2014-05-20 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                      20 MAY 2014


2.     Operating Expenses

      Employment benefits – currently tracking above budget, with further analysis identifying
       variances in the level of wages being attributed to capital projects, along with original
       budget allocations for overtime and allowances. These elements will be addressed as part
       of the budget review being undertaken.
      Materials and services – actual costs are well below budget forecasts with positive
       variances to potentially be used to offset variances in other areas as part of the budget
       review.
      Finance costs – no significant issues have been identified.
      Depreciation – currently based on original budget estimates while the transfer of balances
       and subsequent revaluation of major asset classes are undertaken. As noted previously,
       the revaluation process may result in changes to asset values which may impact on
       depreciation charges. At the time of writing this report the outcome of the asset revaluation
       was not known.
      Other expenses – significant variances will be addressed as part of the budget review
       process, and all areas will continue to be monitored.

3.     Capital Works Program

      Expenditure on capital works though the month was generally in accordance with original
       estimates. The IT Major Projects is currently tracking above original estimates due to an
       expanded scope of works (including the library separation, implementation of planning
       online etc.) however, the total project is being closely monitored to ensure costs remain
       reasonable. Variances in other projects have been identified as part of the budget review,
       with some projects flagged for potential carryover.

4.     Investment Performance

      As at the end of March, 18.5% of the portfolio was held with the Commonwealth Bank of
       Australia, with the balance (81.5%) held by Queensland Treasury Corporation and invested
       in their capital guaranteed cash fund. The weighted average return for the month was
       3.13%, which represents a margin of 0.43% above the industry benchmark, the UBS Bank
       Bill Index (2.70%).
      100% of the portfolio is held with A1+ ranked agencies and there were no breaches of the
       investment policy during the month.
      Total cash on hand at the end of the month was $47.6 million, with balances generally in
       accordance with projected cash flows.


Previous Council Consideration
Nil.

Finance & Risk
All budget areas are under review as part of the 2014/15 budget development process, including
a review of the forecast to 30 June 2014. Where additional expenditure has been flagged,
Managers and Directors will be seeking to offset this against operational savings achieved
elsewhere within the budget as part of the budget review.




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