2017-08-17 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                            17 AUGUST 2017


7     ORDINARY MEETING REPORTS


1        BUDGET REVIEW (BR1) FOR CARRYOVER OF FUNDS FROM 2016/17 TO 2017/18

Author            Acting Manager Financial Services, Trent Grauf
                  Corporate Services Department

Index             ECM/ 7.16 – 2017-2018 Budget

Attachments       1.    Proposed Carryover Requests – Operating
                  2.    Proposed Carryover Requests – Capital
                  3.    Revised Capital Works Program
                  4.    Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned
activities to be funded through the budget period. This first budget review for the 2017/18
financial year considers:

   Any capital or operating projects that were incomplete with unspent budgets at the close of
    the 2016/17 financial year and are eligible for carryover into the current budget year.

   Any new or emergent actions arising from Council resolution, leadership team or capital
    works executive action since the adoption of the budget in June 2017.

RECOMMENDATION
That Council note the report by the Acting Manager Financial Services to the Ordinary Meeting
dated 17 August 2017 and approve the proposed changes to the budget for the 2017/18 financial
year as outlined in the attached Revised Budget Financial Statements.


REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. Following end of financial year
reporting, a full review of uncompleted projects is undertaken to consider the potential carryover
of projects into the following budget year. For a project to be considered eligible for carryover, the
following criteria must be met:
1. The project must be underway or there is evidence of an obligation to complete the project.
2. There must be an operating surplus in the original budget year.
3. There must be sufficient unspent funds from the original project budget to complete the
   works.

In addition to the prior year budget carryover process, Council also undertakes periodic reviews
of the current year adopted budget each year. The first review each financial year is generally
constrained to identify only major new initiatives of shortfalls with any detailed budget
adjustments left for subsequent reviews to enable sufficient time to determine possible savings,
additional revenue, or other revenue to fund proposed additional expenditure.



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