Annual Report 2020-21

                                                                               2020 - 21 Annual Report



Highlights and achievements
Council has achieved another positive financial result this year. The following outcomes were
achieved during the year:
   1.	An operating surplus of $2.15 million was achieved despite Council’s freeze on rates for
       most ratepayers. However, after taking advantage of loan refinancing opportunity with lower
       interest rates to free-up future cash flows, the refinancing early repayment fee of $2.5 million
       resulted in a final marginal net operating deficit of $0.35 million.
   2.	Increased support from the state and federal governments for both operating and capital
       projects has seen grant funding grow significantly over the previous year with $15.0 million
       received.
   3.	A net financial result of $13.92 million when adding Council’s share of Unitywater’s annual
      1.profit, capital revenue and capital income is also added to Council’s operating position.


            $102 million                             Liquidity               Over $1 Billion
            Opera�ng                                Stable cash at
            Revenue                                bank & low debt
            generated                                                      in Community Equity

                    $13 million           $15 million                    Credit ra�ng
                    on renewal of
                                          Received in                    Sound with a
                    Infrastructure
                                          Grants and Subsidies           Neutral outlook
                        Assets


Background
Council’s annual financial statements are prepared to comply with Australian Accounting Standards
and contain specific information regarding financial performance.
Financial statements include:
   •	a Statement of Comprehensive Income                  Figure 1 – Financial Reporting Elements
      (i.e. Profit and Loss),
   •	a Statement of Financial Position
      (i.e. Balance Sheet),
   •   a Statement of Changes in Equity, and
   •   a Statement of Cash Flows.
Collectively, these financial statements provide
a formal picture of the financial strength of an
organisation.
The Community Financial Report (CFR) consists of five
key reporting elements, each of which has a specific
purpose for the measurement and presentation of
Council’s finances. The linkages between the five key
elements are shown in Figure 1.

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