Page 94

Forest NSW Annual Report 2012

Forests NSW Consolidated Annual Financial Reports Year ended 30 June 2012 ABN 43 141 857 613 Notes to and forming part of the financial statements For the year ended 30 June 2012 Note 27: Auditors’ Remuneration Economic Economic Statutory Statutory Entity Entity Corporation Corporation 2012 2011 2012 2011 $'000 $'000 $'000 $'000 Audit Office of NSW - Audit of financial statements 385 395 385 385 Note 28: Contingent Liabilities/Assets During the 2011–2012 year 525 037 hectares (2010–11, 5159 hectares) of operational timber reserves were subject to claims under the Native Title Act. The impact of these claims cannot be quantified at this time. As at Statement of Financial Position date, Forests NSW has potential public liability insurance claims limited to $200 000 (2011 $100 000), being the net excess on its current public insurance liability policy at the date of the relevant claims. There are several contractual disputes open at year end. Legal fees to settle these claims should they proceed are estimated at $35 000. The quantum of each claim is in dispute and the outcome cannot be measured reliably. Some inflow of economic benefits may result from these claims. However, at this stage, the inflow is not considered probable. Forest NSW may need to rehabilitate derelict mines which lie on its land. The amount of this contingent liability cannot be measured reliably at this time. Forests NSW may have onerous contracts in relation to wood supply agreements for native forest timber. The quantum of this amount is not able to be determined as the wood supply agreements allow for movements in price and volume. As at Statement of Financial Position date, Forests NSW has no contingent assets. Note 29: Consultants Forests NSW engaged consultants to undertake activities, which require specialist or independent skills. In 2012 the total cost for consultants was $455 560 (2011: $305 142). Note 30: After Balance Date Events On 9 May 2012, the Minister for Primary Industries released a media statement confirming the intention of the NSW Government to corporatise the Forestry Commission of NSW. At the time of approving and signing these financial statements, the NSW Parliament had not passed enabling legislation in respect of the corporatisation of the Forestry Commission of NSW. Forests NSW made announcements to close its coastal workshops and retail nurseries in the 2012–13 financial year. Restructure provisions in relation to these closures have been made in the financial statements. The coastal workshops and retail nurseries do not have a material effect on the financial statements. End of the Audited Financial Statements 94 Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance


Forest NSW Annual Report 2012
To see the actual publication please follow the link above