2017-12-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                     12 DECEMBER 2017


REPORTS FOR NOTING BY THE COMMITTEE


8                        2016-17 BUDGET WRAP UP
DOCUMENT INFORM AT ION




Author                           Director Corporate Services, Michael Shave
                                 Corporate Services Department

Index                            ECM/ 22.09 – Monthly Financial Performance Report

Attachments                      Nil



EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Director Corporate Services to the Services & Organisation
Committee Meeting dated 12 December 2017 providing a summary of Council’s financial
performance against the 2016/17 budget.


REPORT
As part of routine monthly financial performance reporting against budget, a report was provided
to the General Committee on 17 July 2017 outlining Council’s interim financial performance for
the full 2016/17 year against budget. Now that the financial statements and annual report have
been completed it is timely that Council is provided with a final summary of overall performance
against budget. A budget wrap up report is considered necessary given that the detail in the
financial statements is different to that reported in the budget reports and includes adjustments
that make it difficult to assess Council’s overall performance against budget.

Overall Operating Performance

Operating financial performance relates to the business as usual services provided by Council to
the community and excludes the capital program. From a financial sustainability perspective an
operating surplus reflects the fact that day to day services are being appropriately funded and
sufficient cash is being collected to reflect infrastructure consumption (and as such is allowing for
ongoing asset renewal via funding of the capital program).

The table below outlines Council’s operating performance against budget once all year end
adjustments were processed.

         Operating Summary to 30 June 2017
                                        Budget               Actual   Variance $m    Variance
                                             $m                 $m                          %
         Operating Revenue                $90.4               $93.6           $3.1       3.5%
         Operating Expense                $89.8               $88.8           $1.0       1.1%
         Operating Surplus                  $0.6               $4.7           $4.1
         Operating Surplus Ratio           0.7%               5.0%




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