Note 17: Assets Held in Trust

TORRES STRAIT REGIONAL AUTHORITY

Notes to and forming part of the financial statements for the period ended 30 June 2015

Note 17: Assets Held in Trust

Monetary assets

Torres Strait Major Infrastructure and Other Projects Trust Fund

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 the State and TSRA has continued over the years as set out in a Memorandum of Understanding (MOU) between TSRA and the State. On 14 April 2014, a variation to the MOU was signed to expand the trust fund to include not only MIP projects, but also the Seawalls project and Other Projects.

The recipients/ beneficiaries of infrastructure projects developed under the Torres Strait Major Infrastructure and Other Projects Trust Fund are the Torres Strait Island Regional Council (TSIRC), Torres Shire Council (TSC) and the Northern Peninsular Area Regional Council (NPARC).

TSRA's role in the Torres Strait Major Infrastructure and Other Projects Trust Fund is set out in the Memorandum of Understanding between the State and TSRA. TSRA has a fiduciary duty in respect of the Torres Strait Major Infrastructure and Other Projects Trust Fund funds and in the development of Torres Strait Major Infrastructure and Other Projects Trust Fund projects but not as the owner of any assets under construction or on completion. This is evidenced by the fact that no future economic benefit or returns will flow to TSRA as a result of its involvement with the Torres Strait Major Infrastructure and Other Projects Trust Fund. For financial statement preparation purposes, TSRA does not consolidate the Torres Strait Major Infrastructure and Other Projects Trust Fund funds into its financial statements as TSRA is of the opinion that it does not have control of the Fund.

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.

The values above are estimated fair values at the time when acquired.

Non-monetary assets

The entity had no non-monetary assets held in trust in both the current and prior reporting period.