Noosa Council Annual Report 24/25

Statement of Cash Flows                                                                                              Financial ratios

The Statement of Cash Flows shows where Council has generated cash and where these funds have been                   Ratios are valuable tools for providing a snapshot of an organisation’s financial status and
expended. The detailed schedule in the financial statements is summarised in Figure 10 (columns above the line       trends. They also allow Noosa Council to benchmark itself against other councils, helping
represent cash flowing into the organisation, and columns below the line represent cash payments made).              to gauge relative financial strength. This type of analysis is periodically conducted by the
                                                                                                                     Queensland Treasury Corporation (QTC) to assess Council’s financial sustainability.
Figure 10 – Net Cash Flow Sources 2024/25 ($’000)
                                                                                                                     Under the Local Government Regulation 2012, certain sustainability ratios are mandated,
$20,000                                                                                                              each with specific target ranges. The State Government’s updated Financial Management
                                                                                                                     (Sustainability) Guideline 2024 (the Guideline) aims to enhance Council’s long-term
 $15,000                                                                                                             planning and community outcomes by monitoring financial sustainability. This new
                                                                                                                     framework replaces the previous Financial Management (Sustainability) Guideline 2013.

 $10,000
                                                                                                                     The Guideline has applied since the 2023-24 annual financial reporting period and the
                                                                                                                     2024-25 budget cycle. Given the diversity of local governments, the Department has
  $5,000
                                                                                                                     categorised councils for sustainability reporting, with Noosa Council designated as a
                                                                                                                     ‘Tier 3’ council based on its location and population band.
      $0

                                                                                                                     Details of these ratios are shown in Figure 11, including actual results for the current
($5,000)                                                                                                             reporting period plus projections over the next 9 years.




                                                                                                                                                                                                                    Noosa Council Annual Report 24/25
($10,000)


             Operating Activities        Investing Activities       Financing Activities      Net Movement in Cash




Key elements to Council’s annual cash flow include:

 — O
    perating activities depicts the net of income received from rates, interest, grants, etc. and payments made
   to suppliers and employees.


 — Investing activities relate to the acquisition and sale/disposal of long-term assets, generally in the form of
    roads, bridges, plant and equipment, etc. A negative outcome here represents a net investment in community
    infrastructure during the reporting period.

 — F
    inancing activities shows the receipt and repayment of Council borrowings. A negative outcome here
   represents that Council has repaid more loans compared to new borrowings raised.


 — N
    et movement in cash represents the total physical movement of cash, with any accounting adjustments
   and accruals removed. The net movement in cash for the year with all significant outlays fully funded within
   the period was $7.1 million representing a net increase in cash on hand. At 30 June 2025, $25.8 million of
   surplus cash was invested in higher yielding term deposits, to maximise returns to ratepayers.




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