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

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                    25 MARCH 2014


      Fees and charges show minor variances up and down, but this is generally expected to
       perform according to original forecasts;
      Interest received from investments is less than forecast due to delays in the final transfer of
       cash balances from SCRC. When the final transfer is undertaken there will be an
       additional cash adjustment for interest;
      Rental income is generally in accordance with original estimates;
      Other revenue (includes revenue received from Unitywater and miscellaneous sales
       revenue) shows a small favourable variance from the sale of recyclables; and
      Grants and subsidies are generally in accordance with original forecasts.

2.     Operating Expenses

      Employment benefits are currently tracking below original forecasts with some offsets
       against the materials and services line item under the current transitional structure. It is
       noted that whilst payments to staff have been accurate, the costing system has presented
       some challenges which has required ongoing corrections between departments and cost
       centres;
      Materials and services are showing a significant favourable variance as at the end of
       February. This can be partially attributed to the “distraction factor” from de-amalgamation
       as structural reviews have been undertaken for special levies; but it is also expected that
       there will be real efficiencies realised in this budget line. One example is in the waste
       disposal operations at the Eumundi Rd tip facility where rubbish volumes are below
       forecast activity levels;
      Finance costs are generally in accordance with forecasts;
      Depreciation and amortisation has been applied as a budget-based accrual journal pending
       the final transfer of asset balances from SCRC. It is noted that a revaluation of significant
       asset classes has been commissioned as at 1 January 2014 and this may impact on
       depreciation expenses moving forward and
      Other expenses (includes insurance expenses and court costs for infringements) may
       result in a small favourable variance at the end of June due to no outstanding infringements
       being transferred to Noosa from SCRC.

3.     Capital Works Program

      Expenditure on capital works during February has generally been in accordance with
       forecasts, though expenditure against specific projects is slightly behind profiled budgets.

4.     Investment Performance

      As at the end of February, approximately 17% of funds were held with the Commonwealth
       Bank of Australia, with the balance invested in the capital guaranteed cash fund at
       Queensland Treasury Corporation. The weighted average return for the month was 3.05%
       which represents a margin of 0.42% above the industry benchmark, the UBS Bank Bill
       Index (2.63%). The focus to date has been very conservative with a focus on ensuring
       funds to meet cash flow requirements;
      100% of the portfolio is held with A1+ ranked agencies and there were no breaches of the
       investment policy during the month.



Previous Council Consideration

Nil.

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