Annual Report 2020-21

Noosa Council
General Purpose Financial Statements
for the year ended 30 June 2021

Current Year Financial Sustainability Statement
§Note/Subtotal§
§Subnote§




                                                                                                                               Actual           Target
$ '000                                                                                                                          2021             2021

Measures of financial sustainability
1. Operating Surplus Ratio
Net result (excluding capital items) 1
                                                                                                7.48%          <=10.00%
Total operating revenue (excluding capital items) 2
An indicator of which the extent to which revenues raised cover operational expenses only or are available for capital
funding purposes or other purposes.



2. Asset Sustainability Ratio
Capital expenditure on the replacement of assets (renewals) 3
                                                                                              83.42%         >90.00%
Depreciation expense
An approximation of the extent to which the infrastructure assets managed are being replaced as these reach the end of
their useful lives.



3. Net Financial Liabilities Ratio
Total liabilities less current assets
                                                                                                                             (19.89)%          <60.00%
Total operating revenue (excluding capital items) 2
An indicator of the extent to which the net financial liabilities can be serviced by its operating
revenue.




Note 1 - Basis of Preparation
The current year financial sustainability statement is a special purpose statement prepared in accordance with the
requirements of the Local Government Regulation 2012 and the Financial Management (Sustainability) Guideline 2013. The
amounts used to calculate the three reported measures are prepared on an accrual basis and are drawnfrom the Council's
audited general purpose financial statements for the year ended 30 June 2021.


(1)               Includes only Recurrent Revenue and Recurrent Expenditure disclosed in the Income Statement. Includes share of profit from
                  associates and joint ventures. Excludes Capital Revenue Grants, Contributions, Donations and Subsidies received for capital
                  acquisitions, Capital Income items such as Profit from the Sale of Property, Plant and Equipment, Financial Assets, Real Estate and
                  Investment Properties (refer to Note 5 of the Financial Management (Sustainability) Guideline 2013 for exclusions), and any Capital
                  Expenditure such as Write-Off of Assets, movements in Provisions for Restoration and Rehabilitation and Revaluation Decrements that
                  hit the Statement of Comprehensive Income. Also excludes the early repayment adjustment resulting from the refinancing of Council's
                  QTC debt pool under the Local Government Debt Refinancing Program.

(2)               Includes only Recurrent Revenue disclosed in the Income Statement, plus share/loss of profit from associates and joint ventures.
                  Excludes Capital Revenue Grants, Contributions, Donations and Subsidies received for capital acquisitions. Also excludes any Capital
                  Income items such as Profit from the Sale of: Property, Plant and Equipment, Financial Assets, Real Estate and Investment Properties
                  (refer to Note 5 of the Financial Management (Sustainability) Guideline 2013 for exclusions).

(3)               Infrastructure Assets refer to Council's significant long-life assets that provide ratepayers with access to social and economic facilities
                  and services. It excludes land, and equipment, motor vehicles heritage collections and artwork. Renewals is defined as expenditure on
                  existing infrastructure to return the infrastructure to their original service potential or useful life.




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