Local Government Finance Amendment Standard (No. 2) 1998 (Qld)

Queensland Subordinate Legislation 1998 No. 276 Local Government Act 1993 LOCAL GOVERNMENT FINANCE AMENDMENT STANDARD (No. 2) 1998 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Standard amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Amendment of s 34 (Accounting records) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 Amendment of s 38 (Value of non-current assets is current value) . . . . . . . 3 6 Amendment of s 39 (What is the current value of a non-current asset?) . . 3 7 Replacement of s 40 (Certain land and roads do not have a value) . . . . . . 4 39A Details about non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 40 Certain land and roads do not have a value . . . . . . . . . . . . . . . . . . . 4 8 Insertion of new s 45A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 45A Note about reserves and roads controlled by local governments . . . 4 9 Amendment of s 48 (Financial statements to include components of equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 10 Amendment of s 53 (Signing of financial statements—Act, s 448) . . . . . . 5 11 Replacement of s 54 (Accompanying documents to Auditor-General) . . . . 6 54 Certificate for proposed financial statements . . . . . . . . . . . . . . . . . . 6 54A Certificate for final financial statements . . . . . . . . . . . . . . . . . . . . . . 6 12 Amendment of s 56 (Unaudited financial statements) . . . . . . . . . . . . . . . . . 6

2 Local Government Finance Amendment (No. 2) No. 276, 1998 13 Insertion of new pt 10, div 2, sdiv 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Subdivision 1A—Two-part tariffs 89A Utility charges if two-part tariffs applied . . . . . . . . . . . . . . . . . . . . . . 7 14 Amendment of s 93 (Application of sdiv 3) . . . . . . . . . . . . . . . . . . . . . . . . . 7 15 Insertion of new s 101A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 101A Identification and disclosure of cross-subsidies . . . . . . . . . . . . . . . . 7 16 Omission of pt 10, div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 17 Insertion of new s 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 103 Local government to keep accounting manual . . . . . . . . . . . . . . . . . 8 18 Replacement of ss 104 and 105 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 104 Crediting of non-current infrastructure asset values to capital . . . . . 8 105 Numbering and renumbering of standard . . . . . . . . . . . . . . . . . . . . . . 9

s1 3 s6 Local Government Finance Amendment (No. 2) No. 276, 1998 ˙ Short title 1. This standard may be cited as the Local Government Finance Amendment Standard (No. 2) 1998 . ˙ Commencement 2. Section 17 is taken to have commenced on 1 July 1997. ˙ Standard amended 3. This standard amends the Local Government Finance Standard 1994 . ˙ Amendment of s 34 (Accounting records) 4. Section 34(3)— omit. ˙ Amendment of s 38 (Value of non-current assets is current value) 5. Section 38(2)— omit. ˙ Amendment of s 39 (What is the current value of a non-current asset?) 6. Section 39(4)— omit, insert— ‘ (4) Current cost of the benefits the asset provided is— (a) the current market buying price for a new corresponding asset; or (b) the current reproduction cost, or current replacement cost, of a new corresponding asset.’.

s7 4 s8 Local Government Finance Amendment (No. 2) No. 276, 1998 ˙ Replacement of s 40 (Certain land and roads do not have a value) 7. Section 40— omit, insert— ˙ ‘ Details about non-current assets ‘ 39A.(1) A local government’s financial statements must contain a note about its non-current assets. ‘ (2) For each class of non-current assets, the note must show— (a) an amount as the total amount of the revalued current cost of the assets in the class; and (b) an amount as the total amount of the accumulated depreciation for the assets in the class. ˙ ‘ Certain land and roads do not have a value ‘ 40. For a local government’s financial statements, the following do not have a value— (a) land that is a reserve under the Land Act 1994 and is controlled by the local government; (b) a road controlled by the local government (other than a road owned by it).’. ˙ Insertion of new s 45A 8. Part 7, division 1, after section 45— insert— ˙ ‘ Note about reserves and roads controlled by local governments ‘ 45A.(1) A local government’s annual report must include a note about— (a) land that is a reserve under the Land Act 1994 and is controlled by the local government; and (b) roads controlled by the local government (other than roads owned by it).

s 9 5 s 10 Local Government Finance Amendment (No. 2) No. 276, 1998 ‘ (2) A note about a reserve must state the area of the reserve controlled by the local government, including land that has been leased by it to someone else. ‘ (3) A note about roads must state the total length of roads controlled by the local government. Example of a note— The Council of the Shire of the Tropical State has control of— (a) 100 ha of parks (including 10 ha leased to sporting clubs) on land that is a reserve under the Land Act 1994 ; and (b) 700 km of roads. This land does not have a value for its financial statements. ’. ˙ Amendment of s 48 (Financial statements to include components of equity) 9.(1) Section 48(1)(e)— omit, insert— ‘(e) the asset revaluation reserve.’. (2) Section 48(2), definition “current cost reserve” — omit. (3) Section 48(2)— insert— ‘ “asset revaluation reserve” means the reserve created under the principles in AAS 10 ‘Accounting for the Revaluation of Non-Current Assets’.’. ˙ Amendment of s 53 (Signing of financial statements—Act, s 448) 10.(1) Section 53(1), ‘presented to’ to ‘Auditor General,’— omit, insert— ‘given to the auditor-general’. (2) Section 53—

s 11 6 s 12 Local Government Finance Amendment (No. 2) No. 276, 1998 insert— ‘ (3) As soon as practicable after the proposed financial statements are given to the auditor-general, the proposed financial statements must be presented to a meeting of the local government.’. ˙ Replacement of s 54 (Accompanying documents to Auditor-General) 11. Section 54— omit, insert— ˙ ‘ Certificate for proposed financial statements ‘ 54. The proposed financial statements must include a certificate by the chief executive officer and mayor of the local government stating whether in their opinion— (a) the requirements under the Act for the keeping of accounts have been complied with in all material respects; and (b) the statements for the financial year, and supporting notes, present the local government’s operating results and financial position as required by the Act. ˙ ‘ Certificate for final financial statements ‘ 54A. Final financial statements, given to the auditor-general for certification, must include a fresh certificate by the chief executive officer and mayor of the local government stating whether in their opinion— (a) the requirements under the Act for the keeping of accounts have been complied with in all material respects; and (b) the statements for the financial year, and supporting notes, present the local government’s operating results and financial position as required by the Act.’. ˙ Amendment of s 56 (Unaudited financial statements) 12. Section 56— insert—

s 13 7 s 15 Local Government Finance Amendment (No. 2) No. 276, 1998 ‘ (2) Subsection (1) does not apply to a copy of the financial statements given to the auditor-general.’. ˙ Insertion of new pt 10, div 2, sdiv 1A 13. After section 89— insert— ‘ Subdivision 1A—Two-part tariffs ˙ ‘ Utility charges if two-part tariffs applied ‘ 89A. If a local government decides under chapter 10, part 4 of the Act to apply a two-part tariff for a relevant business activity that provides water services, the utility charges for water services must be based on an amount or amounts for units or part of a unit of the quantity of water supplied, but may include an access amount. 1 ’. ˙ Amendment of s 93 (Application of sdiv 3) 14. Section 93, after ‘under part 8’— insert— ‘or 8A’. ˙ Insertion of new s 101A 15. Part 10, division 2, subdivision 5, after section 101— insert— ˙ ‘ Identification and disclosure of cross-subsidies ‘ 101A.(1) For deciding the amount to be stated for section 101, the entity must, to the extent it is reasonably practicable, comply with the guidelines. ‘ (2) In this section— “guidelines” means the document called ‘Guidelines for Identification and 1 The basis of this calculation reflects section 92(2)(b) and (5).

s 16 8 s 18 Local Government Finance Amendment (No. 2) No. 276, 1998 Measurement of Cross-Subsidies’ issued by the Department of Natural Resources. 2 ’. ˙ Omission of pt 10, div 3 16. Part 10, division 3— omit. ˙ Insertion of new s 103 17. Part 11, before section 104— insert— ˙ ‘ Local government to keep accounting manual ‘ 103.(1) A local government need not comply with section 10 3 until 30 June 1999. ‘ (2) This section expires on 30 June 1999.’. ˙ Replacement of ss 104 and 105 18. Sections 104 and 105— omit, insert— ˙ ‘ Crediting of non-current infrastructure asset values to capital ‘ 104.(1) When non-current infrastructure assets and land acquired before 1 July 1994 are first included in a local government’s financial statements, the value of the assets and land must be credited to capital. 4 ‘ (2) This section expires on 30 June 2000. 2 A copy of the Guidelines for Identification and Measurement of Cross-Subsidies may be inspected at the office of the Department of Communication and Information, Local Government and Planning at 111 George Street, Brisbane. 3 Section 10 (Local government to keep accounting manual) 4 Section 48 (Financial statements to include components of equity) provides that capital is one of the components into which the equity of a local government, shown in its financial statements, must be divided.

s 18 9 s 18 Local Government Finance Amendment (No. 2) No. 276, 1998 ˙ ‘ Numbering and renumbering of standard ‘ 105. In the next reprint of this standard produced under the Reprints Act1992 , the provisions of this standard must be numbered and renumbered as permitted by the Reprints Act 1992 , section 43. 5 ’. ENDNOTES 1. Made by the Minister on 6 October 1998. 2. Notified in the gazette on 9 October 1998. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Department of Communication and Information, Local Government and Planning. © State of Queensland 1998 5 Reprints Act 1992 , section 43