2018-11-06 S&O Agenda - Attachment 1 to Item 5 - Draft Annual Report 2017-18

Community Financial Report 2017/18


Background
This report aims to simplify the financial information that Council is required to prepare under legislation and
provides a simple summary of Council financial performance for the 2017/18 year just ended (1 July 2017
through to 30 June 2018).

Council’s annual financial statements are prepared to comply with
Australian Accounting Standards, and contain specific information
regarding financial performance.

Financial statements include a statement of comprehensive income
(i.e. profit and loss), a statement of financial position (i.e. balance
sheet), a statement of cash flows as well as a statement of changes
in equity. Collectively, the statements provide a formal picture of the
financial strength of an organisation.

The Community Financial Report (CFR) consists of five key reporting
elements, each of which has a specific purpose for the measurement
and presentation of Council’s finances. The linkages between the five
key elements are shown in Figure 1.
                                                                          Figure 1 - Financial Reporting Elements




Highlights and achievements
In line with previous years, Council has achieved a strong financial result for the 2017/18 year. The following
key outcomes were achieved during the period:

1. An operating surplus of $8.5 million resulting from revenue growth in fees and sales, good expenditure
   management, grants paid in advance, a reduction in asset depreciation expense as well as some
   unspent levy funds that are required to be held for future use.

2. A positive net result when adding Council’s share of Unitywater’s annual profit, capital revenue and
   capital income to Council’s operating profit, whilst deducting capital expenses for asset disposal and
   valuation impacts.

3. A decrease in debt levels backed by stable cash balances.




Page 32 | 2017-2018 Annual Report