2014-03-25 Planning & Organisation Committee Agenda Pages 168-231

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                     25 MARCH 2014


6.    FINANCIAL PERFORMANCE – FEBRUARY 2014

Author            Co-ordinator Financial Services, Wayne Jensen
                  Organisational Services

Index             ECM / Subject/ Financial Management / Accounting – Monthly Exception
                  Report

Attachments       1.    Statement of Comprehensive Income
                  2.    Capital Works Schedule



EXECUTIVE SUMMARY

Operating activity during February has resulted in a net result of $21,791,191 against an original
forecast of $20,705,065 (year to date). This positive variance can be attributed primarily with
differences in the operating model for Noosa Council when compared with Sunshine Coast
Regional Council (SCRC), upon which the original budget estimates were based. Specific areas
of significant variance are discussed in the body of the report.

RECOMMENDATION

That Council note the report by the Coordinator Financial Services to the Planning &
Organisation Committee dated 25 February 2014 detailing the Council’s financial performance for
February 2014.



REPORT

With the reconciliation of transferring balances for assets and liabilities still in progress, it is not
feasible to present either balance sheet or cash flow statements at this juncture. Accordingly,
attached to this report are a statement of comprehensive income (operating statement); and a
schedule of capital works.

Overall, operating results are generally in accordance with original forecasts, though some
budget areas have already been identified for likely variances within the 6-month budget period.
Cash balances increased during the month with the majority of rates payments being received in
February before the close of the discount period. With reminder notices issued in March, it is
expected that there will be a further boost in cash receipts during this period.

1.    Operating Revenue

     Rates and charges revenue represents the original levy from January, and at this early
      stage it is evident that there may be a shortfall in revenue of between $300k and $500k.
      Figures are currently distorted by prepaid rates ($463k), which is tied up with the transfer of
      balances from SCRC, and this will progressively diminish over coming months;
      o    Discounts and rebates have come in under original estimates providing a small
           favourable variance;
      o    Waste charges revenue is higher than estimated due to additional services not
           included in the original budget; and
      o    There are minor variances in the Tourism levy due to the reclassification of properties
           during the year.


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