Complete annual report 2010-11 - Land - NSW Government

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State Property Authority Notes to and Forming Part of the Financial Statements For the Year Ended 30 June 2011 11. PROVISIONS 2011 2010 $'000 $'000 Current Personnel Services (a) 1,454 1,283 Land Remediation (b) 40,640 27,872 Makegood Restoration (c) 28,947 16,766 Legal Settlement (d) 180 180 Total Current Provisions 71,221 46,101 Non-Current Personnel Services (a) 9,127 8,424 Land Remediation (b) 66,967 86,792 Makegood Restoration (c) 99,008 59,896 Total Non-Current Provisions 175,102 155,112 (a) Personnel Services 2011 2010 $'000 $'000 Movement: Carrying Amount at 1 July 9,707 7,519 Increase in Liability to Personnel Services Provider 874 2,188 Carrying Amount at 30 June 10,581 9,707 Current Liability 1,454 1,283 Non-Current Liability 9,127 8,424 Total Liability at 30 June 10,581 9,707 Aggregate Personnel Services Liability - Dissection 2011 2010 $'000 $'000 Annual Leave (i) 1,090 950 Long Service Leave On-costs (ii) 364 333 Unfunded Superannuation (Defined Benefits Schemes) (iii) 9,127 8,424 Total Liability at 30 June 10,581 9,707 The Authority receives personnel services from the Department of Finance and Services (DFS). The DFS is not a Special Purpose Service Entity and does not control the Authority under this arrangement (Note 1(a)). In accordance with NSW Treasury Circular 06-13 "Financial Reporting and Annual Reporting Requirements Arising from Employment Arrangements", a liability representing the total amount payable to the DFS is recognised as a provision in the Statement of Financial Position (Note 1(e)(i)). (i) Annual Leave A liability for annual leave and associated on-costs is recognised and measured in respect of employees' services up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled. 48 State Property Authority
State Property Authority 2010-2011 Annual Report State Property Authority Notes to and Forming Part of the Financial Statements For the Year Ended 30 June 2011 (ii) Long Service Leave On-costs A liability is recognised for certain long service leave related on-costs and additional employee benefit costs that arise on incurring long service leave, including payroll tax, workers compensation insurance, annual leave, accrued leave while on long service leave taken in service and defined contribution superannuation. This long service leave on-cost liability is calculated in accordance with the requirements of Treasury Circular 09-04 and is based on the long service leave liability recognised by the DFS in respect of employees of the Authority. The liability for long service leave recognised by the DFS is measured on a shorthand basis to approximate present value in accordance with the requirements of AASB 119 "Employee Benefits". The shorthand methodology is based on remuneration rates at year-end for all employees with five or more years of service. Present value is approximated based on the nominal long service leave value, the market yield on government bonds as at 30 June and valuation ratios provided by NSW Treasury's actuary. All long service leave taken by employees of the Authority is reimbursed to the DFS by the Crown's "Non-Budget Sector Long Service Leave Pool Scheme". Accordingly, The Authority only recognises the consequential costs associated with long service leave. (iii) Unfunded Superannuation (Defined Benefits Schemes) The superannuation schemes for personnel provided by the DFS to the Authority include the State Superannuation Scheme, the State Authorities Superannuation Scheme and the State Authorities Non-contributory Superannuation Scheme. These schemes are all defined benefit schemes - at least a component of the final benefit is derived from a multiple of member salary and years of membership. All the schemes are closed to new members. The defined benefit obligation recognised in the Statement of Financial Position represents the present value of the defined benefit obligation, adjusted for unrecognised past service cost, net of the fair value of the plan assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the plan. The cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations carried out at each reporting date. Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The unfunded defined benefit superannuation provision was increased by net actuarial losses of $0.815 million in 2010-11 ($2.248m in 2009-10) in respect of personnel who are members of defined benefit superannuation plans. As the Authority is not an employer, any actuarial losses (or gains) are recognised directly in Personnel Services Expense within the Net Surplus/Deficit. (b) Land Remediation 2011 2010 $'000 $'000 Movement: Carrying Amount at 1 July 114,664 97,095 Decrease in Provision from Payments (8,563) (2,283) Increase in Provision from Unwinding of Discount Rate (Note 3(d)) 5,270 4,396 Increase in Provision from Revised Estimate of Liability Recognised as a Loss in the Net Surplus/Deficit (Note 4(e)) - 2,201 Increase/(Decrease) in Provision from Revised Estimate of Liability Recognised as a Revaluation Increment/(Decrement) in Other Comprehensive Income (642) 5,462 Increase/(Decrease) in Provision from Revised Estimate of Liability Remaining on Divested Land (ii) (3,122) 7,793 Carrying Amount at 30 June 107,607 114,664 Current Liability 40,640 27,872 Non-Current Liability 66,967 86,792 Total Liability at 30 June 107,607 114,664 2010-2011 Annual Report 49
Page 1: State Property Authority new South
Page 4 and 5: n Letter of submission Bligh House
Page 6 and 7: n Our charter The State Property Au
Page 8 and 9: n Organisational outcomes and achie
Page 10 and 11: leasing staff generated substantial
Page 12 and 13: Other sustainability initiatives la
Page 14 and 15: n Financial performance 2010-11 Ove
Page 16 and 17: n 2010-11 Operating result operatin
Page 18 and 19: n Audited financial information Sta
Page 20 and 21: 18 State Property Authority
Page 22 and 23: State Property Authority Financial
Page 24 and 25: State Property Authority Statement
Page 26 and 27: State Property Authority Statement
Page 28 and 29: State Property Authority Notes to a
Page 60 and 61: n STATUTORY AND STATISTICAL INFORMA
Page 62 and 63: n Personnel policies and practices
Page 64 and 65: 1st qtr $’000 2nd qtr $’000 3rd
Page 66 and 67: A full list of publicly available G
Page 68 and 69: Table F: Timeliness Number of appli
Page 70 and 71: n Agency contacts Postal address: G
Page 72: THIS PAGE HAS INTENTIONALLY BEEN LE

Complete annual report 2010-11 - Land - NSW Government

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