Financial Performance Report – Jun 2025 · Financial Performance Report

GENERAL COMMITTEE MEETING                                                             14 JULY 2025


The following chart monitors the 12-month trend on total cash and the agencies invested. To
maximise the return on in its cash holdings Council has invested $25.8 million in higher yielding term
deposits. These investments were made in line with Council’s investment policy.

Figure 11: 12 Month Trend of Cash Invested by Agency




Quarterly Supplementary Information - Cash Components

An update detailing the composition of Council’s cash reserves is provided quarterly. Council’s
cash balance comprises a number of components – restricted cash (reserves), committed cash,
financial sustainability requirements and unrestricted cash. These are outlined below.

Restricted Cash - In accordance with Council’s Management of Restricted Cash Policy, funds
are set aside and restricted for a specific purpose. This can be either to meet regulatory
requirements, allocate against specific future projects and activities, and to ensure sufficient
working capital to meet current and long term financial obligations.

Committed Cash - A portion of cash reserves are committed to undertake current year capital
works. At the start of the financial year, this commitment will be increased for any unfinished
capital works from previous year which are carried over as part of the budget review process to
ensure the projects can be completed.

Sustainability Requirement – Cash expense cover is a key statutory indicator to measure
liquidity, ensure going concern and is a key measure considered in Council achieving its current
credit rating (Sound with a Neutral Outlook) to ensure borrowing capacity. Cash expense cover
calculates how long Council can continue to pay its day-to-day expenses without needing to
seek borrowings or other external funding. A target minimum of three month’s cash cover is to
be held in any given financial year to minimise financial risk.

Unrestricted Cash – These are funds where there is no regulatory, policy or budgetary
commitment to retain funds for specific purposes. These funds can be separated into the
following: