Annual Report - City of Bayswater

Max Tulley Office & Information CentreAnnual financial statementsThe financial statement is a generalpurpose financial statement whichhas been prepared in accordancewith Australian AccountingStandards (as they apply tolocal governments and not-forprofitentities), other mandatoryprofessional reporting requirementsand the Local Government Act 1995(as amended) and accompanyingregulations (as amended).The preparation of a financialreport in conformity with AustralianAccounting Standards requiresmanagement to make judgements,estimates and assumptions thateffect the application of policies andreported amounts of assets andliabilities, income and expenses.The local governmentreporting entityAll funds through which the Councilcontrols resources to carry on itsfunctions have been included in thefinancial statements forming part ofthis financial statement.Principles of consolidationAll entities through which Councilcontrols resources to carry onits operation have been includedin the financial statements. Thisencompasses:• Main entityThe Municipality of the City ofBayswater• ConsolidationThe Municipality of the City ofBayswaterThe City of Bayswater Child CareCentre Association (Inc)Statement of financialpositionThe 2009-10 statement of financialposition results indicates that theCity of Bayswater experienced anincrease in net assets during thefinancial year.Borrowing costs decreased from$3.641 million to $0.409 millionmainly as a result of a reduction inloan liability.Statement of changes inequityThe 2009-10 Equity Statementshows that the City experienced adecrease in reserves (cash backed)of $4.985 million to $8.707 million.Statement ofcomprehensive incomeThe Statement of ComprehensiveIncome for 2009-10 revealed anincrease in operating revenue of$1.974 million and a $1.895 millionincrease in operating expenditure.Grants and contributions for thedevelopment of assets decreasedfrom $12.431 million to $2.117 millionthis is mainly due to a $10 million grantreceived from the CommonwealthGovernment for the multipurposecentre, Maylands.The significant movement inoperations from the previous financialyear which reported a $1.149 millionsurplus to a $11.601 million surplusis mainly attributed to a $9.496million revaluation of the City roadinfrastructures and $1.233 millionincrease in equity movement ofthe joint ventures with the EasternMetropolitan Regional Council (EMRC).Joint ventureThe City of Bayswater is in jointventures with:(a) Homeswest - CommunityHousing ProjectTen (10) Houses• Stage 1 No 2 Haddrill Street(4 Units)• Stage 2 No 28 Francis Street(6 Units)The City has a 25% interest in theproject. Operating costs are fundedby rental receipts. Excess income overexpenditure is retained as a restrictedcash item for future communityhousing projects.28 city of bayswater annual report 2009-10