TORRES STRAIT REGIONAL AUTHORITY
Notes to and forming part of the financial statements for the period ended 30 June 2014
Note 19: Assets Held in Trust
MIP trust account
On 17 October 1998, the Queensland State and the TSRA entered into a Major Infrastructure Program (MIP) Funding Agreement under which $15 million for major infrastructure projects was provided by the State over three years with matching funds from the Commonwealth. The co-funding arrangement between State and TSRA has continued over the years and the current arrangement for the period ending June 2014 is set out in a Memorandum of Understanding between TSRA and the State.
The recipients/ beneficiaries of infrastructure projects developed under the MIP are the Torres Strait Island Regional Council, (TSIRC), Torres Shire Council, (TSC) and the Northern Peninsular Area Regional Council, (NPARC).
TSRA's role in MIP is set out in the Memorandum of Understanding between the State and TSRA. TSRA has a fiduciary duty in respect of the MIP funds and in the development of MIP projects but not as the owner of any assets under construction. This is evidenced by the fact that no future economic benefit will flow to TSRA during or on completion of the assets. In addition, and for accounting purposes, TSRA does not consolidate the MIP funds into its financial statements as TSRA is of the opinion that it does not have control of the funds. TSRA adopts AASB 127 Consolidated and Separate Financial Statements -paragraph 17.9 (b) as a policy position for this opinion. This is further evidenced by the fact that the TSRA cannot redirect MIP funds for its own use.
|MIP trust account - Monetary assets|
|Total amount held at the beginning of the reporting period (1 July)||41,278||57,885|
|Total amount held at the end of the reporting period (30 June)||40,384||41,278|
Finfish trust account
Torres Strait Islanders own 100 per cent of the Finfish fishery. Finfish quota that is not used by Traditional Inhabitant fishers is leased to Non-Traditional fishers. Leasing revenue is held in trust by the TSRA and disbursed to the beneficiaries for the benefit of the fishery. For example, capacity building activities to increase the number of Torres Strait Islanders fishing in an economical and environmentally sustainable way in the fishery.
|Finfish trust account - Monetary assets|
|Total amount held at the beginning of the reporting period (1 July)||449||603|
|Total amount held at the end of the reporting period (30 June)||886||449|
The values above are estimated fair values at the time when acquired.
The entity had no non-monetary assets held in trust in both the current and prior reporting period.