2019-11-12 S&O Agenda - Item 11 - Attachment 1 - Draft Noosa Council 2018-19 Annual Report

Operating expenditure – where the money goes
Council expended a total of $95 million in undertaking operating activities during the financial year.

Figure 5 presents a breakdown by expenditure type for operating expenditure incurred during 2018/19.


                  Depreciation
                     17%


                                                        Employee
          Finance &                                      Benefits
         Other Costs                                      35%
             6%




             Materials &
              Services
                42%



Figure 5 – Operating Expenses by Function 2018/19



Key Council expenditure sources include:
   • Employee benefits - includes staff wages, superannuation, fees paid to Councillors and other employment costs.
   • Depreciation expenditure – records the consumption of community infrastructure assets over their respective
     useful lives, and provides an indication of the level of required expenditure on the rehabilitation and renewal of
     existing assets annually. The revaluation of infrastructure assets during the year has also impacted the annual
     depreciation charge.
   • Materials and services – includes information communication technology, consultancy services, contractor
     services, electricity, external hire, rentals, repairs and maintenance, advertising and donations.
   • Finance and other costs – includes interest paid on loan borrowings, fees associated with the early repayment of
     borrowings and movement in the provision for future landfill rehabilitation costs.


Statement of Financial Position
The statement of financial position (or balance sheet) measures what Council owns (i.e. its assets), and what we owe
(i.e. liabilities) to determine the total community equity (net worth) at the end of each financial year. Overall, Council’s
investment in community capital continues to grow steadily.

Figure 6 summarises the movement in Council’s assets and liabilities that comprise community equity.

Figure 6 – Comparative Statement of Financial Position 2018/19

                                             2017/18                    2018/19
                                              ($’000)                    ($’000)
 Assets                                    1,078,927                   1095,611
 Liabilities                                  62,902                     53,035
 Community Equity                          1,016,024                  1,042,576




Noosa Council | 2018/2019 Annual Report                                                                               Page 45