,580 

footpaths and cycleways 4,461,611 625,707 - 92,712 - - 4,994,606 

drainage 6,315,387 324,369 - 146,232 - - 6,493,524 

kerb and channel 7,861,078 36,915 - 176,076 - - 7,721,917 

Total infrastructure 106,237,618 2,678,656 - 2,619,696 - - 106,296,578 


works 535,929 22,602 - - - - 558,531 

Total works in progress 535,929 22,602 - - - - 558,531 

Total property, plant and 

equipment, infrastructure 137,593,647 5,377,415 - 4,393,814 210,364 - 138,366,884 


NOTE 22 TRADE AND OTHER PAYABLES 


$ $ 

Trade payables 423,712 494,191 

Accrued expenses 1,981,419 376,907 

Total trade and other payables 2,405,131 871,098 

NOTE 23 TRUST FUNDS AND DEPOSITS 

Sale deposits - 18,845 

Refundable hall deposits 2,600 3,680 

Retention amounts on contracted works 126,389 92,562 

Other trusts and refundable deposits 108,768 177,954 

Total trust funds and deposits 237,757 293,041 

NOTE 24 PROVISIONS 


Annual leave Long service Landfill Other Total 

leave restoration 

2011 $ $ $ $ $ 

Balance at beginning of the financial year 592,456 1,172,300 546,000 2,678 2,313,434 

Additional provisions 771,268 357,837 134,000 20,892 1,283,997 

Amounts used (659,699) (249,569) - (18,084) (927,352) 

Increase in the discounted amount arising because of 

time and the effect of any change in the discount rate - - - - - 

Balance at the end of the financial year 704,025 1,280,568 680,000 5,486 2,670,079 

2010 

Balance at beginning of the financial year 530,349 1,076,241 546,000 1,852 2,154,442 

Additional provisions 584,261 205,853 - 11,727 801,841 

Amounts used (522,154) (109,794) - (10,901) (642,849) 

Increase in the discounted amount arising because of 

time and the effect of any change in the discount rate - - - - - 

Balance at the end of the financial year 592,456 1,172,300 546,000 2,678 2,313,434 


73

74 

NOTE 24 PROVISIONS continued 

(a) Employee benefits 


$ $ 

Current (i) 

Annual leave 704,025 592,456 

Long service leave 277,886 268,903 

Other 5,486 2,678 

987,397 864,037 

Non-current (ii) 

Long service leave 1,002,682 903,397 

1,002,682 903,397 

Aggregate carrying amount of employee benefits: 

Current 987,397 864,037 

Non-current 1,002,682 903,397 

1,990,079 1,767,434 

The following assumptions were adopted in measuring 

the present value of employee benefits: 

Weighted average increase in employee costs 4.80% 4.48% 

Weighted average discount rates 5.05% 4.45% 

Weighted average settlement period 14 14 

(i) Current 

All annual leave and the long service leave entitlements representing 7 or more years 

of continuous service 

– Short-term employee benefits, that fall due within 12 months after the end of the 

period measured at nominal value 987,397 864,037 

987,397 864,037 

(ii) Non-current 

Long service leave representing less than 7 years of continuous service 

measured at present value 1,002,682 903,397 

(b) Provisions 

Aggregate carrying amount of provisions: 

Current 987,397 864,037 

Non-current 1,682,682 1,449,397 

Total 2,670,079 2,313,434 


NOTE 25 INTEREST-BEARING LOANS AND BORROWINGS 


$ $ 

Current 

Borrowings - secured 310,915 276,784 

310,915 276,784 

Non-current 

Borrowings - secured 2,325,990 2,406,890 

Total 2,636,905 2,683,674 

The maturity profile for Council's borrowings is: 


Not later than one year 310,915 276,784 

Later than one year and not later than five years 1,396,087 1,301,404 

Later than five years 929,903 1,105,486 

Total 2,636,905 2,683,674 

Aggregate carrying amount of interest-bearing loans and borrowings: 

Current 310,915 276,784 

Non-current 2,325,990 2,406,890 

Total interest-bearing loans and borrowings 2,636,905 2,683,674 


75

76 

NOTE 26 RESERVES 

Balance at Balance at end 

beginning of of reporting 

reporting period Impairment period 

Asset revaluation reserve $ $ $ 

2011 

Property 

Land and improvements 2,711,693 - 2,711,693 

Buildings 7,282,515 7,282,515 

9,994,208 - 9,994,208 


Roads 89,651,275 8,140,062 81,511,212 

Bridges 6,227,492 - 6,227,492 

Footpaths and cycleways 1,556,081 - 1,556,081 

97,434,848 8,140,062 89,294,785 

Total asset revaluation reserve 107,429,056 8,140,062 99,288,993 

2010 

Property 

Land and improvements 2,711,693 - 2,711,693 

Buildings 7,282,515 - 7,282,515 

9,994,208 - 9,994,208 


Roads 89,651,274 - 89,651,274 

Bridges 6,227,492 - 6,227,492 

Footpaths and cycleways 1,556,081 - 1,556,081 

97,434,847 - 97,434,847 

Total asset revaluation reserve 107,429,055 - 107,429,055 


NOTE 27 RECONCILIATION OF CASH FLOWS FROM 

OPERATING ACTIVITIES TO SURPLUS (DEFICIT) 


$ $ 

Surplus 868,994 657,643 

Depreciation/amortisation 4,541,586 4,393,815 

(Profit)/loss on disposal of property, plant and equipment, infrastructure (109,409) (55,514) 

Change in assets and liabilities: 

(Increase)/decrease in trade and other receivables (285,827) (195,451) 

(Increase)/decrease in prepayments (66,931) 175,346 

(Increase)/decrease in inventories 254,813 (405,235) 

(Increase)/decrease in land held for resale 96,643 236,561 

Increase/(decrease) in trade and other payables 1,534,034 300,991 

Increase/(decrease) in other liabilities (55,284) 100,509 

Increase/(decrease) in provisions 356,644 158,992 

Net cash provided by/(used in) operating activities 7,135,261 5,367,657 

NOTE 28 FINANCING ARRANGEMENTS 

Bank overdraft 1,500,000 1,500,000 

Used facilities - - 

Unused facilities 1,500,000 1,500,000 

NOTE 29 RESTRICTED ASSETS 

Council has cash and cash equivalents (Note 15) that are subject to restrictions. 

As at the reporting date, Council had legislative restrictions in relation to employee 

entitlements (Long Service Leave) and reserve funds (Recreational Lands Reserves). 

Long service leave (Note 24) 1,235,279 1,148,313 

Reserve funds (Note 23) 237,757 274,196 

Total restricted assets 1,473,036 1,422,509 

* Restricted asset for long service leave is based on the Local Government (Long 

Service Leave) Regulations 2002 and does not necessarily equate to the long service 

leave liability disclosed in Note 24 due to a different basis of calculation prescribed by 

the regulation. 



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NOTE 30 SUPERANNUATION 

Gannawarra Shire Council makes employer superannuation contributions in respect of its employees to the Local 

Authorities Superannuation Fund (the Fund). Obligations for contributions are recognised as an expense in profit or loss 

when they are due. The Fund has two categories of membership, accumulation and defined benefit, each of which is 

funded differently. 

The Fund's accumulation category, Vision Super Saver, receives both employer and employee contributions on a 

progressive basis. Council contributions are normally based on a fixed percentage of employee earnings (9% required 

under Superannuation Guarantee Legislation). No further liability accrues to the employer as the superannuation benefits 

accruing to employees are represented by their share of the net assets of the Fund. 

Defined Benefit Plan 

The Fund's Defined Benefit Plan is a multi-employer sponsored plan. As the Plan's assets and liabilities are pooled and are 

not allocated by employer, the Actuary is unable to reliably allocate benefit liabilities, assets and costs between employers. 

As provided under Paragraph 32 (b) of AASB 119, Council does not use defined benefit accounting for these 

contributions. 

Council makes employer contributions to the defined benefit category of the Fund at rates determined by the Trustee on 

the advice of the Fund's Actuary. On the basis of the results of the most recent full actuarial investigation conducted by 

the Fund's Actuary as at 31 December 2008, Council makes the following contributions:- 

- 9.25% of members' salaries (same as previous year); 

- the difference between resignation and retrenchment benefits paid to any retrenched employees, plus contribution 

tax (same as previous year); 

The Fund surplus or deficit (ie the difference between fund assets and liabilities) is calculated differently for funding 

purposes (ie calculating required contributions) and for the calculation of accrued benefits as required in AAS 25 to 

provide the values needed for the AASB 119 disclosure in the council's financial statements. AAS 25 requires that the 

present value of the defined benefit liability to be calculated based on benefits that have accrued in respect of 

membership of the plan up to the measurement date, with no allowance for future benefits that may accrue. 

Following an actuarial review conducted by the Trustees in late 2010, as at 31 December 2008, a shortfall of $71 million 

for the Fund was determined. A call to Employers for additional contributions was made for the financial year 30 June 

2011 with commitment from Employers from 1 July 2011. A further actuarial review will be undertaken as at 31 

December 2011 by mid 2012. Based on the result of this review, a detailed funding plan will be developed and 

implemented to achieve the target of full funding by 31 December 2013. The Council will be notified of any additional 

required contributions by late 2012. 


NOTE 30 SUPERANNUATION continued 

Accounting Standard Disclosure 

The Fund's liability for accrued benefits was determined by the Actuary at 31 December 2008 

pursuant to the requirements of Australian Accounting Standard AAS25 follows: 

31-Dec-08 

$'000 

Net Market Value of Assets 3,630,432 

Accrued Benefits (per accounting standards) 3,616,422 

Difference between Assets and Accrued Benefits 14,010 

Vested Benefits 3,561,588 

The financial assumptions used to calculate the Accrued Benefits for the defined 

benefit category of the Fund were: 


Net Investment Return 8.50% p.a. 

Salary Inflation 4.25% p.a. 

Price Inflation 2.75% p.a. 


$ $ 

Employer contributions to Local Authorities Superannuation Fund (Vision Super) 641,933 589,275 

Employer contributions payable to Local Authorities Superannuation Fund 

(Vision Super) at reporting date. 375,116 - 

Employer contributions to self managed superannuation funds 24,327 22,967 

1,041,376 612,242 


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NOTE 31 COMMITMENTS 

The Council has entered into the following commitments 

Later than Later than 2 

1 year and years and not 

Not later not later than later than Later than 

than 1 year 2 years 5 years 5 years Total 

2011 $ $ $ $ $ 

Operating 

Interest on loans 167,544 147,023 302,035 253,295 869,897 

Garbage collection 406,204 418,390 1,331,998 - 2,156,592 

Office equipment 20,434 20,434 36,027 - 76,895 

Pool Operations 36,000 36,000 - - 72,000 

Total 630,182 621,847 1,670,060 253,295 3,175,384 

Capital 

Gannawarra Gateway Education, Cultural 

and Heritage Centre 590,000 590,000 

Cohuna memorial Hall Upgrade 240,000 240,000 

R2R Road Rehabilitation 400,000 400,000 

R2R Gravel Resheeting 204,333 204,333 

Kerang Public Conveniences Upgrade 175,000 175,000 

Total 1,609,333 1,609,333 

Later than Later than 2 

1 year and years and not 

Not later not later than later than Later than 

than 1 year 2 years 5 years 5 years Total 

2010 $ $ $ $ $ 

Operating 

Interest on loans 168,430 150,384 329,066 287,982 935,862 

Garbage collection 701,940 - - - 701,940 

Office equipment 20,428 2,420 2,420 - 25,268 

Denyers Sandstone Crushing 444,428 - - - 444,428 

Telephone 13,751 - - - 13,751 

Pool Operations 36,000 36,000 36,000 - 108,000 

Total 1,384,977 188,804 367,486 287,982 2,229,249 

Capital 

Koondrook Town Centre Improvements 236,286 236,286 

KBA Lighting Project 14,277 14,277 

Kerang Hall Airconditioning 63,327 63,327 

Kerang Pool Pipeworks 140,792 140,792 

Leitchville Pool Buildings 280,314 280,314 

Heritage Study (Stage 2) 89,500 89,500 

Gateway to Gannawarra 53,240 53,240 

Recreation AMP 60,778 60,778 

Strengthening Local Communities 87,560 87,560 

Living Green Project 34,308 34,308 

Total 1,060,382 1,060,382 


NOTE 32 OPERATING LEASES 

(a) Operating lease commitments 

At the reporting date, the Council had the following obligations under non-cancellable 

operating leases for the lease of equipment and land and buildings for use within 

Council's activities (these obligations are not recognised as liabilities): 


$ $ 


Later than one year and not later than five years 56,461 4,841 

76,895 38,193 

(b) Operating lease receivables 

The Council has entered into commercial property leases on its investment property, 

consisting of surplus freehold office complexes. These properties held under operating 

leases have remaining non-cancellable lease terms of between 1 and 10 years. All 

leases include a CPI based revision of the rental charge annually. 

Future minimum rentals receivable under non-cancellable operating leases are as 

follows: 


Later than one year and not later than five years 350,054 193,481 

Later than five years 8,097 5,189 

NOTE 33 CONTINGENT LIABILITIES AND CONTINGENT ASSETS 

538,729 359,240 

Contingent liabilities 

The following Bank Guarantees are held on behalf of the Gannawarra Shire Council: 

Statewide Pool Services - Quambatook Outdoor Swimming Pool Upgrade 1/12/2009 2,035 

Comdain Civil Construction - Kerang Pumphouse 19/04/2010 5,089 

CJ & BT McLoughlan - Leitchville Pool Complex 15/06/2010 9,273 

CJ & BT McLoughlan - Gateway to Gannawarra 8/12/2010 17,803 

CJ & BT McLoughlan - Gateway to Gannawarra 8/12/2010 17,803 

Arising from LAS Defined Benefits Fund 

Council has obligations under a defined benefit superannuation scheme that may result in the 

need to make additional contributions to the scheme to ensure that the liabilities of the fund 

are covered by the assets of the fund. As a result of the increased volatility in financial markets 

the likelihood of making such contributions in future periods has increased. A further actuarial 

review will be undertaken as at 31 December 2011. Based on the result of this further review, 

a detailed funding plan will be developed and implemented to achieve the target of fully 

funding the Fund by 31 December 2013. 



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NOTE 34 FINANCIAL INSTRUMENTS 

(a) Accounting Policy, terms and conditions 

Recognised 

financial 

instruments Note Accounting Policy Terms and conditions 

Financial assets 


Cash and cash 

equivalents 

Trade and other 

receivables 


15 Cash on hand and at bank and money market 

call account are valued at face value. 

On call deposits returned a floating interest rate 

of 4.84% (3.25% in 2009/2010). The interest 

rate at balance date was 4.75% (4.5% in 

2009/2010). 

Interest is recognised as it accrues. Funds returned fixed interest rate of between 

4.5% (3.75% in 2009/2010), and 6.25% (6.2% 

in 2009/2010) net of fees. 

Investments and bills are valued at cost. 

Investments are held to maximise interest 

returns of surplus cash. 

Interest revenues are recognised as they accrue. 

Managed funds are measured at market value. 

Other debtors 16 Receivables are carried at amortised cost using 

the effective interest method. A provision for 

doubtful debts is recognised when there is 

objective evidence that an impairment loss has 

occurred. 

Collectability of overdue accounts is assessed 

on an ongoing basis. 

Financial Liabilities liabilities 

Trade and other 

payables 

Interest-bearing 

loans and 

borrowings 

22 Liabilities are recognised for amounts to be 

paid in the future for goods and services 

provided to Council as at balance date 

whether or not invoices have been received. 

25 Loans are carried at their principal amounts, 

which represent the present value of future 

cash flows associated with servicing the debt. 

Interest is accrued over the period it becomes 

due and recognised as part of payables. 

Bank overdraft 28 Overdrafts are recognised at the principal 

amount. Interest is charged as an expense as 

it accrues. 

Credit terms are based on 30 days. 

General Creditors are unsecured, not subject to 

interest charges and are normally settled within 

30 days of invoice receipt. 

Borrowings are secured by way of mortgages 

over the general rates of the Council. 

The weighted average interest rate on 

borrowings is 6.35% (6.28% in 2009/2010). 

The overdraft is subject to annual review. 

It is secured by a mortgage over Council's 

general rates and is repayable on demand. 

The interest rate as at balance date was 9.51% 

(9.12% in 2009/2010).

NOTE 34 FINANCIAL INSTRUMENTS continued 

(b) Interest Rate Risk 

The exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognised 

and unrecognised, at balance date are as follows: 

2011 Fixed interest maturing in: 

Floating 

interest 1 year Over 1 to More than Non-interest 

rate or less 5 years 5 years bearing Total 

Financial assets $ $ $ $ $ $ 

Cash and cash equivalents 1,113,014 2,869,143 - - 1,800 3,983,957 

Other financial assets - 1,235,279 - - - 1,235,279 

Trade and other receivables - - - - 958,091 958,091 

Total financial assets 1,113,014 4,104,422 - - 959,891 6,177,327 

Weighted average interest rate 4.84% 

Financial liabilities 

Trade and other payables - - - - 2,405,131 2,405,131 

Trust funds and deposits - - - - 237,757 237,757 

Interest-bearing loans and borrowings - 310,915 1,396,087 929,903 - 2,636,905 

Total financial liabilities - 310,915 1,396,087 929,903 2,642,888 5,279,793 

Weighted average interest rate 6.35% 6.24% 6.01% 

Net financial assets (liabilities) 1,113,014 3,793,507 (1,396,087) (929,903) (1,682,997) 897,533 

2010 Fixed interest maturing in: 

Floating 

interest 1 year Over 1 to More than Non-interest 

rate or less 5 years 5 years bearing Total 

Financial assets $ $ $ $ $ $ 

Cash and cash equivalents 430,704 3,441,135 - - 1,600 3,873,439 

Financial assets - 1,150,142 - - - 1,150,142 

Trade and other receivables - - - - 798,271 798,271 

Total financial assets 430,704 4,591,277 - - 799,871 5,821,852 

Weighted average interest rate 2.83% 


Trade and other payables - - - - 871,098 871,098 

Trust funds and deposits - - - - 293,041 293,041 

Interest-bearing loans and borrowings - 276,784 1,301,404 1,105,486 - 2,683,674 

Total financial liabilities - 276,784 1,301,404 1,105,486 1,164,139 3,847,813 

Weighted average interest rate 6.28% 6.25% 5.84% 


Net financial assets (liabilities) 430,704 4,314,493 (1,301,404) (1,105,486) (364,268) 1,974,039 


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84 


(c) Net Fair Values 

The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance 

date are as follows: 

Total carrying amount as per Aggregate net fair value 

Financial Instruments Balance Sheet 

2011 2010 2011 2010 


$ $ $ $ 

Cash and cash equivalents 3,983,957 3,873,439 3,983,957 3,873,439 

Trade and other receivables 1,284,560 798,273 1,284,560 798,273 

Financial assets 1,235,279 1,150,142 1,235,279 1,150,142 

Total financial assets 6,503,796 5,821,854 6,503,796 5,821,854 


Trade and other payables 2,405,132 871,098 2,405,132 871,098 

Trust funds and deposits 237,757 293,041 237,757 293,041 

Interest-bearing loans and borrowings 2,636,905 2,683,674 2,636,905 2,683,674 

Total financial liabilities 5,279,794 3,847,813 5,279,794 3,847,813 

(d) Credit Risk 

The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is 

represented by the carrying amount of those assets as indicated in the Balance Sheet. 

(e) Risks and mitigation 

The risks associated with our main financial instruments and our policies for minimising these risks are detailed below. 

Market risk 

Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of 

changes in market prices. The Council's exposures to market risk are primarily through interest rate risk with only 

insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to 

which we are exposed are discussed below. 

Interest rate risk 

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will 

fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities 

that we use. Non derivative interest bearing assets are predominantly short term liquid assets. Our interest rate liability 

risk arises primarily from long term loans and borrowings at fixed rates which exposes us to fair value interest rate risk. 

Our loan borrowings are sourced from major Australian banks by a tender process. Finance leases are sourced from major 

Australian financial institutions. Overdrafts are arranged with major Australian banks. We manage interest rate risk on our 

net debt portfolio by: 

– ensuring access to diverse sources of funding; 

– reducing risks of refinancing by managing in accordance with target maturity profiles; and 

– setting prudential limits on interest repayments as a percentage of rate revenue. 

We manage the interest rate exposure on our debt portfolio by appropriate budgeting strategies and obtaining approval 

for borrowings from the Department of Planning and Community Development each year. 

Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989. We 

manage interest rate risk by adopting an investment policy that ensures: 

– conformity with State and Federal regulations and standards, 

– capital protection, 

– appropriate liquidity, 

– diversification by credit rating, financial institution and investment product, 

– monitoring of return on investment, 

– benchmarking of returns and comparison with budget. 

Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk. 



Credit risk 

Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause us 

to make a financial loss. We have exposure to credit risk on some financial assets included in our balance sheet. To help 

manage this risk: 

– we have a policy for establishing credit limits for the entities we deal with; 

– we may require collateral where appropriate; and 

– we only invest surplus funds with financial institutions which have a recognised credit rating specified in our 

investment policy. 

Trade and other receivables consist of a large number of customers, spread across the consumer, business and 

government sectors. Credit risk associated with the Council's financial assets is minimal because the main debtor is the 

Victorian Government. Apart from the Victorian Government we do not have any significant credit risk exposure to a 

single customer or groups of customers. Ongoing credit evaluation is performed on the financial condition of our 

customers and, where appropriate, an allowance for doubtful debts is raised. 

We may also be subject to credit risk for transactions which are not included in the balance sheet, such as when we 

provide a guarantee for another party. Details of our contingent liabilities are disclosed in Note 31. 

Movement in Provisions for Doubtful Debts 2011 

$ 

Balance at the beginning of the year 53,255 

New Provisions recognised during the year 9,802 

Amounts provide for but recovered during the year - 

Balance at end of year 63,057 

Ageing of Trade and Other Receivables 

At balance date other debtors representing financial assets were past due but not impaired. These amounts relate to a 

number of independent customers for whom there is no recent history of default. The ageing of the Council's Trade & 

Other Receivables, not including Rate debtors, was: 

2011 

$ 

Current (not yet due) 602,459 

Past due by up to 30 days 129,750 

Past due between 31 and 60 days 174,133 

Past due between 61 and 90 days 5,775 

Past due by more than 90 days 45,974 

Total Trade & Other Receivables 958,091 


Liquidity risk 

Liquidity risk includes the risk that, as a result of our operational liquidity requirements: 

– we will not have sufficient funds to settle a transaction on the date; 

– we will be forced to sell financial assets at a value which is less than what they are worth; or 

– we may be unable to settle or recover a financial assets at all. 

To help reduce these risks we: 

– have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained; 

– have readily accessible standby facilities and other funding arrangements in place; 

– have a liquidity portfolio structure that requires surplus funds to be invested within various bands of liquid 

instruments; 

– monitor budget to actual performance on a regular basis; and 

– set limits on borrowings relating to the percentage of loans to rate revenue and percentage of loan principal 

The Councils exposure to liquidity risk is deemed insignificant based on prior periods' data and current assessment of risk. 


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86 


(f) Sensitivity disclosure analysis 

Taking into account past performance, future expectations, economic forecasts, and management's knowledge and 

experience of the financial markets, the Council believes the following movements are 'reasonably possible' over the next 

12 months (Base rates are sourced from Reserve Bank of Australia): 

– A parallel shift of + 1% and -2% in market interest rates (AUD) from year-end rates of 4.4%. 

The table below discloses the impact on net operating result and equity for each category of financial instruments held by 

the Council at year-end, if the above movements were to occur. 

2011 $'000 

Financial assets: 

Cash and cash equivalents 3,984 

Financial assets 1,235 

Trade and other receivables 2,405 

Financial liabilities: 

Interest-bearing loans and 

borrowings 2,637 

2010 $'000 

Financial assets: 

Cash and cash equivalents 3,873 

Financial assets 1,150 

Trade and other receivables 798 

Financial liabilities: 

Interest-bearing loans and 

borrowings 2,684 


-2 % -2% +1 

+1 

-200 basis points 

Profit Equity 

$'000 $'000 

(80) (80) 

(25) (25) 

(48) (48) 

(53) (53) 


+100 basis points 

Profit Equity 

$'000 $'000 

40 40 

12 12 

24 24 

26 26 

-2 % -2% +1 

+1 

-200 basis points 

Profit Equity 

$'000 $'000 

(77) (77) 

(23) (23) 

(16) (16) 

(54) (54) 


+100 basis points 

Profit Equity 

$'000 $'000 

39 39 

12 12 

8 8 

27 27

NOTE 35 AUDITORS' REMUNERATION 


$ $ 

Audit fee to conduct external audit - Victorian Auditor-General 21,100 35,800 

Internal audit fees - Richmond, Sinnott and Delahunty 10,140 20,845 

Other audit fees 7,050 3,945 

NOTE 36 EVENTS OCCURRING AFTER BALANCE DATE 

There are no events that have occurred after balance date that Council is aware of. 

NOTE 37 RELATED PARTY TRANSACTIONS 

(i) Responsible Persons 

Names of persons holding the position of a Responsible Person at the Council at any time 

during the year are: 

Councillors Councillor Keith den Houting (Mayor 22/11/06 to 8/12/2010) 

Councillor Lui Basile 

Councillor Max Fehring (Mayor from 8/12/2010 to present) 

Councillor Neville Goulding 

Councillor Neil Gannon 

Councillor Glenn Hall 

Councillor Oscar Aertssen 

Chief Executive Officer Rosanna Kava from 06/03/06 to present 

(ii) Remuneration of Responsible Persons 

The numbers of Responsible Officers, whose total remuneration from Council and any related 

entities fall within the following bands: 


38,290 60,590 


No. No. 

$1 - $ 9,999 - - 

$10,000 - $19,999 5 6 

$20,000 - $29,000 1 - 

$40,000 - $49,999 1 - 

$50,000 - $59,999 - 1 

$170,000 - $179,999 1 1 

8 8 

$ $ 

Total Remuneration for the reporting year for Responsible Persons included above 

amounted to: 329,936 337,271 

(iii) No retirement benefits have been made by the Council to a Responsible Person. (2009/10, 0) 

(iv) No loans have been made, guaranteed or secured by the Council to a Responsible Person during the reporting year 

(2009/10, 0). 


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NOTE 37 RELATED PARTY TRANSACTIONS continued 

(v) Other Transactions 

No transactions other than remuneration payments or the reimbursement of approved expenses were entered into by 

Council with Responsible Persons, or Related Parties of such Responsible Persons during the reporting year (2009/10, 0). 

(vi) Senior Officers Remuneration 

The number of Senior Officers other than the Responsible Persons, are shown below in their relevant income bands: 


Income range No. No. 

NOTE 38 INCOME, EXPENSES AND ASSETS BY FUNCTIONS/ACTIVITIES continued 

Transport Waste and Environment Other Total 

2011 2010 2011 2010 2011 2010 2011 2010 

$ $ $ $ $ $ $ $ 

INCOME 

Grants 2,646,226 149,599 568,751 1,261,573 3,276,969 3,059,018 9,411,278 8,406,299 

Other 308,875 125,545 1,195,124 1,172,291 8,966,121 8,044,813 13,339,088 11,629,200 

TOTAL 2,955,101 275,144 1,763,875 2,433,864 12,243,090 11,103,831 22,750,366 20,035,499 

EXPENSES 4,457,668 1,559,740 3,945,351 2,546,872 - - 21,881,372 19,377,856 

SURPLUS (DEFICIT) 

FOR THE YEAR (1,502,567) (1,284,596) (2,181,476) (113,008) 12,243,090 11,103,831 868,994 657,643 

ASSETS ATTRIBUTED TO 

FUNCTIONS/ACTIVITIES* 

3,674,489 11,603,216 478,955 470,388 - - 140,432,294 145,914,738 

*Assets have been attributed to functions/activities based on the control and/or custodianship of specific assets. 

Council, Administration and Engineering 

General Operations, Corporate Services, Governance, Financial Services and Grants Funding 

Commerce, Economic Development, Town Planning & Building 

Town Planning, Building Control, Tourism Promotion, Caravan Parks, Industrial Estates, 

Community Amenities, Markets and Saleyards 

Community, Public Safety, Law & Order 

Public Safety, Law and Order, Community Transport 

Health, Education and Housing 

Health, Education and Housing 

Welfare 

Community Welfare, Families and Children, Aged and Disabled 

Chargeable Works. 

Private works undertaken 

Heritage and Culture 

Public Halls, Libraries and Other Cultural Features 

Recreation 

Passive, Active and Swimming Pools 

Transport 

Vic Roads, Local Roads, Local Bridges, Footpaths, Kerb & Channel, Street Lighting and Depots 

Waste and Environment 

Garbage and Hard Rubbish Collection, Land Fill, Transfer Stations, Recycling Stations, Street Cleaning, 

Street Bin Cleaning, Stormwater Drainage and Environment Protection 

Other 

Rates, Interest and Other Grants 



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NOTE 39 FINANCIAL RATIOS (PERFORMANCE INDICATORS) 

(a) Debt servicing ratio (to identify the 

capacity of Council to service its 

outstanding debt) 

2011 2011 2010 2010 2009 2009 

$ (%) $ (%) $ (%) 

Debt servicing costs 197,530 

209,081 

228,255 

= 0.88% 

= 1.07% 

Total revenue 22,392,346 19,533,062 20,459,626 

Debt servicing costs refer to the payment 

of interest on loan borrowings, finance 

lease, and bank overdraft. 

The ratio expresses the amount of interest 

paid as a percentage of Council's total 

revenue. 

(b) Debt commitment ratio (to identify 

Council's debt redemption strategy) 

Debt servicing & redemption costs 474,299 

= 5.32% 

505,205 

= 6.33% 

612,906 

Rate revenue 8,907,343 7,985,887 7,633,344 

The strategy involves the payment of 

loan principal and interest, finance lease 

principal and interest. 

The ratio expresses the percentage of 

rate revenue utilised to pay interest and 

redeem debt principal. 

(c) Revenue ratio (to identify Council's 

dependence on non-rate income) 

= 1.12% 

= 8.03% 

Rate revenue 8,907,343 = 39.78% 7,985,887 = 40.88% 7,633,344 = 37.31% 

Total revenue 22,392,346 19,533,062 20,459,626 

The level of Council's reliance on rate 

revenue is determined by assessing rate 

revenue as a proportion of the total 

revenue of Council. 


NOTE 39 FINANCIAL RATIOS (PERFORMANCE INDICATORS) continued 

(d) Debt exposure ratio (to identify 

Council's exposure to debt) 

2011 2011 2010 2010 2009 2009 

$ (%) $ (%) $ (%) 

Total indebtedness 6,714,594 

= 19.98% 

5,012,934 

= 15.35% 

4,824,390 

= 12.85% 

Total realisable assets 33,614,608 32,661,917 37,537,968 

For the purposes of the calculation of financial ratios, realisable assets are those assets which can be sold and which are 

not subject to any restriction on realisation or use. 

Any liability represented by a restricted asset (Note 29) is excluded from total indebtedness. 

The following assets are excluded from total assets when calculating Council's realisable assets: 

land and buildings on Crown land; restricted assets; heritage assets; total infrastructure assets; and Council's investment in 

associate. 

This ratio enables assessment of Council's solvency and exposure to debt. Total indebtedness refers to the total liabilities 

of Council. Total liabilities are compared to total realisable assets which are all Council assets not subject to any restriction 

and are able to be realised. The ratio expresses the percentage of total liabilities for each dollar of realisable assets. 

(e) Working capital ratio (to assess Council's 

ability to meet current commitments) 

Current assets 7,744,811 = 196.51% 7,547,854 = 327.46% 7,380,888 = 288.79% 

Current liabilities 3,941,201 2,304,960 2,555,809 

The ratio expresses the level of current assets the Council has available to meet its current liabilities. 


(f) Adjusted working capital ratio 

(to assess Council's ability to meet 

current commitments) 



7,744,811 

= 211.42% 

3,663,315 

7,547,854 

= 370.71% 

2,036,057 

7,380,888 

= 469.31% 

1,572,726 

The ratio expresses the level of current assets the Council has available to meet its current liabilities. 

Current liabilities have been reduced to reflect the long service leave that is shown as a current liability because Council 

does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting 

date, but is not likely to fall due within 12 months after the end of the period. 


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NOTE 40 CAPITAL EXPENDITURE 


$ $ 

Capital expenditure areas 

Land Improvements 80,525 287,469 

Buildings 1,826,739 1,017,372 

Plant, machinery and equipment 809,845 1,152,284 

Office equipment 110,675 153,180 

Library Books 52,200 65,582 

Roads 1,701,795 1,098,490 

Bridges 43,514 593,175 

Footpaths 156,935 625,707 

Drainage 1,786 324,369 

Kerb and channel - 36,915 

Works in progress 2,370,203 22,602 

Total capital works 7,154,218 5,377,415 

Represented by: 

Renewal of infrastructure (a) 4,357,510 2,745,934 

Upgrade of infrastructure (b) 653,697 805,027 

Expansion of infrastructure (c) 385,858 177,721 

New infrastructure 721,914 277,417 

Renewal of plant and equipment 809,845 1,152,284 

Other 225,394 219,032 


Property, plant and equipment, infrastructure movement 

The movement between the previous year and the current year 

in property, plant and equipment, infrastructure as shown in the 

Balance Sheet links to the net of the following items: 


Asset revaluation movement 26 (8,140,062) - 

Depreciation/amortisation 12 (4,541,586) (4,393,814) 

Written down value of assets sold 21 (151,968) (210,364) 

Net movement in property, plant and equipment, infrastructure 21 (5,679,398) 773,237 


NOTE 40 CAPITAL EXPENDITURE continued 


(a) Renewal 

Expenditure on an existing asset which returns the service potential or the life of the asset up to that which it had 

originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the 

components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact on 

revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time. 

(b) Upgrade 

Expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase the life 

of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in 

additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future 

because of the increase in the council’s asset base. 

(c) Expansion 

Expenditure which extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of 

users. It is discretional expenditure which increases future operating and maintenance costs, because it increases council’s 

asset base, but may be associated with additional revenue from the new user group. 


93

94 

CERTIFICATION OF THE FINANCIAL REPORT 


STANDARD STATEMENTS 


CONTENTS 

Notes to the Standard Statements ....................................................96 

Standard Income Statement .............................................................97 

Variance Explanation Report Standard 

Income Statement ............................................................................98 

Standard Balance Sheet ....................................................................99 

Variance Explanation Report 

Standard Balance Sheet ..................................................................100 

Standard Cash Flow Statement .......................................................101 


Cash Flow Statement ......................................................................102 

Standard Statement of Capital Works..............................................103 


Statement of Capital Works.............................................................105 

Statement by Councillors and 

Principal Accounting Officer............................................................106

96 

NOTES TO THE STANDARD STATEMENTS 

NOTE 1 BASIS OF PREPARATION OF STANDARD STATEMENTS 

Council is required to prepare and include audited Standard Statements within its Annual 

Report. Four Statements are required – a Standard Income Statement, Standard Balance Sheet, 

Standard Cash Flow Statement, and a Standard Statement of Capital Works, together with 

explanatory notes. 

These statements and supporting notes form a special purpose financial report prepared to meet the requirements of the Local 

Government Act 1989 and Local Government (Finance and Reporting) Regulations 2004. 

The Standard Statements have been prepared on accounting bases consistent with those used for the General Purpose Financial 

Statements and the Budget. The results reported in these statements are consistent with those reported in the General Purpose 

Financial Statements. 

The Standard Statements are not a substitute for the General Purpose Financial Statements, which are included on pages 53 to 

94 of the Annual Report. They have not been prepared in accordance with all Australian Accounting Standards or other 

authoritative professional pronouncements. 

The Standard Statements compare Council’s financial plan, expressed through its budget, with actual performance. The Local 

Government Act 1989 requires explanation of any material variances. The Council has adopted a materiality threshold of 10 per 

cent. Explanations have not been provided for variations below the materiality threshold unless the variance is considered to be 

material because of its nature. 

Detailed information on the actual financial results are contained in the General Purpose Financial Statements on pages 53 to 

94. The detailed budget can be obtained by contacting Council or through the Council’s website. The Standard Statements 

must be read with reference to these documents. 


STANDARD INCOME STATEMENT 


REVENUES 

2011 2011 

Budget Actual Variance Variance Ref. 

$’000 $’000 $’000 % 

Revenue from ordinary activities 

Revenue from operating activities 

Rates and charges 8,951 8,907 (44) ( 0%) 

User charges and other fees 1,529 1,511 (18) ( 1%) 

Grants 8,301 9,412 1,111 13% 1 

Contributions 435 251 (184) (42%) 2 

Reimbursements 735 1,855 1,120 152% 3 

Revenue from operating activities 19,951 21,936 1,986 

Revenue from outside the operating activities 

Interest 190 254 64 34% 4 

Rentals 251 203 (48) (19%) 5 

Revenue from outside the operating activities 441 457 17 

Total Revenue 20,392 22,392 2,002 

EXPENSES 

Expenses from ordinary activities 

Employee expenses 8,203 8,665 462 6% 

Contract payments, materials and services 7,416 7,762 346 5% 

Contributions 692 467 (225) (33%) 6 

Depreciation 4,591 4,542 (49) (1%) 

Financing costs 183 198 15 8% 

21,085 21,633 548 

Total Expenses 21,085 21,633 548 

Net gain/(loss) on disposal of property, plant & equipment 112 109 (3) (2%) 

Net result for year (581) 869 1,452 

Net change in Equity (581) 869 1,452 



97

98 

STANDARD INCOME STATEMENT 


EXPLANATION OF MATERIAL VARIANCE BETWEEN BUDGET AND ACTUAL OPERATING RESULTS 

Material variations between budget and actual operating results have been disclosed 

where a variance is 10% higher or lower than a budgeted item. 

Ref Item Commentary 

1 Grants Income from grants was above budget by $1,110,000 due to the advance payment by the 

Victorian Grant Commission of $1,194,000. 

2 Contributions Contributions income is below budget by $184,000.This is mainly due to the special charge 

scheme budgeted for in 2010/2011 not taking place $150,000. 

3 Reimbursements Reimbursements were $1,120,000 above budget. A total of $910,742 had been reimbursed to 

Council as a result of Flood Recovery works. 

4 Interest Income from interest is favourable by $63,000. During the year Council maintained a favourable 

investment portfolio leading to higher than anticipated returns. An amount of $29,800 was raised 

as interest on residential rates as compared to the budgeted amout of $19,000. 

5 Rentals The lower than budgeted rental income is due to two and at times three commercial properties in 

the Patchell Plaza complex being vacant. 

6 Contributions The Murray Valley Highway and Boundary Street intersection reconstruction project did not take 

place as such Council's contribution of $100,000 was not required. Council's contribution to 

community projects was underspent by $104,000 of this amount, $47,000 has been included in 

Contract payments, materials and services. 

The Standard Income Statement for the Annual Report shows what has happened during the year in terms of revenue, expenses 

and other adjustments from all activities. The Total Changes in Equity shows the total difference between the financial position 

at the beginning and the end of the year. 

The Standard Income Statement requires revenues to be separately disclosed where the item is of such a size, nature or 

incidence that its disclosure is relevant in explaining the performance of the Council. 

The Standard Income Statement for the Annual Report also shows the movement in equity, so that a separate Statement of 

Changes in Equity is not necessary. The most common disclosures under this category are movements in asset revaluation 

reserves which occur from asset revaluations and adjustments to opening accumulated surplus due to adoption of a new 

accounting standard. 


STANDARD BALANCE SHEET 


ASSETS 



$’000 $’000 $’000 % 


Cash 582 3,984 3,402 585% 1 

Trade & other receivables 913 1,285 372 41% 2 

Prepayments 300 156 (144) (48%) 3 

Other Financial Assets 1,555 1,235 (320) (21%) 4 

Inventories - consumables 19 159 140 735% 5 

Land held for resale 827 927 100 12% 6 

Total current assets 4,196 7,746 3,549 

Non-current assets 

Property, infrastructure, plant and equipment 139,794 132,687 (7,107) (5%) 

Total non-current assets 139,794 132,687 (7,107) 

Total assets 143,990 140,433 (3,558) 

LIABILITIES 


Payables 928 2,406 1,478 159% 7 

Trust funds 150 238 88 59% 8 

Employee Benefits and other Provisions 876 987 111 13% 9 

Loans 311 311 - - 

Total current liabilities 2,265 3,942 1,677 

Non-current liabilities 

Employee Benefits 1,504 1,683 179 12% 9 

Loans 2,319 2,326 7 - 

Total non-current liabilities 3,823 4,009 186 

Total liabilities 6,088 7,951 1,863 

Net assets 137,902 132,482 (5,420) 


Accumulated surplus 31,704 33,193 1,489 5% 

Reserves 106,198 99,289 (6,910) (7%) 

Equity 137,902 132,482 (5,420) 



99

100 

STANDARD BALANCE SHEET continued 


EXPLANATION OF MATERIAL VARIANCE BETWEEN BUDGET AND ACTUAL OPERATING RESULTS 

Material variations between budget and actual operating results have been disclosed within the tolerance of plus to minus 10 

per cent for the financial year. 


1 Cash Increase in cash assets due to the Victorian Grants Commission making an advanced 

payment of $1,194,066 for the 2011/2012 allocation, flood recovery grants received 

up to 30 June totalling $450,000 remained unspent and capital projects delayed due 

to flood restoration works have led to an increase in unexpended funds. 

2 Receivables and Accrued Income Increase in receivables due to an increase in outstanding rates of $100,000 

(arrangements have been entered into with those ratepayers adversely affected by the 

floods). At 30 June Vic Roads had an amount outstanding of $256,800 for the truck 

stop in Kerang (this amount has subsequently been paid). 

3 Prepayments Prepayments decreased due to the payment of insurances and service agreements 

which are normally paid in June but invoices were actually received and paid in the 

new financial year. 

4 Other Financial Assets Other financial assets represents the amount set aside within a reserve account to 

cover Council's liability for Long Service Leave. During 2010/2011 several long 

standing employees retired during the year reducing Council's liability at 30 June. 

5 Inventories - Consumables Gravel required to undertake flood restoration work has increased dramatically, to 

prepare for the continued demand on gravel Council's have stockpiled 27,700 tonne 

of gravel at a cost of $149,700 

6 Land held for resale The expected sale of industrial blocks in Cohuna prior to 30 June did not take place, 

negotiations are continueing. The sales are expected to be finalised early in 

2011/2012. 

7 Payables The higher than anticipated payables are a result of flood restoration works 

undertaken prior to 30 June and invoiced in July amounting to $1,214,900. An 

amount of $337,604 representing the balance of Council's contribution to the 

Superannuation shortfall has been included. 

8 Trust Funds Amounts held in trust are greater than budget due to an increase in monies held as 

retention amounts on contracted works, refundable hall deposits, road opening 

deposits and donations for flood restoration. 

9 Employee Benefits and other 

Provisions The Provision for Landfill restoration was increased by $134,000 during 2010/2011. 

This amounts represents the value of overburden from Denyer's pit that was used by 

Vic Roads for emergency restoration works. 

The Standard Balance Sheet provides a snap shot of the financial situation as at 30 June. It shows the total of what is owned 

(assets) less what is owed (liabilities). The bottom line of this statement is net assets, which is the net worth of Council. 

The change in net assets between two year's Standard Balance Sheets shows how the financial position has changed over that 

period which is described in more detail in the Standard Income Statement. 

The assets and liabilities are separated into current and non-current. Current means those assets or liabilities which will fall due 

in the next twelve months. 

Assets must be classified according to their nature or function. Liabilities must be classified according to their nature. 


STANDARD CASH FLOW STATEMENT 


CASH FLOW FROM OPERATING ACTIVITIES 



$’000 $’000 $’000 % 

Inflow Inflow 

(outflow) (outflow) 

Receipts from rates and garbage 8,937 8,781 (156) (2%) 

Receipts from other services, fees and fines 2,951 3,927 976 33% 1 

Payments to suppliers (7,891) (7,548) 243 4% 

Payments relating to employees (8,203) (8,290) (87) 1% 

Net cash operating outflow before grants, (4,206) (3,130) 1,076 

contributions and interest 

Receipts from grants and contributions 8,301 10,603 2,302 28% 2 

Interest 190 253 63 33% 3 

Net cash inflow from operating activities 4,285 7,727 3,442 

CASH FLOW FROM INVESTING ACTIVITIES 

Proceeds from/(payments for) investments (141) 731 872 (618%) 4 

Proceeds from sale of property, infrastructure, 

plant and equipment 462 358 (104) (23%) 5 

Payments for property, infrastructure, plant and equipment (7,612) (8,461) (849) 11% 

Net cash outflow from investing activities (7,291) (7,372) 81 

CASH FLOW FROM FINANCING ACTIVITIES 

Repayment of interest-bearing liabilities (284) (277) 7 (3%) 

Proceeds from Loans 230 230 

Finance Costs (183) (198) (15) 8% 

Net cash inflow from financing activities (237) (244) (7) 

Net increase/(decrease) in cash held (3,243) 111 3,354 (103%) 6 

Cash at beginning of the reporting period 3,825 3,873 48 1% 

Cash at the end of financial year 582 3,984 3,402 



101

102 

STANDARD CASH FLOW STATEMENT continued 


EXPLANATION OF MATERIAL VARIANCES BETWEEN BUDGET AND ACTUAL CASH FLOW RESULTS 


Cash flow from operating activities 

1 Receipts from other services, fees and fines Includes an amount of $910,472 for reimbursement of emergency flood 

recovery works. 

2 Receipts from grants and contributions Increase due to the advance payment by the Victorian Grant Commission of 

$1,194,000. 

3 Interest During the year Council maintained a favourable investment portfolio leading 

to higher than anticipated returns. An amount of $29,800 was raised as 

interest on residential rates as compared to the budgeted amount of $19,000. 

Cash flow from investing activities 

4 Proceeds from/(payments to) investments During the course of the year Council moves funds to and from its General 

Operating Account to Investment Accounts depending on the level of works 

being undertaken. This amount reflects the movements within the investment 

accounts during the year. 

5 Proceeds from sale of property, 

infrastructure, plant and equipment The expected sale of industrial blocks in Cohuna prior to 30 June did not take 

place, negotiations are continueing. The sales are expected to be finalised early 

in 2011/2012. 

7 Net increase/(decrease) in cash held The increase or decrease in cash held at the end of the year is dependent on 

the level of works undertaken during the year. Due to budgeted works not 

being undertaken the level of cash at year end was higher than anticipated. 

The net cash flows from operating activities, shows how much cash remains after paying for providing services to the 

community, which may be invested in items such as capital works. 

The information in the Standard Cash Flow Statement assists users in the assessment of Council's ability to generate cash flows, 

meet financial commitments as they fall due including the servicing of borrowings, fund changes in the scope or nature of 

activities and obtain external finance. 


STANDARD STATEMENT OF CAPITAL WORKS 


Budget Actuals Variance Variance Ref. 


Capital Works Areas $’000 $’000 $’000 % 

Roads 3,049 4,309 1,260 41% 1 

Environment 310 65 (245) (79%) 2 

Recreation 829 791 (38) (5%) 3 

Buildings 1,957 863 (1,094) (56%) 4 

Plant, equipment & other 1,158 1,035 (123) (11%) 5 

Commerce 96 89 (7) (7%) 6 

Total capital works 7,399 7,153 (245) 


Renewal and upgrade 4,141 6,327 2,187 53% 

New and expansion of assets 3,258 826 (2,433) (75%) 

Total capital works 7,399 7,153 (246) 

FIXED ASSET RECONCILIATION 

The movement between the previous year and the 

current year in Fixed Assets as shown in the Balance Sheet 

links to the following items: 

Total capital works 7,399 7,153 246 3% 

Depreciation/amortisation (4,591) (4,542) (49) 1% 

Asset Revaluation – Road Impairement - (8,140) 8,140 100% 

Written down value of assets sold (350) (249) (101) 29% 

Transfer from works in progress (187) 97 (284) 152% 

Net movement in property, plant and 

equipment, infrastructure 2,271 (5,680) 7,951 

Roads 

Carpark Cohuna Construction 10 - (10) (100%) 1 

Street Lighting 18 - (18) (100%) 1 

Landscaping - 15 15 100% 1 

Footpaths 200 157 (43) (22%) 1 

Kerb & Channels 21 - (21) (100%) 1 

Sealed Pavements 1,597 1,282 (315) (20%) 1 

Flood Recovery - 2,400 2,400 100% 

Special Roads Scheme 2 00 - (200) (100%) 1 

Un/Sealed Pavements 628 411 (217) (35%) 1 

Bridges 375 44 (331) (88%) 1 

3,049 4,309 1,260 41% 

Environment 

Rehab works Pits 100 11 (89) (89%) 2 

Wimmera Mallee Goulburn Pipeline - 6 6 100% 2 

Flood Recovery - 47 47 100% 

Kerang Drainage Renewal 100 - (100) (100%) 

Underground Drainage 110 2 (108) (98%) 2 

310 65 (245) 



103

104 

STANDARD STATEMENT OF CAPITAL WORKS continued 





RECREATION 

Kerang Swimming Pool Complex 225 156 (69) (31%) 4 

Leitchville Swimming Pool Precinct 322 343 21 7% 

Walking tracks 17 3 (14) (80%) 3 

Cohuna Recreation reserve 25 32 7 27% 4 

Quambatook Lions Park 22 22 100% 3 

Apex Park Koondrook 240 235 (5) (2%) 4 

BUILDINGS 

829 791 (38) 

Kerang Senior Citizens - 12 12 100% 4 

Kerang Pre-School - 33 33 100% 4 

Kerang Memorial Hall - Including Rear Carpark 214 88 (126) (59%) 4 

Kerang Public Conveniences 200 31 (169) (85%) 

Kerang Depot 25 - (25) (100%) 4 

Kerang Transfer Station - 10 10 100% 4 

Kerang Library - 15 15 100% 4 

Kerang Land Fill - Denyers Pit - - - 100% 4 

Kerang Museum Extension 45 28 (17) (39%) 4 

Kerang Council Offices - 6 6 100% 4 

Kerang Senior Citizens 16 - (16) (100%) 

Cohuna Shire Office 27 - (27) (100%) 

Council Building ECD Upgrade 30 - (30) (100%) 

Koondrook Depot - 3 3 100% 4 

Cohuna Memorial Hall 40 65 25 63% 4 

Cohuna Maternal & Child Health - 49 49 100% 

Cohuna Hall Kitchen 200 - (200) (100%) 

Koondrook Depot 5 - (5) (100%) 

Resource Recovery Mens Shed - 56 56 100% 4 

Leitchville Pre-school 45 - (45) (100%) 

Gannawarra Gateway Education, Cultural and Heritage Centre 980 342 (638) (65%) 4 

Kangaroo Lake Toilet Block 100 97 (3) (3%) 

Cohuna Pre-school - 10 10 100% 4 

Murrabit Hall - 1 1 100% 4 

Kerang Water Tower 25 8 (17) (69%) 4 

Kerang Cenotaph 5 10 5 103% 4 


1,957 863 (1,094)

STANDARD STATEMENT OF CAPITAL WORKS continued 





PLANT, EQUIPMENT & OTHER 

Light Vehicles 521 390 (131) (25%) 5 

Heavy Vehicles 400 419 19 5% 5 

IT Equipment 144 173 29 20% 5 

Library Book Tagging 25 - (25) 100% 5 

Library 68 52 (16) (23%) 5 

COMMERCE 

1,158 1,035 (123) 

Saleyards 96 89 (7) 100% 4 

96 89 (7) 

Total Capital Expenditure 7,399 7,153 (246) 

EXPLANATION OF MATERIAL VARIANCES BETWEEN 

BUDGET AND ACTUAL CAPITAL EXPENDITURE RESULTS 


1 Roads Extensive Flood Recovery works were undertaken in the latter part of 

2010/2011 ($2.4M). This led to other road programs not being completed. 

2 Environment Proposed drainage works were not undertaken. Rehabilitation works at 

Denyer's pit were completed due to conditions caused by the floods. 

3 Recreation Recreation works were undertaken in line with the capital program. 

4 Building Gannawarra Gateway Education, Cultural and Heritage Centre works were 

delayed with completion expected in 2011/2012. Further planning is being 

undertaken prior to commencing work on the Kerang public conveniences. 

5 Plant, equipment and other Slight decrease in the number of vehicles changed over during the year. 

6 Commerce Works completed 


The Standard Statement of Capital Works for the Annual Report sets out all the actual capital expenditure in relation to noncurrent 

assets for the year. 

– Capital renewal expenditure reinstates existing assets, it has no impact on revenue, but may reduce future operating and 

maintenance expenditure if completed at the optimum time. 

– New capital expenditure does not have any element of renewal of existing assets. New capital expenditure may or may not 

result in additional revenue for Council and will result in an additional burden for future operation, maintenance and capital 

renewal. 


105

106 

STATEMENT BY COUNCILLORS AND PRINCIPAL ACCOUNTING OFFICER 

CERTIFICATION OF THE STANDARD STATEMENTS 


PERFORMANCE STATEMENT 

for the Year Ended 30 June 2011

110 

PERFORMANCE STATEMENT 

for the Year Ended 30 June 2011 

Key Strategies Measure 

Measure 

LEADERSHIP AND GOVERNANCE 

Advocate with and on behalf of the community 

forcommunity intrastructure, and for social, 

economicand environmental wellbeing 

Work with the community to inform and 

managecommunity expectations of service levels 


Community satisfaction rating with Council's advocacy and 

community representation on key local issues 

Community satisfaction rating with Council's overall performance in 

key service areas and responsibilities 

Responsible financial management Annual operating result within 10% of budgeted result (excluding 

depreciation) 

OUR Our Environment 

ENVIRONMENT 

Manage, regulate and control uses of land that may 

be detrimental to the environment 

Implement waste management strategies in 

accordance with legislation, policies and procedures 

ECONOMIC Economic Prosperity PROSPERITY 

Promote and support local industry, services and 

products 

SUSTAINABLE Sustainable Communities COMMUNITIES 

Engage the youth of Gannawarra Shire and foster 

their development as future leaders in our 

community 

Ensure high quality services for the health and 

wellbeing on the community in the areas of maternal 

and child health, childcare, aged care, disability care, 

community transport and accommodation, 

drought/climate change 

Develop a Gannawarra Shire Strategic Community 

Plan (Gannawarra 2025) 

ASSETS Assets and AND Infrastructure INFRASTRUCTURE 

Develop and implement a rolling 10 year capital 

works program. 

Community satisfaction rating with Council's performance in the 

appearance of public areas 

Community satisfaction rating with Council's performance in 

waste management 

Community satisfaction rating with Council's performance in 

economic development 

Finalise Gannawarra Shire Youth Strategy 

Community satisfaction rating with Council's performance in health 

and human services 

Gannawarra Strategic Community Plan adopted 

Rolling 10 year capital works program 

Manage infrastructure assets respons Percentage of scheduled capital works projects for which funding 

has been confirmed by 31 December 2010, except for projects which 

are being funded over two years.

Target 

Target Date 

Actual 

Achieved/ Not 

Achieved/ 

Not Achieved Commentarry 

≥68 72 Achieved 



30-Jun-11 250% Not Achieved Excluding depreciation, the budgeted deficit was $0.581m and the 

actual surplus was $0.869m meaning the actual result was favourable 

at 250% above budget. 




31-Mar-11 15-Dec-10 Achieved 


31-Mar-11 20-Apr-11 Not Achieved Gannawarra 2025 was presented to Council 16 March, however 

Council deferred adoption until April meeting. 

15-Dec-10 15-Dec-10 Achieved 

80% 48% Not Achieved The capital program was severely impacted by the floods. Council 

would have achieved 72% of the capital works program if we didn't 

have the floods. 


111

112 

CERTIFICATION OF PERFORMANCE STATEMENT 


GLOSSARY 

Advocacy – lobbying for the needs of the community through reasoned argument to the relevant authorities 


Asset – a physical component of a facility that has a value, enables a service to be provided and has an economic life greater than 

12 months. Roads, halls and footpaths are assets 

Asset management – the processes by which Council collects and maintains a comprehensive database of asset conditions and 

uses this information to prioritise works funding and maintain existing assets at desired condition levels 

Balance sheet – a quantitative summary of Council’s financial condition at 30 June, including assets, liabilities and net equity 

Business continuity plan – a clearly defined and documented plan that establishes the ground rules for the critical operations of 

the Gannawarra Shire Council. It contains the guidelines for the business to continue to operate within a defined timeframe utilising 

a set of predefined resources and workarounds 

Business Excellence Framework – a framework or foundation used to create an environment for continuous improvement that 

leads to sustainable organisational success 

Capital works – work undertaken to either renew, upgrade, or construct assets owned by the Gannawarra community. Renewal 

capital works extend the functional use of an existing asset by complete or piecemeal refurbishment or replacement. These works 

are usually carried out on an asset which is deteriorating to an unacceptable service level. Upgrade capital works intentionally 

improve the level of service provided by an existing asset, due to performance requirements having increased beyond current 

capacity 

Cash flow statement – Summarises Council’s cash payments and cash receipts for the year. 

Codes of conduct – Statements of how the Councillors and/or staff will interact and work with colleagues and the community. 

Community plan – Plan developed by a community that outlines the community’s priorities. 

Community planning group – Group of community representatives who volunteer to oversee the implementation of the 

community plan in their community. 

Community Satisfaction Survey – An independent annual survey of community satisfaction, jointly sponsored by the Department 

of Planning and Community Development (DPCD) and local governments. 

Continuous improvement – Process of ensuring that review and improvement practices are built into operational activities. 

Council Plan 2009 – 2013 – Plan written to guide Council’s activities for a four-year period. Details the strategic directions and 

objectives for the municipality, and underpins all the decision making processes, policies and procedures of Council. 

Current assets – Assets where Council expects to receive the future economic benefit within the next twelve months unless the 

asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. 

Current liabilities – Liabilities where Council expects to fulfil its obligation within the next twelve months unless the Council does 

not have an unconditional right to defer settlement of the liability for at least twelve months after reporting date. 

Depreciation and amortisation – An expense which recognises the value of a fixed asset as it is used up over time. 

Domestic waste water management plan – Plan that documents the requirements for sustainable treatment and disposal of 

domestic waster water. 

Employee benefits expenditure – Relates to wages and salaries, casual staff payments, annual leave, long service leave, 

superannuation, fringe benefits tax, WorkCover and redundancy payments. 

Equity – Residual interest in the assets of Council after deduction of its liabilities, which is made up of accumulated surplus and 

reserves. Total equity is also equal to net assets. 

Estimated Resident Population (ERP) – The most comprehensive population count available in Australia is derived from the 

Population and Household Census conducted by the Australian Bureau of Statistics every five years. However, the Census count 

is not the official population of an area. To provide a more accurate population figure which is updated more frequently than 

every five years, the Australian Bureau of Statistics also produces “Estimated Resident Population” (ERP) numbers. Based on 

population estimates as at 30 June, ERPs take into account people who missed the count on Census night, including people 

who were temporarily overseas, plus an undercount adjustment for those who did not complete a Census form, and an 

overcount adjustment for anyone who was double counted. 

Estimated Resident Population figures are updated annually taking into account births, deaths, internal and overseas migration. 

In addition, after every Census, ERP figures for the 5 previous years are “backcast”, using information from the current Census, 

to ensure the most accurate figures are available. 


115

116 

GLOSSARY 

Expense – An outgoing payment made by Council. 

Governance – How Council operates as a decision-making body, its relationship with the administration, and the ways that Council 

engages with its community in this process. 

Grants: non-recurrent – Grant income received for a ‘one-off’ specific purpose, generally for a particular project. 

Grants: recurrent – Grant income received on a regular basis (eg quarterly or annually) and granted to Council by another entity 

for specific or general purposes. 

Income statement – Sometimes referred to as a profit and loss statement, the income statement is a financial statement 

highlighting the accounting surplus (profit) or deficit (loss) of Council. It provides an indication of whether the Council has sufficient 

revenue to meet expenses in the current year. 

Infrastructure – Physical assets required to enable the community to be connected and operational. This includes roads, drains, 

footpaths and public open spaces as well as public facilities and buildings. 

Liabilities – Future sacrifices of economic benefits that Council is presently obliged to make to other entities as a result of past 

transactions or other past events. 

Performance statement – Audited statement showing results against key strategic activities and indicators. 

Revenue – The amount of money that Council actually receives from its activities, mainly from rates and services provided to 

customers and ratepayers. 

Risk management – Discipline for developing appropriate procedures to reduce the possibility of adverse effects from future 

events. 

Road Management Plan/Road Asset Management Plan – Plan developed to establish a management system for the public road 

functions that are the responsibility of the Council. The management system is based on policy and operational objectives and at 

the same time recognises resource limitations in undertaking the necessary levels of service and performance standards outlined 

in the plan. 

Sustainable Water Use Plan – Plan setting guidelines regarding the use of water to ensure that water is managed and used 

sustainably. 

Urban and Rural Strategy Plan – Plan that identifies future development opportunities in the municipality. 

Wards – The geographical area of Gannawarra Shire is broken into four electoral divisions named wards. Each ward has elected 

representatives. 


ABBREVIATIONS AND ACRONYMS 

AAS Australian Accounting Standards 

AASB Accounting Standard issued by the Australian Accounting Standards Board 

ASU Australian Services Union 

CACP Community Aged Care Packages 

CEO Chief Executive Officer 

CFA Country Fire Authority 

CIV Capital Improved Value 

CMP Civic Mutual Plus 

CO2 Carbon dioxide 

CPI Consumer Price Index 

CPR Cardiopulmonary Resuscitation 

Cr Councillor 

DEECD Department of Education and Early Childhood Development 

DHS Department of Human Services 

DPCD Department of Planning and Community Development 

DPI Department of Primary Industries 

DSE Department of Sustainable Energy 

EFT Equivalent Full Time 

ERP Estimated Resident Population 

GNETS Gannawarra Non-Emergency Transport Service 

HACC Home and Community Care 

IPAA Institute of Public Administration Australia 

JMAPP Jardine Municipal Asset Protection Plan 

Km kilometres 

km/h kilometres per hour 

LGPro Local Government Professionals 

MAV Municipal Association of Victoria 

MCH Maternal and Child Health 

MOW Meals on Wheels 

MRGC Murray River Group of Councils 

NAIDOC National Aboriginal and Islander Day Observance Committee 

NCAC National Childcare Accreditation Council 

NCCMA North Central Catchment Management Authority 

OH&S Occupational Health and Safety 

R2R Roads to Recovery 

RDV Regional Development Victoria 

SES State Emergency Service 

SRV Sport and Recreation Victoria 

UIG Urgent Issues Group Interpretation 

VEAC Victorian Environmental Assessment Council 

VEC Victorian Electoral Commission 

VET Vocational Education and Training 



117

118 

INDEX 

Abbreviations and acronyms .................................................117 

FINANCIAL REPORT ................................................................49 

Assets and Infrastructure .........................................................42 

Balance Sheet ...................................................................51, 54 

Best Value ........................................................................44 - 45 

Budget ............................................................................25 - 27 

Calendar of Events ................................................................119 

Cash flow statement ...............................................................56 

Certification of the Financial Report ........................................94 

Chief Executive Officer’s Message ....................................12 - 13 

Children’s Services ..................................................................37 

CO2 emissions .......................................................................33 

Codes of Conduct ..................................................................21 

Community Care ....................................................................37 

Community Development ......................................................38 

Community Engagement .......................................................21 

Community Satisfaction Survey .......................................23 - 24 

Comprehensive Income Statement ...................................51, 53 

Conflict of Interest ..................................................................22 

Cooking up a Storm ...............................................................39 

Council Audit Committee .......................................................22 

Council Internal Grants ...........................................................26 

Council Grants .......................................................................26 

Councillors and Wards .........................................................6 - 9 

Customer Window Results ......................................................24 

Economic Prosperity ...............................................................34 

Environment ...........................................................................32 

Executive Team ......................................................................17 

External Grant Applications ....................................................27 

Financial snapshot ..................................................................25 

Flood Response and Recovery .................................................39 

Freedom of Information ..........................................................46 

GANNAWARRA SHIRE COUNCIL – 

Annual results at a glance ................................................14 - 15 

GANNAWARRA SHIRE COUNCIL – Mission .......Inside front cover 

GANNAWARRA SHIRE COUNCIL – Our Shire (profile) ...............2 

GANNAWARRA SHIRE COUNCIL – Values .........Inside front cover 

GANNAWARRA SHIRE COUNCIL – Vision ........Inside front Cover 

GANNAWARRA SHIRE COUNCIL – 

Snapshot of Shire statistics ........................................................3 

Glossary ...............................................................................116 

Governance framework ..........................................................20 


Health ..............................................................................33, 40 

Heritage .................................................................................33 


Financial Report and Standard Statements ..................107 – 108 


Performance Statements .............................................113 - 114 

Information Privacy ................................................................47 

Leadership and Governance ...................................................30 

Libraries, Arts and Culture ......................................................41 

Living Green in Gannawarra and Surrounds ............................33 

Mayor’s Message .............................................................10 - 11 

National Competition Compliance .........................................48 

Notes to the Financial Report ....................................52, 57 - 93 

Occupational Health and Safety ......................................18 - 19 

Operating expenditure ...........................................................25 

Operating income ..................................................................25 

ORGANISATION .....................................................................16 

Organisational structure .........................................................16 

PERFORMANCE REPORT .........................................................28 

Performance Statements .......................................................109 

Planning, Building and Regulatory Services .............................33 

Risk Management ...................................................................20 

Scholarships ...........................................................................18 

Standard Statements ..............................................................95 

Statement of changes in equity ................................51 – 52, 55 

Statutory information .............................................................46 

Sustainable Communities .......................................................36 

Tourism ..................................................................................35 

Understanding the Financial Report ........................................51 

Volunteers ........................................................................19, 41 

Waste .....................................................................................33 

Water .....................................................................................33 

Whistleblowers Protection Act 2001 .......................................47 

Workplace ..............................................................................18 

Work experience .....................................................................18 

Year in Review .....................................................................4 - 5

GANNAWARRA SHIRE CALENDAR OF EVENTS 

July 2011 to June 2012 

November 2011 

• Murrabit Community Fireworks .............................................................................Murrabit ...................................................................................4 November 

• Victorian State Model Flying Championships .........................................................Cohuna Airstrip.........................................................................5-6 November 

• Kerang Junior Fire Brigade Championships ............................................................Atkinson Park, Kerang ...............................................................13 November 

• Cambodia Photography Exhibition ........................................................................Sir John Gorton Library, Kerang.................................................14-26 November 

• Ski Racing Victoria – Point Score 3 .........................................................................Lake Charm ..............................................................................26-27 November 

• Great Victoria Bike Ride .........................................................................................Kerang, Murrabit, Koondrook, Cohuna .....................................27-29 Nov ember 

• Swan Hill Gallery Exhibition ...................................................................................Sir John Gorton Library, Kerang.................................................28 Nov-20 December 

December 2011 

• Handcrafted Christmas Tree Exhibition ..................................................................Cohuna Community Art Gallery ................................................1 December 

• Ski Racing Victoria – Victoria State Titles.................................................................Lake Charm .............................................................................10-11 December 

• Mid Murray Flying Club–Christmas Competition ...................................................Kerang Airport ..........................................................................19 December 

• Quambatook Community Christmas Street Party...................................................Guthrie Street, Quambatook ...................................................TBC 

• Autopro Kerang Boxing Day Races ........................................................................Kerang......................................................................................26 December 

• YMCA Murray River Marathon Stopover ...............................................................Cohuna.....................................................................................31 December 

• New Year’s Eve Party In The Park............................................................................Cohuna & Koondrook...............................................................31 December 

• New Year’s Eve Carnival .........................................................................................Atkinson Park, Kerang ...............................................................31 December 

January 2012 


• Kerang Bowling Club – “Get on the Greens” .........................................................Kerang Bowling Club ................................................................12 Jan-9 March 

• Hi 5 Golf Day.........................................................................................................Cohuna Golf Course .................................................................22 January 

• Australia Day Celebrations ....................................................................................Across the municipality .............................................................26 January 

• Quambatook Swimming Pool Fun Day ..................................................................Quambatook Swimming Pool ...................................................26 January 

• Greenwood Triples Bowls.......................................................................................Kerang Golf Bowls Club ............................................................26 January 

• Vintage Tractor Pull................................................................................................Quambatook Tractor Pull Complex ...........................................28-29 January 

• Caroline Ellis Flood Exhibition (TBC) ......................................................................Sir John Gorton Library, Kerang.................................................30 January-3 March 

February 2012 

• Murray River International Music Festival ..............................................................Cohuna -TBC ...........................................................................4 February 

• Kerang Bowling Club – “Classic Triples”.................................................................Kerang Bowling Club ................................................................6-7 February 

• Kerang Swimming Carnival....................................................................................Kerang Swimming Pool.............................................................18–19 February 

• Koondrook Barham Triathlon .................................................................................Riverside Park, Barham ..............................................................19 February 

• Kerang Flying Day .................................................................................................Kerang Aerodrome....................................................................19 February 

• Koondrook Barham Fishing Competition ...............................................................Barham Recreation Reserve .......................................................24-26 February 

March 2012 

• St Joseph’s Primary School Centenary Reunion.......................................................Kerang......................................................................................3-4 March 

• Cohuna Bridge to Bridge Challenge.......................................................................Gunbower Creek, Cohuna ........................................................4 March 

• Quambatook Tennis & Bowls Club Tournament.....................................................Quambatook ............................................................................10-12 March 

• Myall Hall Centenary,Heritage Picnic&Sartori Art Exhibition...................................Myall Hall..................................................................................10-12 March 

• N.D.G.A Golfanza..................................................................................................Cohuna, Barham & Kerang Golf Clubs ......................................10-12 March 

• Riverland Par 3 Tournament Golf Day ....................................................................Kerang Golf Club ......................................................................13 March 

• Cohuna Agricultural Show ....................................................................................Cohuna Recreation Reserve ......................................................16-17 March 

• Kerang & District Kennel Club Championship Dog Show ......................................2nd Oval Recreation Reserve, Cohuna ........................................16-17 March 

• Cohuna Horse Show..............................................................................................1st Oval Recreation Reserve .......................................................16-17 March 

• Murrabit Cod Challenge ........................................................................................Murrabit ...................................................................................16-18 March 

• Kerang Pony Club Gymkhana ................................................................................Alexandra Park, Kerang .............................................................24 March 

• Kerang & District Garden Club 42ndAnnual Flower Show......................................Kerang Memorial Hall ..............................................................24-25 March 

• Ski Racing Victoria – Point Score 6 .........................................................................Lake Charm ..............................................................................24-25 March 

April 2012 

• Swan Hill Gallery Exhibition ...................................................................................Sir John Gorton Library, Kerang.................................................2-28 April 

• Cohuna Golf Easter Tournament ...........................................................................Cohuna Golf Club.....................................................................6-9 April 

• Cohuna Tennis Easter Tournament.........................................................................Cohuna.....................................................................................6-9 April 

• Kerang Tennis Easter Tournament ..........................................................................Kerang......................................................................................6-9 April 

• Kerang Rotary Art Show ........................................................................................Kerang......................................................................................6-9 April 

• Murrabit Lawn Tennis Club – Annual Tournament ...............................................Murrabit ...................................................................................6-9 April 

• Quambatook Easter Tractor Pull ............................................................................Quambatook Tractor Pull Complex ...........................................7 April 

• cluBarham Kerang Cup ........................................................................................Kerang Turf Club.......................................................................7 April 

• Kerang Bowling Club – “Easter Tournament”.........................................................Kerang Bowling Club ................................................................7-13 April 

• Mid Murray Flying Club event TBA ........................................................................Kerang Aerodrome....................................................................22 April 

• ANZAC Day Triples Bowls ......................................................................................Kerang Golf Bowls Club ............................................................25 April 

May 2012 

• Volunteer Luncheons ............................................................................................TBA during National Volunteers Week ......................................7-13 May 

• 47th Kerang Annual Eisteddford .............................................................................Thornely Hall, Kerang ...............................................................17-19May 

• Gold Gala Day 4BBBvStableford ............................................................................Cohuna Golf Club.....................................................................18 May 

• 47th Kerang Annual Eisteddford-Winners Concert...................................................Thornely Hall, Kerang ..............................................................20 May 

• Kerang Pony Club Horse Trials ...............................................................................Alexandra Park, Kerang .............................................................20 May 

• “Biggest Morning Tea”for Cancer .........................................................................Leitchville Fire Station ...............................................................24 May 

• Annual 3 Day Golf Tournament .............................................................................Kerang Golf Club ......................................................................TBC 

June 2012 

• Mates Day .............................................................................................................Cohuna Golf Club.....................................................................1 June 

• KTHS Student Work Exhibition...............................................................................Sir John Gorton Library, Kerang.................................................4-16 June 

• Kerang Poultry Show .............................................................................................Kerang Showgrounds................................................................11 June 

• Cohuna Country Quilters Weekend........................................................................Cohuna Bowling Club Rooms ..................................................16-17 June 

• Mid Murray Flying Club-“Open Invitation”TBA......................................................Kerang Aerodrome....................................................................17 June 

Regular Monthly Events 

• Murrabit Country Market – first Saturday of every month, with additional Markets held Easter Saturday and the third Saturday of December, from 8:30am to 1pm, Market 

Reserve, Gonn Avenue, Murrabit. Established in 1977. Regional Victoria’s largest monthly market with more than 300 stalls retailing plants; wood, glass and crafts, fruit and 

vegetables, gourmet foods and wines, jewellery, clothing, bric-a-brac, tools. A wonderful atmosphere with live entertainment. Free entry. 

• Kerang Community Market – fourth Saturday of the month at Atkinson Park, Kerang. Local fresh food, fruit and vegetables, wine, healing oils, olive oils, plants and other 

produce from the farmers in the region; as well as pre-loved items, arts and crafts. Children’s activities, with a different theme each month. 

• Koondrook Barham Farmers Market – Inaugural Market Day starting Sunday 18th September 2011 then every third Sunday of every month 8am – 1pm, James Park, 

Koondrook. Fantastic family day out with kids entertainment, local produce, fruit and vegetables, gourmet foods and handmade crafts. Free Entry.

Main office 

Kerang 

Patchell Plaza 

47 Victoria Street 

Kerang VIC 3579 

T. (03) 5450 9333 

F. (03) 5450 3023 

Office hours: Monday to Friday 8.30am – 5pm 

Cohuna office 

23–25 King Edward Street 

Cohuna VIC 3568 

T. (03) 5456 5222 

F. (03) 5456 2173 

Office hours: Monday to Friday 10am – 4pm 

Postal address for all correspondence 

PO Box 287 

Kerang VIC 3579 

Email: council@gannawarra.vic.gov.au 

Website: www.gannawarra.vic.gov.au 

www.facebook.com/gannawarra

GANNAWARRA 

SHIRE COUNCIL 

GANNAWARRA SHIRE ANNUAL REPORT 2011

Gannawarra Annual Report 2011 - Gannawarra Shire Council

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