2018-12-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                       11 DECEMBER 2018


REPORTS FOR NOTING BY THE COMMITTEE
19                       2017/18 BUDGET WRAP UP
DOCUMENT INFORM AT ION




Author                           Director Corporate Services, Michael Shave
                                 Corporate Services Department

Index                            ECM/ Subject/ 2017-18 Budget

Attachments                      Nil


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Director Corporate Services to the Services & Organisation
Committee Meeting dated 11 December 2018 providing a summary of Council’s financial
performance against the 2017/18 budget.


REPORT
As part of routine monthly financial performance reporting against budget, a report was provided
to the 16 July 2018 General Committee meeting outlining Council’s interim financial performance
against budget for the 2017/18 year. Now that the financial statements and annual report have
been completed it is timely that Council is provided with a final summary of financial performance
against budget.

A wrap up report is considered necessary given that the detail in the financial statements is different
to that reported in the budget reports and includes a number of non-cash adjustments (i.e.
movements in employee liabilities, landfill rehabilitation provisions, Unitywater equity ownership)
that make it challenging to assess Council’s overall performance against budget.

Overall Operating Performance

Operating financial performance relates to the business as usual services provided by Council to
the community and excludes the capital program. From a financial sustainability perspective an
operating surplus reflects the fact that day to day services are being appropriately funded without
degrading cash reserves, and sufficient cash is also being collected to reflect infrastructure
consumption (and as such is allowing for ongoing future asset renewal via funding of the capital
program).

Table 1 outlines Council’s operating performance against budget once all financial year-end
adjustments were made.

Table 1: Operating performance against budget
                  Operating Summary to 30 June 2018
                                                 Budget         Actual   Variance $m
                                                     $m            $m
                  Operating Revenue                $93.2         $96.0          $2.8
                  Operating Expense                $93.2         $87.4          $5.8
                  Operating Surplus                   $-          $8.6          $8.6
                  Operating Surplus Ratio            0%          9.0%

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