2021-11-15 GC Agenda - Item 12 - Attachment 1 - Noosa Council Annual Report 2020-21

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

Unaudited Long Term Financial Sustainability Statement
§Note/Subtotal§
§Subnote§




                                                                                             Target     Actual                                                       Forecast
$ '000                                                                                        2021       2021        2022       2023        2024        2025       2026    2027            2028       2029        2030        2031

Measures of financials sustainability
1. Operating Surplus Ratio
Net result (excluding capital items) 1
                                                                                           <= 10.00%    7.48%       (0.60)%     0.00%       0.20%      0.30%       0.20%       0.20%      0.20%       0.20%       0.20%      0.20%
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
                                                                                            >90.00%     83.42% 121.90% 152.90%             95.70%     102.60%     91.30%     128.60%     126.00%     98.10%      88.00%      83.10%
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
Total operating revenue (excluding capital items) 2                                         <60.00% (19.89)% (4.90)%            1.00%      (1.00)%     (3.30)%    (5.80)%     (1.80)%     1.30%      (0.70)%     (5.30)%     (9.40)%


An indicator of the extent to which the net financial liabilities can be serviced by its operating revenue.


(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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