2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

is uncertain. In addition PNCC has madebudgetary provision in future years for anypotential liability.Revenue received in advance◊ Arena Manawatu has received some income inadvance which relates to services to be providedin future years. The portion relating to thosefuture years is provided for as revenue receivedin advance.Restructuring provision◊ The restructuring provision in 2011 was to meetthe possible cost of a proposal to restructure theCustomer Services unit.Note 22Employee Benefit Liabilities Council GroupActual Actual Actual Actual2012 2011 2012 2011$000 $000 $000 $000Financial Statements Note 22Accrued pay (includes time in lieu and deductions payable) 611 554 696 687Annual leave 3,517 3,394 3,662 3,540Long service leave 473 411 484 420Retirement gratuities 992 927 992 927Sick leave 147 186 149 189Total employee benefit liabilities 5,740 5,472 5,983 5,763COMPRISING:Current 4,688 4,545 4,927 4,833Non-current 1,052 927 1,056 930Total employee benefit liabilities 5,740 5,472 5,983 5,763◊Entitlements for long service leave andretirement gratuities that are payable beyond12 months have been calculated on an actuarialbasis.The amount of the provision is the present valueof future cash flows expected to be incurred,using a discount rate of 3.25% and 4.75%(2011 4.00% and 5.10%). The long term natureof the liability means that there are inherentuncertainties in estimating costs that will beincurred.168Palmerston North City Council Annual Report 2011/12