2017-11-07 S&O Agenda - Attachment 1 to Item 10 - Annual Report 2016-17

Liabilities – what we owe
Money owed by Council is presented as both current and non-current liabilities in the statement of
financial position. Current liabilities are those amounts that are payable by Council within the next
twelve months, and non-current liabilities are payable beyond the twelve month horizon.

The most significant element is loans raised by Council to fund the investment in community
infrastructure. During 2016/17, Council’s total loan borrowings decreased slightly due to repayments for
the year being greater than the value of new borrowings.

Statement of changes in equity
The statement of changes in equity illustrates how the net worth of Council has changed as a result of
activities undertaken during the period. Council’s total community equity as at 30 June 2017 is $1.1
billion. Community equity is equal to total assets (what we own) less total liabilities (what we owe) and
represents Council’s net investment in assets.

Statement of cash flows
The statement of cash flows shows where Council has generated cash and where these funds have
been expended. The detailed schedule in the financial statements is summarised in the following graph
(columns above the line represent cash flowing into the organisation, and columns below the line
represent cash payments made).

Figure 9 –Net Cash Flow Sources 2016/17 ($’000)
 $35,000
 $30,000
 $25,000
 $20,000
 $15,000
 $10,000
  $5,000
     $-
 -$5,000
-$10,000
-$15,000
-$20,000
             Operating Activities   Investing Activities   Financing Activities   Net Movement in Cash


Key elements to Council’s annual cash flow include:
 Operating activities depicts the net of income received from rates, interest, grants, etc. and
   payments made to suppliers and employees (net increase).
 Investing activities relate to the acquisition and sale/disposal of long-term assets, generally in the
   form of roads, bridges, plant and equipment, etc. A negative outcome here represents a net
   investment in community infrastructure during the reporting period.
 Financing activities shows the receipt and repayment of Council borrowings. A negative outcome
   here represents that Council has repaid more loans compared to new borrowings raised.
 Net movement in cash represents the physical movement of cash, with any accounting adjustments
   and accruals removed. The net movement in cash for the year of $12.8 million represents the net
   increase in cash on hand, with all significant outlays fully funded within the period.




                                                                           Noosa Council | Annual Report 2016 - 2017
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