Notes to the Financial Statements for the year ended 30 June 2016
Note 20 . Contingent Liabilities ( continued )
Council $' 000 $' 000
Local Government Workcare
The Council is a member of the Queensland local government worker ' s compensation self-insurance scheme , Local Government Workcare . Under this scheme the Council has provided an indemnity towards a bank guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was insufficient funds available to cover outstanding liabilities . Only the Queensland Government ’ s workers compensation authority may call on any part of the guarantee should the above circumstances arise . The Council ' s maximum exposure to the bank guarantee is $ 1,734,491 .
Other Contingent Liabilities
|
2016 |
2015 |
Notes |
$' 000 |
$' 000 |
Details and estimates of maximum amounts of contingent liabilities are as follows :
Various claims are pending against the council . In the opinion of the council ' s solicitors the potential loss on all claims should not exceed :
2,385 3,317
The Council has disclaimed liability and no provision has been made in the financial statements pertaining to these claims .
Note 21 . Superannuation
The Council contributes to the Local Government Superannuation Scheme ( Qld ) ( the scheme ). The scheme is a Multi-employer Plan as defined in the Australian Accounting Standard AASB119 Employee Benefits .
The Queensland Local Government Superannuation Board , the trustee of the scheme , advised that the local government superannuation scheme was a complying superannuation scheme for the purpose of the Commonwealth Superannuation Industry ( Supervision ) legislation .
The Scheme has three elements referred to as :
- The City Defined Benefits Fund ( CDBF ) which covers former members of the City Super Defined Benefits Fund
- The Regional Defined Benefits Fund ( Regional DBF ) which covers defined benefit fund members working for regional local governments ; and
- The Accumulation Benefits Fund ( ABF )
The ABF is a defined contribution Scheme as defined in AASB 119 . Council has no liability to or interest in the ABF other than the payment of the statutory contributions as required by the Local Government Act 2009 .
Council does not have any employees who are members of the CDBF and , therefore , is not exposed to the obligations , assets or costs associated with this fund .
174 CHAPTER 6 Financial report TOOWOOMBA REGIONAL COUNCIL Annual Report 2015 - 2016