Financial Performance Report – October 2023 · Financial Performance Report

GENERAL COMMITTEE MEETING                     13 NOVEMBER 2023


Category                          Comments
Operating Surplus Ratio              •  Intent: Identifies the extent
                                        to which revenues cover
                                        operational expenses, to
                                        ensure community equity is
                                        not degraded
                                     • Target: 0 – 10%
                                     • Result: 30.3%
                                     • Comment: The high ratio
                                        reflects the levying of rates
                                        in July, which will degrade as
                                        expenditure      occurs     on
                                        operations     through     the
                                        financial year to 30 June
                                        2024.
Cash Expense Cover                   • Intent: Indicates how long
                                        council can continue paying
                                        its day-to-day expenses
                                        from cash at bank without
                                        needing additional cash
                                        flows
                                     • Target: > 3 months
                                     • Result: 13.8 months
                                      • Comment: Current cash
                                         cover remains above target,
                                         while business as usual
                                         expenditure through to 30
                                         June 2024 will degrade
                                         Council’s cash holdings,
                                         albeit not below the target
                                         range      of     3    –     6
                                         months.      Cash balance
                                         include funding for capital
                                         programs, unspent grant
                                         monies paid in advance,
                                         Waste       Levy      subsidy
                                         prepayments and QRA
                                         advance payments for
                                         disaster projects which are
                                         restricted    for     specific
                                         purposes and inflate the
                                         ratio.
Asset Sustainability Ratio           • Intent: Measures the extent
                                        to which assets are being
                                        replaced as their condition
                                        degrades to ensure service
                                        potential is maintained
                                     • Target: 90% of depreciation
                                        budget spent on renewals
                                        annually
                                     • Result: In line with budget
                                     • Comment: The ratio will
                                        progressively increase each
                                        month as expenditure on
                                        renewals occurs as part of
                                        the capital works program.
Net Financial Liabilities Ratio      • Intent: Outlines the level
                                        that net Council debt can be